City of Lanesboro local sales and use tax imposition authorization

A bill for an act

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

a local sales tax.

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

Section 1.
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CITY OF LANESBORO; TAXES AUTHORIZED.
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Subdivision 1.

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Sales and use tax authorization.

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Notwithstanding Minnesota Statutes,

section 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 Lanesboro may impose by ordinance a sales and use tax of up to one-half 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 authorized 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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Notwithstanding section 297A.99,

subdivision 2, paragraph (d), the revenues derived from the tax authorized under subdivision

1 must be used by the city of Lanesboro to pay for the following projects in the city, including

the costs of collecting and administering the tax and securing and paying debt service on

bonds issued to finance all or part of the following projects:

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(1) $500,000 for rehabilitation and improvements to Sylvan Park; and

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(2) $2,000,000 for the Trunk Highway 250 road improvement project.

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Subd. 3.

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Bonding authority.

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(a) The city of Lanesboro 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 at an election 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 $2,500,000, plus an amount applied to the

payment of the costs of issuing the bonds. The bonds may be paid from or secured by any

money available to the city, 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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(b) The bonds are not included in computing any debt limitation applicable to the city.

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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Subject to Minnesota Statutes, section 297A.99,

subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) 30 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 the voters at an election 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 authorized under subdivision 1 may

expire at an earlier time if the city so determines by ordinance.

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EFFECTIVE DATE.

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

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

645.021, subdivisions 2 and 3.

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