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

1.5 	Section 1. CITY OF OWATONNA; 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 Owatonna 
1.9 	may 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 taxes authorized under 
1.12 	this subdivision.
1.13 		Subd. 2.Excise tax authorized. Notwithstanding Minnesota Statutes, section 
1.14 	477A.016, or any other provision of law, ordinance, or city charter, the city of Owatonna 
1.15 	may impose by ordinance, for the purposes specified in subdivision 3, an excise tax of 
1.16 	$20 per motor vehicle, as defined by ordinance, purchased or acquired from any person 
1.17 	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 all or part of the capital costs of transportation 
1.20 	projects included in the 2004 U.S. Highway 14-Owatonna Beltline Study by the Minnesota 
1.21 	Department of Transportation, Steele County, and the city of Owatonna; regional parks 
1.22 	and trail developments, West Hills complex, firehall, and library improvement projects; 
1.23 	and a public safety radio system; as described in the city resolution No. 4-06, Exhibit 
1.24 	A, as adopted by the city on January 17, 2006. The amount paid from these revenues 
2.1 	for transportation projects may not exceed $4,450,000 plus associated bond costs. The 
2.2 	amount paid from these revenues for park and trail projects may not exceed $5,400,000 
2.3 	plus associated bond costs. The amount paid from these revenues for West Hills complex, 
2.4 	fire hall, and library improvement projects may not exceed $2,823,000 plus associated 
2.5 	bond costs. The amount paid from these revenues for a public safety radio system may not 
2.6 	exceed $500,000 plus associated bond costs. 
2.7 		Subd. 4.Bonds. (a) The city of Owatonna, if approved by voters pursuant to 
2.8 	Minnesota Statutes, section 297A.99, may issue bonds under Minnesota Statutes, chapter 
2.9 	475, to pay capital and administrative expenses for the projects described in subdivision 3, 
2.10 	in an amount that does not exceed $13,200,000. A separate election to approve the bonds 
2.11 	under Minnesota Statutes, section 475.58, is not required.
2.12 	(b) The debt represented by the bonds is not included in computing any debt 
2.13 	limitation applicable to the city, and any levy of taxes under Minnesota Statutes, section 
2.14 	475.61, to pay principal and interest on the bonds, is not subject to any levy limitation.
2.15 		Subd. 5.Termination of taxes. The taxes imposed under subdivisions 1 and 2 
2.16 	expire at the earlier of (1) ten years, or (2) when the city council determines that the 
2.17 	amount of revenues received from the taxes to pay for the projects under subdivision 3 first 
2.18 	equals or exceeds the amount authorized to be spent for each project plus the additional 
2.19 	amount needed to pay the costs related to issuance of the bonds under subdivision 4, 
2.20 	including interest on the bonds. Any funds remaining after completion of the projects 
2.21 	and retirement or redemption of the bonds shall be placed in a capital project fund of 
2.22 	the city. The taxes imposed under sections 1 and 2 may expire at an earlier time if the 
2.23 	city so determines by ordinance.

2.24 	EFFECTIVE DATE. This section is effective the day after compliance by the 
2.25 	governing body of the city of Owatonna with Minnesota Statutes, section 645.021, 
2.26 	subdivision 3.