HF 502

as introduced - 90th Legislature (2017 - 2018) Posted on 01/26/2017 02:06pm

A bill for an act
relating to taxation; sales and use; allocating the estimated revenue from the sale
of motor vehicle tires to the highway user tax distribution fund; amending
Minnesota Statutes 2016, section 297A.94.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2016, section 297A.94, is amended to read:

297A.94 DEPOSIT OF REVENUES.

(a) Except as provided in this section, the commissioner shall deposit the revenues,
including interest and penalties, derived from the taxes imposed by this chapter in the state
treasury and credit them to the general fund.

(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic
account in the special revenue fund if:

(1) the taxes are derived from sales and use of property and services purchased for the
construction and operation of an agricultural resource project; and

(2) the purchase was made on or after the date on which a conditional commitment was
made for a loan guaranty for the project under section 41A.04, subdivision 3.

The commissioner of management and budget shall certify to the commissioner the date on
which the project received the conditional commitment. The amount deposited in the loan
guaranty account must be reduced by any refunds and by the costs incurred by the Department
of Revenue to administer and enforce the assessment and collection of the taxes.

(c) The commissioner shall deposit the revenues, including interest and penalties, derived
from the taxes imposed on sales and purchases included in section 297A.61, subdivision 3,
paragraph (g), clauses (1) and (4), in the state treasury, and credit them as follows:

(1) first to the general obligation special tax bond debt service account in each fiscal
year the amount required by section 16A.661, subdivision 3, paragraph (b); and

(2) after the requirements of clause (1) have been met, the balance to the general fund.

(d) The commissioner shall deposit the revenues, including interest and penalties,
collected under section 297A.64, subdivision 5, in the state treasury and credit them to the
general fund. By July 15 of each year the commissioner shall transfer to the highway user
tax distribution fund an amount equal to the excess fees collected under section 297A.64,
subdivision 5, for the previous calendar year.

new text begin (e) Beginning June 30, 2018, and by June 30 of every fourth year thereafter, the
commissioner must estimate the percentage of total sales tax revenues collected in the
previous calendar year that is attributable to sales and purchases of motor vehicle tires and
motor vehicle repair and replacement parts. For purposes of this paragraph, "motor vehicle
tire" means any tire of the type used on highway vehicles if wholly or partially made of
rubber and if marked according to federal regulations for highway use; "motor vehicle" has
the meaning given in section 297B.01, subdivision 11; and "motor vehicle repair and
replacement parts" includes (1) all parts, tires, accessories, and equipment incorporated into
or affixed to the motor vehicle as part of the motor vehicle maintenance or repair, and (2)
paint, oil, and other fluids that remain on or in the motor vehicle as part of the motor vehicle
maintenance or repair. The amount of sales tax revenue estimated to be collected from the
sales and purchase of motor vehicle tires and motor vehicle repair and replacement parts in
any year is equal to the most recently calculated percentage estimated under this paragraph
multiplied by the total sales tax revenues collected in the calendar year, including penalties
and interest, and minus any refunds. By July 15 of each calendar year, the following amount
shall be transferred by the commissioner from the general fund to the highway user tax
distribution fund:
new text end

new text begin (1) by July 15, 2018, one-third of the estimated revenues collected in tax from the sale
or purchase of motor vehicle tires during the previous calendar year;
new text end

new text begin (2) by July 15, 2019, two-thirds of the estimated revenues collected in tax from the sale
or purchase of motor vehicle tires during the previous calendar year; and
new text end

new text begin (3) by July 15, 2020, and every July 15 thereafter, all of the estimated revenues collected
in tax from the sale or purchase of motor vehicle tires during the previous calendar year.
new text end

deleted text begin (e) deleted text end new text begin (f) new text end 72.43 percent of the revenues, including interest and penalties, transmitted to the
commissioner under section 297A.65, must be deposited by the commissioner in the state
treasury as follows:

(1) 50 percent of the receipts must be deposited in the heritage enhancement account in
the game and fish fund, and may be spent only on activities that improve, enhance, or protect
fish and wildlife resources, including conservation, restoration, and enhancement of land,
water, and other natural resources of the state;

(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and may
be spent only for state parks and trails;

(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and may
be spent only on metropolitan park and trail grants;

(4) three percent of the receipts must be deposited in the natural resources fund, and
may be spent only on local trail grants; and

(5) two percent of the receipts must be deposited in the natural resources fund, and may
be spent only for the Minnesota Zoological Garden, the Como Park Zoo and Conservatory,
and the Duluth Zoo.

deleted text begin (f) deleted text end new text begin (g) new text end The revenue dedicated under paragraph deleted text begin (e) deleted text end new text begin (f) new text end may not be used as a substitute for
traditional sources of funding for the purposes specified, but the dedicated revenue shall
supplement traditional sources of funding for those purposes. Land acquired with money
deposited in the game and fish fund under paragraph deleted text begin (e) deleted text end new text begin (f) new text end must be open to public hunting
and fishing during the open season, except that in aquatic management areas or on lands
where angling easements have been acquired, fishing may be prohibited during certain times
of the year and hunting may be prohibited. At least 87 percent of the money deposited in
the game and fish fund for improvement, enhancement, or protection of fish and wildlife
resources under paragraph deleted text begin (e) deleted text end new text begin (f) new text end must be allocated for field operations.

deleted text begin (g) deleted text end new text begin (h) new text end The revenues deposited under paragraphs (a) to deleted text begin (f) deleted text end new text begin (g) new text end do not include the revenues,
including interest and penalties, generated by the sales tax imposed under section 297A.62,
subdivision 1a, which must be deposited as provided under the Minnesota Constitution,
article XI, section 15.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for deposits of revenues from sales and
purchases made after January 1, 2017.
new text end