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S.F. No. 1406 - Rochester Lodging Tax Modification
 
Author: Senator David H. Senjem
 
Prepared By: Nora Pollock, Senate Counsel (651/297-8066)
 
Date: April 2, 2013



 

Section 1, subdivision 1a. [Authorization] Authorizes the city of Rochester to increase its lodging tax authorized under special law from one to three percent.  Rochester also currently imposes a three percent lodging tax under the authority granted to local jurisdictions in section 469.190, which requires that 95 percent of the tax revenue is used for tourism promotion for the jurisdiction.  The city was authorized to impose an additional one percent lodging tax in 2010, the revenues from which would pay for construction, renovation, improvement, and expansion of the Mayo Civic Center, but that tax has not yet been imposed. 

This bill adds to the 2010 authorization to allow revenue from the proposed three percent lodging tax to pay for design and related infrastructure of the Mayo Civic Center Complex.

Subdivision 2a.  [Bonds] Increases the bonding authority for the projects in section 1 from $43.5 million to $50 million. 

Subdivision 3.  [Expiration of taxing authority]  Removes current requirements for expiration of the lodging tax and provides that the city may repeal the lodging tax by ordinance, provided that revenues from the tax are sufficient to meet bond or other obligations backed by the revenues, and the city provides sufficient notice to the Commissioner of Revenue under chapter 297A.99, subdivision 12.

Section 1 is effective the day after the city complies with section 645.021, subdivisions 2 and 3 (formal city majority approval), and filing a record of such approval with the Secretary of State.

Section 2.  [Repealer]  Repeals the Rochester food and beverage tax authorized in 2009 to fund construction, renovation, improvement, and expansion of the Mayo Civic Center Complex.  Effective the day following final enactment.

NBP:dv

 
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