1.1 	A bill for an act
1.2 	relating to local option sales taxes; authorizing the city of Duluth to increase its 
1.3 	food and beverage tax; authorizing each of the cities of Austin, Baxter, Brainerd, 
1.4 	and Nisswa to impose a local sales tax;amending Laws 1980, chapter 511, 
1.5 	section 1, subdivision 2, as amended.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Laws 1980, chapter 511, section 1, subdivision 2, as amended by Laws 1991, 
1.8 	chapter 291, article 8, section 22; Laws 1998, chapter 389, article 8, section 25; and Laws 
1.9 	2003, First Special Session chapter 21, article 8, section 11, is amended to read:
1.10 	Subd. 2.  Notwithstanding Minnesota Statutes, Section  477A.016, or any other law, 
1.11 	ordinance, or city charter provision  to the contrary, the city of Duluth may, by ordinance, 
1.12 	impose an  additional sales tax of up to ~~one and one-half~~ two and one-quarter percent on 
1.13 	sales  transactions which are described in Minnesota Statutes 2000,  Section 297A.01, 
1.14 	Subdivision 3, Clause (c).  When the city  council determines that the taxes imposed 
1.15 	under this subdivision  and under Laws 1998, chapter 389, article 8, section 26, at a rate 
1.16 	of one-half of one percent have  produced revenue sufficient to pay (1) the debt service 
1.17 	on bonds  in a principal amount of $8,000,000 issued for capital  improvements to the 
1.18 	Duluth Entertainment and Convention Center,  and (2) debt service on outstanding bonds 
1.19 	originally issued in  the principal amount of $4,970,000 to finance capital  improvements to 
1.20 	the Great Lakes Aquarium since the imposition of  the taxes at the rate of one and one-half 
1.21 	percent, the rate of  the tax under this subdivision is reduced ~~to~~ by one-half of one percent.  
1.22 	When the city council determines that the taxes imposed under this subdivision at a rate 
1.23 	of three-quarters of one percent have produced revenue sufficient to pay debt service on 
1.24 	bonds in the principal amount of $33,700,000, plus issuance and discount costs, issued 
1.25 	for capital improvements for a new arena at the Duluth Entertainment and Convention 
2.1 	Center, the rate of tax under this subdivision shall be reduced by three-quarters of one 
2.2 	percent. The  imposition of this tax shall not be subject to voter referendum  under either 
2.3 	state law or city charter provisions.  
2.4 	

2.5 	EFFECTIVE DATE. This section is effective the day after  the governing body of 
2.6 	the city of Duluth and its chief clerical officer comply with Minnesota Statutes, section 
2.7 	645.021,  subdivisions 2 and 3. 

