HF 11

Introduction - 80th Legislature, 1997 3rd Special Session

Posted on 12/15/2009 12:00 a.m.

  1.1                          A bill for an act
  1.2             relating to the state lottery; proposing an amendment 
  1.3             to the Minnesota Constitution to dedicate 60 percent 
  1.4             of the net proceeds of the state lottery to a sports, 
  1.5             recreation, and arts fund; authorizing the imposition 
  1.6             of taxes and fees to finance a baseball stadium; 
  1.7             authorizing the metropolitan stadium commission to 
  1.8             enter into agreements for the financing of a baseball 
  1.9             stadium; establishing a baseball stadium account in 
  1.10            the state treasury; authorizing the commission to 
  1.11            issue revenue bonds for the stadium; appropriating 
  1.12            money; amending Minnesota Statutes 1996, sections 
  1.13            349A.10, subdivision 5; and 473.556, by adding a 
  1.14            subdivision; proposing coding for new law in Minnesota 
  1.15            Statutes, chapter 473. 
  1.16  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.17                             ARTICLE 1 
  1.18                      CONSTITUTIONAL AMENDMENT
  1.19     Section 1.  [CONSTITUTIONAL AMENDMENT PROPOSED.] 
  1.20     An amendment is proposed to the Minnesota Constitution, 
  1.21  article XI.  If the amendment is adopted, article XI will be 
  1.22  amended by adding a section to read: 
  1.23     Sec. 15.  A Minnesota sports, recreation, and arts fund is 
  1.24  established in the state treasury.  The legislature may spend 
  1.25  money in the fund for facilities for professional sports and for 
  1.26  assistance to community-based athletic, recreational, and arts 
  1.27  programs.  Sixty percent of the net proceeds from any 
  1.28  state-operated lottery must be credited to the fund. 
  1.29     Sec. 2.  [SUBMISSION TO VOTERS.] 
  1.30     The amendment proposed in section 1 shall be submitted to 
  2.1   the people at the 1998 general election.  The question submitted 
  2.2   shall be: 
  2.3      "Shall the Minnesota Constitution be amended to dedicate 60 
  2.4   percent of state lottery revenues to a special fund to support 
  2.5   construction of a professional baseball stadium, other 
  2.6   professional sports facilities, and to pay for community sports, 
  2.7   recreational, and arts programs? 
  2.8                                      Yes .......
  2.9                                      No ........"
  2.10                             ARTICLE 2 
  2.11                     STADIUM FINANCING REVENUES 
  2.12     Section 1.  Minnesota Statutes 1996, section 349A.10, 
  2.13  subdivision 5, is amended to read: 
  2.14     Subd. 5.  [DEPOSIT OF NET PROCEEDS.] (a) Within 30 days 
  2.15  after the end of each month, the director shall deposit in the 
  2.16  state treasury the net proceeds of the lottery, which is the 
  2.17  balance in the lottery fund after transfers to the lottery prize 
  2.18  fund and credits to the lottery operations account.  
  2.19     (b) Of the net proceeds, 40 percent must be credited to the 
  2.20  Minnesota environment and natural resources trust fund, and. 
  2.21     (c) The remainder must be credited to the special revenue 
  2.22  fund created in section 16A.67, subdivision 3.  Money credited 
  2.23  to the special revenue fund must be transferred to the debt 
  2.24  service fund established in section 16A.67, subdivision 4, at 
  2.25  the times and in the amounts determined by the commissioner of 
  2.26  finance to be necessary to provide for the payment and security 
  2.27  of bonds issued pursuant to section 16A.67.  On or before the 
  2.28  tenth day of each month, any money in the special revenue fund 
  2.29  not required to be transferred to the debt service fund must be 
  2.30  transferred to the general fund. 
  2.31     (d) Beginning July 1, 2001, the remainder of the net 
  2.32  proceeds must be deposited in the sports, recreation, and arts 
  2.33  fund. 
