1.1                          A bill for an act 
  1.2             relating to taxes; local lodging taxes; allowing the 
  1.3             city of Biwabik to impose a local lodging tax. 
  1.4   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.5      Section 1.  [BIWABIK LOCAL LODGING TAX.] 
  1.6      Notwithstanding Minnesota Statutes, section 477A.016, or 
  1.7   other law, the city of Biwabik may impose, by ordinance, a tax 
  1.8   of up to three percent on the gross receipts subject to the 
  1.9   lodging tax under Minnesota Statutes, section 469.190.  The tax 
  1.10  shall be imposed within the city boundaries and also in the area 
  1.11  of White Township described as Area II of the orderly annexation 
  1.12  agreement approved September 2002 by the city of Biwabik and 
  1.13  White Township.  The proceeds of the tax shall be used to fund 
  1.14  increased demands for city police, fire, sewer, and water 
  1.15  services related to the Giant's Ridge Recreation Area and 
  1.16  associated tourism.  The revenues raised from the imposition of 
  1.17  the tax in annexation Area II, prior to the occurrence of the 
  1.18  annexation, shall be collected by the city and the amount, less 
  1.19  reasonable administrative costs, shall be paid to White 
  1.20  Township.  This tax is in addition to any tax imposed under 
  1.21  Minnesota Statutes, section 469.190, and the total tax imposed 
  1.22  under that section and this provision shall not exceed six 
  1.23  percent. 
  1.24     <b>[EFFECTIVE DATE.]</b> This section is effective the day after 
  2.1   compliance by the governing body of the city of Biwabik with 
  2.2   Minnesota Statutes, section 645.021, subdivision 3.