HF 1101

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to economic development; creating a 
  1.3             performance-based revolving account to fund the office 
  1.4             of tourism; appropriating money; proposing coding for 
  1.5             new law in Minnesota Statutes, chapter 116J. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [116J.635] [APPROPRIATION; OFFICE OF TOURISM.] 
  1.8      (a) A tourism revolving account is established in the 
  1.9   special revenue fund.  Funds must be deposited in the account 
  1.10  according to the formula in paragraph (b).  All amounts in the 
  1.11  account are annually appropriated to the department of trade and 
  1.12  economic development for the office of tourism. 
  1.13     (b) Sales and use taxes collected under chapter 297A, for 
  1.14  the previous two-year period from the industries enumerated in 
  1.15  paragraph (c) must be used as a base amount beginning December 
  1.16  31, 1998.  For each two-year period thereafter, the sales and 
  1.17  use tax receipts for those industries must be compared to those 
  1.18  of the previous two-year collection cycle.  If the increase 
  1.19  exceeds six percent, one-half of that amount, up to a cap of 
  1.20  $8,000,000 per year, must be deposited in the tourism revolving 
  1.21  account.  The biennial appropriation from the general fund for 
  1.22  the office of tourism must then be reduced by 20 percent each 
  1.23  biennium, beginning July 1, 2003. 
  1.24     (c) Sales and use tax receipts from the following 
  1.25  industries in the Standard Industrial Classification or its 
  2.1   equivalent, must be used to compute the formula in paragraph (b):
  2.2      (1) SIC 44 water transportation; 
  2.3      (2) SIC 45 air transportation; 
  2.4      (3) SIC 47 transportation services; 
  2.5      (4) SIC 58 eating and drinking establishments; 
  2.6      (5) SIC 70 hotels and other lodging places; 
  2.7      (6) SIC 751 auto rental/leasing, no drivers; 
  2.8      (7) SIC 79 amusement and recreation services; and 
  2.9      (8) SIC 84 museums/botanical/zoological gardens. 
  2.10     [EFFECTIVE DATE.] This section is effective July 1, 2003.