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ORD 19-14ver Ordinance 19 - 14 St-r-Aethr-oughs to be removed Underlines to be added An Ordinance Repealing and Replacing Chapter 2, Article IV. Finance, Division I, Relating to Enactment of Local Sales and Use Tax, of the City of Elk River, Minnesota, City Code The City Council of the City of Elk River does hereby ordain as follows: SECTION I. Chapter 2, Article IV, Finance, Division 1. Sales and Use Tax Sections 2-161 through 2-171 are hereby repealed and replaced with the following. 2-161. Authority Pursuant to Minnesota Laws 2019, First Special Session, Chapter 6, Article 6, Section 17, the Minnesota Legislature has authorized the City of Elk River to impose a local sales and use tax to provide revenues to pay the costs of collecting and administering the tax to the commissioner of revenue of the state of Minnesota and to finance the capital and administrative costs related to the funding of designated projects as defined in Minnesota Laws 2019, First Special Session, Chapter 6, Article 6, Section 17 and approved by the voters at the November 6, 2018, referendum. 2-162. Definitions For purposes of this chapter, the following words, terms, and phrases have the meanings given them in this section unless the language or context clearly indicates a different meaning is intended. (a) City. "City" means the City of Elk River, Minnesota. (b) Commissioner. "Commissioner" means the commissioner of revenue of the state of Minnesota or a person to whom the commissioner has delegated functions. (c) Designated projects. "Designated projects" means the planning, design, and construction and any other capital and administrative costs of any or all of the following projects in a total amount not to exceed $35 million, plus the costs related to the issuance and paying debt service on bonds for these projects: 1. A multipurpose recreational facility such as the ice arena, community meeting and activity space, and a synthetic turf field house; and 2. Senior center facility improvements; and 3. Lion John Weicht park improvements; and 4. Lions Park Center space improvements and community picnic pavilion addition; and 5. Youth Athletic Complex improvements; and 6. Orono Park improvements; and 7. Lake Orono dredging; and 8. Citywide trail connection improvements as authorized by the Minnesota Legislature in Minnesota Laws 2019, First Special Session, Chapter 6, Article 6, Section 17 and approved by the voters at the November 6, 201 8,referendum. Last Updated January 2019 P 0 1 E R f I I r NATURE] Sttikethroughs to be removed Underlines to be added (d) State sales and use tax laws and rules. "State sales and use tax laws and rules" means those provisions of the state revenue laws applicable to state sales and use tax imposition, administration, collection, and enforcement, including Minnesota Statutes, chapters 270C, 289A, 297A, and Minnesota Rules, chapter 8130, as amended from time to time. 2-163. Local sales and use tax imposed; amount of tax; coordination with state sales and use tax laws and rules. A local sales tax is imposed in the amount of one-half of one percent 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. A local use tax is imposed in the amount of one-half of one percent 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. 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. The local sales and use tax imposed by this chapter shall be collected and remitted to the commissioner on any 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. 2-164. Effective date of tax; transitional sales. Except as otherwise provided herein, the local sales and use tax imposed by this chapter shall apply to sales and purchases made on or after October 1, 2019. The local sales and use tax imposed by this chapter shall not apply to: (a) The gross receipts from retail sales or leases of tangible personal property made pursuant to a bona fide written contract, which unconditionally vests the rights and obligations of the parties thereto, provided that such contract was enforceable prior to October 1, 2019, and that delivery of the tangible personal property subject thereto is made on or before October 1, 2019. (b) The gross receipts from retail sales made pursuant to a bona fide lump sum or fixed price construction contract, which unconditionally vests the rights and obligations of the parties thereto and which does not make provision or allocation of future taxes, provided that such contract was enforceable prior to October 1, 2019, and that delivery of the tangible personal property used in performing such construction contract is made before April 1, 2020. (c) The purchase of taxable services, including utility services, if the billing period includes charges for services furnished before and after October 1, 2019, but the local sales and use tax imposed by this chapter shall apply on the first billing period not including charges for services furnished before October 1, 2019. (d) Lease payments for tangible personal property and motor vehicles that includes a period before and after October 1, 2019, but the local sales and use tax imposed by this chapter shall apply on a prorated basis to lease payment amounts attributable to that portion of the lease payment period on or after October 1, 2019, and on the entire lease payment for all lease payment periods thereafter. 