HF 122

as introduced - 84th Legislature, 2005 1st Special Session (2005 - 2005) Posted on 12/15/2009 12:00am

A bill for an act
relating to transportation; imposing highway user debt
service fee on gasoline and special fuel; imposing
0.25 percent sales tax for transit purposes in
counties of Anoka, Carver, Chisago, Dakota, Hennepin,
Isanti, Ramsey, Scott, Sherburne, Washington, and
Wright if approved in a referendum; authorizing
issuance of $2,750,000,000 in state trunk highway
bonds; appropriating money; amending Minnesota
Statutes 2004, sections 296A.07, subdivision 4, by
adding a subdivision; 296A.08, subdivision 3, by
adding a subdivision; proposing coding for new law in
Minnesota Statutes, chapters 161; 296A; 297A.

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

Section 1.

new text begin [161.042] DEBT SERVICE ACCOUNT.
new text end

new text begin A debt service account is established in the trunk highway
fund, consisting of money credited to the account by law. Money
in the account is appropriated to the commissioner for payment
of principal and interest on trunk highway bonds issued under
section 9.
new text end

Sec. 2.

Minnesota Statutes 2004, section 296A.07, is
amended by adding a subdivision to read:

new text begin Subd. 3a. new text end

new text begin Highway user debt service fee. new text end

new text begin (a) A highway
user debt service fee, determined as provided in paragraph (b),
is imposed on gasoline, E-85, and M-85 in addition to the taxes
imposed under subdivision 3. The highway user debt service fee
imposed on E-85 and M-85 must be in the same proportion to the
fee on gasoline as the taxes on those fuels are in proportion to
the tax on gasoline under subdivision 3. Proceeds from the fee
must be deposited in the highway user tax distribution fund.
Proceeds from the fee that are allocated to the trunk highway
fund must be credited to the debt service account.
new text end

new text begin (b) On August 1 of each fiscal year the commissioner of
revenue shall determine the amount of highway user debt service
fee on gasoline, E-85, and M-85 that, when combined with highway
user debt service fees under section 296A.08, subdivision 2a,
will be needed in the next 12 months to pay principal and
interest in that period on bonds issued under section 9. The
fee determined under this subdivision must be added to the taxes
imposed under subdivision 3. The amount of fee so determined is
effective on September 1 of each year through August 31 of the
following year.
new text end

Sec. 3.

Minnesota Statutes 2004, section 296A.07,
subdivision 4, is amended to read:

Subd. 4.

Exemptions.

The provisions of deleted text begin subdivision
deleted text end new text begin subdivisions new text end 1 new text begin and 3a new text end do not apply to gasoline purchased by:

(1) a transit system or transit provider receiving
financial assistance or reimbursement under section 174.24,
256B.0625, subdivision 17, or 473.384; or

(2) an ambulance service licensed under chapter 144E.

Sec. 4.

Minnesota Statutes 2004, section 296A.08, is
amended by adding a subdivision to read:

new text begin Subd. 2a. new text end

new text begin Highway user debt service fee. new text end

new text begin (a) A highway
user debt service fee is imposed on special fuel in addition to
the taxes imposed under subdivision 2. The highway user debt
service fee imposed on liquefied petroleum gas, liquefied
natural gas, and compressed natural gas must be in the same
proportion to the fee on other special fuel as the taxes on
those fuels are in proportion to the tax on other special fuels
under subdivision 2. Proceeds from the fee must be deposited in
the highway user tax distribution fund. Proceeds from the fee
that are allocated to the trunk highway fund must be credited to
the debt service account.
new text end

new text begin (b) On August 1 of each fiscal year the commissioner of
revenue shall determine the amount of highway user debt service
fee on special fuel, when combined with the highway user debt
service fee under section 296A.07, subdivision 3a, will be
needed in the next 12 months to pay principal and interest in
that period on bonds issued under section 9. The fee determined
under this subdivision must be added to the taxes imposed under
subdivision 3. The amount of fee so determined is effective on
September 1 of each year through August 31 of the following year.
new text end

Sec. 5.

