1.1 A bill for an act
1.2 relating to taxes; local sales and use; extending the local sales tax authorization
1.3 for the city of Rochester for additional projects; amending Laws 1998, chapter
1.4 389, article 8, section 43, subdivision 5, as amended, by adding subdivisions.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Laws 1998, chapter 389, article 8, section 43, as amended by Laws 2005, First
1.7Special Session chapter 3, article 5, sections 28, 29, and 30, Laws 2011, First Special Session
1.8chapter 7, article 4, sections 5, 6, and 7, and Laws 2013, chapter 143, article 10, sections
1.911, 12, and 13, is amended by adding a subdivision to read:
1.10 Subd. 1a.Authorization; extension.Notwithstanding Minnesota Statutes, section
1.11297A.99, subdivisions 1 and 3, paragraphs (a) and (d), or 477A.016, or any other law,
1.12ordinance, or city charter, and if approved by the voters at a general election as required
1.13under Minnesota Statutes, section 297A.99, subdivision 3, the city of Rochester may extend
1.14the sales and use tax of one-half of one percent authorized under subdivision 1, paragraph
1.15(a), for the purposes specified in subdivision 3a. Except as otherwise provided in this section,
1.16the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
1.17collection, and enforcement of the tax authorized under this subdivision. The tax imposed
1.18under this subdivision is in addition to any local sales and use tax imposed under any other
1.19special law.
1.20 EFFECTIVE DATE.This section is effective the day after the governing body of the
1.21city of Rochester and its chief clerical officer comply with Minnesota Statutes, section
1.22645.021, subdivisions 2 and 3.
1Section 1.
REVISOR EAP/LN 23-0239501/18/23
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 828
NINETY-THIRD SESSION
Authored by Smith, Liebling and Hicks01/25/2023
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
2.2Special Session chapter 3, article 5, sections 28, 29, and 30, Laws 2011, First Special Session
2.3chapter 7, article 4, sections 5, 6, and 7, and Laws 2013, chapter 143, article 10, sections
2.411, 12, and 13, is amended by adding a subdivision to read:
2.5 Subd. 3a.Use of sales and use tax revenues; additional projects.The revenues derived
2.6from the extension of the tax authorized under subdivision 1a must be used by the city of
2.7Rochester to pay the costs of collecting and administering the tax and paying for the following
2.8projects in the city, including securing and paying debt service on bonds issued to finance
2.9all or part of the following projects:
2.10 (1) notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraph (d),
2.11$50,000,000, plus associated bonding costs for the economic vitality fund;
2.12 (2) notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraph (d),
2.13$50,000,000, plus associated bonding costs for street reconstruction;
2.14 (3) notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraph (d),
2.15$40,000,000, plus associated bonding costs for flood control and water quality; and
2.16 (4) $65,000,000, plus associated bonding costs for a Regional Sports and Recreation
2.17Complex.
2.18 EFFECTIVE DATE.This section is effective the day after the governing body of the
2.19city of Rochester and its chief clerical officer comply with Minnesota Statutes, section
2.20645.021, subdivisions 2 and 3.
2.21 Sec. 3. Laws 1998, chapter 389, article 8, section 43, as amended by Laws 2005, First
2.22Special Session chapter 3, article 5, sections 28, 29, and 30, Laws 2011, First Special Session
2.23chapter 7, article 4, sections 5, 6, and 7, and Laws 2013, chapter 143, article 10, sections
2.2411, 12, and 13, is amended by adding a subdivision to read:
2.25 Subd. 4a.Bonding authority; additional projects and extension of tax.(a) The city
2.26of Rochester may issue bonds under Minnesota Statutes, chapter 475, to finance all or a
2.27portion of the costs of the projects authorized in subdivision 3a and approved by the voters
2.28as required under Minnesota Statutes, section 297A.99, subdivision 3, paragraph (a). The
2.29aggregate principal amount of bonds issued under this subdivision may not exceed
2.30$205,000,000, plus an amount to be applied to the payment of the costs of issuing the bonds.
2.31The bonds may be paid from or secured by any funds available to the city of Rochester,
2.32including the tax authorized under subdivision 1a and the full faith and credit of the city.
2Sec. 3.
REVISOR EAP/LN 23-0239501/18/23 3.1The issuance of bonds under this subdivision is not subject to Minnesota Statutes, sections
3.2275.60 and 275.61.
3.3 (b) The bonds are not included in computing any debt limitation applicable to the city
3.4of Rochester, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
3.5and interest on the bonds is not subject to any levy limitation. A separate election to approve
3.6the bonds under Minnesota Statutes, section 475.58, is not required.
