Minnesota 2023-2024 Regular Session

Minnesota Senate Bill SF987 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	23-02395 as introduced01/18/23 REVISOR EAP/LN
25	25	SENATE
26	26	STATE OF MINNESOTA
27	27	S.F. No. 987NINETY-THIRD SESSION
28	28	(SENATE AUTHORS: BOLDON)
29	29	OFFICIAL STATUSD-PGDATE
30	30	Introduction and first reading02/01/2023
31	31	Referred to Taxes 2.1 Sec. 2. Laws 1998, chapter 389, article 8, section 43, as amended by Laws 2005, First
32	32	2.2Special Session chapter 3, article 5, sections 28, 29, and 30, Laws 2011, First Special Session
33	33	2.3chapter 7, article 4, sections 5, 6, and 7, and Laws 2013, chapter 143, article 10, sections
34	34	2.411, 12, and 13, is amended by adding a subdivision to read:
35	35	2.5 Subd. 3a.Use of sales and use tax revenues; additional projects.The revenues derived
36	36	2.6from the extension of the tax authorized under subdivision 1a must be used by the city of
37	37	2.7Rochester to pay the costs of collecting and administering the tax and paying for the following
38	38	2.8projects in the city, including securing and paying debt service on bonds issued to finance
39	39	2.9all or part of the following projects:
40	40	2.10 (1) notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraph (d),
41	41	2.11$50,000,000, plus associated bonding costs for the economic vitality fund;
42	42	2.12 (2) notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraph (d),
43	43	2.13$50,000,000, plus associated bonding costs for street reconstruction;
44	44	2.14 (3) notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraph (d),
45	45	2.15$40,000,000, plus associated bonding costs for flood control and water quality; and
46	46	2.16 (4) $65,000,000, plus associated bonding costs for a Regional Sports and Recreation
47	47	2.17Complex.
48	48	2.18 EFFECTIVE DATE.This section is effective the day after the governing body of the
49	49	2.19city of Rochester and its chief clerical officer comply with Minnesota Statutes, section
50	50	2.20645.021, subdivisions 2 and 3.
51	51	2.21 Sec. 3. Laws 1998, chapter 389, article 8, section 43, as amended by Laws 2005, First
52	52	2.22Special Session chapter 3, article 5, sections 28, 29, and 30, Laws 2011, First Special Session
53	53	2.23chapter 7, article 4, sections 5, 6, and 7, and Laws 2013, chapter 143, article 10, sections
54	54	2.2411, 12, and 13, is amended by adding a subdivision to read:
55	55	2.25 Subd. 4a.Bonding authority; additional projects and extension of tax.(a) The city
56	56	2.26of Rochester may issue bonds under Minnesota Statutes, chapter 475, to finance all or a
57	57	2.27portion of the costs of the projects authorized in subdivision 3a and approved by the voters
58	58	2.28as required under Minnesota Statutes, section 297A.99, subdivision 3, paragraph (a). The
59	59	2.29aggregate principal amount of bonds issued under this subdivision may not exceed
60	60	2.30$205,000,000, plus an amount to be applied to the payment of the costs of issuing the bonds.
61	61	2.31The bonds may be paid from or secured by any funds available to the city of Rochester,
62	62	2.32including the tax authorized under subdivision 1a and the full faith and credit of the city.
63	63	2Sec. 3.
64	64	23-02395 as introduced01/18/23 REVISOR EAP/LN 3.1The issuance of bonds under this subdivision is not subject to Minnesota Statutes, sections
65	65	3.2275.60 and 275.61.
66	66	3.3 (b) The bonds are not included in computing any debt limitation applicable to the city
67	67	3.4of Rochester, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
68	68	3.5and interest on the bonds is not subject to any levy limitation. A separate election to approve
69	69	3.6the bonds under Minnesota Statutes, section 475.58, is not required.
70	70	3.7 EFFECTIVE DATE.This section is effective the day after the governing body of the
71	71	3.8city of Rochester and its chief clerical officer comply with Minnesota Statutes, section
72	72	3.9645.021, subdivisions 2 and 3.
