City of Elk River amend local sales tax imposition authorization

A bill for an act

relating to taxation; local sales and use; amending the authorization for the city of

Elk River to impose a local sales tax; amending Laws 2019, First Special Session

chapter 6, article 6, section 17, subdivisions 1, 3, by adding a subdivision.

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

Section 1.

Laws 2019, First Special Session chapter 6, article 6, section 17, subdivision

1, is amended to read:

Subdivision 1.

Sales and use tax authorization.

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(a)
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Notwithstanding Minnesota Statutes,

section
297A.99, subdivision 1
, or
477A.016
, or any other law or ordinance, and as approved

by the voters at the November 6, 2018, general election, the city of Elk River may impose,

by ordinance, a sales and use tax of 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.

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(b) If approved by the voters at a general election pursuant to Minnesota Statutes, section

297A.99, subdivision 3, paragraph (a), the city must use the revenues derived from the tax

authorized under paragraph (a) for the purpose specified in subdivision 2a.

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EFFECTIVE DATE.

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

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

645.021, subdivisions 2 and 3.

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Sec. 2.

Laws 2019, First Special Session chapter 6, article 6, section 17, is amended by

adding a subdivision to read:

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Subd. 2a.

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Use of revenues.

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In addition to the uses authorized under subdivision 2, the

revenues derived from the tax authorized under subdivision 1 must be used by the city of

Elk River to finance up to $20,000,000, plus associated bonding costs for, bonds issued

under subdivision 3 for construction of a new fire station. The project authorized under this

subdivision does not extend the termination requirements in subdivision 4.

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EFFECTIVE DATE.

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

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

645.021, subdivisions 2 and 3.

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Sec. 3.

Laws 2019, First Special Session chapter 6, article 6, section 17, subdivision 3, is

amended to read:

Subd. 3.

Bonding authority.

(a) The city of Elk River may issue bonds under Minnesota

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

in
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subdivision
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subdivisions
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2
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and 2a
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. The aggregate principal amount of bonds issued under

this subdivision may not exceed
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$35,000,000
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$55,000,000
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, plus an amount applied to the

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

available to the city of Elk River, 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
.

(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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EFFECTIVE DATE.

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

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

645.021, subdivisions 2 and 3.

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