1.1 	A bill for an act
1.2 	relating to the city of Duluth; authorizing the city of Duluth to increase the rate 
1.3 	of tax on sales of food and beverages; authorizing use of the proceeds of the 
1.4 	tax for certain improvements;amending Laws 1980, chapter 511, section 1, 
1.5 	subdivision 2, as amended.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Laws 1980, chapter 511, section 1, subdivision 2, as amended by Laws 1991, 
1.8 	chapter 291, article 8, section 22; Laws 1998, chapter 389, article 8, section 25; and Laws 
1.9 	2003, First Special Session chapter 21, article 8, section 11, is amended to read:
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1.12 	Subd. 2.  Notwithstanding Minnesota Statutes, Section  477A.016, or any other law, 
1.13 	ordinance, or city charter provision  to the contrary, the city of Duluth may, by ordinance, 
1.14 	impose an  additional sales tax of up to one and one-half two and one-quarter percent on 
1.15 	sales  transactions which are described in Minnesota Statutes 2000,  Section 297A.01, 
1.16 	Subdivision 3, Clause (c).  When the city  council determines that the taxes imposed 
1.17 	under this subdivision  and under Laws 1998, chapter 389, article 8, section 26, at a rate 
1.18 	of one-half of one percent have  produced revenue sufficient to pay (1) the debt service 
1.19 	on bonds  in a principal amount of $8,000,000 issued for capital  improvements to the 
1.20 	Duluth Entertainment and Convention Center,  and (2) debt service on outstanding bonds 
1.21 	originally issued in  the principal amount of $4,970,000 to finance capital  improvements to 
1.22 	the Great Lakes Aquarium since the imposition of  the taxes at the rate of one and one-half 
1.23 	percent, the rate of  the tax under this subdivision is reduced to by one-half of one percent.  
1.24 	When the city council determines that the taxes imposed under this subdivision at a rate 
1.25 	of three-quarters of one percent have produced revenue sufficient to pay debt service on 
2.1 	bonds in the principal amount of $33,700,000, plus issuance and discount costs, issued 
2.2 	for capital improvements for a new arena at the Duluth Entertainment and Convention 
2.3 	Center, the rate of tax under this subdivision shall be reduced by three-quarters of one 
2.4 	percent. The  imposition of this tax shall not be subject to voter referendum  under either 
2.5 	state law or city charter provisions.  
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2.7 	EFFECTIVE DATE. This section is effective the day after  the governing body of 
2.8 	the city of Duluth and its chief clerical  officer comply with Minnesota Statutes, section 
2.9 	645.021,  subdivisions 2 and 3. 
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