HF 1608

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

  1.1                          A bill for an act 
  1.2             relating to the city of Duluth; providing for use of 
  1.3             the proceeds of the city's taxes on hotel, motel, and 
  1.4             restaurant receipts; amending Laws 1980, chapter 511, 
  1.5             section 1, subdivision 2, as amended; Laws 1980, 
  1.6             chapter 511, section 3, as amended. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Laws 1980, chapter 511, section 1, subdivision 
  1.9   2, as amended by Laws 1991, chapter 291, article 8, section 22, 
  1.10  and Laws 1998, chapter 389, article 8, section 25, is amended to 
  1.11  read: 
  1.12     Subd. 2.  Notwithstanding Minnesota Statutes, Section 
  1.13  477A.016, or any other law, ordinance, or city charter provision 
  1.14  to the contrary, the city of Duluth may, by ordinance, impose an 
  1.15  additional sales tax of up to one and one-half percent on sales 
  1.16  transactions which are described in Minnesota Statutes 2000, 
  1.17  Section 297A.01, Subdivision 3, Clause (c).  When the city 
  1.18  council determines that the taxes imposed under this subdivision 
  1.19  and under section 26 at a rate of one-half of one percent have 
  1.20  produced revenue sufficient to pay the debt service on bonds in 
  1.21  a principal amount of $8,000,000 since the imposition of the 
  1.22  taxes at the rate of one and one-half percent, the rate of the 
  1.23  tax under this subdivision is reduced to one percent.  The 
  1.24  imposition of this tax shall not be subject to voter referendum 
  1.25  under either state law or city charter provisions. 
  1.26     Sec. 2.  Laws 1980, chapter 511, section 3, as amended by 
  2.1   Laws 1998, chapter 389, article 8, section 27, is amended to 
  2.2   read: 
  2.3      Sec. 3.  [ALLOCATION OF REVENUES.] 
  2.4      Revenues received from the taxes authorized by section 1, 
  2.5   subdivision 2, and section 2 shall be used to pay for activities 
  2.6   conducted by the city or by other organizations which promote 
  2.7   tourism in the city of Duluth, including capital improvements of 
  2.8   tourism facilities, and to subsidize (1) the Duluth 
  2.9   Arena-Auditorium and; (2) the Spirit Mountain recreation 
  2.10  authority; (3) the Sister City Commission; and (4) the Duluth 
  2.11  Community Action Program for the homeless, hungry, and those 
  2.12  without health care.  Distribution of the revenues derived from 
  2.13  these taxes shall be approved by the Duluth city council at 
  2.14  least once annually, may include pledging such revenues to pay 
  2.15  principal of and interest on city of Duluth bonds issued to 
  2.16  finance such tourism facilities, and shall be made in accordance 
  2.17  with the policy set forth in this section.