1.1 	A bill for an act
1.2 	relating to taxes; authorizing the city of Worthington
1.3 	to impose a local sales and use tax.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. CITY OF WORTHINGTON; TAXES AUTHORIZED.
 1.6 		Subdivision 1.Sales and use tax. Notwithstanding
1.7 	Minnesota Statutes, section 477A.016, or any other provision of
1.8 	law, ordinance, or city charter, if approved by the voters
1.9 	pursuant to Minnesota Statutes, section 297A.99, at the next
1.10 	general election or at a special election held for that purpose
1.11 	before January 1, 2006, the city of Worthington may impose by
1.12 	ordinance a sales and use tax of up to one-half of one percent
1.13 	for the purpose specified in subdivision 3.  Except as otherwise
1.14 	provided in this section, the provisions of Minnesota Statutes,
1.15 	section 297A.99, govern the imposition, administration,
1.16 	collection, and enforcement of the tax authorized under this
1.17 	subdivision.
1.18 		Subd. 2.Excise tax authorized. Notwithstanding
1.19 	Minnesota Statutes, section 477A.016, or any other provision of
1.20 	law, ordinance, or city charter, the city of Worthington may
1.21 	impose by ordinance, for the purposes specified in subdivision
1.22 	3, an excise tax of up to $20 per motor vehicle, as defined by
1.23 	ordinance, purchased or acquired from any person engaged within
1.24 	the city in the business of selling motor vehicles at retail.
2.1 		Subd. 3.Use of revenues. Revenues received from taxes
2.2 	authorized by subdivisions 1 and 2 must be used by the city to
2.3 	pay the cost of collecting and administering the taxes and to
2.4 	pay for the costs of a multipurpose city facility to include
2.5 	meeting rooms, a swimming pool, and a senior citizen center, and
2.6 	to make renovations to the Memorial Auditorium.  Authorized
2.7 	expenses include, but are not limited to, acquiring property and
2.8 	paying construction expenses related to these improvements, and
2.9 	paying debt service on bonds or other obligations issued to
2.10 	finance acquisition and construction of these improvements.
2.11 		Subd. 4.Bonding authority. (a) If the tax authorized
2.12 	under subdivision 1 is approved by the voters, the city may
2.13 	issue bonds under Minnesota Statutes, chapter 475, to pay
2.14 	capital and administrative expenses for the improvements
2.15 	described in subdivision 3 in an amount that does not exceed
2.16 	$7,800,000.  An election to approve the bonds under Minnesota
2.17 	Statutes, section 475.58, is not required.
2.18 	(b) The issuance of bonds under this subdivision is not
2.19 	subject to Minnesota Statutes, sections 275.60 and 275.61.
2.20 	(c) The debt represented by the bonds is not included in
2.21 	computing any debt limitation applicable to the city, and any
2.22 	levy of taxes under Minnesota Statutes, section 475.61, to pay
2.23 	principal of and interest on the bonds is not subject to any
2.24 	levy limitation.
2.25 		Subd. 5.Termination of taxes. The taxes imposed under
2.26 	subdivisions 1 and 2 expire at the earlier of (1) ten years, or
2.27 	(2) when the city council determines that the amount of revenue
2.28 	received from the taxes to pay for the projects under
2.29 	subdivision 3 equals or exceeds $7,800,000 plus the additional
2.30 	amount needed to pay the costs related to issuance of bonds
2.31 	under subdivision 4, including interest on the bonds.  Any funds
2.32 	remaining after completion of the project and retirement or
2.33 	redemption of the bonds may be placed in the general fund of the
2.34 	city.  The taxes imposed under subdivisions 1 and 2 may expire
2.35 	at an earlier time if the city so determines by ordinance.
2.36 	
EFFECTIVE DATE. This section is effective the day after
3.1 	the governing body of the city of Worthington and its chief
3.2 	clerical officer timely comply with Minnesota Statutes, section
3.3 	645.021, subdivisions 2 and 3.