Isanti County local sales tax authorization provision

A bill for an act

relating to taxation; sales and use; authorizing Isanti County to impose a local sales

tax.

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

Section 1.
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ISANTI COUNTY; TAXES AUTHORIZED.
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Subdivision 1.

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Sales and use tax authorization.

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Notwithstanding Minnesota Statutes,

sections 297A.99, subdivision 1, and 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, Isanti County may impose, by ordinance, a sales and use tax of

one-quarter 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.

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Subd. 2.

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Use of sales and use tax revenues.

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The revenues derived from the tax authorized

under subdivision 1 must be used by Isanti County to pay the costs of collecting and

administering the tax, and to finance up to $25,000,000 for construction of the new highway

department facility, as well as the associated bond costs for any bonds issued under

subdivision 3.

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Subd. 3.

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Bonding authority.

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(a) Isanti County may issue bonds under Minnesota Statutes,

chapter 475, to finance all or a portion of the costs of the project authorized in subdivision

2. The aggregate principal amount of bonds issued under this subdivision may not exceed

$25,000,000, plus an amount applied to the payment of costs of issuing the bonds.

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

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.

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

Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of 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.

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Subd. 4.

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Termination of taxes.

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The tax imposed under subdivision 1 expires at the

earlier of: (1) 25 years after the tax is first imposed; or (2) when the county determines that

it has received from this tax $25,000,000 to fund the project listed in subdivision 2, plus an

amount sufficient to pay 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 timing of the termination of the tax under Minnesota Statutes, section

297A.99, subdivision 12, shall be placed in the county's general fund. The tax imposed

under subdivision 1 may expire at an earlier time if the county determines by ordinance.

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EFFECTIVE DATE.

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

County and its chief clerical officer comply with Minnesota Statutes, section 645.021,

subdivisions 2 and 3.

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