Bill Summary
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Senate Counsel & Research   State of Minnesota
 
S.F. No. 58 - Increasing Duluth's Local Sales Tax on Food and Beverages
Author: Senator Yvonne Prettner Solon
Prepared by: Michelle Allen, Senate Counsel (651/296-0558)
Date: January 31, 2007


This bill authorizes the city of Duluth to increase, by ordinance, its sales tax on food and beverages from the current rate of one and one-half percent to two and one-quarter percent. The bill also changes the reduction rate of the tax. This bill proposes to allow the city council to reduce the rate by one-half percent rather than the current reduction of one-half percent when it determines that the tax has raised revenue sufficient to pay the debt service on $8,000,000 principal of bonds issued for capital improvements to the Duluth Entertainment Center, and $4,970,000 principal of bonds for capital improvements to the Great Lakes Aquarium. This bill also adds a reduction of three-quarters of one percent when the city council determines that revenue has been raised to pay debt service on bonds in the principal amount of $37,931,000 issued for a new arena at the Duluth Entertainment and Convention Center.

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