Minnesota 2023-2024 Regular Session

Minnesota House Bill HF828 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 taxes; local sales and use; extending the local sales tax authorization
3	3	1.3 for the city of Rochester for additional projects; amending Laws 1998, chapter
4	4	1.4 389, article 8, section 43, 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	1.11297A.99, subdivisions 1 and 3, paragraphs (a) and (d), or 477A.016, or any other law,
12	12	1.12ordinance, or city charter, and if approved by the voters at a general election as required
13	13	1.13under Minnesota Statutes, section 297A.99, subdivision 3, the city of Rochester may extend
14	14	1.14the sales and use tax of one-half of one percent authorized under subdivision 1, paragraph
15	15	1.15(a), for the purposes specified in subdivision 3a. Except as otherwise provided in this section,
16	16	1.16the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
17	17	1.17collection, and enforcement of the tax authorized under this subdivision. The tax imposed
18	18	1.18under this subdivision is in addition to any local sales and use tax imposed under any other
19	19	1.19special law.
20	20	1.20 EFFECTIVE DATE.This section is effective the day after the governing body of the
21	21	1.21city of Rochester and its chief clerical officer comply with Minnesota Statutes, section
22	22	1.22645.021, subdivisions 2 and 3.
23	23	1Section 1.
24	24	REVISOR EAP/LN 23-0239501/18/23
25	25	State of Minnesota
26	26	This Document can be made available
27	27	in alternative formats upon request
28	28	HOUSE OF REPRESENTATIVES
29	29	H. F. No. 828
30	30	NINETY-THIRD SESSION
31	31	Authored by Smith, Liebling and Hicks01/25/2023
32	32	The bill was read for the first time and referred to the Committee on Taxes 2.1 Sec. 2. Laws 1998, chapter 389, article 8, section 43, as amended by Laws 2005, First
33	33	2.2Special Session chapter 3, article 5, sections 28, 29, and 30, Laws 2011, First Special Session
34	34	2.3chapter 7, article 4, sections 5, 6, and 7, and Laws 2013, chapter 143, article 10, sections
35	35	2.411, 12, and 13, is amended by adding a subdivision to read:
36	36	2.5 Subd. 3a.Use of sales and use tax revenues; additional projects.The revenues derived
37	37	2.6from the extension of the tax authorized under subdivision 1a must be used by the city of
38	38	2.7Rochester to pay the costs of collecting and administering the tax and paying for the following
39	39	2.8projects in the city, including securing and paying debt service on bonds issued to finance
40	40	2.9all or part of the following projects:
41	41	2.10 (1) notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraph (d),
42	42	2.11$50,000,000, plus associated bonding costs for the economic vitality fund;
43	43	2.12 (2) notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraph (d),
44	44	2.13$50,000,000, plus associated bonding costs for street reconstruction;
45	45	2.14 (3) notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraph (d),
46	46	2.15$40,000,000, plus associated bonding costs for flood control and water quality; and
47	47	2.16 (4) $65,000,000, plus associated bonding costs for a Regional Sports and Recreation
48	48	2.17Complex.
49	49	2.18 EFFECTIVE DATE.This section is effective the day after the governing body of the
50	50	2.19city of Rochester and its chief clerical officer comply with Minnesota Statutes, section
51	51	2.20645.021, subdivisions 2 and 3.
52	52	2.21 Sec. 3. Laws 1998, chapter 389, article 8, section 43, as amended by Laws 2005, First
53	53	2.22Special Session chapter 3, article 5, sections 28, 29, and 30, Laws 2011, First Special Session
54	54	2.23chapter 7, article 4, sections 5, 6, and 7, and Laws 2013, chapter 143, article 10, sections
55	55	2.2411, 12, and 13, is amended by adding a subdivision to read:
56	56	2.25 Subd. 4a.Bonding authority; additional projects and extension of tax.(a) The city
57	57	2.26of Rochester may issue bonds under Minnesota Statutes, chapter 475, to finance all or a
58	58	2.27portion of the costs of the projects authorized in subdivision 3a and approved by the voters
59	59	2.28as required under Minnesota Statutes, section 297A.99, subdivision 3, paragraph (a). The
60	60	2.29aggregate principal amount of bonds issued under this subdivision may not exceed
61	61	2.30$205,000,000, plus an amount to be applied to the payment of the costs of issuing the bonds.
62	62	2.31The bonds may be paid from or secured by any funds available to the city of Rochester,
63	63	2.32including the tax authorized under subdivision 1a and the full faith and credit of the city.
64	64	2Sec. 3.
65	65	REVISOR EAP/LN 23-0239501/18/23 3.1The issuance of bonds under this subdivision is not subject to Minnesota Statutes, sections
66	66	3.2275.60 and 275.61.
67	67	3.3 (b) The bonds are not included in computing any debt limitation applicable to the city
68	68	3.4of Rochester, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
69	69	3.5and interest on the bonds is not subject to any levy limitation. A separate election to approve
70	70	3.6the bonds under Minnesota Statutes, section 475.58, is not required.
71	71	3.7 EFFECTIVE DATE.This section is effective the day after the governing body of the
72	72	3.8city of Rochester and its chief clerical officer comply with Minnesota Statutes, section
73	73	3.9645.021, subdivisions 2 and 3.
