Osseo authorization to impose a local sales and use tax

A bill for an act

relating to taxation; sales and use; authorizing the city of Osseo to impose a local

sales and use tax.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.
new text begin
CITY OF OSSEO; TAXES AUTHORIZED.
new text end

new text begin

Subdivision 1.

new text end

new text begin

Sales and use tax authorization.

new text end

new text begin

Notwithstanding Minnesota Statutes,

section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter,

and if approved by the voters at an election as required under Minnesota Statutes, section

297A.99, subdivision 3, the city of Osseo may impose by ordinance a sales and use tax of

one percent for the purposes specified in subdivision 2. Except as otherwise provided in

this section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition,

administration, collection, and enforcement of the tax authorized under this subdivision.

The tax imposed under this subdivision is in addition to any local sales and use tax imposed

under any other special law.

new text end

new text begin

Subd. 2.

new text end

new text begin

Use of sales and use tax revenues.

new text end

new text begin

The revenues derived from the tax authorized

under subdivision 1 must be used by the city of Osseo to pay the costs of collecting and

administering the tax and paying for the following projects in the city, including securing

and paying debt service on bonds issued to finance all or part of the following projects:

new text end

new text begin

(1) $10,000,000 for the Boerboom Park Community Hub Project, including the

comprehensive renovation and expansion of Boerboom Park as part of the City Campus

Project;

new text end

new text begin

(2) $3,000,000 for the City Hall Renovations Project, including the renovation and

betterment of city hall and associated infrastructure as part of the City Campus Project; and

new text end

new text begin

(3) $500,000 for the Sipe Park Project, including the construction and renovation of

improvements to Sipe Park in the city.

new text end

new text begin

Subd. 3.

new text end

new text begin

Bonding authority.

new text end

new text begin

(a) The city of Osseo may issue bonds under Minnesota

Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in

subdivision 2 and approved by the voters as required under Minnesota Statutes, section

297A.99, subdivision 3, paragraph (a).The aggregate principal amount of bonds issued

under this subdivision may not exceed:

new text end

new text begin

(1) $10,000,000 for the project listed in subdivision 2, clause (1), plus an amount to be

applied to the payment of the costs of issuing the bonds;

new text end

new text begin

(2) $3,000,000 for the project listed in subdivision 2, clause (2), plus an amount to be

applied to the payment of the costs of issuing the bonds; and

new text end

new text begin

(3) $500,000 for the project listed in subdivision 2, clause (3), plus an amount to be

applied to the payment of the costs of issuing the bonds.

new text end

new text begin

(b) The bonds may be paid from or secured by any money available to the city of Osseo,

including the tax authorized under subdivision 1. The issuance of bonds under this

subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.

new text end

new text begin

(c) The bonds are not included in computing any debt limitation applicable to the city

of Osseo, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal

and interest on the bonds is not subject to any levy limitation. A separate election to approve

the bonds under Minnesota Statutes, section 475.58, is not required.

new text end

new text begin

Subd. 4.

new text end

new text begin

Termination of taxes.

new text end

new text begin

Subject to Minnesota Statutes, section 297A.99,

subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 20 years

after the tax is first imposed, or (2) when the city council determines that the amount received

from the tax is sufficient to pay for the project costs authorized under subdivision 2 for

projects approved by voters as required under Minnesota Statutes, section 297A.99,

subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance

of any bonds authorized under subdivision 3, including interest on the bonds. Except as

otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),

any money remaining after payment of the allowed costs due to the timing of the termination

of the tax under Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the

general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time

if the city so determines by ordinance.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective the day after the governing body of the

city of Osseo and its chief clerical officer comply with Minnesota Statutes, section 645.021,

subdivisions 2 and 3.

new text end