City of St. Peter local sales tax provision modification

A bill for an act

relating to taxation; sales and use; modifying the city of St. Peter local sales tax;

amending Laws 2021, First Special Session chapter 14, article 8, section 17,

subdivisions 1, 2, 3, 4.

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

Section 1.

Laws 2021, First Special Session chapter 14, article 8, 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, ordinance, or city charter,

and if approved by the voters at a general election as required under Minnesota Statutes,

section
297A.99, subdivision 3
, the city of St. Peter may impose by ordinance a sales and

use tax of one-half of one percent for the purposes specified in subdivision 2.

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(b) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraphs (a)

and (b), the city may modify the tax authorized under paragraph (a) as provided in

subdivisions 2 to 4.

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(c)
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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.

Sec. 2.

Laws 2021, First Special Session chapter 14, article 8, section 17, subdivision 2,

is amended to read:

Subd. 2.

Use of sales and use tax revenues.

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Notwithstanding Minnesota Statutes, section

297A.99, subdivision 3, paragraph (a),
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the revenues derived from the tax authorized under

subdivision 1 must be used by the city of St. Peter to pay the costs of collecting and

administering the tax and paying for
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up to
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the following projects in the city, plus an amount

needed for securing and paying debt service on bonds issued to finance all or part of the

projects:
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$9,121,000
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(1) $9,900,000
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for construction of a new fire station
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, plus an amount needed

for securing and paying debt service on bonds issued to finance the project
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; and
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(2) $1,950,000 for Phase 2 of Gorman Park improvements
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.

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EFFECTIVE DATE.

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

city of St. Peter and its chief clerical officer comply with Minnesota Statutes, section 645.021,

subdivisions 2 and 3.

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Sec. 3.

Laws 2021, First Special Session chapter 14, article 8, section 17, subdivision 3,

is amended to read:

Subd. 3.

Bonding authority.

(a) The city of St. Peter may issue bonds under Minnesota

Statutes, chapter 475, to finance the costs of the
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facility
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projects
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authorized in subdivision

2. The aggregate principal amount of bonds issued under this subdivision may not exceed
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$9,121,000
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$11,850,000
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for the
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project
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projects
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listed in subdivision 2, plus an amount to

be applied to the payment of the costs of issuing the bonds. The bonds may be paid from

or secured by any funds available to the city of St. Peter, 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

of St. Peter; 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.

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EFFECTIVE DATE.

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

city of St. Peter and its chief clerical officer comply with Minnesota Statutes, section 645.021,

subdivisions 2 and 3.

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Sec. 4.

Laws 2021, First Special Session chapter 14, article 8, section 17, subdivision 4,

is amended to read:

Subd. 4.

Termination of taxes.

Subject to Minnesota Statutes, section
297A.99,

subdivision 12
, the tax imposed under subdivision 1 expires at the earlier of: (1) 40 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
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$9,121,000
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$11,850,000
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in project costs authorized

under subdivision 2, 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 funds

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
, shall 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.

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EFFECTIVE DATE.

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

city of St. Peter and its chief clerical officer comply with Minnesota Statutes, section 645.021,

subdivisions 2 and 3.

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