  2.34     Sec. 2.  Minnesota Statutes 1996, section 473.556, is 
  2.35  amended by adding a subdivision to read: 
  2.36     Subd. 18.  [INTERGOVERNMENTAL FRANCHISE COMPETITION.] The 
  3.1   commission may cooperate and contract with other political 
  3.2   entities in the United States, to petition or form an entity to 
  3.3   petition the United States Congress to enact legislation to 
  3.4   prevent injurious or uneconomic practices of governmental 
  3.5   entities in seeking sports, exposition, and entertainment 
  3.6   franchises and facilities. 
  3.7      Sec. 3.  [473.573] [STADIUM INCOME SURTAX.] 
  3.8      Subdivision 1.  [TAX IMPOSED.] The commission may by 
  3.9   resolution impose a tax on the taxable sports facility income of 
  3.10  a qualified employee of a sports organization that uses a 
  3.11  qualified sports facility.  The tax equals four percent of 
  3.12  taxable income for the taxable year. 
  3.13     Subd. 2.  [DEFINITIONS.] (a) The definitions in chapter 290 
  3.14  and in this subdivision apply to this section. 
  3.15     (b) "Taxable sports facility income" means wages, salaries, 
  3.16  or other compensation derived from the performance of personal 
  3.17  services in a qualified sports facility, less $100,000.  For 
  3.18  both residents and nonresidents, the amount attributable to 
  3.19  performance of personal services in a qualified sports facility 
  3.20  is determined under the allocation rules under section 290.17, 
  3.21  subdivision 2, paragraph (a), clause (2), except the days or 
  3.22  performances in a qualified sports facility are to be used 
  3.23  instead of days or performances in Minnesota. 
  3.24     (c) A "qualified employee" means an employee who derives 
  3.25  wages, salaries, or other compensation of at least $100,000 for 
  3.26  the performance of personal services from a sports organization 
  3.27  for the taxable year. 
  3.28     (d) A "qualified sports facility" means: 
  3.29     (1) a baseball stadium that is financed with, constructed 
  3.30  by, or otherwise receives direct financial assistance from the 
  3.31  commission; and 
  3.32     (2) an arena with a national hockey league franchise as a 
  3.33  primary tenant, if the state provides financing or other direct 
  3.34  financial assistance for its construction or operation. 
  3.35     (e) A "sports organization" means any organization that 
  3.36  operates a major league professional sports franchise.  A sports 
  4.1   organization includes a visiting team regardless of whether it 
  4.2   has a direct agreement with the owner or operator of the 
  4.3   baseball stadium. 
  4.4      Subd. 3.  [COLLECTION; DEPOSIT.] The tax imposed by this 
  4.5   section must be collected in the manner provided for individual 
  4.6   income taxes imposed under chapter 290 and in accordance with an 
  4.7   agreement between the commission and the commissioner of revenue.
  4.8   The revenue from the tax must be deposited in the baseball 
  4.9   stadium account in the special revenue fund. 
  4.10     Subd. 4.  [DEFINITION.] For purposes of sections 473.573 to 
  4.11  473.578, "commission" includes any successor agency that is 
  4.12  responsible for financing and operating the baseball stadium. 
  4.13     Sec. 4.  [473.574] [PARKING TAX.] 
  4.14     Subdivision 1.  [TAX IMPOSED.] The commission may by 
  4.15  resolution impose a parking tax of not less than $1 per vehicle 
  4.16  per event at the baseball stadium.  The city shall collect the 
  4.17  tax on behalf of the commission.  
  4.18     Subd. 2.  [DEFINITION.] For purposes of the tax on parking, 
  4.19  "city" means the city in which the baseball stadium is located. 
  4.20     Subd. 3.  [AREA OF APPLICATION.] The tax applies to parking 
  4.21  in the area providing event parking, as mutually agreed by the 
  4.22  city and commission.  