2.8 	Sec. 2. CITY OF AUSTIN; TAXES AUTHORIZED.
 2.9 		Subdivision 1.Sales and use tax. Notwithstanding Minnesota Statutes, section 
2.10 	477A.016, or any other provision of law, ordinance, or city charter, if approved by the 
2.11 	voters pursuant to Minnesota Statutes, section 297A.99, at the next general election or 
2.12 	special election held for that purpose before January 1, 2007, the city of Austin may 
2.13 	impose by ordinance a sales and use tax of up to one-half of one percent for the purpose 
2.14 	specified in subdivision 2. Except as otherwise provided in this section, the provisions of 
2.15 	Minnesota Statutes, section 297A.99, govern the imposition, administration, collection, 
2.16 	and enforcement of the tax authorized under this subdivision.
2.17 		Subd. 2.Use of revenues. Revenues received from taxes authorized by subdivision 
2.18 	1 must be used by the city of Austin to pay all or part of the capital or administrative costs 
2.19 	of flood mitigation projects in the city of Austin. Authorized expenses include, but are not 
2.20 	limited to, acquiring property and paying construction and engineering expenses related 
2.21 	to the flood mitigation projects.
2.22 		Subd. 3.Bonding authority. Pursuant to the approval of the city voters to impose 
2.23 	the tax authorized in subdivision 1, the city of Austin may issue, without an additional 
2.24 	election, general obligation bonds of the city in an amount not to exceed $14,000,000 to 
2.25 	finance the costs for the projects specified in subdivision 2. The debt represented by the 
2.26 	bonds must not be included in computing any debt limitations applicable to the city, and 
2.27 	the levy of taxes required by Minnesota Statutes, section 475.61, to pay the principal or 
2.28 	any interest on the bonds must not be subject to any levy limitation.
2.29 		Subd. 4.Termination of tax. The tax authorized under subdivision 1 terminates at 
2.30 	the earlier of:
2.31 	(1) 20 years after the date of initial imposition of the tax; or
2.32 	(2) when the Austin City Council determines that the amount described in 
2.33 	subdivision 2 has been received from the tax to finance the capital and administrative costs 
2.34 	for the projects specified in subdivision 2, and to repay or retire at maturity, the principal, 
2.35 	interest, and premium due on any bonds issued for the projects under subdivision 3.
3.1 	Any funds remaining after completion of the projects specified in subdivision 2, and 
3.2 	retirement or redemption of the bonds in subdivision 3, may be placed in the general fund 
3.3 	of the city. The tax imposed under subdivision 1 may expire at an earlier time if the 
3.4 	city so determines by ordinance.

3.5 	EFFECTIVE DATE. This section is effective the day after the governing body of 
3.6 	the city of Austin and its chief clerical officer comply with Minnesota Statutes, section 
3.7 	645.021, subdivisions 2 and 3.

3.8 	Sec. 3. CITY OF BAXTER; TAXES AUTHORIZED.
 3.9 		Subdivision 1.Sales and use tax authorized. Notwithstanding Minnesota Statutes, 
3.10 	section 477A.016, or any other provision of law, ordinance, or city charter, pursuant to 
3.11 	the approval of the voters on November 2, 2004, and pursuant to Minnesota Statutes, 
3.12 	section 297A.99, the city of Baxter may impose by ordinance a sales and use tax of 
3.13 	one-half of one percent for the purposes specified in subdivision 3. The provisions of 
3.14 	Minnesota Statutes, section 297A.99, govern the imposition, administration, collection, 
3.15 	and enforcement of the tax authorized under this subdivision.
3.16 		Subd. 2.Excise tax authorized. Notwithstanding Minnesota Statutes, section 
3.17 	477A.016, or any other contrary provision of law, ordinance, or city charter, the city of 
3.18 	Baxter may impose by ordinance, for the purposes specified in subdivision 3, an excise tax 
3.19 	of up to $20 per motor vehicle, as defined by ordinance, purchased or acquired from any 
3.20 	person engaged within the city of Baxter in the business of selling motor vehicles at retail.
3.21 		Subd. 3.Use of revenues. Revenues received from the taxes authorized by 
3.22 	subdivisions 1 and 2 must be used to pay the cost of collecting and administering the tax 
3.23 	and to finance the acquisition and betterment of water and wastewater facilities, building 
3.24 	and equipping a fire substation, and constructing the Paul Bunyan Bridge over Excelsior 
3.25 	Road and related improvements, as approved by the voters at the referendum authorizing 
3.26 	the tax. Authorized costs include, but are not limited to, acquiring property and paying 
3.27 	construction and engineering costs related to the projects.
3.28 		Subd. 4.Bonds. The city of Baxter, pursuant to the approval of the voters at the 
3.29 	November 2, 2004, referendum authorizing the imposition of the taxes in this section, may 
3.30 	issue general obligation bonds of the city, in one or more series, in the aggregate principal 
3.31 	amount not to exceed $15,000,000 to finance the projects listed in subdivision 3. The debt 
3.32 	represented by the bonds is not included in computing any debt limitations applicable to 
3.33 	the city, and the levy of taxes required by Minnesota Statutes, section 475.61, to pay the 
3.34 	principal of and interest on the bonds is not subject to any levy limitation or included in 
3.35 	computing or applying any levy limitation applicable to the city of Baxter.
4.1 		Subd. 5.Termination of taxes. The taxes imposed under subdivisions 1 and 2 
4.2 	expire at the earlier of a date 12 years after the imposition of the tax or when the Baxter 
4.3 	City Council first determines that the amount of revenues raised from the taxes to pay for 
4.4 	the projects under subdivision 3 equals or exceeds $15,000,000 plus any interest on bonds 
4.5 	issued for the projects under subdivision 4. Any funds remaining after the expiration of 
4.6 	the taxes and retirement of the bonds shall be placed in a capital project fund of the city of 
4.7 	Baxter. The taxes imposed under subdivisions 1 and 2 may expire at an earlier time if the 
4.8 	city of Baxter so determines by ordinance.

