HF 2261

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; authorizing the city of Mendota to impose a food and
beverage tax.

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

Section 1. new text begin MENDOTA; LOCAL LIQUOR AND RESTAURANT TAX.
new text end

new text begin Subdivision 1. new text end

new text begin Authorization. new text end

new text begin Notwithstanding Minnesota Statutes, section
477A.016, or any other law, the city of Mendota may by ordinance impose a tax of 1.5
percent on the gross receipts on (1) retail on-sales of intoxicating liquor and fermented
malt beverages when sold at licensed on-sale liquor establishments and municipal liquor
stores within the city, and (2) all sales of food and beverages primarily for consumption on
or off the premises by restaurants and places of refreshment within the city.
new text end

new text begin Subd. 2. new text end

new text begin Use of revenues. new text end

new text begin Revenues received from taxes authorized under
subdivision 1 must be used by the city to pay the cost of collecting the tax and to pay for
water infrastructure improvements, including the extension of the water main loop, and
street repairs and improvements.
new text end

new text begin Subd. 3. new text end

new text begin Referendum. new text end

new text begin If the Mendota City Council intends to impose the liquor
and restaurant tax authorized by this section, it shall conduct a referendum on the issue.
The question of imposing the tax must be submitted to the voters at a general election or at
a special election held for this purpose. The tax may not be imposed unless a majority of
votes cast on the question of imposing the tax are in the affirmative. The commissioner of
revenue shall prepare a suggested form of question to be presented at the election. This
subdivision applies notwithstanding any city charter provision to the contrary.
new text end

new text begin Subd. 4. new text end

new text begin Collection. new text end

new text begin The city may agree with the commissioner of revenue that
a tax imposed pursuant to this section shall be collected by the commissioner together
with the tax imposed by Minnesota Statutes, chapter 297A, and subject to the same
interest, penalties, and other rules and that its proceeds, less the cost of collection, shall
be remitted to the city. The commissioner of revenue shall provide to the city council an
estimate of the cost of collection.
new text end

new text begin Subd. 5. new text end

new text begin Local approval. new text end

new text begin This section is effective upon compliance by the
governing body of the city of Mendota and its chief clerical officer with Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end