HF 297

as introduced - 88th Legislature (2013 - 2014) Posted on 02/18/2013 02:45pm

A bill for an act
relating to the city of Rochester; modifying local tax authority; amending Laws
2002, chapter 377, article 3, section 25, as amended; repealing Laws 2009,
chapter 88, article 4, section 23, as amended.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Laws 2002, chapter 377, article 3, section 25, as amended by Laws 2009,
chapter 88, article 4, section 19, and Laws 2010, chapter 389, article 5, section 3, is
amended to read:

Sec. 25. ROCHESTER LODGING TAX.

Subdivision 1.

Authorization.

Notwithstanding Minnesota Statutes, section
469.190 or 477A.016, or any other law, the city of Rochester may impose an additional
tax of one percent on the gross receipts from the furnishing for consideration of lodging at
a hotel, motel, rooming house, tourist court, or resort, other than the renting or leasing of it
for a continuous period of 30 days or more.

Subd. 1a.

Authorization.

Notwithstanding Minnesota Statutes, section 469.190 or
477A.016, or any other law, and in addition to the tax authorized by subdivision 1, the city
of Rochester may impose an additional tax of one three percent on the gross receipts from
the furnishing for consideration of lodging at a hotel, motel, rooming house, tourist court, or
resort, other than the renting or leasing of it for a continuous period of 30 days or more only
upon the approval of the city governing body of a total financial package for the project.

Subd. 2.

Disposition of proceeds.

(a) The gross proceeds from the tax imposed
under subdivision 1 must be used by the city to fund a local convention or tourism bureau
for the purpose of marketing and promoting the city as a tourist or convention center.

(b) The gross proceeds from the one three percent tax imposed under subdivision
1a shall be used to pay for (1) design, construction, renovation, improvement, and
expansion of the Mayo Civic Center Complex and related infrastructure, including but not
limited to, skyway access, lighting, parking, or landscaping; and (2) for payment of any
principal, interest, or premium on bonds issued to finance the construction, renovation,
improvement, and expansion of the Mayo Civic Center Complex.

Subd. 2a.

Bonds.

The city of Rochester may issue, without an election, general
obligation bonds of the city, in one or more series, in the aggregate principal amount not to
exceed $43,500,000 $50,000,000, to pay for capital and administrative costs for the design,
construction, renovation, improvement, and expansion of the Mayo Civic Center Complex,
and related infrastructure, including but not limited to, skyway, access, lighting, parking,
and landscaping. The city may pledge the lodging tax authorized by subdivision 1a and the
food and beverage tax authorized under Laws 2009, chapter 88, article 4, section 23, to the
payment of the bonds. The debt represented by the bonds is not included in computing any
debt limitations applicable to the city, and the levy of taxes required by Minnesota Statutes,
section 475.61, to pay the principal of and interest on the bonds is not subject to any levy
limitation or included in computing or applying any levy limitation applicable to the city.

Subd. 3.

Expiration of taxing authority.

The authority of the city to impose a tax
under subdivision 1a shall expire when the principal and interest on any bonds or other
obligations issued prior to December 31, 2014, to finance the construction, renovation,
improvement, and expansion of the Mayo Civic Center Complex and related skyway
access, lighting, parking, or landscaping have been paid, including any bonds issued to
refund such bonds, or at an earlier time as the city shall, by ordinance, determine. Any
funds remaining after completion of the project and retirement or redemption of the bonds
shall be placed in the general fund of the city. The city may, by ordinance, repeal the
tax provided that:

(1) the revenues raised before the repeal are sufficient to meet all bond or other
obligations backed by revenues of the tax; and

(2) the repeal date meets the requirements of section 297A.99, subdivision 12.

EFFECTIVE DATE.

This section is effective the day after the governing body of
the city of Rochester and its chief fiscal officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.

Sec. 2. REPEALER.

Laws 2009, chapter 88, article 4, section 23, as amended by Laws 2010, chapter 389,
article 5, section 4, is repealed.

EFFECTIVE DATE.

This section is effective the day following final enactment.