SF3374

Purpose

• Allow a city of the third class to raise money through a tax to provide free musical entertainment for the general public.

What the bill does

• Amends Minnesota Statutes 2024 section 449.08.
• Enables the city council of a third-class city to levy a tax specifically to fund free musical entertainment for residents and visitors.
• Requires that the tax proceeds be used only for providing free musical entertainment to the public.
• Establishes an annual limit on how much money can be spent for this purpose (the text shows a range of 3,000 to 10,000, which likely means a cap between $3,000 and $10,000 per year; the exact amount may require clarification).

How funds can be used

• Funds raised from the tax must be dedicated solely to offering free musical entertainment to the general public.
• No other uses for the tax proceeds are allowed under this provision.

Scope and eligibility

• Applies to cities classified as third class under Minnesota law.
• The authority to levy rests with the city council of each eligible city.

Fiscal and legal changes

• This is a new authorization within existing tax authority for third-class cities.
• Changes the current law by creating a specific tax levy targeted at funding free music events for the public, with an annual spending cap.

Implementation notes

• Requires action by the city council to levy the tax.
• Compliance will depend on setting an appropriate annual expenditure within the stated cap and ensuring funds are used only for free musical entertainment.

Relevant Terms - tax levy - third class city - free musical entertainment - general public - annual expenditure limit - proceeds - city council - Minnesota Statutes 2024 section 449.08 - amendment - public entertainment funding