  4.23     Subd. 4.  [TERMS SET BY AGREEMENT.] The council and city 
  4.24  shall mutually agree upon the terms and provisions of the tax, 
  4.25  including: 
  4.26     (1) the definition of event parking; 
  4.27     (2) procedures and times for payment of the tax; 
  4.28     (3) procedures and times for remitting proceeds to the 
  4.29  state; 
  4.30     (4) penalty and interest provisions; 
  4.31     (5) the method of determining the cost of collection; and 
  4.32     (6) other provisions with a material effect upon revenues 
  4.33  from the tax. 
  4.34     Subd. 5.  [DISPOSITION OF PROCEEDS.] The city must pay the 
  4.35  proceeds of the tax, including interest and penalties, less the 
  4.36  reasonable cost of collection, to the commissioner of revenue 
  5.1   for deposit in the state treasury and credit to the baseball 
  5.2   stadium account in the special revenue fund. 
  5.3      Sec. 5.  [473.575] [ADMISSION TAX; TICKET SURCHARGE.] 
  5.4      The commission may by resolution impose and maintain an 
  5.5   admission tax or ticket surcharge, or both, upon the granting, 
  5.6   issuance, sale, or distribution, by any private or public 
  5.7   person, association, or corporation, of the privilege of 
  5.8   admission to activities at the baseball stadium.  No other tax, 
  5.9   surcharge, or governmental imposition, except the taxes imposed 
  5.10  by chapter 297A, may be levied by any other unit of government 
  5.11  upon that sale or distribution.  If the commission imposes a 
  5.12  ticket surcharge, it must be at least $1 per ticket for the 
  5.13  seats affected.  The commission may exempt sections of the 
  5.14  baseball stadium from the ticket surcharge.  The admission tax 
  5.15  or ticket surcharge must be stated and charged separately from 
  5.16  the sales price so far as practicable and must be collected by 
  5.17  the grantor, issuer, seller, or distributor from the person 
  5.18  admitted and is a debt from that person to the grantor, issuer, 
  5.19  seller, or distributor.  The tax is a debt owed by the grantor, 
  5.20  issuer, seller, or distributor to the commission.  The debt is 
  5.21  recoverable at law in the same manner as other debts.  Every 
  5.22  person who grants, issues, sells, or distributes tickets for the 
  5.23  admissions may be required, as provided in resolutions of the 
  5.24  commission to secure a permit, to file returns, to deposit 
  5.25  security for the payment of the tax, and to pay penalties for 
  5.26  nonpayment and interest on late payments, that are considered 
  5.27  necessary or expedient to ensure the prompt and uniform 
  5.28  collection of the tax.  Receipts from the admission tax must be 
  5.29  credited to the baseball stadium account. 
  5.30     Sec. 6.  [473.576] [STADIUM SALES TAX.] 
  5.31     Subdivision 1.  [DEFINITIONS.] (a) The definitions in 
  5.32  chapter 297A and in this subdivision apply to this section. 
  5.33     (b) "Stadium sales" means any transaction, including 
  5.34  transfers of tangible personal property and provision of taxable 
  5.35  services, that occurs on the premises of the baseball stadium.  
  5.36  This includes, but is not limited to, concession sales and 
  6.1   rentals of luxury suites and skyboxes, but excludes purchases by 
  6.2   the owner, operator, or a tenant of the baseball stadium. 
  6.3      (c) "Premium seat ticket sales" means payments, to the 
  6.4   extent they are not sales subject to tax under chapter 297A, for:
  6.5      (1) admission to, rental of, or other use of facilities in 
  6.6   the baseball stadium, such as luxury suites, skyboxes, club 
  6.7   seats, and similar facilities; or 
  6.8      (2) personal seat licenses or similar payments to gain the 
  6.9   right or privilege to purchase special seating in the baseball 
  6.10  stadium. 
  6.11     Subd. 2.  [TAX IMPOSED.] (a) The commission may by 
  6.12  resolution impose a tax on stadium sales at the rate of up to 
  6.13  2.5 percent.  This tax is in lieu of all other taxes levied by 
  6.14  any unit of government on these sales, except the taxes imposed 
  6.15  under this chapter or chapter 297A. 
