HF 387

as introduced - 94th Legislature (2025 - 2026) Posted on 02/13/2025 02:42pm

A bill for an act
relating to taxation; authorizing the city of Blaine to impose certain special taxes
within the city.

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

Section 1. new text begin CITY OF BLAINE; RESTAURANT, LODGING, AND ADMISSIONS
TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin Notwithstanding Minnesota Statutes, section 477A.016, or any
other law, ordinance, or city charter provision to the contrary, the city of Blaine may, by
ordinance, impose one or more taxes authorized under subdivision 3 on sales transactions
occurring within or into the boundaries of the taxing area.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin For the purposes of this section, the following definitions apply:
new text end

new text begin (1) "city" means the city of Blaine;
new text end

new text begin (2) "tax" means a tax imposed under this special law and authorized under subdivision
3; and
new text end

new text begin (3) "taxing area" means the geographic area within the city known as the 105th
Redevelopment Area as identified in the city's zoning ordinance and zoning map.
new text end

new text begin Subd. 3. new text end

new text begin Taxes authorized. new text end

new text begin (a) The city may by ordinance impose one or more of the
following taxes:
new text end

new text begin (1) a tax of not more than three percent on the gross receipts of all food and beverages
sold by a restaurant or place of refreshment, as defined by city ordinance, located within
the taxing area, including retail on-sale of intoxicating liquor and fermented malt beverages
and all sales of food primarily for consumption on or off the premises;
new text end

new text begin (2) a 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 taxing area by a hotel or motel which has
more than 50 rooms available for lodging; the tax imposed under this clause is in addition
to any tax imposed under Minnesota Statutes, section 469.190, and the total tax imposed
under that section and this provision must not exceed six percent; and
new text end

new text begin (3) a tax of not more than three percent on the gross receipts from the furnishing for
consideration of the privilege of admission to places of amusement or athletic events located
within the taxing area and the privilege of use of amusement devices located within the
taxing area.
new text end

new text begin (b) The taxes must be imposed and may be adjusted periodically by the city council so
that the rates imposed produce revenue sufficient to finance the purposes described in
subdivision 4.
new text end

new text begin Subd. 4. new text end

new text begin Use of revenues. new text end

new text begin The city must use the revenues received from the taxes only
for initial and ongoing financing of capital improvements within the taxing area as provided
in this subdivision. The city may use the revenues to:
new text end

new text begin (1) pay or secure the payment of any principal of, premium on, or interest on bonds
issued in accordance with this section;
new text end

new text begin (2) pay costs to acquire, design, equip, construct, improve, maintain, operate, administer,
or promote the facilities and capital improvements, including financing costs related to
them; and
new text end

new text begin (3) maintain reserves for the foregoing purposes deemed reasonable and appropriate by
the city.
new text end

new text begin Subd. 5. new text end

new text begin Bond authority. new text end

new text begin The city may issue bonds under Minnesota Statutes, chapter
475, to finance all or a portion of the costs of the development and construction projects
located within the taxing area. The bonds are not included in computing any debt limitation
applicable to the city, and any levy of taxes under Minnesota Statutes, section 475.61, to
pay principal and interest on the bonds is not subject to any levy limitation. The issuance
of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 and
275.61.
new text end

new text begin Subd. 6. new text end

new text begin Collection and enforcement. new text end

new text begin The commissioner of revenue and the city may
enter into an agreement to provide for the collection of the taxes by the state on behalf of
the city. The taxes are subject to the same interest, penalties, and enforcement provisions
as the taxes imposed under Minnesota Statutes, chapter 297A.
new text end

new text begin Subd. 7. new text end

new text begin Termination of taxes. new text end

new text begin The taxes authorized by this section must not be
terminated before January 1, 2055.
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 Blaine and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end