| 1 | 1 | | 1.1 A bill for an act |
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| 2 | 2 | | 1.2 relating to local taxes; authorizing a local sales and use tax in the city of Austin. |
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| 3 | 3 | | 1.3BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: |
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| 4 | 4 | | 1.4 Section 1. CITY OF AUSTIN; TAXES AUTHORIZED. |
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| 5 | 5 | | 1.5 Subdivision 1.Sales and use tax authorization.Notwithstanding Minnesota Statutes, |
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| 6 | 6 | | 1.6section 297A.99, subdivisions 1, 2, and 3a, or 477A.016, or any other law, ordinance, or |
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| 7 | 7 | | 1.7city charter, and if approved by the voters at an election as required under Minnesota Statutes, |
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| 8 | 8 | | 1.8section 297A.99, subdivision 3, the city of Austin may impose by ordinance a sales and use |
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| 9 | 9 | | 1.9tax of one-half of one percent for the purpose specified in subdivision 2. Except as otherwise |
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| 10 | 10 | | 1.10provided in this section, the provisions of Minnesota Statutes, section 297A.99, govern the |
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| 11 | 11 | | 1.11imposition, administration, collection, and enforcement of the tax authorized under this |
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| 12 | 12 | | 1.12subdivision. The tax imposed under this subdivision is in addition to any local sales and |
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| 13 | 13 | | 1.13use tax imposed under any other special law. |
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| 14 | 14 | | 1.14 Subd. 2.Use of sales and use tax revenues.Notwithstanding Minnesota Statutes, section |
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| 15 | 15 | | 1.15297A.99, subdivision 3, paragraphs (b) and (c), the revenues derived from the tax authorized |
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| 16 | 16 | | 1.16under subdivision 1 must be used by the city of Austin to pay the costs of collecting and |
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| 17 | 17 | | 1.17administering the tax, and to finance up to $25,000,000, plus associated bonding costs, for |
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| 18 | 18 | | 1.18the construction and operation of a law enforcement center. |
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| 19 | 19 | | 1.19 Subd. 3.Bonding authority.(a) The city of Austin may issue bonds under Minnesota |
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| 20 | 20 | | 1.20Statutes, chapter 475, to finance the costs of the facility authorized in subdivision 2. The |
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| 21 | 21 | | 1.21aggregate principal amount of bonds issued under this subdivision may not exceed |
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| 22 | 22 | | 1.22$25,000,000 for the project listed in subdivision 2, plus an amount to be applied to the |
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| 23 | 23 | | 1Section 1. |
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| 24 | 24 | | REVISOR EAP/BM 25-0091012/16/24 |
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| 25 | 25 | | State of Minnesota |
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| 26 | 26 | | This Document can be made available |
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| 27 | 27 | | in alternative formats upon request |
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| 28 | 28 | | HOUSE OF REPRESENTATIVES |
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| 29 | 29 | | H. F. No. 1456 |
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| 30 | 30 | | NINETY-FOURTH SESSION 2.1payment of the costs of issuing the bonds. The bonds may be paid from or secured by any |
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| 31 | 31 | | 2.2funds available to the city, including the tax authorized under subdivision 1. The issuance |
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| 32 | 32 | | 2.3of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 and |
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| 33 | 33 | | 2.4275.61. |
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| 34 | 34 | | 2.5 (b) The bonds are not included in computing any debt limitation applicable to the city, |
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| 35 | 35 | | 2.6and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal and interest |
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| 36 | 36 | | 2.7on the bonds is not subject to any levy limitation. A separate election to approve the bonds |
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| 37 | 37 | | 2.8under Minnesota Statutes, section 475.58, is not required. |
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| 38 | 38 | | 2.9 Subd. 4.Termination of taxes.Subject to Minnesota Statutes, section 297A.99, |
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| 39 | 39 | | 2.10subdivision 12, the tax imposed under subdivision 1 expires at the earlier of: (1) 14 years |
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| 40 | 40 | | 2.11after the tax is first imposed; or (2) when the city determines that the amount received from |
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| 41 | 41 | | 2.12the tax is sufficient to pay $25,000,000 in project costs authorized under subdivision 2, plus |
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| 42 | 42 | | 2.13an amount sufficient to pay the costs related to issuance of any bonds authorized under |
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| 43 | 43 | | 2.14subdivision 3, including interest on the bonds. Except as otherwise provided in Minnesota |
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| 44 | 44 | | 2.15Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining after payment |
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| 45 | 45 | | 2.16of the allowed costs due to the timing of the termination of the tax under Minnesota Statutes, |
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| 46 | 46 | | 2.17section 297A.99, subdivision 12, shall be placed in the general fund of the city. The tax |
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| 47 | 47 | | 2.18imposed under subdivision 1 may expire at an earlier time if the city so determines by |
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| 48 | 48 | | 2.19ordinance. |
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| 49 | 49 | | 2.20 EFFECTIVE DATE.This section is effective the day after the governing body of the |
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| 50 | 50 | | 2.21city of Austin and its chief clerical officer comply with Minnesota Statutes, section 645.021, |
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| 51 | 51 | | 2.22subdivisions 2 and 3. |
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| 52 | 52 | | 2Section 1. |
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| 53 | 53 | | REVISOR EAP/BM 25-0091012/16/24 |
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