2-165. 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 commissioner notified the licensing division of the city that the applicant owes delinquent city taxes as provided in this chapter, or penalties or interest due on such taxes. 1) City taxes include sales and use taxes provided in this article. Penalties and interest are penalties and interest due on taxes included in this definition. Last Updated January 2019 l01ERE1 IT NATURE to be removed Underlines to be added (b) Delinquent taxes does 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 payment agreement and is current with the payments. (c) Applicant means an individual if the license is issued to or in the name of an individual or the corporation or partnership if the license is issued to or in the name of a corporation or partnership. 1) A copy of the notice of delinquent taxes given to the licensing division of the city shall also be sent to the applicant taxpayer. 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, 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. 2-166. 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 commissioner and remitted to the city shall be deposited by the city finance director in the city treasury and shall be credited to the fund established to pay 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) Minnesota Laws 2019, First Special Session, Chapter 6, Article 6, Section 17; or (2) when the City Council determines that $35 million, plus an amount sufficient to pay the costs related to issuing bonds and interest on the bonds has been received from the local sales and use tax imposed by this chapter to pay for all the capital and administrative costs directly related to completing the designated projects. Any funds remaining after payment of all such costs and retirement or redemption of the bonds shall be placed in the general fund of the city. The local sales and use tax imposed by this chapter may terminate at an earlier time if the City Council so determines by ordinance. 2-167. Agreement with the commissioner. The city may enter into an agreement with the commissioner regarding each party'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. Any such agreement shall not abrogate, alter, or otherwise conflict with the state sales and use tax laws and rules, this ordinance, or Minnesota Laws 2019, First Special Session, Chapter 6, Article 6, Section 17. SECTION 2. Summary Publication: The following summary is approved by the City Council and shall be published in lieu of publishing the entire ordinance pursuant to Minnesota Statutes section 412.191: Pursuant to a voter -approved referendum, the city is authorized to and will impose a local sales and use tax of one-half of one percent on retail sales made on and after October 1, 2019, to be used to fund certain designated projects related to the following Last Updated January 2019 ER E I I r TURE kgs to be removed Underlines to be added 1. A multipurpose recreational facility such as the ice arena, community meeting and activity space, and a synthetic turf field house; and 2. Senior center facility improvements; and 3. Lion John Weicht park improvements; and 4. Lions Park Center space improvements and community picnic pavilion addition; and 5. Youth Athletic Complex improvements; and 6. Orono Park improvements; and 7. Lake Orono dredging; and 8. Citywide trail connection improvements. SECTION 3. This Ordinance shall be in full force and effect from and after its passage and publication. Passed and adopted by the City Council of the City of Elk River this 5th day of August, 2019. �I n J. ietz, M } or ATTEST:. Tina Allard, City Clerk Last Updated January 2019 [N" 'A' T" 1 B1 AFFIDAVIT OF PUBLICATION STATE OF MINNESOTA ) ss COUNTY OF SHERBURNE Elise Strecker being duly sworn on an oath, states or affirms that he/she is the Publisher's Designated Agent of the newspaper(s) known as: Star News with the known office of issue being located in the county of: SHERBURNE with additional circulation in the counties of. WRIGHT and has full knowledge of the facts stated below: (A) The newspaper has complied with all of the requirements constituting qualifica- tion as a qualified newspaper as provided by Minn. Stat. §331A.02. (B) This Public Notice was printed and pub- lished in said newspaper(s) once each week, for 1 successive week(s); the first insertion being on 08/10/2019 and the last insertion being on 08/10/2019. MORTGAGE FORECLOSURE NOTICES Pursuant to Minnesota Stat. §580.033 relating to the publication of mortgage foreclosure notices: The newspaper complies with the conditions described in §580.033, subd. 1, clause (1) or (2). If the newspaper's known office of issue is located in a county adjoining the county where the mortgaged premises or some part of the mortgaged premises described in the notice are located, a substantial portion of the newspaper's circul• ion is it the latter county. By: Designated Agent Subscribed and sworn to or affirmed before me on 08/10/2019 by Elise Strecker. t !M cae,&A�, I Notary Public DARLENE MARIE MACPHEASON Notary Public Minnesota n+ y� Idly Cmrlli 0m 1:7� a jlln(1lfjf 3 F, LU24 Rate Information: (1) Lowest classified rate paid by commercial users for comparable space: $23.00 per column inch Ad ID 964608 CITY OF ELK RIVER ORDINANCE 19 - 14 AN ORDINANCE REPEALING AND REPLACING CHAPTER 2, ARTICLE IV. FINANCE, DIVISION 1, RELATING TO ENACTMENT OF LOCAL SALES AND USE TAX, OF THE CITY OF ELK RIVER, MINNESOTA, CITY CODE The City Council of the City of Elk River does hereby ordain as follows: SECTION 1. Chapter 2, Article IV, Finance, Division 1. Sales and Use Tax Sec- tions 2-161 through 2-171 are here- by repealed and replaced with the following. 2-161. Authority Pursuant to Minnesota Laws 2019, First Special Session, Chap- ter 6, Article 6, Section 17, the Min- nesota Legislature has authorized the City of Elk River to impose a local sales and use tax to provide revenues to pay the costs of col- lecting and administering the tax to the commissioner of revenue of the state of Minnesota and to finance the capital and administrative costs related to the funding of designat- ed projects as defined in Minnesota Laws 2019, First Special Session, Chapter 6, Article 6, Section 17 and approved by the voters at the No- vember 6, 2018, referendum. 2-162. Definitions For purposes of this chapter, the following words, terms, and phras- es have the meanings given them in this section unless the language or context clearly indicates a different meaning is intended. (a) City. "City" means the City of Elk River, Minnesota. (b) Commissioner. "Commis- sioner" means the commissioner of revenue of the state of Minnesota or a person to whom the commis- sioner has delegated functions. (c) Designated projects. "Des- ignated projects" means the plan- ning, design, and construction and any other capital and administrative costs of any or all of the following projects in a total amount not to exceed $35 million, plus the costs related to the issuance and paying debt service on bonds for these projects: 1. A multipurpose recreational facility such as the ice arena, com- munity meeting and activity space, and a synthetic turf field house; and 2. Senior center facility improve- ments; and 3. Lion John Weicht park im- provements; and 4. Lions Park Center space im- provements and community picnic pavilion addition; and 5. Youth Athletic Complex im- provements; and 6. Orono Park improvements; and 7. Lake Orono dredging; and 6. Citywide trail connection im- provements as authorized by the Minneso- ta Legislature in Minnesota Laws 2019, First Special Session, Chap- ter 6, Article 6, Section 17 and ap- proved by the voters at the Novem- ber 6, 2018, referendum. (d) State sales and use tax laws and rules. "State sales and use tax laws and rules" means those pro- visions of the state revenue laws applicable to state sales and use tax imposition, administration, col- lection, and enforcement, includ- ing Minnesota Statutes, chapters 270C, 289A, 297A, and Minnesota Rules, chapter 8130, as amended from time to time. 2-163. Local sales and use tax imposed; amount of tax; coordi- nation with state sales and use tax laws and rules. A local sales tax is imposed in the amount of one-half of one per- cent 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. A local use tax is imposed in the amount of one-half of one percent on the storage, use, distri- bution or consumption of goods or services sourced within city limits which are taxable under the state sales and use tax laws and rules. 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. The local sales and use tax imposed by this chapter shall be collected and remitted to the commissioner on any 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. 2-164. Effective date of tax; transitional sales. Except as otherwise provided herein, the local sales and use tax imposed by this chapter shall apply to sales and purchases made on or after October 1, 2019. The local sales and use tax imposed by this chapter shall not apply to: (a) The gross receipts from retail sales or leases of tangible personal property made pursuant to a bona fide written contract, which un- conditionally vests the rights and obligations of the parties thereto, provided that such contract was enforceable prior to October 1, 2019, and that delivery of the tan- gible personal property subject thereto is made on or before Octo- ber 1, 2019. (b) The gross receipts from retail sales made pursuant to a bona fide lump sum or fixed price construc- tion contract, which unconditionally vests the rights and obligations of the parties thereto and which does