  6.16     (b) The commission may by resolution impose a tax on 
  6.17  premium seat ticket sales at the rate of up to nine percent.  
  6.18  This tax is in lieu of the tax imposed under paragraph (a). 
  6.19     Subd. 3.  [COLLECTION; DEPOSIT.] The tax imposed by this 
  6.20  section must be collected in the manner provided for taxes 
  6.21  imposed under chapter 297A and in accordance with an agreement 
  6.22  between the commission and the commissioner of revenue.  All 
  6.23  revenues, including interest and penalties, derived from the tax 
  6.24  imposed on stadium sales must be deposited in the state treasury 
  6.25  and credited to the baseball stadium account in the special 
  6.26  revenue fund. 
  6.27     Sec. 7.  [473.5770] [SPORTS MEMORABILIA TAX.] 
  6.28     The commission by resolution may impose a tax on each sale 
  6.29  at wholesale of sports memorabilia in the metropolitan area.  
  6.30  The rate of the tax is ten percent of the gross earnings from 
  6.31  the sale. 
  6.32     Sec. 8.  [473.5771] [DEFINITIONS.] 
  6.33     Subdivision 1.  [TERMS.] For purposes of sections 473.5770 
  6.34  to 473.5777, the following terms have the meanings given them. 
  6.35     Subd. 2.  [BUYER.] "Buyer" means any person that purchases 
  6.36  sports memorabilia at wholesale in the metropolitan area. 
  7.1      Subd. 3.  [COMMISSIONER.] "Commissioner" means the 
  7.2   commissioner of revenue. 
  7.3      Subd. 4.  [SALE.] "Sale" means a transfer of title or 
  7.4   possession of tangible personal property, whether absolutely or 
  7.5   conditionally. 
  7.6      Subd. 5.  [SPORTS.] "Sports" means: 
  7.7      (1) major league baseball; and 
  7.8      (2) national hockey league hockey, if the state provides 
  7.9   financing or other direct financial assistance for the 
  7.10  construction or operation of an arena with a national hockey 
  7.11  league franchise as a primary tenant. 
  7.12     Subd. 6.  [SPORTS MEMORABILIA OR SPORTS LICENSED GOODS.] 
  7.13  "Sports memorabilia" or "sports licensed goods" means items 
  7.14  available for sale to the public, such as: 
  7.15     (1) one-of-a-kind items related to sports figures, teams, 
  7.16  or events; 
  7.17     (2) sports trading cards; 
  7.18     (3) sports photographs; 
  7.19     (4) league and individual athlete licensed items; 
  7.20     (5) sports event licensed items; and 
  7.21     (6) similar items. 
  7.22     Subd. 7.  [WHOLESALE OR SALE AT WHOLESALE.] "Wholesale" or 
  7.23  "sale at wholesale" means a sale to a retailer, as defined in 
  7.24  section 297A.01, subdivision 10, for the purpose of reselling 
  7.25  the property to a third party. 
  7.26     Subd. 8.  [WHOLESALER.] "Wholesaler" means any person 
  7.27  making wholesale sales of sports memorabilia to purchasers in 
  7.28  the metropolitan area. 
  7.29     Sec. 9.  [473.5772] [COLLECTION.] 
  7.30     Subdivision 1.  [PAYMENT AND COLLECTION OBLIGATION.] The 
  7.31  buyer must pay the tax to the wholesaler and each wholesaler 
  7.32  must collect from the buyer the full amount of the tax payable 
  7.33  for each taxable sale, unless the state or federal constitution 
  7.34  prohibits the wholesaler from collecting the tax from the buyer. 
  7.35     Subd. 2.  [TAX SEPARATELY STATED.] The tax must be 
  7.36  separately stated from the selling price in any sales invoice or 
  8.1   any instrument of sale.  Failure to separately state the tax 
  8.2   creates a conclusive presumption that the tax has not been 
  8.3   collected. 
