Section

Provision

1

Allows the city of Duluth to increase, by ordinance, the rate on its local food and beverage tax by 0.5 percent.  The tax would increase from 1.75 percent as currently authorized to 2.25 percent.  Additional revenue generated from the increased tax rate must be used to pay bond debt service on $18 million in principal to finance capital projects related to tourism and recreation in the portion of the city west of 34th Avenue West.  The increase expires when the additional revenue raised is sufficient to fund the allowed projects.  This section also eliminates obsolete language from 1998 authorizing a temporary increase in the Duluth food and beverage tax from 1.75 percent to 2.25 percent to fund the Duluth Entertainment and Convention Center and the Great Lakes Aquarium.  The authority for this increase has expired.  Effective upon the city filing approval with the secretary of state.
 

2

Allows the city of Duluth to increase, by ordinance, the rate on its lodging tax by 0.5 percent.  The tax would increase from 1.0 percent as currently authorized to 1.5 percent.  Additional revenue generated from the increased tax rate must be used for the promotion of tourism and recreation in the portion of the city west of 34th Avenue West.  The temporary increase expires December 31, 2024.  This section also eliminates obsolete language from 1998 authorizing a temporary increase of the lodging tax from 1.0 percent to 1.5 percent to fund the Duluth Entertainment and Convention Center and the Great Lakes Aquarium.  The authority for this increase has expired. Effective upon the city filing approval with the secretary of state.