1.1                          A bill for an act 
  1.2             relating to taxation; authorizing the city of Little 
  1.3             Falls to impose a tax on the gross receipts from 
  1.4             certain sales of food.  
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [CITY OF LITTLE FALLS; TAX AUTHORIZED.] 
  1.7      Subdivision 1.  [SALES OF FOOD; TAX.] The city of Little 
  1.8   Falls may by ordinance impose a tax of one-half percent on the 
  1.9   gross receipts from the retail sale of food and nonalcoholic 
  1.10  beverages sold by the operator of a restaurant or place of 
  1.11  refreshment within the city.  The tax imposed may be effective 
  1.12  at any time after July 1, 1996.  
  1.13     Subd. 2.  [DEFINITIONS.] For purposes of this section:  
  1.14     (1) "restaurant" means every building or other structure or 
  1.15  enclosure, or any part thereof and all buildings in connection, 
  1.16  kept, used or maintained as, or held out to the public to be an 
  1.17  enclosure where meals or lunches are served or prepared for 
  1.18  service elsewhere, excepting schools; 
  1.19     (2) "place of refreshment" means every building, structure, 
  1.20  vehicle, sidewalk cart or any part thereof, used as, maintained 
  1.21  as, or advertised as, or held out to be a place where 
  1.22  confectionery, ice cream, or drinks of various kinds are made, 
  1.23  sold, or served at retail, excepting schools and school 
  1.24  sponsored events; and 
  1.25     (3) "operator" means the person who is the proprietor of 
  2.1   the restaurant, or place of refreshment, whether in the capacity 
  2.2   of owner, lessee, subleases, licensee, or an other capacity. 
  2.3      Subd. 3.  [USE OF PROCEEDS.] The ordinance adopted by the 
  2.4   city shall provide for distribution of the proceeds of the tax.  
  2.5   The proceeds of the tax must be used for tourism purposes, 
  2.6   including operating and maintaining the activities and programs 
  2.7   of the tourism and convention bureau. 
  2.8      Subd. 4.  [ENFORCEMENT, COLLECTION, AND ADMINISTRATION OF 
  2.9   TAXES.] Unless the city of Little Falls and the commissioner of 
  2.10  revenue otherwise agree, a tax imposed under this section shall 
  2.11  be enforced, collected, and administered pursuant to this 
  2.12  section.  
  2.13     The tax shall be reported and paid to the commissioner of 
  2.14  revenue with the state sales and use taxes, and be subject to 
  2.15  the same penalties, interest, and enforcement provisions.  The 
  2.16  proceeds of the tax, less refunds and a proportionate share of 
  2.17  the costs of collection, shall be remitted at least quarterly to 
  2.18  the city.  The commissioner shall deduct from the proceeds 
  2.19  remitted an amount that equals the indirect statewide costs as 
  2.20  well as the direct and indirect department costs necessary to 
  2.21  administer, audit, and collect the tax.  The amount deducted 
  2.22  shall be deposited in the state general fund. 
  2.23     Sec. 2.  [EFFECTIVE DATE.] 
  2.24     Section 1 is effective the day following compliance by the 
  2.25  governing body of the city of Little Falls with Minnesota 
  2.26  Statutes, section 645.021, subdivision 3.