Memo - Food and Beverage Tax Bills
Administrative Services -
Office of the City Manager
Memorandum
To:
From:
Date:
Subject:
Honorable Mayor and Members of the City Council
Steven C. Mielke, Hopkins City Manage~
AprilS, 2001
Food and Beverage Tax Bills
Attached are the House and Senate Versions of the Food and Beverage Tax Bill. Both
bills have been heard in their respective committees.
The Senate bill (SF 2001) differs from the House bill (HF2152) in that the required
referendum and the 5-year sunset provisions have been removed. Sen. Kelley has
removed the. referendum provision and replaced it with a reverse referendum. He also
removed the sunset clause. Should both bills make it through the process, the
differences would be settled in conference committee. The bills will likely have
additional hearings.
~Bill Summary H.F. 2152
Page 1 of 1
Minnesota
House of Representatives
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Bill Summary
FILE NUMBER: H.F. 2152
Version: As Introduced
Authors: Folliard and Rhodes
Subject: Food and beverage tax for the city of
Hopkins
Analyst: Pat Dalton, 651-296-7434
DATE: April 2, 2001
STATUS: Taxes Committee
This document can be made available in alternative formats upon request.
Please call (651) 296-6753 [voice]; or the Minnesota State Relay Service at
1-800-627-3529 [TTY] for assistance.
.
Overview
Allows the city of Hopkins, with voter approval, to impose a food and beverage tax of up to one percent
for five years. The revenues from the tax would be used to fund public arts purposes.
Section
1 City of Hopkins; food and beverage tax.
Subd. 1. Sales and use tax. Allows the city of Hopkins to impose a tax of up to one percent on
food and beverages, including alcoholic beverages, sold at restaurants located in the city.
Subd. 2. Use of proceeds. Requires that the proceeds from the food and beverage tax be used
to fund public art purposes. This includes, but is not limited expenses related to a public art
facility, community art projects, and public art acquisition..
Subd. 3. Referendum. Requires the tax to be approved at a general LW CT = !:,J election prior to
its imposition.
Subd. 4. Enforcement, collection, and administration. Requires that the tax be collected and
administered by the state unless the city and the commissioner of revenue agree otherwise.
Subd. 5. Expiration. Requires that the tax expire five years after it is first imposed.
http://www.house.leg.state.mn.us/hrd/bs/82/HF2152 .html
04/06/2001
'H.P No. 2152, as introduced
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.Authors and Status 11III List versions
H.F No. 2152, as introduced: 82nd Legislative Session (2001-2002) Posted on Mar 22,2001
1.1 A bill for an act
1.2 relating to the city of Hopkins; authorizing the city
1.3 to impose a food and beverage tax.
1.4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. [CITY OF HOPKINS; FOOD AND BEVERAGE TAX.]
1. 6 Subdivision 1. [SALES AND USE TAX.] Notwi thstandinq
1.7 Minnesota Statutes, section 477A.016, or any ordinance, city
1.8 charter, or other provision of law, the city of Hopkins may, by
1.9 ordinance, impose a sales tax of up to one percent on the qross
1.10 receipts of all food and beveraqes, includinG on-sale
1.11 intoxicatinq beveraGes and fermented malt beveraqes, sold at
1.12 licensed on-sale liquor establishments, restaurants, or other
1.13 places of refreshment located within the GeoGraphic boundaries
1.14 of the city. The imposition of this tax is sublect to the
1.15 referendum requirement in subdivision 3.
1.16 Subd. 2. [USE OF PROCEEDS FROM FOOD AND BEVERAGE TAX.] The
1.17 proceeds of any tax imposed under subdivision 1 shall be used by
1.18 the city to fund public arts purposes. Authorized expenses
1.19 include, but are not limited to, expenses related to public art
1.20 facilities, community or public arts prolects, or purchase or
1.21 acquisition of art for public purposes.
