HomeMy WebLinkAbout5G - Payment of Motor Vehicle Sales Tax for a Forfeited Vehicle
o~ PR/O/t
/bO~ 4646 Dakota Street S.E.
\U ;;; Pdor Lake, MN 55372,17 14
CITY COUNCIL AGENDA REPORT
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MEETING DATE: APRIL 6, 2009
AGENDA #: 5G
PREPARED BY: BILL O'ROURKE, CHIEF OF POLICE
AGENDA ITEM:
CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING PAYMENT
OF MOTOR VEHICLE SALES TAX ON FORFEITED VEHICLE (2007
NISSAN MURANO)
DISCUSSION:
Introduction
The purpose of this agenda item is to obtain Council approval to pay
Minnesota state taxes and fees on a seized vehicle from forfeiture funds.
Historv
In January 2009 the City Council authorized spending $2,000.00 from the
forfeiture funds as part of a negotiated settlement with the owners of a 2007
Nissan Murano that had been seized by the Police Department. As a result,
the Police Department owns and has put that vehicle into service for use by
one of its investigators, as authorized by Minnesota Statutes 169A, subd. 10;
and 609.5315, subd. 5.
Current Circumstances
As part of the process for obtaining the title to the vehicle and registering it
as property of the City of Prior Lake we have been informed that we must
pay the appropriate state fees and sales taxes. Based on a wholesale value
of $16,800.00 the sales tax will be $1,092.00 and the license tabs will be
$11.25, for a total of $1,103.25.
The Police Department recommends using funds from the forfeiture account
to pay the fees and taxes.
ISSUES:
State sales tax laws exempt the payment of sales tax for marked police and
fire emergency vehicles. Since this is an unmarked, non-emergency vehicle,
the exemption does not apply.
FINANCIAL
IMPACT:
It is recommended that the funds allocated for this expenditure be taken from
the forfeiture account and not from tax dollars. Currently, there are sufficient
funds in the City's forfeiture account to cover this expense.
AL TERNATIVES:
1. Approve Resolution 09-XX authorizing the payment of State fees and
taxes to transfer title and register a 2007 Nissan Murano to the City of
Prior Lake.
2. Take no action.
RECOMMENDED
MOTION: Alternative #1 as part of the consent agenda.
ReViV/~~
Frank Bot{d:1j, Manager www.dtyofpriorlake.com
"& · Phone 952.447.9800 / Fax 952.447.4245
/ f..,., "t'" 4646 Dakota Street S.E.
\~~E PdorLake, MN 55372-1714
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RESOLUTION 09-XX
A RESOLUTION AUTHORIZED THE PAYMENT OF TITLE AND LICENSE FEES ON
A 2007 NISSAN MURANO
MOTION BY: SECOND BY:
WHEREAS, the Police Department has taken possession of a 2007 Nissan Murano as
authorized by Minnesota State Statutes; and
WHEREAS, the City Council has previously authorized the Police Department to pay a
settlement fee with the previous owners from forfeiture funds; and
WHEREAS, the Police Department must pay the State of Minnesota vehicle sales tax
on the vehicle and purchase current license tabs; and
WHEREAS, funds exist in the forfeiture account for these purposes.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR
LAKE, MINNESOTA as follows:
1) The recitals set forth above are incorporated herein.
2) The Police Department is authorized to pay sales tax of $1,092.00
and license fee of $11.25.
3) Funding for this purchase is to be drawn from the forfeiture account as
authorized by state statute for such purposes.
PASSED AND ADOPTED THIS 6th DAY OF APRIL 2009.
I Haugen
I Erickson
I Hedberg
I LeMair
I Millar
YES
Haugen
Erickson
Hedberg
LeMair
Millar
NO
I
I
I
I
I
City Manager, City of Prior Lake
www.cityofpriorlake.com
Phone 952.447.9800 / Fax 952.447.4245