Bill Text: MN HF1777 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Local sales taxes allowed.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2012-02-09 - Author added Greiling [HF1777 Detail]
Download: Minnesota-2011-HF1777-Introduced.html
1.2relating to taxation; sales and use; allowing cities to impose local sales tax if
1.3certain criteria are met;amending Minnesota Statutes 2010, section 297A.99, by
1.4adding a subdivision; Minnesota Statutes 2011 Supplement, section 297A.99,
1.5subdivision 1.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2011 Supplement, section 297A.99, subdivision 1,
1.8is amended to read:
1.9 Subdivision 1. Authorization; scope. (a) A political subdivision of this state may
1.10impose a general sales tax (1) under section297A.992 , (2) under section
297A.993 , (3) if
1.11permitted by special law,or (4) if the political subdivision enacted and imposed the tax
1.12before January 1, 1982, and its predecessor provision, or (5) if the tax is allowed under
1.13subdivision 1a.
1.14 (b) This section governs the imposition of a general sales tax by the political
1.15subdivision. The provisions of this section preempt the provisions of any special law:
1.16 (1) enacted before June 2, 1997, or
1.17 (2) enacted on or after June 2, 1997, that does not explicitly exempt the special law
1.18provision from this section's rules by reference.
1.19 (c) This section does not apply to or preempt a sales tax on motor vehicles or a
1.20special excise tax on motor vehicles.
1.21(d) A political subdivision may not advertise or expend funds for the promotion of a
1.22referendum to support imposing a local option sales tax. A political subdivision may only
1.23expend funds to conduct the referendum.
2.1EFFECTIVE DATE.This section is effective for local sales taxes for which the
2.2authorizing referendum is held after June 30, 2012.
2.3 Sec. 2. Minnesota Statutes 2010, section 297A.99, is amended by adding a subdivision
2.4to read:
2.5 Subd. 1a. General authority; certain cities. (a) A city, or a group of cities acting
2.6under a joint powers agreement, may impose a local sales and use tax of up to one-half of
2.7one percent without authorization under a special law provided that:
2.8(1) imposition of the tax is approved by the voters of each city at a general election;
2.9and
2.10(2) all the conditions for adoption, use, and termination of the tax contained in this
2.11subdivision and subdivisions 3 to 12 are met.
2.12The authority under this subdivision is in addition to any local sales tax authority
2.13permitted under special law.
2.14(b) If a city imposes a tax under paragraph (a) at a rate less than one-half of one
2.15percent, the city may increase the rate upon approval of the voters at a general election up
2.16to a rate of one-half of one percent without authorization under a special law provided that
2.17all of the conditions of this subdivision are met.
2.18(c) The proceeds of a tax imposed under this subdivision must be dedicated
2.19exclusively to pay for specific capital projects approved by the voters in the authorizing
2.20referendum. No proceeds may be used for normal maintenance or operating costs of a
2.21facility or properties owned by a city or group of cities. The proceeds may be used to
2.22pay for collecting and administering the tax; to pay all or part of the capital costs of the
2.23development, acquisition, construction, expansion, and improvement; and to secure and
2.24pay debt service on bonds or other obligations issued to finance capital costs of a regional
2.25project, including the following:
2.26(1) convention or civic center;
2.27(2) public libraries;
2.28(3) parks, trails, and recreational centers;
2.29(4) overpasses, arterial and collector roads, or bridges, on, adjacent to, or connecting
2.30to a Minnesota state highway;
2.31(5) flood control and protection;
2.32(6) water quality projects to address groundwater and drinking water pollution
2.33problems;
2.34(7) court facilities;
2.35(8) fire, law enforcement, or public safety facilities; or
3.1(9) municipal buildings.
3.2(d) At least three months prior to holding a referendum to impose the tax, a city must
3.3provide to the commissioner of revenue a resolution approved by the city that shows that
3.4the specific project or projects to be funded by the tax meet the requirements of paragraphs
3.5(a) to (c); the date on which the referendum will be held; the maximum amount raised
3.6by the tax that may be used for the specified project or projects, excluding issuance and
3.7interest costs for any related bonds; and the maximum time that the tax may be imposed.
3.8The commissioner shall certify that the requirements under this subdivision are met and
3.9the city shall provide any additional information on the commissioner's requests in order
3.10to make that determination. The commissioner's decision is final.
3.11(e) The question put to the voters at the referendum authorizing the vote must
3.12include information on the specific project or projects to be funded by the proceeds of the
3.13tax; the maximum amount of sales tax revenues that will be used to fund each project, not
3.14including any issuance and interest costs for related bonds; and the maximum length of
3.15time that the tax will be imposed, which must not exceed ten years from the date the initial
3.16tax was imposed without regard to an increase in the rate. If the referendum is not held on
3.17the date contained in the resolution, the authority for imposing the tax expires.
3.18(f) A city may issue general obligation bonds to pay the costs of projects specified
3.19in the referendum authorizing imposition of the tax. The approval of the question under
3.20paragraph (e) meets the requirement for elector approval for issuance of bonds under
3.21section 475.58, subdivision 1. The debt represented by the bonds must not be included in
3.22computing any debt limitations applicable to the city, and the levy of taxes required by
3.23section 475.61 to pay the principal or any interest on the bonds must not be subject to any
3.24levy limitations or be included in computing or applying any levy limitation to the city.
3.25(g) The tax, if enacted, expires when the specified revenue has been raised or the
3.26maximum time in which the tax is in effect under the resolution is reached, whichever is
3.27sooner. Any tax imposed under this subdivision must expire no later than ten years after
3.28imposition from the date the initial tax was imposed without regard to an increase in the
3.29rate. The governing board of the city may, by ordinance, terminate the tax at an earlier
3.30date. A city must not impose a new local option sales and use tax until a previously
3.31authorized one has been terminated.
