HF 3431

as introduced - 90th Legislature (2017 - 2018) Posted on 03/08/2018 02:22pm

A bill for an act
relating to taxation; city of Minneapolis; removing limitation on certain local
special taxes; amending Laws 1986, chapter 396, section 5, as amended.

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

Section 1.

Laws 1986, chapter 396, section 5, as amended by Laws 2001, First Special
Session chapter 5, article 12, section 87, and Laws 2012, chapter 299, article 3, section 3,
is amended to read:

Sec. 5. LIQUOR, LODGING, AND RESTAURANT TAXES.

The city may, by resolution, levy in addition to taxes authorized by other law:

(1) a sales tax of not more than three percent on the gross receipts on retail on-sales of
intoxicating liquor and fermented malt beverages when sold at licensed on-sale liquor
establishments located within the downtown taxing area, provided that this tax may not be
imposed if sales of intoxicating liquor and fermented malt beverages are exempt from
taxation under chapter 297A;

(2) a sales tax of not more than three percent on the gross receipts from the furnishing
for consideration of lodging for a period of less than 30 days at a hotel, motel, rooming
house, tourist court, or trailer camp located within the city by a hotel or motel which has
more than 50 rooms available for lodging; deleted text begin the tax imposed under this clause shall be at a
rate that, when added to the sum of the rate of the sales tax imposed under Minnesota
Statutes, chapter 297A, the rate of the sales tax imposed under section 4, and the rate of any
other taxes on lodging in the city of Minneapolis, equals 13 percent; deleted text end and

(3) a sales tax of not more than three percent on the gross receipts on all sales of food
primarily for consumption on or off the premises by restaurants and places of refreshment
as defined by resolution of the city that occur within the downtown taxing area.

The taxes authorized by this section must not be terminated before January 1, 2047. The
taxes shall be imposed and may be adjusted periodically by the city council such that the
rates imposed produce revenue sufficient, together with the tax imposed under section 4,
to finance the purposes described in Minnesota Statutes, section 297A.994, and section 4,
subdivisions 3 and 4. These taxes shall be applied, first, as provided in Minnesota Statutes,
section 297A.994, subdivision 3, clauses (1) to (3), and then, solely to pay, secure, maintain,
and fund the payment of any principal of, premium on, and interest on any bonds or any
other purposes in section 4, subdivision 3 or 4. The commissioner of revenue may enter
into appropriate agreements with the city to provide for the collection of these taxes by the
state on behalf of the city. These taxes shall be subject to the same interest, penalties, and
enforcement provisions as the taxes imposed under Minnesota Statutes, chapter 297A.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after June
30, 2018.
new text end