HF 736

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/04/2021 03:07pm

A bill for an act
relating to taxation; sales and use; modifying authorization for city of Sartell to
impose a food and beverage tax; amending Laws 2019, First Special Session
chapter 6, article 6, section 27.

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

Section 1.

Laws 2019, First Special Session chapter 6, article 6, section 27, is amended
to read:

Sec. 27. CITY OF SARTELL; LOCAL TAXES AUTHORIZED.

Subdivision 1.

Food and beverage tax authorized.

Notwithstanding Minnesota Statutes,
section 297A.99 or 477A.016, or any ordinance or other provision of law, and if approved
by voters at deleted text begin the November 3, 2020, deleted text end new text begin a new text end general deleted text begin election, deleted text end or deleted text begin at a deleted text end special election held deleted text begin before
November 3, 2020 deleted text end new text begin pursuant to a resolution adopted by its governing body new text end , the city of Sartell
may, by ordinance, impose a sales tax of up to 1-1/2 percent on the gross receipts of all food
and beverages sold by a restaurant or place of refreshment, as defined by ordinance of the
city, that is located within the city. For purposes of this section, "food and beverages" include
retail on-sale of intoxicating liquor and fermented malt beverages.

Subd. 2.

Use of proceeds from authorized taxes.

The proceeds of the taxes imposed
under subdivision 1 must be used by the city to fund capital or operational costs for new
and existing recreational facilities and related amenities within the city. Authorized expenses
include securing or paying debt service on bonds or other obligations issued to finance
construction and improvement projects.

deleted text begin Subd. 3. deleted text end

deleted text begin Termination of taxes. deleted text end

deleted text begin The tax imposed under subdivision 1 expires five years
after the tax is first imposed.
deleted text end

Subd. 4.

Collection, administration, and enforcement.

The city may enter into an
agreement with the commissioner of revenue to administer, collect, and enforce the taxes
under subdivision 1. If the commissioner agrees to collect the tax, the provisions of Minnesota
Statutes, sections 270C.171 and 297A.99, related to collection, administration, and
enforcement apply.

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 Sartell and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end