Minnesota 2023-2024 Regular Session

Minnesota House Bill HF571 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to taxation; extending the Rochester local sales and use tax authorization
3	3	1.3 for additional projects; amending Laws 1998, chapter 389, article 8, section 43,
4	4	1.4 subdivision 5, as amended, by adding subdivisions.
5	5	1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
6	6	1.6 Section 1. Laws 1998, chapter 389, article 8, section 43, as amended by Laws 2005, First
7	7	1.7Special Session chapter 3, article 5, sections 28, 29, and 30, Laws 2011, First Special Session
8	8	1.8chapter 7, article 4, sections 5, 6, and 7, and Laws 2013, chapter 143, article 10, sections
9	9	1.911, 12, and 13, is amended by adding a subdivision to read:
10	10	1.10 Subd. 1a.Authorization; extension.Notwithstanding Minnesota Statutes, section
11	11	1.11477A.016, or any other law, ordinance, or city charter, and if approved by the voters at a
12	12	1.12general election as required under Minnesota Statutes, section 297A.99, subdivision 3, the
13	13	1.13city of Rochester may extend the sales and use tax of one-half of one percent authorized
14	14	1.14under subdivision 1, paragraph (a), for the purposes specified in subdivision 3a. Except as
15	15	1.15otherwise provided in this section, the provisions of Minnesota Statutes, section 297A.99,
16	16	1.16govern the imposition, administration, collection, and enforcement of the tax authorized
17	17	1.17under this subdivision. The tax imposed under this subdivision is in addition to any local
18	18	1.18sales and use tax imposed under any other special law.
19	19	1.19 EFFECTIVE DATE.This section is effective the day after the governing body of the
20	20	1.20city of Rochester and its chief clerical officer comply with Minnesota Statutes, section
21	21	1.21645.021, subdivisions 2 and 3.
22	22	1.22 Sec. 2. Laws 1998, chapter 389, article 8, section 43, as amended by Laws 2005, First
23	23	1.23Special Session chapter 3, article 5, sections 28, 29, and 30, Laws 2011, First Special Session
24	24	1Sec. 2.
25	25	REVISOR EAP/HL 23-0166601/09/23
26	26	State of Minnesota
27	27	This Document can be made available
28	28	in alternative formats upon request
29	29	HOUSE OF REPRESENTATIVES
30	30	H. F. No. 571
31	31	NINETY-THIRD SESSION
32	32	Authored by Davids01/19/2023
33	33	The bill was read for the first time and referred to the Committee on Taxes 2.1chapter 7, article 4, sections 5, 6, and 7, and Laws 2013, chapter 143, article 10, sections
34	34	2.211, 12, and 13, is amended by adding a subdivision to read:
35	35	2.3 Subd. 3a.Use of sales and use tax revenues; additional projects.(a) The revenues
36	36	2.4derived from the extension of the tax authorized under subdivision 1a must be used by the
37	37	2.5city of Rochester to pay the costs of collecting and administering the tax and paying for the
38	38	2.6following projects in the city, including securing and paying debt service on bonds issued
39	39	2.7to finance all or part of the following projects:
40	40	2.8 (1) notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraphs (a),
41	41	2.9(b), and (d):
42	42	2.10 (i) $60,000,000, plus associated bonding costs for an economic vitality fund, subject to
43	43	2.11adoption of a resolution under paragraph (c), clause (1); or
44	44	2.12 (ii) $50,000,000, plus associated bonding costs for an economic vitality fund, subject
45	45	2.13to the requirements of paragraph (c), clause (2);
46	46	2.14 (2) notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraph (d),
47	47	2.15$50,000,000, plus associated bonding costs for street reconstruction;
48	48	2.16 (3) notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraph (d),
49	49	2.17$40,000,000, plus associated bonding costs for flood control and water quality; and
50	50	2.18 (4) $65,000,000, plus associated bonding costs for a Regional Community and Recreation
51	51	2.19Complex.
52	52	2.20 (b) The city must use $15,000,000 of the money allocated to the purpose in paragraph
53	53	2.21(a), clause (1), for a grant to Rochester Area Economic Development Incorporated to establish
54	54	2.22the EverRAEDI development fund. Of that amount, $5,000,000 must be used for grants and
55	55	2.23loans for economic development projects in communities located in the city of Rochester,
56	56	2.24and $10,000,000 must be used for grants and loans for economic development projects in
57	57	2.25communities located in the Rochester metropolitan statistical area. Rochester Area Economic
58	58	2.26Development Incorporated may charge grant and loan recipients a service fee of up to five
59	59	2.27percent of the grant or loan amount to pay for administrative costs associated with the
60	60	2.28EverRAEDI development fund. Rochester Area Economic Development Incorporated shall
61	61	2.29report on, at minimum, an annual basis on all EverRAEDI fund activities to the governing
62	62	2.30board of the city of Rochester.
