1.1                          A bill for an act
  1.2             relating to the city of Hermantown; permitting 
  1.3             imposition of a local sales tax. 
  1.4   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.5      Section 1.  [CITY OF HERMANTOWN; SALES TAX.] 
  1.6      Subdivision 1.  [SALES TAX AUTHORIZED.] Notwithstanding 
  1.7   Minnesota Statutes, section 477A.016, or any other contrary 
  1.8   provision of law, ordinance, or city charter, the city of 
  1.9   Hermantown may, by ordinance, impose an additional sales tax of 
  1.10  up to one-half of one percent on sales transactions taxable 
  1.11  pursuant to Minnesota Statutes, chapter 297A, that occur within 
  1.12  the city. 
  1.13     Subd. 2.  [REFERENDUM.] If the Hermantown city council 
  1.14  proposes to impose the sales tax authorized by this section, it 
  1.15  shall conduct a referendum on the issue.  The question of 
  1.16  imposing the tax must be submitted to the voters at a special or 
  1.17  general election.  The tax may not be imposed unless a majority 
  1.18  of votes cast on the question of imposing the tax are in the 
  1.19  affirmative.  The commissioner of revenue shall prepare a 
  1.20  suggested form of question to be presented at the election.  
  1.21  This subdivision applies notwithstanding any city charter 
  1.22  provision to the contrary. 
  1.23     Subd. 3.  [ENFORCEMENT; COLLECTION; AND ADMINISTRATION OF 
  1.24  TAXES.] A sales tax imposed under this section must be reported 
  2.1   and paid to the commissioner of revenue with the state sales 
  2.2   taxes, and be subject to the same penalties, interest, and 
  2.3   enforcement provisions.  The proceeds of the tax, less refunds 
  2.4   and a proportionate share of the cost of collection, shall be 
  2.5   remitted at least quarterly to the city.  The commissioner shall 
  2.6   deduct from the proceeds remitted an amount that equals the 
  2.7   indirect statewide cost as well as the direct and indirect 
  2.8   department costs necessary to administer, audit, and collect the 
  2.9   tax.  The amount deducted shall be deposited in the state 
  2.10  general fund. 
  2.11     Sec. 2.  [LOCAL APPROVAL; EFFECTIVE DATE.] 
  2.12     Section 1 is effective the day after final enactment, upon 
  2.13  compliance with Minnesota Statutes, section 645.021, subdivision 
  2.14  3, by the city of Hermantown.