1.1 	A bill for an act
1.2 	relating to the city of Pequot Lakes; allowing the city to impose a local sales 
1.3 	and use tax.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. CITY OF PEQUOT LAKES; 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, the city of 
1.8 	Pequot Lakes may impose, by ordinance, a sales and use tax of one-half of one percent for 
1.9 	the purposes specified in subdivision 2 if:
1.10 	(1) the tax is approved by the voters pursuant to Minnesota Statutes, section 
1.11 	297A.99; and
1.12 	(2) the cities of Brainerd, Baxter, and Nisswa also share the costs of the 
1.13 	improvements specified in subdivision 2.
1.14 	The provisions of Minnesota Statutes, section 297A.99, govern the imposition, 
1.15 	administration, collection, and enforcement of the taxes authorized under this subdivision.
1.16 		Subd. 2.Use of revenues. Revenues received from the tax authorized by 
1.17 	subdivision 1 must be used to pay all or part of the capital costs of the city's share of the 
1.18 	marked Trunk Highway 371 north improvement project.
1.19 	The total amount of revenues from the tax in subdivision 1 that may be used to fund 
1.20 	this project is $5,000,000 plus any associated bond costs.
1.21 		Subd. 3.Bonds. (a) If approved by voters pursuant to Minnesota Statutes, section 
1.22 	297A.99, the city of Pequot Lakes may issue bonds under Minnesota Statutes, chapter 
1.23 	475, to pay capital and administrative expenses for the projects described in subdivision 2, 
2.1 	in an amount that does not exceed $5,000,000. A separate election to approve the bonds 
2.2 	under Minnesota Statutes, section 475.58, is not required.
2.3 	(b) The debt represented by the bonds is not included in computing any debt 
2.4 	limitation applicable to the city, and any levy of taxes under Minnesota Statutes, section 
2.5 	475.61, to pay principal and interest on the bonds is not subject to any levy limitation.
2.6 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires when 
2.7 	the city council determines that the amount of revenues received from the taxes to pay for 
2.8 	the project under subdivision 2, first equals or exceeds the amount authorized to be spent 
2.9 	for the project, plus the additional amount needed to pay the costs related to issuance of 
2.10 	the bonds under subdivision 3, including interest on the bonds. Any funds remaining after 
2.11 	completion of the projects and retirement or redemption of the bonds must be placed in 
2.12 	the general fund of the city. The tax imposed under this section may expire at an earlier 
2.13 	time if the city so determines by ordinance.

2.14 	EFFECTIVE DATE. This section is effective the day after compliance by the 
2.15 	governing body of the city of Pequot Lakes with Minnesota Statutes, section 645.021, 
2.16 	subdivision 3.