63	63	2.31 (c) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraphs
64	64	2.32(a), (b), and (d), the city must either:
65	65	2Sec. 2.
66	66	REVISOR EAP/HL 23-0166601/09/23 3.1 (1) pass a resolution that authorizes $10,000,000 of the revenues from the tax authorized
67	67	3.2under subdivision 1a for the use described in paragraph (a), clause (1), item (i), to be used
68	68	3.3for an economic development fund for the purposes specified in paragraph (b); or
69	69	3.4 (2) if the city does not pass a resolution under clause (1), the city must allocate
70	70	3.5$10,000,000 from the amount authorized in paragraph (a), clause (1), item (ii), for the
71	71	3.6purposes specified in paragraph (b).
72	72	3.7 EFFECTIVE DATE.This section is effective the day after compliance by the governing
73	73	3.8body of the city of Rochester with Minnesota Statutes, section 645.021.
74	74	3.9 Sec. 3. Laws 1998, chapter 389, article 8, section 43, as amended by Laws 2005, First
75	75	3.10Special Session chapter 3, article 5, sections 28, 29, and 30, Laws 2011, First Special Session
76	76	3.11chapter 7, article 4, sections 5, 6, and 7, and Laws 2013, chapter 143, article 10, sections
77	77	3.1211, 12, and 13, is amended by adding a subdivision to read:
78	78	3.13 Subd. 4a.Bonding authority; additional projects and extension of tax.(a) The city
79	79	3.14of Rochester may issue bonds under Minnesota Statutes, chapter 475, to finance all or a
80	80	3.15portion of the costs of the projects authorized in subdivision 3a and approved by the voters
81	81	3.16as required under Minnesota Statutes, section 297A.99, subdivision 3, paragraph (a). The
82	82	3.17aggregate principal amount of bonds issued under this subdivision may not exceed:
83	83	3.18 (1) if the city passes a resolution under subdivision 3a, paragraph (c), clause (1),
84	84	3.19$215,000,000 for the projects described in subdivision 3a, paragraph (a), clauses (1), item
85	85	3.20(i), and (2) to (4), plus an amount to be applied to the payment of the costs of issuing the
86	86	3.21bonds; or
87	87	3.22 (2) if the city does not pass a resolution under subdivision 3a, paragraph (c), clause (1),
88	88	3.23$205,000,000 for the projects described in subdivision 3a, paragraph (a), clauses (1), item
89	89	3.24(ii), and (2) to (4), plus an amount to be applied to the payment of the costs of issuing the
90	90	3.25bonds.
91	91	3.26 (b) The bonds may be paid from or secured by any funds available to the city of
92	92	3.27Rochester, including the tax authorized under subdivision 1a and the full faith and credit
93	93	3.28of the city. The issuance of bonds under this subdivision is not subject to Minnesota Statutes,
94	94	3.29sections 275.60 and 275.61.
95	95	3.30 (c) The bonds are not included in computing any debt limitation applicable to the city
96	96	3.31of Rochester, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
97	97	3.32and interest on the bonds is not subject to any levy limitation. A separate election to approve
98	98	3.33the bonds under Minnesota Statutes, section 475.58, is not required.
99	99	3Sec. 3.
100	100	REVISOR EAP/HL 23-0166601/09/23 4.1 EFFECTIVE DATE.This section is effective the day after the governing body of the
101	101	4.2city of Rochester and its chief clerical officer comply with Minnesota Statutes, section
102	102	4.3645.021, subdivisions 2 and 3.