4.9 	EFFECTIVE DATE. This section is effective the day after the governing body of 
4.10 	the city of Baxter and its chief clerical officer comply with Minnesota Statutes, section 
4.11 	645.021, subdivisions 2 and 3.

4.12 	Sec. 4. CITY OF BRAINERD; TAXES AUTHORIZED.
 4.13 		Subdivision 1.Sales and use tax authorized. Notwithstanding Minnesota Statutes, 
4.14 	section 477A.016, or any other provision of law, ordinance, or city charter, contingent 
4.15 	on the approval of the voters on the November 7, 2006, referendum, and pursuant to 
4.16 	Minnesota Statutes, section 297A.99, the city of Brainerd may impose by ordinance a sales 
4.17 	and use tax of one-half of one percent for the purposes specified in subdivision 3. The 
4.18 	provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
4.19 	collection, and enforcement of the tax authorized under this section.
4.20 		Subd. 2.Excise tax authorized. Notwithstanding Minnesota Statutes, section 
4.21 	477A.016, or any other provision of law, ordinance, or city charter, the city of Brainerd 
4.22 	may impose by ordinance, for the purposes specified in subdivision 3, an excise tax of up 
4.23 	to $20 per motor vehicle, as defined by ordinance, purchased, or acquired from any person 
4.24 	engaged within the city of Brainerd in the business of selling motor vehicles at retail.
4.25 		Subd. 3.Use of revenues. Revenues received from the taxes authorized by 
4.26 	subdivisions 1 and 2 must be used to pay the cost of collecting and administering the tax 
4.27 	and to finance all or part of the costs of constructing an upgraded wastewater treatment 
4.28 	facility to serve the cities of Brainerd and Baxter, water infrastructure improvements, and 
4.29 	trail development, contingent on approval by Brainerd voters at the November 7, 2006, 
4.30 	referendum. Authorized costs include, but are not limited to, acquiring property and 
4.31 	paying construction and engineering costs related to the projects.
4.32 		Subd. 4.Bonds. The city of Brainerd, contingent on approval of the voters at the 
4.33 	November 7, 2006, referendum authorizing the imposition of taxes in this section, may 
4.34 	issue general obligation bonds of the city, in one or more series, in the aggregate principal 
4.35 	amount not to exceed $22,030,000 to finance the projects listed in subdivision 3. The debt 
5.1 	represented by the bonds is not included in computing any debt limitations applicable to 
5.2 	Brainerd, and the levy of taxes required by Minnesota Statutes, section 475.61, to pay the 
5.3 	principal and interest on the bonds is not subject to any levy limitation or included in 
5.4 	computing any levy limitation applicable to the city of Brainerd.
5.5 		Subd. 5.Termination of taxes. The taxes imposed under subdivisions 1 and 2 
5.6 	expire at the earlier of a date 12 years after the imposition of the tax or when the city 
5.7 	council first determines that the amount of revenues raised from the taxes to pay for 
5.8 	projects under subdivision 3 equals or exceeds $22,030,000 plus any interest on bonds 
5.9 	issued for the projects under subdivision 4. Any funds remaining after the expiration of 
5.10 	the taxes and retirement of the bonds shall be placed in a capital project fund of the city of 
5.11 	Brainerd. The taxes imposed under subdivision 1 and 2 may expire at an earlier time if the 
5.12 	city of Brainerd so determines by ordinance.

