Hermantown local sales tax authorization modifications

A bill for an act

relating to taxation; sales and use; modifying the Hermantown local sales tax

authorization; amending Laws 2021, First Special Session chapter 14, article 8,

section 8, subdivisions 1, 2, 3.

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

Section 1.

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

1, is amended to read:

Subdivision 1.

Sales and use tax authorization.

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 Hermantown 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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The

amendments to subdivisions 2 and 3 made by sections 2 and 3 apply notwithstanding

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

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EFFECTIVE DATE.

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

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

645.021, subdivisions 2 and 3.

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Sec. 2.

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

amended to read:

Subd. 2.

Use of sales and use tax revenues.

The revenues derived from the tax authorized

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

and administering the tax and paying for the following projects in the city related to a

Community Recreational Initiative, including securing and paying debt service on bonds

issued to finance all or part of the following projects:

(1)
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$10,840,000 for
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an addition of a second ice sheet with locker rooms and other facilities

and upgrades to the Hermantown Hockey Arena;

(2)
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$4,570,000 for
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construction of the Hermantown-Proctor trail running from the Essentia

Wellness Center to the border with Proctor and eventually connecting to the Munger Trail;

and

(3)
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$3,900,000 for
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improvements and upgrades to Fichtner Park.

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EFFECTIVE DATE.

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

city of Hermantown 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 8, subdivision 3, is

amended to read:

Subd. 3.

Bonding authority.

(a) The city of Hermantown may issue bonds under

Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities

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

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

issued under this subdivision may not exceed:
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(1) $10,840,000 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;

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(2) $4,570,000 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

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(3) $3,900,000 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.

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The bonds may be paid from or secured by any funds available to the city of Hermantown,

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 Hermantown, 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 Hermantown and its chief clerical officer comply with Minnesota Statutes, section

645.021, subdivisions 2 and 3.

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