1.1 	A bill for an act
1.2 	relating to taxation; authorizing the cities of Baxter, Brainerd, and Nisswa to 
1.3 	impose a sales and use tax and issue general obligation bonds.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. CITY OF BAXTER; 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, pursuant to 
1.8 	the approval of the voters on November 2, 2004, and pursuant to Minnesota Statutes, 
1.9 	section 297A.99, the city of Baxter may impose by ordinance a sales and use tax of 
1.10 	one-half of one percent for the purposes specified in subdivision 3. The provisions of 
1.11 	Minnesota Statutes, section 297A.99, govern the imposition, administration, collection, 
1.12 	and enforcement of the tax authorized under 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 	Baxter may impose by ordinance, for the purposes specified in subdivision 3, an excise tax 
1.16 	of up to $20 per motor vehicle, as defined by ordinance, purchased or acquired from any 
1.17 	person engaged within the city of Baxter 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 tax 
1.20 	and to finance the acquisition and betterment of water and wastewater facilities, building 
1.21 	and equipping a fire substation, and constructing the Paul Bunyan Bridge over Excelsior 
1.22 	Road and related improvements, as approved by the voters at the referendum authorizing 
1.23 	the tax. Authorized costs include, but are not limited to, acquiring property and paying 
1.24 	construction and engineering costs related to the projects.
2.1 		Subd. 4.Bonds. The city of Baxter, pursuant to the approval of the voters at the 
2.2 	November 2, 2004, referendum authorizing the imposition of the taxes in this section, may 
2.3 	issue general obligation bonds of the city, in one or more series, in the aggregate principal 
2.4 	amount not to exceed $15,000,000 to finance the projects listed in subdivision 3. The debt 
2.5 	represented by the bonds is not included in computing any debt limitations applicable to 
2.6 	the city, and the levy of taxes required by Minnesota Statutes, section 475.61, to pay the 
2.7 	principal of and interest on the bonds is not subject to any levy limitation or included in 
2.8 	computing or applying any levy limitation applicable to the city of Baxter.
2.9 		Subd. 5.Termination of taxes. The taxes imposed under subdivisions 1 and 2 
2.10 	expire at the earlier of a date 12 years after the imposition of the tax or when the Baxter 
2.11 	City Council first determines that the amount of revenues raised from the taxes to pay for 
2.12 	the projects equals or exceeds $15,000,000 plus any interest on bonds issued for the 
2.13 	projects under subdivision 3. Any funds remaining after the expiration of the taxes and 
2.14 	retirement of the bonds shall be placed in a capital project fund of the city of Baxter. The 
2.15 	taxes imposed under subdivisions 1 and 2 may expire at an earlier time if the city of 
2.16 	Baxter so determines by ordinance.

2.17 	EFFECTIVE DATE. This section is effective the day after compliance with 
2.18 	the governing body of the city of Baxter with Minnesota Statutes, section 645.021, 
2.19 	subdivision 3.

2.20 	Sec. 2. CITY OF BRAINERD; TAXES AUTHORIZED.
 2.21 		Subdivision 1.Sales and use tax authorized. Notwithstanding Minnesota Statutes, 
2.22 	section 477A.016, or any other provision of law, ordinance, or city charter, contingent 
2.23 	on the approval of the voters on the November 7, 2006, referendum, and pursuant to 
2.24 	Minnesota Statutes, section 297A.99, the city of Brainerd may impose by ordinance a sales 
2.25 	and use tax of one-half of one percent for the purposes specified in subdivision 3. The 
2.26 	provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
2.27 	collection, and enforcement of the tax authorized under this section.
2.28 		Subd. 2.Excise tax authorized. Notwithstanding Minnesota Statutes, section 
2.29 	477A.016, or any other provision of law, ordinance, or city charter, the city of Brainerd 
2.30 	may impose by ordinance, for the purposes specified in subdivision 3, an excise tax of up 
2.31 	to $20 per motor vehicle, as defined by ordinance, purchased, or acquired from any person 
2.32 	engaged within the city of Brainerd in the business of selling motor vehicles at retail.
2.33 		Subd. 3.Use of revenues. Revenues received from the taxes authorized by 
2.34 	subdivisions 1 and 2 must be used to pay the cost of collecting and administering the tax 
2.35 	and to finance all or part of the costs of constructing an upgraded wastewater treatment 
3.1 	facility to serve the cities of Brainerd and Baxter, water infrastructure improvements, and 
3.2 	trail development, contingent on approval by Brainerd voters at the November 7, 2006, 
3.3 	referendum. Authorized costs include, but are not limited to, acquiring property and 
3.4 	paying construction and engineering costs related to the projects.
3.5 		Subd. 4.Bonds. The city of Brainerd, contingent on approval of the voters at the 
3.6 	November 7, 2006, referendum authorizing the imposition of taxes in this section, may 
3.7 	issue general obligation bonds of the city, in one or more series, in the aggregate principal 
3.8 	amount not to exceed $22,030,000 to finance the projects listed in subdivision 3. The debt 
3.9 	represented by the bonds is not included in computing any debt limitations applicable to 
3.10 	Brainerd, and the levy of taxes required by Minnesota Statutes, section 475.61, to pay the 
3.11 	principal and interest on the bonds is not subject to any levy limitation or included in 
3.12 	computing any levy limitation applicable to the city of Brainerd.
3.13 		Subd. 5.Termination of taxes. The taxes imposed under subdivisions 1 and 2 
3.14 	expire at the earlier of a date 12 years after the imposition of the tax or when the city 
3.15 	council first determines that the amount of revenues raised from the taxes to pay for 
3.16 	projects equals or exceeds $22,030,000 plus any interest on bonds issued for the projects 
3.17 	under subdivision 3. Any funds remaining after the expiration of the taxes and retirement 
3.18 	of the bonds shall be placed in a capital project fund of the city of Brainerd. The taxes 
3.19 	imposed under subdivision 1 and 2 may expire at an earlier time if the city of Brainerd so 
3.20 	determines by ordinance.

