HF 3333

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to the city of Duluth; authorizing the city of Duluth to increase the rate
of tax on sales of food and beverages; authorizing use of the proceeds of the
tax for certain improvements; amending Laws 1980, chapter 511, section 1,
subdivision 2, as amended.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Laws 1980, chapter 511, section 1, subdivision 2, as amended by Laws 1991,
chapter 291, article 8, section 22; Laws 1998, chapter 389, article 8, section 25; and Laws
2003, First Special Session chapter 21, article 8, section 11, is amended to read:

Subd. 2. Notwithstanding Minnesota Statutes, Section 477A.016, or any other law,
ordinance, or city charter provision to the contrary, the city of Duluth may, by ordinance,
impose an additional sales tax of up to deleted text begin one and one-half deleted text end new text begin two and one-quarter new text end percent on
sales transactions which are described in Minnesota Statutes 2000, Section 297A.01,
Subdivision 3, Clause (c). When the city council determines that the taxes imposed
under this subdivision and under new text begin Laws 1998, chapter 389, article 8, new text end section 26 new text begin , new text end at a rate
of one-half of one percent have produced revenue sufficient to pay (1) the debt service
on bonds in a principal amount of $8,000,000 issued for capital improvements to the
Duluth Entertainment and Convention Center, and (2) debt service on outstanding bonds
originally issued in the principal amount of $4,970,000 to finance capital improvements to
the Great Lakes Aquarium since the imposition of the taxes at the rate of one and one-half
percent, the rate of the tax under this subdivision is reduced deleted text begin to deleted text end new text begin by one-half of new text end one percent.
new text begin When the city council determines that the taxes imposed under this subdivision at a rate
of three-quarters of one percent have produced revenue sufficient to pay debt service on
bonds in the principal amount of $33,700,000, plus issuance and discount costs, issued
for capital improvements for a new arena at the Duluth Entertainment and Convention
Center, the rate of tax under this subdivision shall be reduced by three-quarters of one
percent. new text end The imposition of this tax shall not be subject to voter referendum under either
state law or city charter provisions.

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