3.7 EFFECTIVE DATE.This section is effective the day after the governing body of the
3.8city of Rochester and its chief clerical officer comply with Minnesota Statutes, section
3.9645.021, subdivisions 2 and 3.
3.10 Sec. 4. Laws 1998, chapter 389, article 8, section 43, subdivision 5, as amended by Laws
3.112005, First Special Session chapter 3, article 5, section 30, Laws 2011, First Special Session
3.12chapter 7, article 4, section 7, and Laws 2013, chapter 143, article 10, section 13, is amended
3.13to read:
3.14 Subd. 5.Termination of taxes.(a) The taxes imposed under subdivisions 1 and 2 expire
3.15at the later of (1) December 31, 2009, or (2) when the city council determines that sufficient
3.16funds have been received from the taxes to finance the first $71,500,000 of capital
3.17expenditures and bonds for the projects authorized in subdivision 3, including the amount
3.18to prepay or retire at maturity the principal, interest, and premium due on any bonds issued
3.19for the projects under subdivision 4, unless the taxes are extended as allowed in paragraph
3.20(b). Any funds remaining after completion of the project and retirement or redemption of
3.21the bonds shall also be used to fund the projects under subdivision 3. The taxes imposed
3.22under subdivisions 1 and 2 may expire at an earlier time if the city so determines by
3.23ordinance.
3.24 (b) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any other
3.25contrary provision of law, ordinance, or city charter, the city of Rochester may, by ordinance,
3.26extend the taxes authorized in subdivisions 1 and 2 beyond December 31, 2009, if approved
3.27by the voters of the city at a special election in 2005 or the general election in 2006. The
3.28question put to the voters must indicate that an affirmative vote would allow up to an
3.29additional $40,000,000 of sales tax revenues be raised and up to $40,000,000 of bonds to
3.30be issued above the amount authorized in the June 23, 1998, referendum for the projects
3.31specified in subdivision 3. If the taxes authorized in subdivisions 1 and 2 are extended under
3.32this paragraph, the taxes expire when the city council determines that sufficient funds have
3.33been received from the taxes to finance the projects and to prepay or retire at maturity the
3.34principal, interest, and premium due on any bonds issued for the projects under subdivision
3Sec. 4.
REVISOR EAP/LN 23-0239501/18/23 4.14. Any funds remaining after completion of the project and retirement or redemption of the
4.2bonds may be placed in the general fund of the city.
4.3 (c) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any other
4.4contrary provision of law, ordinance, or city charter, the city of Rochester may, by ordinance,
4.5extend the taxes authorized in subdivisions 1, paragraph (a), and 2, up to December 31,
4.62049, provided that all additional revenues above those necessary to fund the projects and
4.7associated financing costs listed in subdivision 3, paragraphs (a) to (e), are committed to
4.8fund public infrastructure projects contained in the development plan adopted under
4.9Minnesota Statutes, section 469.43, including all financing costs; otherwise the taxes
4.10terminate when the city council determines that sufficient funds have been received from
4.11the taxes to finance expenditures and bonds for the projects authorized in subdivision 3,
4.12paragraphs (a) to (e), plus an amount equal to the costs of issuance of the bonds and including
4.13the amount to prepay or retire at maturity the principal, interest, and premiums due on any
4.14bonds issued for the projects under subdivision 4.
4.15 (d) The tax imposed under subdivision 1, paragraph (b), expires at the earlier of December
4.1631, 2049, or when the city council determines that sufficient funds have been raised from
4.17the tax plus all other city funding sources authorized in this article to meet the city obligation
4.18for financing the public infrastructure projects contained in the development plan adopted
4.19under Minnesota Statutes, section 469.43, including all financing costs.
4.20 (e) The tax imposed under subdivision 1a expires at the earlier of (1) 24 years after first
4.21imposed, or (2) when the city council determines that the amount of revenues received from
4.22the tax is sufficient to pay for the project costs authorized under subdivision 3a for projects
4.23approved by the voters as required under Minnesota Statutes, section 297A.99, subdivision
4.243, paragraph (a), plus an amount sufficient to pay the costs related to issuance of the bonds
4.25under subdivision 4a, including interest on the bonds. Except as otherwise provided in
4.26Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining
4.27after payment of the allowed costs due to the timing of the termination of the tax under
4.28Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the general fund of
4.29the city. The tax imposed under subdivision 1a may expire at an earlier time if the city so
4.30determines by ordinance.
4.31 EFFECTIVE DATE.This section is effective the day after the governing body of the
4.32city of Rochester and its chief clerical officer comply with Minnesota Statutes, section
4.33645.021, subdivisions 2 and 3.
4Sec. 4.
REVISOR EAP/LN 23-0239501/18/23