3.32EFFECTIVE DATE.This section is effective for local sales taxes for which the
3.33authorizing referendum is held after June 30, 2012.
1.3certain criteria are met;amending Minnesota Statutes 2010, section 297A.99, by
1.4adding a subdivision; Minnesota Statutes 2011 Supplement, section 297A.99,
1.5subdivision 1.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2011 Supplement, section 297A.99, subdivision 1,
1.8is amended to read:
1.9 Subdivision 1. Authorization; scope. (a) A political subdivision of this state may
1.10impose a general sales tax (1) under section
1.11permitted by special law,
1.12before January 1, 1982, and its predecessor provision, or (5) if the tax is allowed under
1.13subdivision 1a.
1.14 (b) This section governs the imposition of a general sales tax by the political
1.15subdivision. The provisions of this section preempt the provisions of any special law:
1.16 (1) enacted before June 2, 1997, or
1.17 (2) enacted on or after June 2, 1997, that does not explicitly exempt the special law
1.18provision from this section's rules by reference.
1.19 (c) This section does not apply to or preempt a sales tax on motor vehicles or a
1.20special excise tax on motor vehicles.
1.21(d) A political subdivision may not advertise or expend funds for the promotion of a
1.22referendum to support imposing a local option sales tax. A political subdivision may only
1.23expend funds to conduct the referendum.
2.1EFFECTIVE DATE.This section is effective for local sales taxes for which the
2.2authorizing referendum is held after June 30, 2012.
2.3 Sec. 2. Minnesota Statutes 2010, section 297A.99, is amended by adding a subdivision
2.4to read:
2.5 Subd. 1a. General authority; certain cities. (a) A city, or a group of cities acting
2.6under a joint powers agreement, may impose a local sales and use tax of up to one-half of
2.7one percent without authorization under a special law provided that:
2.8(1) imposition of the tax is approved by the voters of each city at a general election;
2.9and
2.10(2) all the conditions for adoption, use, and termination of the tax contained in this
2.11subdivision and subdivisions 3 to 12 are met.
2.12The authority under this subdivision is in addition to any local sales tax authority
2.13permitted under special law.
2.14(b) If a city imposes a tax under paragraph (a) at a rate less than one-half of one
2.15percent, the city may increase the rate upon approval of the voters at a general election up
2.16to a rate of one-half of one percent without authorization under a special law provided that
2.17all of the conditions of this subdivision are met.
2.18(c) The proceeds of a tax imposed under this subdivision must be dedicated
2.19exclusively to pay for specific capital projects approved by the voters in the authorizing
2.20referendum. No proceeds may be used for normal maintenance or operating costs of a
2.21facility or properties owned by a city or group of cities. The proceeds may be used to
2.22pay for collecting and administering the tax; to pay all or part of the capital costs of the
2.23development, acquisition, construction, expansion, and improvement; and to secure and
2.24pay debt service on bonds or other obligations issued to finance capital costs of a regional
2.25project, including the following:
2.26(1) convention or civic center;
2.27(2) public libraries;
2.28(3) parks, trails, and recreational centers;
2.29(4) overpasses, arterial and collector roads, or bridges, on, adjacent to, or connecting
2.30to a Minnesota state highway;
2.31(5) flood control and protection;
2.32(6) water quality projects to address groundwater and drinking water pollution
2.33problems;
2.34(7) court facilities;
2.35(8) fire, law enforcement, or public safety facilities; or
3.1(9) municipal buildings.
3.2(d) At least three months prior to holding a referendum to impose the tax, a city must
3.3provide to the commissioner of revenue a resolution approved by the city that shows that
3.4the specific project or projects to be funded by the tax meet the requirements of paragraphs
3.5(a) to (c); the date on which the referendum will be held; the maximum amount raised
3.6by the tax that may be used for the specified project or projects, excluding issuance and
3.7interest costs for any related bonds; and the maximum time that the tax may be imposed.
3.8The commissioner shall certify that the requirements under this subdivision are met and
3.9the city shall provide any additional information on the commissioner's requests in order
3.10to make that determination. The commissioner's decision is final.
3.11(e) The question put to the voters at the referendum authorizing the vote must
3.12include information on the specific project or projects to be funded by the proceeds of the
3.13tax; the maximum amount of sales tax revenues that will be used to fund each project, not
3.14including any issuance and interest costs for related bonds; and the maximum length of
3.15time that the tax will be imposed, which must not exceed ten years from the date the initial
3.16tax was imposed without regard to an increase in the rate. If the referendum is not held on
3.17the date contained in the resolution, the authority for imposing the tax expires.
3.18(f) A city may issue general obligation bonds to pay the costs of projects specified
3.19in the referendum authorizing imposition of the tax. The approval of the question under
3.20paragraph (e) meets the requirement for elector approval for issuance of bonds under
3.21section 475.58, subdivision 1. The debt represented by the bonds must not be included in
3.22computing any debt limitations applicable to the city, and the levy of taxes required by
3.23section 475.61 to pay the principal or any interest on the bonds must not be subject to any
3.24levy limitations or be included in computing or applying any levy limitation to the city.
3.25(g) The tax, if enacted, expires when the specified revenue has been raised or the
3.26maximum time in which the tax is in effect under the resolution is reached, whichever is
3.27sooner. Any tax imposed under this subdivision must expire no later than ten years after
3.28imposition from the date the initial tax was imposed without regard to an increase in the
3.29rate. The governing board of the city may, by ordinance, terminate the tax at an earlier
3.30date. A city must not impose a new local option sales and use tax until a previously
3.31authorized one has been terminated.
3.32EFFECTIVE DATE.This section is effective for local sales taxes for which the
3.33authorizing referendum is held after June 30, 2012.