103	103	4.4 Sec. 4. Laws 1998, chapter 389, article 8, section 43, subdivision 5, as amended by Laws
104	104	4.52005, First Special Session chapter 3, article 5, section 30, Laws 2011, First Special Session
105	105	4.6chapter 7, article 4, section 7, and Laws 2013, chapter 143, article 10, section 13, is amended
106	106	4.7to read:
107	107	4.8 Subd. 5.Termination of taxes.(a) The taxes imposed under subdivisions 1 and 2 expire
108	108	4.9at the later of (1) December 31, 2009, or (2) when the city council determines that sufficient
109	109	4.10funds have been received from the taxes to finance the first $71,500,000 of capital
110	110	4.11expenditures and bonds for the projects authorized in subdivision 3, including the amount
111	111	4.12to prepay or retire at maturity the principal, interest, and premium due on any bonds issued
112	112	4.13for the projects under subdivision 4, unless the taxes are extended as allowed in paragraph
113	113	4.14(b). Any funds remaining after completion of the project and retirement or redemption of
114	114	4.15the bonds shall also be used to fund the projects under subdivision 3. The taxes imposed
115	115	4.16under subdivisions 1 and 2 may expire at an earlier time if the city so determines by
116	116	4.17ordinance.
117	117	4.18 (b) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any other
118	118	4.19contrary provision of law, ordinance, or city charter, the city of Rochester may, by ordinance,
119	119	4.20extend the taxes authorized in subdivisions 1 and 2 beyond December 31, 2009, if approved
120	120	4.21by the voters of the city at a special election in 2005 or the general election in 2006. The
121	121	4.22question put to the voters must indicate that an affirmative vote would allow up to an
122	122	4.23additional $40,000,000 of sales tax revenues be raised and up to $40,000,000 of bonds to
123	123	4.24be issued above the amount authorized in the June 23, 1998, referendum for the projects
124	124	4.25specified in subdivision 3. If the taxes authorized in subdivisions 1 and 2 are extended under
125	125	4.26this paragraph, the taxes expire when the city council determines that sufficient funds have
126	126	4.27been received from the taxes to finance the projects and to prepay or retire at maturity the
127	127	4.28principal, interest, and premium due on any bonds issued for the projects under subdivision
128	128	4.294. Any funds remaining after completion of the project and retirement or redemption of the
129	129	4.30bonds may be placed in the general fund of the city.
130	130	4.31 (c) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any other
131	131	4.32contrary provision of law, ordinance, or city charter, the city of Rochester may, by ordinance,
132	132	4.33extend the taxes authorized in subdivisions 1, paragraph (a), and 2, up to December 31,
133	133	4.342049, provided that all additional revenues above those necessary to fund the projects and
134	134	4Sec. 4.
135	135	REVISOR EAP/HL 23-0166601/09/23 5.1associated financing costs listed in subdivision 3, paragraphs (a) to (e), are committed to
136	136	5.2fund public infrastructure projects contained in the development plan adopted under
137	137	5.3Minnesota Statutes, section 469.43, including all financing costs; otherwise the taxes
138	138	5.4terminate when the city council determines that sufficient funds have been received from
139	139	5.5the taxes to finance expenditures and bonds for the projects authorized in subdivision 3,
140	140	5.6paragraphs (a) to (e), plus an amount equal to the costs of issuance of the bonds and including
141	141	5.7the amount to prepay or retire at maturity the principal, interest, and premiums due on any
142	142	5.8bonds issued for the projects under subdivision 4.
143	143	5.9 (d) The tax imposed under subdivision 1, paragraph (b), expires at the earlier of December
144	144	5.1031, 2049, or when the city council determines that sufficient funds have been raised from
145	145	5.11the tax plus all other city funding sources authorized in this article to meet the city obligation
146	146	5.12for financing the public infrastructure projects contained in the development plan adopted
147	147	5.13under Minnesota Statutes, section 469.43, including all financing costs.
148	148	5.14 (e) The tax imposed under subdivision 1a expires at the earlier of (1) 18 years after first
149	149	5.15imposed, or (2) when the city council determines that the amount of revenues received from
150	150	5.16the tax is sufficient to pay for the project costs authorized under subdivision 3a for projects
151	151	5.17approved by the voters as required under Minnesota Statutes, section 297A.99, subdivision
152	152	5.183, paragraph (a), plus an amount sufficient to pay the costs related to issuance of the bonds
153	153	5.19under subdivision 4a, including interest on the bonds. Except as otherwise provided in
154	154	5.20Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining
155	155	5.21after payment of the allowed costs due to the timing of the termination of the tax under
156	156	5.22Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the general fund of
157	157	5.23the city. The tax imposed under subdivision 1a may expire at an earlier time if the city so
158	158	5.24determines by ordinance.
159	159	5.25 EFFECTIVE DATE.This section is effective the day after the governing body of the
160	160	5.26city of Rochester and its chief clerical officer comply with Minnesota Statutes, section
161	161	5.27645.021, subdivisions 2 and 3.
162	162	5Sec. 4.
163	163	REVISOR EAP/HL 23-0166601/09/23