HF 427

as introduced - 90th Legislature (2017 - 2018) Posted on 01/30/2017 03:52pm

A bill for an act
relating to taxation; clarifying authority for political subdivisions to impose and
collect local lodging taxes; amending Minnesota Statutes 2016, section 469.190,
subdivisions 1, 7.

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

Section 1.

Minnesota Statutes 2016, section 469.190, subdivision 1, is amended to read:

Subdivision 1.

Authorization.

Notwithstanding section 477A.016 or any other law, a
statutory or home rule charter city may by ordinance, and a town may by the affirmative
vote of the electors at the annual town meeting, or at a special town meeting, impose a tax
of up to three percent on the gross receipts from the furnishing for consideration of lodging
at a hotel, motel, rooming house, tourist court, or resort, other than the renting or leasing
of it for a continuous period of 30 days or more. A statutory or home rule charter city may
by ordinance impose the tax authorized under this subdivision on the camping site receipts
of a municipal campground. new text begin The tax applied under this subdivision or under a special law
applies to the entire consideration paid to obtain access to lodging, including ancillary or
related services, such as services provided by accommodation intermediaries as defined in
section 297A.61, and similar services.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. In
enacting this section, the legislature confirms its original intent in enacting section 469.190,
its predecessor provisions, and any special laws authorizing political subdivisions to impose
lodging taxes, were and are intended to apply to the entire consideration paid to obtain
access to transient lodging, including ancillary or related services, such as services provided
by accommodation intermediaries as defined in section 297A.61, and similar services. The
provisions of this section must not be interpreted to imply a narrower construction of the
tax base under lodging tax provisions of Minnesota law prior to the enactment of this section.
new text end

Sec. 2.

Minnesota Statutes 2016, section 469.190, subdivision 7, is amended to read:

Subd. 7.

Collection.

new text begin (a) new text end The statutory or home rule charter 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 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.

new text begin (b) If a tax under this section or under a special law is not collected by the commissioner
of revenue, the local government imposing the tax, may by ordinance, limit the required
filing and remittance of the tax by an accommodation intermediary, as defined in section
297A.61, subdivision 47, to once in every calendar year. The local government must inform
the accommodation intermediary of the date when the return or remittance is due and the
dates must coincide with one of the monthly dates for filing and remitting state sales tax
under chapter 297A. The local government must also provide accommodation intermediaries
electronically with geographic and zip code information necessary to correctly collect the
tax.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end