SF 2259

as introduced - 88th Legislature (2013 - 2014) Posted on 03/31/2014 08:36am

A bill for an act
relating to the city of Duluth; modifying local food and beverage and lodging
taxes; amending Laws 1980, chapter 511, sections 1, subdivision 2, as amended;
2, as amended.

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

Section 1.

Laws 1980, chapter 511, section 1, subdivision 2, as amended by Laws
1991, chapter 291, article 8, section 22, Laws 1998, chapter 389, article 8, section 25,
Laws 2003, First Special Session chapter 21, article 8, section 11, and Laws 2008, chapter
154, article 5, section 2, is amended to read:

Subd. 2.

new text begin (a) new text end Notwithstanding Minnesota Statutes, section 477A.016, or any
other law, ordinance, or city charter provision to the contrary, the city of Duluth may,
by ordinance, impose an additional sales tax of up to deleted text begin two and one-quarter deleted text end new text begin one and
three-quarter new text end percent on sales transactions which are described in Minnesota Statutes 2000,
section 297A.01, subdivision 3, clause (c). deleted text begin When the city council determines that the taxes
imposed under this subdivision and under Laws 1998, chapter 389, article 8, section 26, at a
rate of one-half of one percent have produced revenue sufficient to pay (1) the debt service
on bonds in a principal amount of $8,000,000 issued for capital improvements to the
Duluth Entertainment and Convention Center, and (2) debt service on outstanding bonds
originally issued in the principal amount of $4,970,000 to finance capital improvements to
the Great Lakes Aquarium since the imposition of the taxes at the rate of one and one-half
percent, the rate of the tax under this subdivision is reduced by one-half of one percent.
deleted text end The imposition of this tax shall not be subject to voter referendum under either state law
or city charter provisions. When the city council determines that the taxes imposed under
this deleted text begin subdivision deleted text end new text begin paragraph new text end at a rate of three-quarters of one percent and other sources of
revenue produce revenue sufficient to pay debt service on bonds in the principal amount
of $40,285,000 plus issuance and discount costs, issued for capital improvements at the
Duluth Entertainment and Convention Center, which include a new arena, the rate of tax
under this subdivision must be reduced by three-quarters of one percent.

new text begin (b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes,
section 477A.016, or any other law, ordinance, or city charter provision to the contrary,
the city of Duluth may, by ordinance, impose an additional sales tax of up to one-half of
one percent on sales transactions which are described in Minnesota Statutes 2000, section
297A.01, subdivision 3, clause (d). This tax expires when the city council determines that
the tax imposed under this paragraph has produced revenues sufficient to pay the debt
service on bonds in a principal amount of no more than $18,000,000, plus issuance and
discount costs, to finance capital improvements to public facilities to support tourism and
recreational activities in that portion of the city west of 34th Avenue West.
new text end

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

Sec. 2.

Laws 1980, chapter 511, section 2, as amended by Laws 1998, chapter 389,
article 8, section 26, and Laws 2003, First Special Session chapter 21, article 8, section
12, is amended to read:

Sec. 2. CITY OF DULUTH; TAX ON RECEIPTS BY HOTELS AND
MOTELS.

new text begin (a) new text end Notwithstanding Minnesota Statutes, section 477A.016, or any other law, or
ordinance, or city charter provision to the contrary, the city of Duluth may, by ordinance,
impose an additional tax of one deleted text begin and one-half deleted text end percent upon the gross receipts from the
sale of lodging for periods of less than 30 days in hotels and motels located in the city.
deleted text begin When the city council determines that the taxes imposed under this section and section 25
at a rate of one-half of one percent have produced revenue sufficient to pay (1) the debt
service on bonds in a principal amount of $8,000,000 issued for capital improvements
for the Duluth Entertainment and Convention Center, and (2) the debt service on
outstanding bonds originally issued in the principal amount of $4,970,000 to finance
capital improvements to the Great Lakes Aquarium since the imposition of the taxes at the
rate of one and one-half percent, the rate of the tax under this section is reduced to one
percent. deleted text end The tax shall be collected in the same manner as the tax set forth in the Duluth
city charter, section 54(d), paragraph one. The imposition of this tax shall not be subject to
voter referendum under either state law or city charter provisions.

new text begin (b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes,
section 477A.016, or any other law, ordinance, or city charter provision to the contrary,
the city of Duluth may, by ordinance, impose an additional sales tax of up to one-half of
one percent on the gross receipts from the sale of lodging for periods of less than 30 days
in hotels and motels located in the city. Revenue from this tax shall be used for promotion
of tourism and recreational activities in that portion of the city west of 34th Avenue West.
The tax imposed under this paragraph expires December 31, 2024.
new text end

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