not make provision or allocation of future taxes, provided that such contract was enforceable prior to October 1, 2019, and that delivery of the tangible personal property used in performing such construc- tion contract is made before April 1, 2020. (c) The purchase of taxable ser- vices, including utility services, if the billing period includes charges for services furnished before and after October 1, 2019, but the local sales and use tax imposed by this chapter shall apply on the first bill- ing period not including charges for services furnished before October 1, 2019. (d) Lease payments for tangible personal property and motor vehi- cles that includes a period before and after October 1, 2019, but the local sales and use tax imposed by this chapter shall apply on a prorated basis to lease payment amounts attributable to that portion of the lease payment period on or after October 1, 2019, and on the entire lease payment for all lease payment periods thereafter. 2-165. Tax Clearance; Issu- ance 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 commissioner noted the licensing division of the city that the applicant owes delinquent city taxes as provided in this chapter, or penalties or interest due on such taxes. 1) City taxes include sales and use taxes provided in this article. Penalties and interest are penalties and interest due on taxes included in this definition. (b) Delinquent taxes does not include a tax liability if: @ an ad- ministrative or court action which contests the amount or validity of the liability has been filed orserved, (i) the appeal period to contest the tax liability has not expired, or (ii) the applicant has entered into a payment agreement and is current with the payments. (c) Applicant means an individu- al if the license is issued to or in the name of an individual or the corpo- ration or partnership if the license is issued to or in the name of a corpo- ration or partnership. 1) A copy of the notice of delin- quent taxes given to the licensing division of the city shall also be sent to the applicant taxpayer. 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, a contest- ed 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. 2-166. Deposit of revenues; costs of administration; termina- tion 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 commis- sioner and remitted to the city shall be deposited by the city finance di- rector in the city treasury and shall be credited to the fund established to pay 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 ter- minate at the earlier of: (1) Minne- sota Laws 2019, First Special Ses- sion, Chapter 6, Article 6, Section 17; or (2) when the City Council determines that $35 million, plus an amount sufficient to pay the costs related to issuing bonds and interest on the bonds has been re- ceived from the local sales and use tax imposed by this chapter to pay for all the capital and administrative costs directly related to completing the designated projects. Any funds remaining after payment of all such costs and retirement or redemption of the bonds shall be placed in the general fund of the city. The local sales and use tax imposed by this chapter may terminate at an earlier time if the City Council so deter- mines by ordinance. 2-167. Agreement with the commissioner. The city may enter into an agreement with the commissioner regarding each party's respective roles and responsibilities related to the imposition, administration, collection, enforcement, and termi- nation of the local sales and use tax imposed by this chapter. Any such agreement shall not abrogate, alter, or otherwise conflict with the state sales and use tax laws and rules, this ordinance, or Minnesota Laws 2019, First Special Session, Chap- ter 6, Article 6, Section 17. SECTION 2. Summary Publication: The fol- lowing summary is approved by the City Council and shall be published in lieu of publishing the entire ordi- nance pursuant to Minnesota Stat- utes section 412.191: Pursuant to a voter -approved referendum, the city is authorized to and will impose a local sales and use tax of one-half of one percent on retail sales made on and after October 1, 2019, to be used to fund certain designated projects related to the following 1. A multipurpose recreational facility such as the ice arena, com- munity meeting and activity space, and a synthetic turf field house; and 2. Senior center facility improve- ments; and 3. Lion John Weicht park im- provements; and 4. Lions Park Center space im- provements and community picnic pavilion addition; and 5. Youth Athletic Complex im- provements; and 6. Orono Park improvements; and 7. Lake Orono dredging; and 8. Citywide trail connection im- provements. SECTION 3. This Ordinance shall be in full force and effect from and after its passage and publication. Passed and adopted by the City Council of the City of Elk River this 5th day of August, 2019. John J. Dietz, Mayor ATTEST: Tina Allard, City Clerk Published in the Star News August 10, 2019 964608