Purpose of the Bill

The purpose of this bill is to modify existing tax law regarding the local lodging tax in the city of Plymouth, Minnesota, specifically by removing the expiration date of this tax.

Main Provisions

• Extension of Tax Authority: The city of Plymouth is authorized to continue imposing a local lodging tax of up to three percent on the gross receipts from lodging services. This is additional to any existing lodging tax under Minnesota law.
• Revenue Allocation: Two-thirds of the revenue collected from this tax must be used for:
  • Capital improvements to public recreational facilities.
  • Marketing and promotion of the Plymouth community.
  • The remaining one-third of the revenue is to be used similarly to other local taxes under existing Minnesota Statutes.

Significant Changes to Existing Law

• Removal of Expiration Date: Previously, the local lodging tax in Plymouth had an expiration date set for the earlier of ten years after its implementation or December 31, 2030. This bill proposes to remove that expiration date, allowing the tax to continue indefinitely.

Relevant Terms

• Local lodging tax
• City of Plymouth
• Revenue allocation
• Capital improvements
• Public recreational facilities
• Marketing and promotion
• Tax expiration date