1.1 	A bill for an act
1.2 	relating to taxation; authorizing the city of Luverne to impose sales and motor 
1.3 	vehicle excise taxes for certain purposes.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. CITY OF LUVERNE; TAXES AUTHORIZED.
 1.6 		Subdivision 1.Sales and use tax authorized. Notwithstanding Minnesota Statutes, 
1.7 	section 477A.016, or any other provision of law, ordinance, or city charter, if approved 
1.8 	by the voters pursuant to Minnesota Statutes, section 297A.99, the city of Luverne may 
1.9 	impose by ordinance a sales and use tax of one-half of one percent for the purposes 
1.10 	specified in subdivision 3. The provisions of Minnesota Statutes, section 297A.99, govern 
1.11 	the imposition, administration, collection, and enforcement of the tax authorized under 
1.12 	this subdivision.
1.13 		Subd. 2.Excise tax authorized. Notwithstanding Minnesota Statutes, section 
1.14 	477A.016, or any other contrary provision of law, ordinance, or city charter, the city of 
1.15 	Luverne may impose by ordinance, for the purposes specified in subdivision 3, an excise 
1.16 	tax of up to $20 per motor vehicle, as defined by ordinance, purchased or acquired from 
1.17 	any person engaged within the city in the business of selling motor vehicles at retail.
1.18 		Subd. 3.Use of revenues. Revenues received from the taxes authorized by 
1.19 	subdivisions 1 and 2 must be used to pay the cost of collecting and administering the taxes 
1.20 	and to pay all or part of the expenses for the following projects:
1.21 	(1) capital improvements and renovation of the Historic Palace Theatre in an amount 
1.22 	not to exceed $3,000,000; and
1.23 	(2) capital improvements and renovation of a vacated community hospital for the 
1.24 	Minnesota West Community and Technical College, not to exceed $3,000,000.
2.1 	Authorized expenses include, but are not limited to, acquiring property and paying 
2.2 	construction expenses related to the projects, and paying debt service on bonds or other 
2.3 	obligations issued to finance the acquisition and improvements.
2.4 		Subd. 4.Bonds. If the taxes under subdivisions 1 and 2 are approved by voters 
2.5 	pursuant to Minnesota Statutes, section 297A.99, the city of Luverne may issue, without 
2.6 	an additional election, bonds, in one or more series, in the aggregate principal amount 
2.7 	not to exceed $3,000,000 to pay capital and administrative costs of the projects listed in 
2.8 	subdivision 3. The debt represented by the bonds is not included in computing any debt 
2.9 	limitations applicable to the city, and the levy of taxes required by Minnesota Statutes, 
2.10 	section 475.61, to pay the principal of and interest on the bonds is not subject to any levy 
2.11 	limitation or included in computing or applying any levy limitation applicable to the city.
2.12 		Subd. 5.Termination of taxes. The taxes imposed under subdivisions 1 and 2 
2.13 	expire at the later of 30 years after the imposition of the tax or when the Luverne city 
2.14 	council determines that sufficient funds have been received from the taxes to prepay 
2.15 	or retire at maturity the principal, interest, and premium due on any bonds issued for 
2.16 	the projects under subdivision 4. Any funds remaining after expiration of the taxes and 
2.17 	retirement of the bonds may be placed in a capital project fund of the city. The taxes 
2.18 	imposed under subdivisions 1 and 2 may expire at an earlier time if the city so determines 
2.19 	by ordinance.

2.20 	EFFECTIVE DATE. This section is effective the day after compliance by the 
2.21 	governing body of the city of Luverne with Minnesota Statutes, section 645.021, 
2.22 	subdivision 3.