SF 3218

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; authorizing the city of Baxter to impose sales and use and
motor vehicle excise taxes and issue general obligation bonds.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. new text begin CITY OF BAXTER; TAXES AUTHORIZED.
new text end

new text begin new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorized. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other provision of law, ordinance, or city charter, pursuant to
the approval of the voters on November 2, 2004, and pursuant to Minnesota Statutes,
section 297A.99, the city of Baxter may impose by ordinance a sales and use tax of
one-half of one percent for the purposes specified in subdivision 3. The provisions of
Minnesota Statutes, section 297A.99, govern the imposition, administration, collection,
and enforcement of the tax authorized under this subdivision.
new text end

new text begin Subd. 2. new text end

new text begin Excise tax authorized. new text end

new text begin Notwithstanding Minnesota Statutes, section
477A.016, or any other contrary provision of law, ordinance, or city charter, the city of
Baxter may impose by ordinance, for the purposes specified in subdivision 3, an excise tax
of up to $20 per motor vehicle, as defined by ordinance, purchased or acquired from any
person engaged within the city of Baxter in the business of selling motor vehicles at retail.
new text end

new text begin Subd. 3. new text end

new text begin Use of revenues. new text end

new text begin Revenues received from the taxes authorized by
subdivisions 1 and 2 must be used to pay the cost of collecting and administering the tax
and to finance the acquisition and betterment of water and wastewater facilities, building
and equipping a fire substation, and constructing the Paul Bunyan Bridge over Excelsior
Road and related improvements, as approved by the voters at the referendum authorizing
the tax. Authorized costs include, but are not limited to, acquiring property and paying
construction and engineering costs related to the projects.
new text end

new text begin Subd. 4. new text end

new text begin Bonds. new text end

new text begin The city of Baxter, pursuant to the approval of the voters at the
November 2, 2004, referendum authorizing the imposition of the taxes in this section, may
issue general obligation bonds of the city, in one or more series, in the aggregate principal
amount not to exceed $15,000,000 to finance the projects listed in subdivision 3. The debt
represented by the bonds is not included in computing any debt limitations applicable to
the city, and the levy of taxes required by Minnesota Statutes, section 475.61, to pay the
principal of and interest on the bonds is not subject to any levy limitation or included in
computing or applying any levy limitation applicable to the city of Baxter.
new text end

new text begin Subd. 5. new text end

new text begin Termination of taxes. new text end

new text begin The taxes imposed under subdivisions 1 and 2
expire at the earlier of a date 12 years after the imposition of the tax or when the Baxter
City Council first determines that the amount of revenues raised from the taxes to pay for
the projects equals or exceeds $15,000,000 plus any interest on bonds issued for the
projects under subdivision 3. Any funds remaining after the expiration of the taxes and
retirement of the bonds shall be placed in a capital project fund of the city of Baxter. The
taxes imposed under subdivisions 1 and 2 may expire at an earlier time if the city of
Baxter so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after compliance by
the governing body of the city of Baxter with Minnesota Statutes, section 645.021,
subdivision 3.
new text end