The bill allows the city of Duluth to extend its tourism tax to fund additional capital improvements. It amends existing laws to permit the city to impose an additional sales tax of up to one and three-quarter percent on specific sales transactions, which will not be subject to voter referendum. Furthermore, it introduces a new provision allowing the city to impose an additional sales tax of up to one-half of one percent, with the revenue aimed at supporting public facilities and recreational activities in designated areas of the city. The principal amount for bonds issued for these improvements has been increased from $18,000,000 to $54,000,000.

Additionally, the bill includes provisions for a one percent tax on gross receipts from lodging in hotels and motels, which also will not be subject to voter referendum. Similar to the sales tax, an additional sales tax of up to one-half of one percent on lodging receipts is authorized, with the same revenue goals as outlined for the sales tax. The effective date of these changes will take effect once the governing body of Duluth and its chief clerical officer comply with specific statutory requirements.

Statutes affected:
Introduction: 297A.01