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City Council Ordinance 839ORDINANCE NO.839 CITY OF MONTICELLO WRIGHT COUNTY, MINNESOTA AN ORDINANCE AMENDING THE MONTICELLO CITY CODE TITLE III, ADMINISTRATION, CONCERNING A LOCAL SALES AND USE TAX FOR BERTRAM CHAIN OF LAKES REGIONAL ATHLETIC PARK THE CITY COUNCIL OF THE CITY OF MONTICELLO HEREBY ORDAINS: SECTION 1. Title III: ADMINISTRATION is hereby amended to add the underlined language for a new Chapter 37 as follows: CHAPTER 37: LOCAL SALES AND USE TAX § 37.01 AUTHORITY. Pursuant to Session Laws, 2023, Chapter 64, Article 10, Section 40, the Minnesota Legislature authorized the Citv of Monticello (the "City") to impose a local sales and use tax to provide revenues to pav the costs of collecting and administering the tax and to pav for designated projects in the City, including securing and paving debt service on bonds issued to finance all or part of the projects as set forth in Session Laws, 2023, Chapter 64, Article 10, Section 40. § 37.02 DESIGNATED PROJECTS. The following project shall constitute a designated project for which the City may impose a local sales and use tax, as approved by the voters of the City on November 5, 2024: $15,000,000 for new construction and rehabilitation of the Bertram Chain of Lakes Regional Athletic Park plus costs of collecting and administering the tax and paving for the following projects in the City, including securing and paving debt service on bonds issued to finance all or part of the project. § 37.03 LOCAL SALES AND USE TAX IMPOSED. (A) A local sales tax is imposed in the amount of one-half of one percent (0.5%) on the gross receipts from sales at retail sourced within city limits which are taxable under the state sales and use tax laws and rules. (B) A local use tax is imposed in the amount of one-half of one percent (0.5%) on the storage, use, distribution or consumption of goods or services sourced within city limits which are taxable under the state sales and use tax laws and rules. 233500v2 (C) All of the provisions of the state sales and use tax laws and rules apply to the local sales and use tax imposed by this chapter, including Minn. Stat. § 297A.99, chapters 270C, 289A, 297A, and Minn. Rules, chapter 8130, as amended from time to time. (D) The local sales and use tax imposed by this chapter shall be collected and remitted to the state commissioner of revenue or their delegee on anv sale or purchase when the state sales tax must be collected and remitted to the commissioner under the state sales and use tax laws and rules and is in addition to the state sales and use tax. § 37.04 EFFECTIVE DATE OF TAX. Except as otherwise provided herein, the local sales and use tax imposed by this section shall apply to sale and purchase made on or after April 1, 2025, and shall be in addition to all other taxes now in effect. The sales and use tax is governed by Minn. Stat. Chapter 297A regarding sales that occur during the transition. § 37.05 EXEMPTION CERTIFICATE. (A) A fully completed exemption certificate taken from a purchase to the effect that the property purchased is for resale or that the sale is otherwise exempt from the application of the tax imposed by this Chapter will conclusively relieve the retailer from collecting and remitting the tax to the extent the seller is also relieved of liabilitv for the sales and use tax under Minn. Stat. § 297A.665. (B) A person who has obtained from the state commissioner of revenue or their delegee an exemption certificate pursuant to the Minn. Stat. § 297A.72 may use such exemption certificate for the purposes of the sales tax imposed by the Citv. § 37.06 TAX CLEARANCE; ISSUANCE OF LICENSES. (A) The City may not issue or renew a license for the conduct of a trade or business within the City if the state commissioner of revenue or their delegee notified the licensing division of the City that the applicant owes delinquent Citv taxes as provided in this Chapter, or penalties or interest due on such taxes, included the sales and use taxes imposed under this Chapter and anv associated penalties or interest. (B) Delinquent taxes do not include a tax liability if: (i) an administrative or court action which contests the amount or validity of the liability has been filed or served, (ii) the appeal period to contest the tax liability has not expired, or (iii) the applicant has entered into a pavment agreement and is current with the pavments. 233500v2 (C) Applicant means an individual if the license is issued to or in the name of an individual or the corporation, partnership, or other entitv if the license is issued to or in the name of a corporation, partnership, or other entity. (D) A copy of the notice of delinquent taxes given to the licensing division of the City shall also be sent to the applicant taxpaver. In the case of renewal of a license, if the applicant requests in writing, within 30 days of receipt of the notice of hearing, then, then, a contested hearing shall be held under the same procedures as provided in Minn. Stat. § 270A for the state sales and use tax imposed under Minn. Stat. § 297A; provided further that if a hearing must be held on the state sales and use tax, hearings must be combined. § 37.07 - DEPOSIT OF REVENUES; COSTS OF ADMINISTRATION; TERMINATION OF TAX. (A) All of the revenues, interest, and penalties derived from the local sales and use tax imposed by this chapter collected by the state commissioner of revenue or their delegee and remitted to the city shall be deposited by the director of finance in the citv treasury and shall be credited to the fund established to pav the costs of collecting the local sales and use tax imposed by this chapter and to finance the capital and administrative costs directly related to completing the designated projects. (B) The local sales and use tax imposed by this chapter shall terminate at the earlier of (1) 20 vears after the tax is first imposed, or (2) when the city council determines that the amount received from the tax is sufficient to pay for the project costs authorized under section 37.02, plus an amount sufficient to pay the costs related to issuance of any bonds issued for the project, including interest on the bonds. Except as otherwise provided in Minn. Stat. § 297A.99, subdivision 3, paragraph (f), any funds remaining after payment of the allowed costs due to the timing of the termination of the tax under Minn. Stat. § 297A.99, subdivision 12, must be placed in the general fund of the city. The tax imposed by this chapter may expire at an earlier time if the citv so determines by ordinance. § 37.08 - BONDING AUTHORITY. The citv may issue bonds under Minn. Stat. ch. 475, to finance all or a portion of the costs of the designated projects. The aggregate principal amount of bonds may not exceed $15,000,000 for the Bertram Chain of Lakes Regional Athletic Park designated project, plus an amount to be applied to the payment of the costs of issuing the bonds. The bonds may be paid from or secured by any funds available to the City, including the sales and use tax issued by this ordinance. The issuance of bonds is not subject to Minn. Stat. §§ 275.60 and 275.61. The bonds are not included in computing any debt limitation applicable to the Citv, and any levv of taxes under Minn. Stat. § 475.61, to pay principal and interest on the bonds is not subject to anv levy limitation. A separate election to approve the bonds under Minn. Stat. § 475.58 is not required. § 37.09 AGREEMENT WITH THE COMMISSIONER. 233500v2 The citv may enter into an agreement with the state commissioner of revenue or their delegee regarding each partv's respective roles and responsibilities related to the imposition, administration, collection, enforcement, and termination of the local sales and use tax imposed by this chapter. Anv such agreement shall not abrogate, alter, or otherwise conflict with the state sales and use tax laws and rules, this ordinance, or Session Laws, 2023, Chapter 64, Article 10, Section 40. SECTION 2. This ordinance shall be effective immediately upon its passage and publication. ADOPTED by the Monticello City Council this 25th day of November, 2024. Lloyd Hilgart, Ma or ATTEST: Je nife� ch eib r, City Clerk AYES: Gabler, Hilgart, Hinz, Martie and Murdoff NAYS: None 233500v2