1.1 	A bill for an act
1.2 	relating to Baxter; authorizing the city to impose a
1.3 	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.
 1.7 	Notwithstanding Minnesota Statutes, section 477A.016, or any
1.8 	other provision of law, ordinance, or city charter, pursuant to
1.9 	the approval of the voters on November 2, 2004, and pursuant to
1.10 	Minnesota Statutes, section 297A.99, the city of Baxter may
1.11 	impose by ordinance a sales and use tax of one-half of one
1.12 	percent for the purposes specified in subdivision 3.  The
1.13 	provisions of Minnesota Statutes, section 297A.99, govern the
1.14 	imposition, administration, collection, and enforcement of the
1.15 	tax authorized under this subdivision.
1.16 		Subd. 2.Excise tax authorized. Notwithstanding
1.17 	Minnesota Statutes, section 477A.016, or any other contrary
1.18 	provision of law, ordinance, or city charter, the city of Baxter
1.19 	may impose by ordinance, for the purposes specified in
1.20 	subdivision 3, an excise tax of up to $20 per motor vehicle, as
1.21 	defined by ordinance, purchased or acquired from any person
1.22 	engaged within the city in the business of selling motor
1.23 	vehicles at retail.
1.24 		Subd. 3.Use of revenues. Revenues received from the
2.1 	taxes authorized by subdivisions 1 and 2 must be used to pay the
2.2 	cost of collecting and administering the tax and to finance the
2.3 	acquisition and betterment of water and waste water facilities,
2.4 	a fire substation, and the Paul Bunyan Bridge over Excelsior
2.5 	Road, as approved by the voters at the referendum authorizing
2.6 	the tax.  Authorized costs include, but are not limited to,
2.7 	acquiring property and paying construction, legal, and
2.8 	engineering costs related to the projects.
2.9 		Subd. 4.Bonds. The city of Baxter, pursuant to the
2.10 	approval of the voters at the referendum authorizing the
2.11 	imposition of the taxes in this section, may issue general
2.12 	obligation bonds of the city, in one or more series, in the
2.13 	aggregate principal amount not to exceed $15,000,000 to finance
2.14 	the projects listed in subdivision 3.  The debt represented by
2.15 	the bonds is not included in computing any debt limitations
2.16 	applicable to the city, and the levy of taxes required by
2.17 	Minnesota Statutes, section 475.61, to pay the principal of and
2.18 	interest on the bonds is not subject to any levy limitation or
2.19 	included in computing or applying any levy limitation applicable
2.20 	to the city.
2.21 		Subd. 5.Termination of taxes. The taxes imposed under
2.22 	subdivisions 1 and 2 expire at the earlier of 12 years after the
2.23 	imposition of the tax or when the city council first determines
2.24 	that the amount of revenues raised from the taxes to pay for the
2.25 	projects equals or exceeds $15,000,000 plus any interest on
2.26 	bonds issued for the projects under subdivision 4.  Any funds
2.27 	remaining after expiration of the taxes and retirement of the
2.28 	bonds shall be placed in a capital project fund of the city.
2.29 	The taxes imposed under subdivisions 1 and 2 may expire at an
2.30 	earlier time if the city so determines by ordinance.
2.31 	
EFFECTIVE DATE. This section is effective the day after
2.32 	compliance by the governing body of the city of Baxter with
2.33 	Minnesota Statutes, section 645.021, subdivision 3.