1.1 	A bill for an act
1.2 	relating to taxation; authorizing the city of Breezy Point to impose sales and use 
1.3 	and motor vehicle excise taxes and issue general obligation bonds.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. CITY OF BREEZY POINT; 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 at the general election on November 7, 2006, and pursuant to 
1.9 	Minnesota Statutes, section 297A.99, the city of Breezy Point may impose by ordinance 
1.10 	a sales and use tax of one-half of one percent for the purposes specified in subdivision 
1.11 	3. The provisions of Minnesota Statutes, section 297A.99, govern the imposition, 
1.12 	administration, collection, 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 	Breezy Point may impose by ordinance, for the purposes specified in subdivision 3, an 
1.16 	excise tax of up to $20 per motor vehicle, as defined by ordinance, purchased or acquired 
1.17 	from any person engaged within the city of Breezy Point in the business of selling motor 
1.18 	vehicles at retail.
1.19 		Subd. 3.Use of revenues. Revenues received from the taxes authorized by 
1.20 	subdivisions 1 and 2 must be used to pay the cost of collecting and administering the 
1.21 	tax and to finance sanitary sewer, storm sewer, street infrastructure, and public safety 
1.22 	improvements as approved by the voters at the referendum authorizing the tax. Authorized 
1.23 	costs include, but are not limited to, acquiring property and paying construction and 
1.24 	engineering costs related to the projects.
2.1 		Subd. 4.Bonds. The city of Breezy Point, pursuant to the approval of the voters at 
2.2 	the referendum authorizing the imposition of the taxes in this section, may issue general 
2.3 	obligation bonds of the city, in one or more series, in the aggregate principal amount not to 
2.4 	exceed $11,000,000 to finance the projects listed in subdivision 3. The debt represented 
2.5 	by the bonds is not included in computing any debt limitations applicable to the city, and 
2.6 	the levy of taxes required by Minnesota Statutes, section 475.61, to pay the principal of 
2.7 	and interest on the bonds is not subject to any levy limitation or included in computing or 
2.8 	applying any levy limitation applicable to the city.
2.9 		Subd. 5.Termination of taxes. The taxes imposed under subdivisions 1 and 2 
2.10 	expire 15 years after the imposition of the tax or when the Breezy Point City Council 
2.11 	first determines that the amount of revenues raised from the taxes to pay for the projects 
2.12 	equals or exceeds $11,000,000 plus any interest on bonds issued for the projects under 
2.13 	subdivision 3, whichever is earlier. Any funds remaining after the expiration of the taxes 
2.14 	and retirement of the bonds may be placed in the general fund or in a capital project fund 
2.15 	of the city of Breezy Point. The taxes imposed under subdivisions 1 and 2 may expire 
2.16 	at an earlier time if the city so determines by ordinance.

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