1.1                          A bill for an act 
  1.2             relating to taxation; authorizing the city of Beaver 
  1.3             Bay to impose a sales and use tax; providing for use 
  1.4             of the proceeds. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [CITY OF BEAVER BAY; TAXES AUTHORIZED.] 
  1.7      Subdivision 1.  [SALES AND USE TAXES.] Notwithstanding 
  1.8   Minnesota Statutes, section 477A.016, or any other provision of 
  1.9   law or ordinance, if approved by the voters of the city at the 
  1.10  next general election held after the date of final enactment of 
  1.11  this act, the city of Beaver Bay may impose by ordinance a sales 
  1.12  and use tax at a rate of up to one percent for the purposes 
  1.13  specified in subdivision 2.  The provisions of Minnesota 
  1.14  Statutes, section 297A.99, govern the imposition, 
  1.15  administration, collection, and enforcement of the tax 
  1.16  authorized under this subdivision. 
  1.17     Subd. 2.  [USE OF REVENUES.] The revenues received from 
  1.18  taxes authorized by subdivision 1 must be used to pay the bonded 
  1.19  indebtedness on the city community building and to provide 
  1.20  funding for recreational facilities, the upgrading of the water 
  1.21  and sewer system, upgrading and replacement of fire equipment, 
  1.22  and improvement of streets. 
  1.23     Subd. 3.  [TERMINATION OF TAXES.] The authority granted 
  1.24  under subdivision 1 to the city of Beaver Bay to impose sales 
  1.25  and use taxes expires when the city council determines that the 
  2.1   amount of revenue received to pay the costs of the projects 
  2.2   described in subdivision 2 shall meet or exceed $1,500,000.  Any 
  2.3   funds remaining after completion of the projects may be placed 
  2.4   in the general fund of the city.  The tax imposed under 
  2.5   subdivision 1 may expire at an earlier time if the city so 
  2.6   determines by ordinance. 
  2.7      <b>[EFFECTIVE DATE.]</b> This section is effective the day after 
  2.8   the governing body of the city of Beaver Bay and its chief 
  2.9   clerical officer timely comply with Minnesota Statutes, section 
  2.10  645.021, subdivisions 2 and 3.