Ordinance 737Docusign Envelope lD: 8C4DF870-63DF -4262-8247-1 1 CBEEEF6082
ORDINANCE NO. 737
il\{POSING LOCAL SALES AND USE TAX
The City Council of the City of Chanhassen, Minnesota ordains:
Section Local Sales and Use Tax.
Subd. l. Authoritv. Pursuant to Minnesota Session Laws 2023, Regular Session,
Chapter 64, Article 10, Section 29 (the "special Law"), the Minnesota Legislature has authorized
the City of Chanhassen, Minnesota (the "City"), in part, to impose a local sales and use tax to
provide revenues to pay the costs of collecting and administering the tax to the Commissioner
(defined below) and to finance up to $40,000,000, plus an amount equal to interest and the costs
of issuance of any bonds, for the payment of capital and administrative costs related to the funding
of the Designated Projects (defined below).
Subd. 2. Definitions. For purposes of this Section _ of the City Code of the City (this
"Section"), the following words, terms, and phrases have the following meanings given them
unless the language or context clearly indicates a different meaning is intended.
A. City. "City" means the City of Chanhassen, Minnesota.
B. Commissioner. "Commissioner" means the Commissioner of Revenue of the State
of Minnesota or a person to whom the Commissioner of Revenue has delegated
functions.
C. Designated Projects. "Designated Projects" means the construction of the Avienda
Recreational Facility, as authorized by the Minnesota Legislature in the Special
Law and approved by the voters at the November 5, 2024, referendum.
D. Special Law. "special Law" has the meaning provided in Subdivision 1 of this
Section of the City Code.
E. 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, and 297A, and Minnesota Rules,
Chapter 8130, as amended from time to time.
Subd. 3. 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
(0.50%) on the gross receipts from sales at retail sourced within city limits of the City that 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 (0.50%) on the storage, use, distribution or consumption of
goods or services sourced within the city limits of the City that 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 Section. The local sales and use tax imposed
by this Section shall be collected and remitted to the Commissioner on any sale or purchase when
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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.
Subd. 4. Effective date of tax: transitional sales. Except as otherwise provided herein, the
local sales and use tax imposed by this Section shall apply to sales and purchases made on or after
April l, 2025. The local sales and use tax imposed by this Section 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 April 1,2025, and that delivery of the tangible personal property subject thereto
is made on or before April 1,2025.
B.The gross receipts from retail sales made pursuant to a bona hde 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 April 1,2025, and that
delivery of the tangible personal property used in performing such construction
contract is made before October 1,2025.
The purchase of taxable services, including utility services, if the billing period
includes charges for services fumished before and after April l, 2025,butthe local
sales and use tax imposed by this Section shall apply on the first billing period not
including charges for services furnished before Apil1,2025.
D Lease payments for tangible personal property and motor vehicles that includes a
period before and after April 1, 2025,but the local sales and use tax imposed by
this Section shall apply on a prorated basis to lease payment amounts attributable
to that portion of the lease pa5.,rnent period on or after April l, 2025 and on the
entire lease payment for all lease payment periods thereafter.
Subd. 5. 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 taxes of the City as provided in this Section, or
penalties or interest due on such City taxes. City taxes include sales and use taxes
provided in this Section. Penalties and interest are penalties and interest due on
taxes included in this definition.
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.
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.
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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. 270,{ for the state sales and use tax imposed under Minnesota Statutes,
Chapter 297 A; provided further that if a hearing must be held on the state sales and
use tax, hearings must be combined.
Subd. 6. 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 Section collected by the Commissioner and remitted to the City
shall be deposited by the Finance Director of the City 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 Section and to finance the capital and administrative costs
directly related to completing the Designated Projects.
The local sales and use tax imposed by this Section shall terminate at the earlier of:
(1) March 31, 2044, which is the date which is 20 years after the tax is first
imposed; or (2) when the City Council determines that $40,000,000, plus an amount
equal to interest and the costs ofissuance ofany bonds has been received from the
local sales and use tax imposed by this Section 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 Section may terminate at an earlier time if the City Council so
determines by ordinance. In any event, the local sales and use tax imposed under
this Section may only terminate on the last day of a calendar quarter upon 90 days'
notice to the Commissioner.
Subd.7. 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 Section. Any such agreement shall not abrogate, alter, or otherwise conflict with
the State Sales and Use Tax Laws and Rules, this ordinance, or the Special Law.
Subd. 8. Summary publication. The following summary is approved by the City Council
and, if this Ordinance has been enacted by at least a four-fifths majority of all of the members of
the City Council, this summary may be published in the City's official newspaper in lieu of
publishing the entire ordinance pursuant to Minnesota Statutes section 4l2.l9l:
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 (0.50%) on retail sales made after
April l, 2025, to be used to fund the costs of collecting and administering the tax
and the hnance the costs of certain Designated Projects related to the construction
of the Avienda Recreational Facility in the City.
If the Ordinance was enacted by less than a four-fifths majority of all of the members of the City
Council, then the fulltext of the ordinance shallbe published in the City's officialnewspaper.
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EFFECTTVE DATE. This ordinance of the City of Chanhassen shall be effective upon its
approval and publication.
PASSED AND ADOPTED by the City Council this, this 9th day of December,2024.
by:by:
ldlv djv.
Jenny , City Clerk
Aves
Ryan
von Oven
Kimber
Schubert
Navs
Published in the Sun Sailor on December 19,2024
ABSENT
McDonald
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Ad rD 1439691
AFFIDAVIT OF PUBLICAIION
).,STATE OF MINNESOTA
COUNry OF HENNEPIN
C]TY OF CHANHASSEN
CARVER AND HENNEPIN
couNTtEs, MTNNESOTA
SUMMARY OF
ORDINANCE NO.737
AN ORDINANCE IMPOSING
LOCAL SALES AND USE TAX
Pu6uant to a voter-apprcved
referendum, the City is authorized
to and will impose a local sales and
us6 tax of one-half of on€ percent
(0.50%) on retail sales made after
April 1, 2025, to be used to fund
the costs ol collecting and admin-
istering the tax and the finance the
costs of certain Designated Proj-
ects related to the construction of
the Avienda Recreational Facility in
the City.
A printed copy of Ordinance
No. 737 is available for inspection
by any person during regular office
hours at the office of the City Man-
ager/Clerk.
PASSED, ADOPTED, AND
APPROVED FOR PUBLICATION
this 9th day of December, 2024,
by the City Council of the City of
Chanhassen.
Published in the
Sun Sailor
December 19,2024
1439691
I do solemly swear that the noticg as per the
prooi was published in the edition of the
SS Mtka-Excelsior-Eden Prairie
with the known oflice of issue being located
in the county of:
HENNEPIN
with additional circulation in the counties of:
HENNEPIN
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 i successive week(s); the first
insertion being on 1211912024 and the last
insertion being on 1211912024.
MORTGAGE FORECLOSI.]RE NOTICFS
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 (l) 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 uotice are located,
a substantial portion of the newspaperrs
circulation is in latter
Designated Agent
Subscribed and sworn to or affrrmed before
me on 1211912024
Notary Public
Rate lnformation:
(l) Lowest classified rate paid by commercial users
for comparable space:
$999.99 per column inch
ffi Daflerre Marie MacPherson
ff@d* *il'flx"::,?''
.ffi
!,ty Commision Epires Jan. 31, 2029