1.22 Subd. 3. [REFERENDUM.] The tax must not be imposed until
1.23 it has been submitted to the voters at a qeneral or special
1.24 election and a malority of votes cast on the question of
2.1 approvinG the imposition of the tax are in the affirmative.
2.2 Subd. 4. [ENFORCEMENT, COLLECTION, AND ADMINISTRATION OF
2.3 THE TAX.] Unless the city of Hopkins and the commissioner of
2.4 revenue otherwise aGree, the tax shall be collected and
2.5 administered in the same manner as Qeneral local sales taxes
2.6 under Minnesota Statutes, section 297A.99, subdivision 9.
2.7 Subd. 5. [EXPIRATION.] The tax imposed under this section
2.8 expires five years after it first becomes effective.
2.9 [EFFECTIVE DATE.] This section is effective upon approval
2.10 by the city of Hopkins city council and compliance with
2.11 Minnesota Statutes, section 645.021, subdivision 3.
http://www.revisor.1eg.state.mn.us/cgi-bin/bldbill.pl ?bill=H2152. 0&session=ls82
04/06/2001
03/26/01
[COUNSEL] JZS
SCS2001A-1
1 Senator ..... moves to amend~.F. No. 200~as follows:
2 Delete everything after the enacting clause and insert:
3
"section 1. [CITY OF HOPKINS; FOOD AND BEVERAGE TAX.]
4 Subdivision 1. [SALES AND USE TAX.] Notwithstanding
5 Minnesota Statutes, section 477A.016, or any ordinance, city
6 charter, or other provision of law, the city of Hopkins may, by
7 ordinance, impose a sales tax of up to one percent on the gross
8 receipts of all food and beverages, including on-sale
9 intoxicating beverages and fermented malt beverages, sold at
10 licensed on-sale liquor establishments, restaurants, or other
11 places of refreshment located within the geographic boundaries
12 of the city. The imposition of this tax is subject to the
13 reverse referendum requirement in subdivision 3.
14 Subd. 2. [USE OF PROCEEDS FROM FOOD AND BEVERAGE TAX.] The
15 proceeds of any tax imposed under subdivision 1 shall be used by
16 the city to fund public arts purposes. Authorized expenses
17 include, but are not limited to, expenses related to pUblic art
18 facilities, community or pUblic arts projects, or purchase or
19 acquisition of art for public purposes.
20 Subd. 3. [REVERSE REFERENDUM.] If the Hopkins city council
21 intends to impose the tax authorized under this section, it must
22 first pass a resolution stating the intention to impose the
23 tax. The city must then publish the resolution together with a
24 notice of pUblic hearing on the resolution for two successive
25 weeks in its official newspaper or, if none exists, in a
26 newspaper of general circulation in the city. The hearing must
27 be held two to four weeks after the first. publication. After
28 the hearing, the city council may decide to take no action or
29 may adopt a resolution authorizing the imposition of the tax. A
30 resolution authorizing the tax must be published in the cityis
31 official newspaper or, if none exists, in a newspaper of general
32 circulation in the city. The resolution is not effective if a
33 petition requesting a referendum on the resolution is filed with
34 the city clerk within 30 days of publication of the resolution.
35 The petition must be signed by voters equaling five percent of
36 the votes cast in the city in the last general election. The
1
03/26/01
[COUNSEL] JZS
SCS2001A-1
1 resolution is effective if approved by a majority of those
2 voting on the question. The commissioner of revenue shall
3 prepare a suggested form of referendum question. The referendum
4 must be held at a special or general election.
5 Subd. 4. [ENFORCEMENT, COLLECTION, AND ADMINISTRATION OF
6 THE TAX.] Unless the city.of Hopkins. and the commissioner of
7 revenue otherwise agree, the tax shall be collected and
8 administered in the same manner as general local sales taxes
9 under Minnesota Statutes, section 297A.99, subdivision 9.
10 [EFFECTIVE DATE.] This section is effective upon approval
11 by the Hopkins city council and compliance with Minnesota
+2 Statutes, section 645.021, subdivision 3."
2