  8.4      Subd. 3.  [TAX IS IN ADDITION TO OTHERS.] The tax under 
  8.5   sections 473.5770 to 473.5777 is in addition to any other tax 
  8.6   that applies under the laws of this state. 
  8.7      Sec. 10.  [473.5773] [COMPLEMENTARY USE TAX.] 
  8.8      If the tax under section 473.5770 is not paid, a tax is 
  8.9   imposed on possession for sale or use of sports memorabilia or 
  8.10  sports licensed goods in the metropolitan area.  The rate of tax 
  8.11  equals the rate under section 473.5770 and must be paid by the 
  8.12  possessor of the items. 
  8.13     Sec. 11.  [473.5774] [EXEMPTIONS.] 
  8.14     The tax imposed by sections 473.5770 to 473.5777 does not 
  8.15  apply to: 
  8.16     (1) any successive sale if the tax was previously imposed 
  8.17  and collected on the same sports memorabilia or sports licensed 
  8.18  goods; and 
  8.19     (2) any sale of sports memorabilia or sports licensed goods 
  8.20  that is transferred to a point outside of the metropolitan area 
  8.21  for sale or use outside of the metropolitan area.  
  8.22     Sec. 12.  [473.5775] [ADMINISTRATIVE PROVISIONS.] 
  8.23     Subdivision 1.  [APPLICATION OF OTHER CHAPTERS.] To the 
  8.24  extent not inconsistent with sections 473.5770 to 473.5777, the 
  8.25  enforcement, interest, and penalty provisions under chapter 294, 
  8.26  appeal provisions in sections 289A.43 and 289A.65, criminal 
  8.27  penalties in section 289A.63, refund provisions in section 
  8.28  289A.50, and collection and rulemaking provisions under chapter 
  8.29  270, apply to the tax under sections 473.5770 to 473.5777. 
  8.30     Subd. 2.  [QUARTERLY ESTIMATED PAYMENTS.] (a) Each 
  8.31  wholesaler must make estimated payments of the tax for the 
  8.32  calendar year to the commissioner in accordance with an 
  8.33  agreement between the commission and the commissioner in 
  8.34  quarterly installments by April 15, July 15, October 15, and 
  8.35  January 15 of the following calendar year. 
  8.36     (b) Estimated tax payments are not required if the tax for 
  9.1   the calendar year is less than $500. 
  9.2      (c) Underpayment of estimated installments bear interest at 
  9.3   the rate specified in section 270.75, from the due date of the 
  9.4   payment until paid or until the due date of the annual return at 
  9.5   the rate specified in section 270.75.  An underpayment of an 
  9.6   estimated installment is the difference between the amount paid 
  9.7   and the lesser of (1) 90 percent of the one-quarter of the tax 
  9.8   for the calendar year, or (2) the tax for the actual gross 
  9.9   revenues received during the quarter. 
  9.10     Subd. 3.  [ELECTRONIC FUNDS-TRANSFER PAYMENTS.] A taxpayer 
  9.11  with an aggregate tax liability of $120,000 or more during a 
  9.12  fiscal year ending June 30, must remit all liabilities by funds 
  9.13  transfer as defined in section 336.4A-104, paragraph (a), in the 
  9.14  next calendar year.  The funds-transfer payment date, as defined 
  9.15  in section 336.4A-401, is on or before the date the tax is due.  
  9.16  If the date the tax is due is not a funds-transfer business day, 
  9.17  as defined in section 336.4A-105, paragraph (a), clause (4), the 
  9.18  payment date is on or before the first funds-transfer business 
  9.19  day after the date the tax is due. 
  9.20     Subd. 4.  [ANNUAL RETURN.] The taxpayer must file an annual 
  9.21  return reconciling the estimated payments by March 15 of the 
  9.22  following calendar year. 
  9.23     Subd. 5.  [FORM OF RETURNS.] The estimated payments and 
  9.24  annual return must contain the information and be in the form 
  9.25  prescribed by the commissioner. 
