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HF 2382

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/02/2023 02:12pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 03/01/2023

Current Version - as introduced

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A bill for an act
relating to local taxes; allowing the city of Duluth to extend its tourism tax to fund
additional capital improvements; amending Laws 1980, chapter 511, sections 1,
subdivision 2, as amended; 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, Laws 2003,
First Special Session chapter 21, article 8, section 11, Laws 2008, chapter 154, article 5,
section 2, Laws 2014, chapter 308, article 3, section 21, and Laws 2017, First Special Session
chapter 1, article 5, section 1, is amended to read:


Subd. 2.

(a) 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 one and three-quarter percent on sales transactions
which are described in Minnesota Statutes 2000, section 297A.01, subdivision 3, clause (c).
The imposition of this tax shall not be subject to voter referendum under either state law or
city charter provisions. When the city council determines that the taxes imposed under this
paragraph at a rate of three-quarters of one percent and other sources of revenue produce
revenue sufficient to pay debt service on bonds in the principal amount of $40,285,000 plus
issuance and discount costs, issued for capital improvements at the Duluth Entertainment
and Convention Center, which include a new arena, the rate of tax under this subdivision
must be reduced by three-quarters of one percent.

(b) In addition to the tax in paragraph (a) and 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 one-half of one percent
on sales transactions which are described in Minnesota Statutes 2000, section 297A.01,
subdivision 3, clause (c). This tax expires when the city council determines that the tax
imposed under this paragraph, along with the tax imposed under section 22, paragraph (b),
has produced revenues sufficient to pay the debt service on bonds in a principal amount of
no more than deleted text begin $18,000,000deleted text end new text begin $54,000,000new text end , plus issuance and discount costs, to finance capital
improvements to public facilities to support tourism and recreational activities in that portion
of the city west of 14th Avenue West and the area south of and including Skyline Parkwaynew text begin ,
and capital improvements to parks-based public athletic facilities to support sports tourism
new text end .

(c) The city of Duluth may sell and issue up to $18,000,000 in general obligation bonds
under Minnesota Statutes, chapter 475, plus an additional amount to pay for the costs of
issuance and any premiums. The proceeds may be used to finance capital improvements to
public facilities that support tourism and recreational activities in the portion of the city
west of 14th Avenue West and the area south of and including Skyline Parkway, as described
in paragraph (b). The issuance of the bonds is subject to the provisions of Minnesota Statutes,
chapter 475, except no election shall be required unless required by the city charter. The
bonds shall not be included in computing net debt. The revenues from the taxes that the city
of Duluth may impose under paragraph (b) and under section 22, paragraph (b), may be
pledged to pay principal of and interest on such bonds.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Laws 1980, chapter 511, section 2, as amended by Laws 1998, chapter 389, article
8, section 26, Laws 2003, First Special Session chapter 21, article 8, section 12, Laws 2014,
chapter 308, article 3, section 22, and Laws 2017, First Special Session chapter 1, article
5, section 2, is amended to read:


Sec. 2. CITY OF DULUTH; TAX ON RECEIPTS BY HOTELS AND MOTELS.

(a) Notwithstanding Minnesota Statutes, section 477A.016, or any other law, or ordinance,
or city charter provision to the contrary, the city of Duluth may, by ordinance, impose an
additional tax of one percent upon the gross receipts from the sale of lodging for periods of
less than 30 days in hotels and motels located in the city. The tax shall be collected in the
same manner as the tax set forth in the Duluth city charter, section 54(d), paragraph one.
The imposition of this tax shall not be subject to voter referendum under either state law or
city charter provisions.

(b) In addition to the tax in paragraph (a) and 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 one-half of one percent
on the gross receipts from the sale of lodging for periods of less than 30 days in hotels and
motels located in the city. This tax expires when the city council first determines that the
tax imposed under this paragraph, along with the tax imposed under section 21, paragraph
(b), has produced revenues sufficient to pay the debt service on bonds in a principal amount
of no more than deleted text begin $18,000,000deleted text end new text begin $54,000,000new text end , plus issuance and discount costs, to finance
capital improvements to public facilities to support tourism and recreational activities in
that portion of the city west of 14th Avenue West and the area south of and including Skyline
Parkwaynew text begin , and capital improvements to parks-based public athletic facilities to support sports
tourism
new text end .

new text begin EFFECTIVE DATE. new text end

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