Laws 1998, ch. 389, art. 8, § 44
|Additional legislative action
Laws 1999, ch. 243, art. 4, §§ 14 to
|Never imposed. The required referendum was
defeated in all cities except Sartell. These cities were granted new authority in
Laws 2002, chapter 377, article 11, § 2,
which was imposed.
|Each of the cities may impose a sales and use tax,
of up to one-half of 1 percent in its jurisdiction. The cities also may impose a flat tax of up to $20
per motor vehicle acquired or purchased within the city from a retail seller of motor vehicles. The
same legislation also authorizes the option of imposing a 1 percent local restaurant and/or
|Required city action to impose the
|For each city to impose the sales and use tax, or
any of the other taxes, the voters of that city must approve the tax at the 1998 general election or
at an election held on the first Tuesday of November 1999. The original law required that if the
entity in charge of constructing the event center did not feel that sufficient revenues to pay for the
construction would be raised by the cities imposing the local taxes then none of the taxes would
go into effect. The 1999 law modifies this to allow the tax to go into effect in cities that pass the
referendum at least until 2007, even if sufficient funding for the event center is not in place.
|Allowed uses of the tax
|The tax will fund the cost of acquiring,
constructing, and improving the Central Minnesota Events Center and related improvements.
Payment of any operating deficit during the first five years of operation also is authorized. Any
revenue collected in excess of that needed to cover the event center can be returned to the
participating cities in an agreed manner for "other" capital projects of regional significance such as
parks and open spaces, and public space dedicated to the arts, libraries, or community centers.
The 1999 law requires that if the taxes are imposed but the event center financing is not in place,
that a portion of the revenues be set aside for the event center. If event center construction has
not begun by December 31, 2007, the reserve money is used to pay off bonds on existing "other"
projects. No bonds for "other" projects that are funded from this tax may be issued after
December 31, 2008.
|The tax will be collected by the Commissioner
of Revenue with the state tax as provided under
Minnesota Statutes § 297A.99.
|The authorizing legislation requires the tax to
expire when funds received are sufficient to finance up to $50 million in obligations related to the
Central Minnesota Events Center, as well as other obligations created by the allowed uses. The
1999 law requires that the taxes expire at the earlier of (a) 30 years or (b) when the event center,
if constructed, plus all other authorized capital projects are fully funded.
|The 1999 law amended the authorizing language
to allow the cities to impose the sales tax even if construction on the event center is delayed, so
long as construction begins before December 31, 2007. Each city can choose to impose any or all
of the authorized taxes, pending approval of the local voters. The imposition of any tax is on a
city by city basis but the revenues from all the approved local taxes would be pooled and
distributed to the projects and cities based on some joint powers or other local agreement.