5.13 	EFFECTIVE DATE. This section is effective the day after the governing body of 
5.14 	the city of Brainerd and its chief clerical officer comply with Minnesota Statutes, section 
5.15 	645.021, subdivisions 2 and 3.

5.16 	Sec. 5. CITY OF NISSWA; TAXES AUTHORIZED.
 5.17 		Subdivision 1.Sales and use tax authorized. Notwithstanding Minnesota Statutes, 
5.18 	section 477A.016, or any other provision of law, ordinance, or city charter, contingent on 
5.19 	the approval of Nisswa voters on November 7, 2006, and pursuant to Minnesota Statutes, 
5.20 	section 297A.99, the city of Nisswa may impose by ordinance a sales and use tax of 
5.21 	one-half of one percent for the purposes specified in subdivision 3. The provisions of 
5.22 	Minnesota Statutes, section 297A.99, govern the imposition, administration, collection, 
5.23 	and enforcement of the tax authorized under this subdivision.
5.24 		Subd. 2.Excise tax authorized. Notwithstanding Minnesota Statutes, section 
5.25 	477A.016, or any other contrary provision of law, ordinance, or city charter, the city of 
5.26 	Nisswa may impose by ordinance, for the purposes specified in subdivision 3, an excise tax 
5.27 	of up to $20 per motor vehicle, as defined by ordinance, purchased or acquired from any 
5.28 	person engaged within the city of Nisswa in the business of selling motor vehicles at retail.
5.29 		Subd. 3.Use of revenues. Revenues received from the taxes authorized by 
5.30 	subdivisions 1 and 2 must be used to pay the cost of collecting and administering the 
5.31 	tax and to pay costs of financing the acquisition of property, construction costs, and 
5.32 	engineering costs for an upgraded wastewater treatment facility and related improvements, 
5.33 	and city-borne costs related to the upgrade of State Highway 371 through Nisswa, 
5.34 	contingent on the approval of Nisswa voters at the November 7, 2006, referendum 
6.1 	authorizing the tax. Authorized costs include, but are not limited to, acquiring property 
6.2 	and paying construction and engineering costs related to the projects.
6.3 		Subd. 4.Bonds. The city of Nisswa, contingent on the approval of the voters at the 
6.4 	November 7, 2006, referendum authorizing the imposition of taxes in this section, may 
6.5 	issue general obligation bond of the city, in one or more series, in the aggregate principal 
6.6 	amount not to exceed $7,800,000 to finance the projects listed in subdivision 3. The debt 
6.7 	represented by the bonds is not included in computing any debt limitations applicable to 
6.8 	the city of Nisswa, and the levy of taxes required by Minnesota Statutes, section 475.61, to 
6.9 	pay the principal and interest on the bonds is not subject to any levy limitation or included 
6.10 	in computing or applying any levy limitation applicable to the city of Nisswa.
6.11 		Subd. 5.Termination of taxes. The taxes imposed under subdivisions 1 and 2 
6.12 	expire when the Nisswa City Council first determines that the amount of revenues raised 
6.13 	from the taxes to pay for the projects under subdivision 3 equals or exceeds $7,800,000 
6.14 	plus any interest on bonds issued for the projects under subdivision 4. Any funds 
6.15 	remaining after the expiration of the taxes and retirement of the bonds shall be placed in a 
6.16 	capital project fund of the city of Nisswa. The taxes imposed under subdivisions 1 and 2 
6.17 	may expire at an earlier time if the city of Nisswa so determines by ordinance.

6.18 	EFFECTIVE DATE. This section is effective the day after the governing body of 
6.19 	the city of Nisswa and its chief clerical officer comply with Minnesota Statutes, section 
6.20 	645.021, subdivisions 2 and 3.