Minnesota Statutes 2004, section 296A.08,
subdivision 3, is amended to read:

Subd. 3.

Exemptions.

The provisions of subdivisions
1 deleted text begin and deleted text end new text begin , new text end 2 new text begin , and 2a new text end do not apply to special fuel or alternative
fuels purchased by:

(1) a transit system or transit provider receiving
financial assistance or reimbursement under section 174.24,
256B.0625, subdivision 17, or 473.384; or

(2) an ambulance service licensed under chapter 144E.

Sec. 6.

new text begin [296A.081] COLLECTION OF HIGHWAY USER DEBT
SERVICE FEE.
new text end

new text begin All provisions of this chapter that apply to the collection
of taxes on gasoline and special fuel apply to the collection of
highway user debt service fees established under sections
296A.07, subdivision 3a, and 296A.08, subdivision 2a.
new text end

Sec. 7.

new text begin [297A.996] METROPOLITAN TRANSPORTATION AREA;
SALES TAX FOR TRANSPORTATION.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin For purposes of this section,
"metropolitan transportation area" or "area" means the 11-county
area consisting of Anoka, Carver, Chisago, Dakota, Hennepin,
Isanti, Ramsey, Scott, Sherburne, Washington, and Wright
Counties.
new text end

new text begin Subd. 2. new text end

new text begin Tax authorized. new text end

new text begin If approved by the voters of
the area at an election held November 8, 2005, a general sales
tax of one-quarter of one percent is imposed on sales within the
area, in addition to the taxes imposed under sections 297A.62 to
297A.64 and any other local sales taxes imposed in the area.
new text end

new text begin Subd. 3. new text end

new text begin Tax base. new text end

new text begin The tax applies to sales taxable
under this chapter that occur within the area. Taxable goods or
services are subject to the tax if they are sourced to the area
pursuant to section 297A.668.
new text end

new text begin Subd. 4. new text end

new text begin Use tax. new text end

new text begin A compensating use tax applies, at the
same rate as the sales tax, on the use, storage, distribution,
or consumption of tangible personal property or taxable services.
new text end

new text begin Subd. 5. new text end

new text begin Application of other laws. new text end

new text begin (a) Section 297A.99,
subdivisions 7, 8, 9, 10, and 11 apply to taxes authorized under
this section.
new text end

new text begin (b) The commissioner has the same powers to assess and
collect the taxes as are given the commissioner in this chapter
and chapters 270 and 289A, to assess and collect sales and use
taxes.
new text end

new text begin Subd. 6. new text end

new text begin Allocation of revenue. new text end

new text begin The commissioner shall
allocate revenue from the tax imposed under this section as
follows:
new text end

new text begin (a) Revenue collected in Anoka, Carver, Dakota, Hennepin,
Ramsey, Scott, and Washington Counties must be paid to the
Metropolitan Council. The council may use the revenue only for
the operation of, or assistance to, public transit as defined in
section 174.22, subdivision 7, within the metropolitan transit
area as defined in section 473.121, subdivision 16.
new text end

new text begin (b) Revenue collected in each other county in the area must
be paid to the treasurer of each such county. Money so paid may
be spent by the county only for the operation of, or assistance
to, public transit as defined in section 174.22, subdivision 7.
new text end

Sec. 8. new text begin APPROPRIATION.
new text end

new text begin $275,000,000 is appropriated on each September 1 of fiscal
years 2006 through 2015 from the bond proceeds account in the
trunk highway fund to the commissioner of transportation for
trunk highway improvements.
new text end

Sec. 9. new text begin BOND SALE AUTHORIZATION.
new text end

new text begin To provide the money appropriated from the bond proceeds
account under section 8, the commissioner of finance shall sell
and issue bonds of the state in an amount up to $2,750,000,000
in the manner, upon the terms, and with the effect prescribed by
Minnesota Statutes, sections 167.50 to 167.52, and by the
Minnesota Constitution, article XIV, section 11, at the times
and in the amounts requested by the commissioner of
transportation. The proceeds of the bonds, except accrued
interest and any premium received on the sale of the bonds, must
be credited to the bond proceeds account in the trunk highway
fund.
new text end