73	73	3.10 Sec. 4. Laws 1998, chapter 389, article 8, section 43, subdivision 5, as amended by Laws
74	74	3.112005, First Special Session chapter 3, article 5, section 30, Laws 2011, First Special Session
75	75	3.12chapter 7, article 4, section 7, and Laws 2013, chapter 143, article 10, section 13, is amended
76	76	3.13to read:
77	77	3.14 Subd. 5.Termination of taxes.(a) The taxes imposed under subdivisions 1 and 2 expire
78	78	3.15at the later of (1) December 31, 2009, or (2) when the city council determines that sufficient
79	79	3.16funds have been received from the taxes to finance the first $71,500,000 of capital
80	80	3.17expenditures and bonds for the projects authorized in subdivision 3, including the amount
81	81	3.18to prepay or retire at maturity the principal, interest, and premium due on any bonds issued
82	82	3.19for the projects under subdivision 4, unless the taxes are extended as allowed in paragraph
83	83	3.20(b). Any funds remaining after completion of the project and retirement or redemption of
84	84	3.21the bonds shall also be used to fund the projects under subdivision 3. The taxes imposed
85	85	3.22under subdivisions 1 and 2 may expire at an earlier time if the city so determines by
86	86	3.23ordinance.
87	87	3.24 (b) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any other
88	88	3.25contrary provision of law, ordinance, or city charter, the city of Rochester may, by ordinance,
89	89	3.26extend the taxes authorized in subdivisions 1 and 2 beyond December 31, 2009, if approved
90	90	3.27by the voters of the city at a special election in 2005 or the general election in 2006. The
91	91	3.28question put to the voters must indicate that an affirmative vote would allow up to an
92	92	3.29additional $40,000,000 of sales tax revenues be raised and up to $40,000,000 of bonds to
93	93	3.30be issued above the amount authorized in the June 23, 1998, referendum for the projects
94	94	3.31specified in subdivision 3. If the taxes authorized in subdivisions 1 and 2 are extended under
95	95	3.32this paragraph, the taxes expire when the city council determines that sufficient funds have
96	96	3.33been received from the taxes to finance the projects and to prepay or retire at maturity the
97	97	3.34principal, interest, and premium due on any bonds issued for the projects under subdivision
98	98	3Sec. 4.
99	99	23-02395 as introduced01/18/23 REVISOR EAP/LN 4.14. Any funds remaining after completion of the project and retirement or redemption of the
100	100	4.2bonds may be placed in the general fund of the city.
101	101	4.3 (c) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any other
102	102	4.4contrary provision of law, ordinance, or city charter, the city of Rochester may, by ordinance,
103	103	4.5extend the taxes authorized in subdivisions 1, paragraph (a), and 2, up to December 31,
104	104	4.62049, provided that all additional revenues above those necessary to fund the projects and
105	105	4.7associated financing costs listed in subdivision 3, paragraphs (a) to (e), are committed to
106	106	4.8fund public infrastructure projects contained in the development plan adopted under
107	107	4.9Minnesota Statutes, section 469.43, including all financing costs; otherwise the taxes
108	108	4.10terminate when the city council determines that sufficient funds have been received from
109	109	4.11the taxes to finance expenditures and bonds for the projects authorized in subdivision 3,
110	110	4.12paragraphs (a) to (e), plus an amount equal to the costs of issuance of the bonds and including
111	111	4.13the amount to prepay or retire at maturity the principal, interest, and premiums due on any
112	112	4.14bonds issued for the projects under subdivision 4.
113	113	4.15 (d) The tax imposed under subdivision 1, paragraph (b), expires at the earlier of December
114	114	4.1631, 2049, or when the city council determines that sufficient funds have been raised from
115	115	4.17the tax plus all other city funding sources authorized in this article to meet the city obligation
116	116	4.18for financing the public infrastructure projects contained in the development plan adopted
117	117	4.19under Minnesota Statutes, section 469.43, including all financing costs.
118	118	4.20 (e) The tax imposed under subdivision 1a expires at the earlier of (1) 24 years after first
119	119	4.21imposed, or (2) when the city council determines that the amount of revenues received from
120	120	4.22the tax is sufficient to pay for the project costs authorized under subdivision 3a for projects
121	121	4.23approved by the voters as required under Minnesota Statutes, section 297A.99, subdivision
122	122	4.243, paragraph (a), plus an amount sufficient to pay the costs related to issuance of the bonds
123	123	4.25under subdivision 4a, including interest on the bonds. Except as otherwise provided in
124	124	4.26Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining
125	125	4.27after payment of the allowed costs due to the timing of the termination of the tax under
126	126	4.28Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the general fund of
127	127	4.29the city. The tax imposed under subdivision 1a may expire at an earlier time if the city so
128	128	4.30determines by ordinance.
129	129	4.31 EFFECTIVE DATE.This section is effective the day after the governing body of the
130	130	4.32city of Rochester and its chief clerical officer comply with Minnesota Statutes, section
131	131	4.33645.021, subdivisions 2 and 3.
132	132	4Sec. 4.
133	133	23-02395 as introduced01/18/23 REVISOR EAP/LN