SF 3347

as introduced - 86th Legislature (2009 - 2010) Posted on 04/07/2010 12:26pm

A bill for an act
relating to taxation; amending Rochester's lodging and food and beverage taxes;
amending Laws 2002, chapter 377, article 3, section 25, as amended; Laws 2009,
chapter 88, article 4, section 23, subdivision 4.

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, 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 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 percent tax imposed under subdivision 1a shall
be used to pay for (1) construction, renovation, improvement, and expansion of the Mayo
Civic Center and related 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.

new text begin Subd. 2a. new text end

new text begin Bonds. new text end

new text begin 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, to pay for capital and administrative costs for the design,
construction, renovation, improvement, and expansion of the Mayo Civic Center Complex,
and related 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.
new text end

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 new text begin , including any bonds issued to
refund such bonds, new text end or at an earlier time as the city shall, by ordinance, determine. new text begin 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.
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 Rochester and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 2.

Laws 2009, chapter 88, article 4, section 23, subdivision 4, is amended to read:

Subd. 4.

Expiration of taxing authority.

The authority granted under subdivision
1 to the city to impose a one percent tax on food and beverages 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 new text begin , and
any bonds issued to refund such bonds, new text end have been paid or at an earlier time as the city
shall, by ordinance, determine. new text begin 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.
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 Rochester and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end