74	74	3.10 Sec. 4. Laws 1998, chapter 389, article 8, section 43, subdivision 5, as amended by Laws
75	75	3.112005, First Special Session chapter 3, article 5, section 30, Laws 2011, First Special Session
76	76	3.12chapter 7, article 4, section 7, and Laws 2013, chapter 143, article 10, section 13, is amended
77	77	3.13to read:
78	78	3.14 Subd. 5.Termination of taxes.(a) The taxes imposed under subdivisions 1 and 2 expire
79	79	3.15at the later of (1) December 31, 2009, or (2) when the city council determines that sufficient
80	80	3.16funds have been received from the taxes to finance the first $71,500,000 of capital
81	81	3.17expenditures and bonds for the projects authorized in subdivision 3, including the amount
82	82	3.18to prepay or retire at maturity the principal, interest, and premium due on any bonds issued
83	83	3.19for the projects under subdivision 4, unless the taxes are extended as allowed in paragraph
84	84	3.20(b). Any funds remaining after completion of the project and retirement or redemption of
85	85	3.21the bonds shall also be used to fund the projects under subdivision 3. The taxes imposed
86	86	3.22under subdivisions 1 and 2 may expire at an earlier time if the city so determines by
87	87	3.23ordinance.
88	88	3.24 (b) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any other
89	89	3.25contrary provision of law, ordinance, or city charter, the city of Rochester may, by ordinance,
90	90	3.26extend the taxes authorized in subdivisions 1 and 2 beyond December 31, 2009, if approved
91	91	3.27by the voters of the city at a special election in 2005 or the general election in 2006. The
92	92	3.28question put to the voters must indicate that an affirmative vote would allow up to an
93	93	3.29additional $40,000,000 of sales tax revenues be raised and up to $40,000,000 of bonds to
94	94	3.30be issued above the amount authorized in the June 23, 1998, referendum for the projects
95	95	3.31specified in subdivision 3. If the taxes authorized in subdivisions 1 and 2 are extended under
96	96	3.32this paragraph, the taxes expire when the city council determines that sufficient funds have
97	97	3.33been received from the taxes to finance the projects and to prepay or retire at maturity the
98	98	3.34principal, interest, and premium due on any bonds issued for the projects under subdivision
99	99	3Sec. 4.
100	100	REVISOR EAP/LN 23-0239501/18/23 4.14. Any funds remaining after completion of the project and retirement or redemption of the
101	101	4.2bonds may be placed in the general fund of the city.
102	102	4.3 (c) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any other
103	103	4.4contrary provision of law, ordinance, or city charter, the city of Rochester may, by ordinance,
104	104	4.5extend the taxes authorized in subdivisions 1, paragraph (a), and 2, up to December 31,
105	105	4.62049, provided that all additional revenues above those necessary to fund the projects and
106	106	4.7associated financing costs listed in subdivision 3, paragraphs (a) to (e), are committed to
107	107	4.8fund public infrastructure projects contained in the development plan adopted under
108	108	4.9Minnesota Statutes, section 469.43, including all financing costs; otherwise the taxes
109	109	4.10terminate when the city council determines that sufficient funds have been received from
110	110	4.11the taxes to finance expenditures and bonds for the projects authorized in subdivision 3,
111	111	4.12paragraphs (a) to (e), plus an amount equal to the costs of issuance of the bonds and including
112	112	4.13the amount to prepay or retire at maturity the principal, interest, and premiums due on any
113	113	4.14bonds issued for the projects under subdivision 4.
114	114	4.15 (d) The tax imposed under subdivision 1, paragraph (b), expires at the earlier of December
115	115	4.1631, 2049, or when the city council determines that sufficient funds have been raised from
116	116	4.17the tax plus all other city funding sources authorized in this article to meet the city obligation
117	117	4.18for financing the public infrastructure projects contained in the development plan adopted
118	118	4.19under Minnesota Statutes, section 469.43, including all financing costs.
119	119	4.20 (e) The tax imposed under subdivision 1a expires at the earlier of (1) 24 years after first
120	120	4.21imposed, or (2) when the city council determines that the amount of revenues received from
121	121	4.22the tax is sufficient to pay for the project costs authorized under subdivision 3a for projects
122	122	4.23approved by the voters as required under Minnesota Statutes, section 297A.99, subdivision
123	123	4.243, paragraph (a), plus an amount sufficient to pay the costs related to issuance of the bonds
124	124	4.25under subdivision 4a, including interest on the bonds. Except as otherwise provided in
125	125	4.26Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining
126	126	4.27after payment of the allowed costs due to the timing of the termination of the tax under
127	127	4.28Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the general fund of
128	128	4.29the city. The tax imposed under subdivision 1a may expire at an earlier time if the city so
129	129	4.30determines by ordinance.
130	130	4.31 EFFECTIVE DATE.This section is effective the day after the governing body of the
131	131	4.32city of Rochester and its chief clerical officer comply with Minnesota Statutes, section
132	132	4.33645.021, subdivisions 2 and 3.
133	133	4Sec. 4.
134	134	REVISOR EAP/LN 23-0239501/18/23