3.21 	EFFECTIVE DATE. This section is effective the day after compliance with 
3.22 	the governing body of the city of Brainerd with Minnesota Statutes, section 645.021, 
3.23 	subdivision 3.

3.24 	Sec. 3. CITY OF NISSWA; TAXES AUTHORIZED.
 3.25 		Subdivision 1.Sales and use tax authorized. Notwithstanding Minnesota Statutes, 
3.26 	section 477A.016, or any other provision of law, ordinance, or city charter, contingent on 
3.27 	the approval of Nisswa voters on November 7, 2006, and pursuant to Minnesota Statutes, 
3.28 	section 297A.99, the city of Nisswa may impose by ordinance a sales and use tax of 
3.29 	one-half of one percent for the purposes specified in subdivision 3. The provisions of 
3.30 	Minnesota Statutes, section 297A.99, govern the imposition, administration, collection, 
3.31 	and enforcement of the tax authorized under this subdivision.
3.32 		Subd. 2.Excise tax authorized. Notwithstanding Minnesota Statutes, section 
3.33 	477A.016, or any other contrary provision of law, ordinance, or city charter, the city of 
3.34 	Nisswa may impose by ordinance, for the purposes specified in subdivision 3, an excise tax 
4.1 	of up to $20 per motor vehicle, as defined by ordinance, purchased or acquired from any 
4.2 	person engaged within the city of Nisswa in the business of selling motor vehicles at retail.
4.3 		Subd. 3.Use of revenues. Revenues received from the taxes authorized by 
4.4 	subdivisions 1 and 2 must be used to pay the cost of collecting and administering the 
4.5 	tax and to pay costs of financing the acquisition of property, construction costs, and 
4.6 	engineering costs for an upgraded wastewater treatment facility and related improvements, 
4.7 	and city-borne costs related to the upgrade of State Highway 371 through Nisswa, 
4.8 	contingent on the approval of Nisswa voters at the November 7, 2006, referendum 
4.9 	authorizing the tax. Authorized costs include, but are not limited to, acquiring property 
4.10 	and paying construction and engineering costs related to the projects.
4.11 		Subd. 4.Bonds. The city of Nisswa, contingent on the approval of the voters at the 
4.12 	November 7, 2006, referendum authorizing the imposition of taxes in this section, may 
4.13 	issue general obligation bond of the city, in one or more series, in the aggregate principal 
4.14 	amount not to exceed $7,800,000 to finance the projects listed in subdivision 3. The debt 
4.15 	represented by the bonds is not included in computing any debt limitations applicable to 
4.16 	the city of Nisswa, and the levy of taxes required by Minnesota Statutes, section 475.61, to 
4.17 	pay the principal and interest on the bonds is not subject to any levy limitation or included 
4.18 	in computing or applying any levy limitation applicable to the city of Nisswa.
4.19 		Subd. 5.Termination of taxes. The taxes imposed under subdivisions 1 and 2 
4.20 	expire when the Nisswa City Council first determines that the amount of revenues raised 
4.21 	from the taxes to pay for the projects equals or exceeds $7,800,000 plus any interest 
4.22 	on bonds issued for the projects under subdivision 3. Any funds remaining after the 
4.23 	expiration of the taxes and retirement of the bonds shall be placed in a capital project fund 
4.24 	of the city of Nisswa. The taxes imposed under subdivisions 1 and 2 may expire at an 
4.25 	earlier time if the city of Nisswa so determines by ordinance.

4.26 	EFFECTIVE DATE. This section is effective the day after compliance with 
4.27 	the governing body of the city of Nisswa with Minnesota Statutes, section 645.021, 
4.28 	subdivision 3.