HF 2235

as introduced - 87th Legislature (2011 - 2012) Posted on 02/13/2012 11:57am

A bill for an act
relating to the city of Minneapolis; providing a termination date for certain local
taxes; amending Laws 1986, chapter 396, sections 4, subdivision 1; 5.

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

Section 1.

Laws 1986, chapter 396, section 4, subdivision 1, is amended to read:

Subdivision 1.

Imposition.

new text begin (a) new text end Notwithstanding Minnesota Statutes, section
477A.016, or any other contrary provision of law, ordinance, or city charter, upon approval
by the city's board of estimate and taxation by a vote of at least five members, the city of
Minneapolis may by ordinance impose an additional sales tax of up to one-half of one
percent on sales taxable pursuant to Minnesota Statutes, chapter 297A that occur within
the city, and may also by ordinance impose an additional compensating use tax of up to
one-half of one percent on uses of property within the city, the sale of which would be
subject to the additional sales tax but for the fact such property was sold outside the city.
The tax may not be imposed on gross receipts from sales of intoxicating liquor that are
exempt from taxation under sections 297A.25 to 297A.257 or other provision of chapter
297A exempting sales of intoxicating liquor and use from taxation, including amendments
adopted after enactment of this act.

new text begin (b) new text end For purposes of this subdivision, sales that occur within the city shall not
include deleted text begin (a) deleted text end new text begin (1) new text end the sale of tangible personal property (i) which, without intermediate
use, is shipped or transported outside Minneapolis by the purchaser and thereafter used
in a trade or business or is stored, processed, fabricated or manufactured into, attached
to or incorporated into other tangible personal property transported or shipped outside
Minneapolis and thereafter used in a trade or business outside Minneapolis, and which is
not thereafter returned to a point within Minneapolis, except in the course of interstate
or intrastate commerce (storage shall not constitute intermediate use); or (ii) which the
seller delivers to a common carrier for delivery outside Minneapolis, places in the United
States mail or parcel post directed to the purchaser outside Minneapolis, or delivers to the
purchaser outside Minneapolis by means of the seller's own delivery vehicles, and which
is not thereafter returned to a point within Minneapolis, except in the course of interstate
or intrastate commerce; or deleted text begin (b) deleted text end new text begin (2) new text end sales which would be described in clause (e) or (u)
of Minnesota Statutes, section 297A.25, subdivision 1 if the word "Minneapolis" were
substituted for the words "Minnesota" or "state of Minnesota" in such clauses. A tax may
be imposed under this section only if the taxes imposed under section 5 are imposed at
the maximum rate allowed under that section. The tax authorized by this section shall be
imposed, and may be adjusted periodically by the city council such that the rate imposed,
rounded to the next highest one-tenth of one percent, does not exceed the rate estimated to
be required to produce revenue sufficient to finance the costs described in subdivision 3.

new text begin (c) The tax imposed under this subdivision expires on December 31, 2020, or at an
earlier date if the city so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
without city approval as allowed under Minnesota Statutes, section 645.023.
new text end

Sec. 2.

Laws 1986, chapter 396, section 5, is amended to read:

Sec. 5. LIQUOR, LODGING, AND RESTAURANT TAXES.

new text begin (a) new text end The city may, by resolution, levy in addition to taxes authorized by other law:

(1) a sales tax of not more than three percent on the gross receipts on retail on-sales
of intoxicating liquor and fermented malt beverages described in section 473.592
occurring in the downtown taxing area, provided that this tax may not be imposed if sales
of intoxicating liquor and fermented malt beverages are exempt from taxation under
chapter 297A;

(2) a sales tax of not more than three percent on the gross receipts from the
furnishing for consideration of lodging described in section 473.592 by a hotel or motel
which has more than 50 rooms available for lodging; the tax imposed under this clause
shall be at a rate that, when added to the sum of the rate of the sales tax imposed under
Minnesota Statutes, chapter 297A, the rate of the sales tax imposed under section 4, and
the rate of any other taxes on lodging in the city of Minneapolis, equals 12 percent; and

(3) a sales tax of not more than three percent on the gross receipts on all sales of food
primarily for consumption on or off the premises by restaurants and places of refreshment
as defined by resolution of the city that occur within the downtown taxing area.

new text begin (b) new text end These taxes shall be applied solely to pay costs of collection and to pay or secure
the payment of any principal of, premium and interest on any bonds or any costs referred
to in section 4, subdivision 3. The commissioner of revenue may enter into appropriate
agreements with the city to provide for the collection of these taxes by the state on behalf
of the city. The commissioner may charge the city a reasonable fee for its collection from
the proceeds of any taxes. These taxes shall be subject to the same interest penalties and
enforcement provisions as the taxes imposed under section 473.592.

new text begin (c) The taxes imposed under this subdivision expire on December 31, 2020, or at an
earlier date if the city so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
without city approval as allowed under Minnesota Statutes, section 645.023.
new text end