This bill authorizes the city of Sleepy Eye to impose a lodging tax up to two percent to fund the Sleepy Eye Event Center or to pay all or part of the operating and promotional costs of the Event Center.  Under current law, local jurisdictions may impose, without legislative approval, up to a three percent tax on lodging gross receipts, 95 percent of which must be used to fund tourism promotion in the city. The bill provides that the total tax that may be imposed under current authority and the authorization in the bill must not exceed five percent.

As proposed to be amended, the bill is effective the day after the city files its approval with the Secretary of State.