  9.26     Sec. 13.  [473.5776] [DISPOSITION OF REVENUES.] 
  9.27     The commissioner shall deposit all revenues, including 
  9.28  interest and penalties, derived from the tax imposed on sports 
  9.29  memorabilia and sports licensed goods under sections 473.5770 
  9.30  and 473.5773 in the state treasury and credit them to the 
  9.31  baseball stadium account in the special revenue fund. 
  9.32     Sec. 14.  [473.578] [BASEBALL STADIUM.] 
  9.33     Subdivision 1.  [AUTHORITY TO FINANCE STADIUM.] The 
  9.34  commission shall negotiate with the owner, the team, and major 
  9.35  league baseball and may enter into agreements with them that the 
  9.36  commission deems to be in the public interest, for the 
 10.1   financing, acquisition, construction, and use of the baseball 
 10.2   stadium.  In addition, the commission must solicit proposals 
 10.3   from the owner, the team, and major league baseball providing 
 10.4   for community ownership of all or part of the team. 
 10.5      Subd. 2.  [AFFORDABLE TICKETS.] The commission must obtain 
 10.6   a guarantee as part of the financing that at least ten percent 
 10.7   of the tickets in the baseball stadium will be available at 
 10.8   prices that do not exceed 25 percent of the highest priced seats 
 10.9   in the stadium.  Premium seating, such as seats requiring 
 10.10  personal seat licenses, luxury boxes, and similar seating, must 
 10.11  be excluded in determining the highest priced seats in the 
 10.12  stadium.  This guarantee applies only to major league baseball 
 10.13  games. 
 10.14     Subd. 3.  [CONTRIBUTIONS.] The commission may solicit and 
 10.15  accept contributions from private individuals, corporations, or 
 10.16  other entities to finance a baseball stadium.  The commission 
 10.17  may provide for recognition of contributors in a visible place 
 10.18  in the baseball stadium.  This recognition may be in the form of 
 10.19  the contributor's name on a brick in the stadium structure. 
 10.20     Subd. 4.  [BASEBALL STADIUM ACCOUNT.] (a) The baseball 
 10.21  stadium account is created in the special revenue fund in the 
 10.22  state treasury.  All money credited to the stadium account is 
 10.23  appropriated to the commissioner of finance for payment to the 
 10.24  commission for purposes of the baseball stadium. 
 10.25     (b) The commission shall use all receipts from the baseball 
 10.26  stadium account to administer, operate, and maintain the 
 10.27  baseball stadium and to pay debt service on bonds or other 
 10.28  obligations sold for purposes of the baseball stadium. 
 10.29     (c) All money in the sports, recreation, and arts fund, to 
 10.30  the extent needed to pay bonds or to meet the requirements of 
 10.31  bond obligations under subdivision 5, are appropriated each 
 10.32  fiscal year to the baseball stadium account.  This transfer and 
 10.33  appropriation expires when all bonds issued to finance a 
 10.34  baseball stadium under subdivision 5 have been fully paid or 
 10.35  discharged. 
 10.36     Subd. 5.  [BONDING AUTHORITY.] To finance the acquisition, 
 11.1   construction, and betterment of a baseball stadium, the 
 11.2   commission may issue revenue bonds under chapter 475, secured by 
 11.3   revenues of the baseball stadium account.  The revenues from 
 11.4   this account are irrevocably pledged to the payment of these 
 11.5   bonds.  
 11.6      Sec. 15.  [SUNSET OF SPECIAL TAXES AND REVENUES.] 
 11.7      Sections 3 to 13 expire when all revenue bonds issued by 
 11.8   the commission to finance the baseball stadium have been 
 11.9   defeased or retired. 
 11.10     Sec. 16.  [APPLICATION.] 
 11.11     Sections 3 to 14 apply in the counties of Anoka, Carver, 
 11.12  Dakota, Hennepin, Ramsey, Scott, and Washington. 
 11.13     Sec. 17.  [EFFECTIVE DATE.] 
 11.14     This article is effective the day after certification by 
 11.15  the secretary of state of the adoption of the constitutional 
 11.16  amendment in article 1.