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Minnesota Legislature

Office of the Revisor of Statutes

HF 183

as introduced - 91st Legislature (2019 - 2020) Posted on 01/17/2019 02:48pm

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

Current Version - as introduced

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A bill for an act
relating to the city of Duluth; modifying its sales and use tax authority; amending
Laws 1980, chapter 511, section 1, subdivision 1.


Section 1.

Laws 1980, chapter 511, section 1, subdivision 1, is amended to read:

Subdivision 1.

new text begin(a) new text endMinnesota Statutes, section deleted text begin477A.01, Subdivision 18deleted text endnew text begin 477A.016new text end, shall
not be deemed to prohibit the city of Duluth from amending its sales and use tax ordinances
so as to impose a sales deleted text beginordeleted text endnew text begin andnew text end use tax at the rate of one percent upon any or all sales or uses
which are taxed by the state of Minnesota pursuant to Minnesota Statutes, chapter 297A deleted text beginor
deleted text end.

new text begin (b) Notwithstanding Minnesota Statutes, section 477A.016, or any ordinance, city charter,
or other provision of law, pursuant to the approval of the voters at the election on November
7, 2017, the city of Duluth may impose by ordinance an additional sales and use tax of
one-half of one percent for the purposes specified in paragraph (c). The provisions of
Minnesota Statutes, section 297A.99, govern the imposition, administration, collection, and
enforcement of the taxes authorized under this paragraph.
new text end

new text begin (c) Revenues received from the tax authorized by paragraph (b) must be used to pay all
or part of the capital and administrative costs of street, curb, gutter, sidewalk, and bridge
improvements including related lighting and signals in the city of Duluth as outlined in the
Duluth Street Improvement Program 2017, developed by the engineer of the city of Duluth
as designated August 8, 2017.
new text end

new text begin (d) The city of Duluth, pursuant to the approval of the voters at the November 7, 2017,
referendum authorizing the imposition of the taxes in this section, may issue bonds under
Minnesota Statutes, chapter 475, to pay capital and administrative expenses for the projects
described in paragraph (c), until the tax terminates as provided in paragraph (e). A separate
election to approve the bonds under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin (e) The tax authorized under subdivision 1 terminates at the earlier of: (1) 25 years after
the date of initial imposition of the tax; or (2) when the city council determines that sufficient
funds have been raised from the tax to finance the capital and administrative costs of the
improvements described in paragraph (c), plus the additional amount needed to pay the
costs related to issuance of bonds under paragraph (d), including interest bonds. Any funds
remaining after completion of the projects specified in paragraph (c) and retirement or
redemption of bonds in paragraph (d) shall be placed in the general fund of the city. The
tax imposed under paragraph (b) may expire at an earlier time if the city so determines by
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