HF 1545

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to transportation; providing for calculation
of excess sum in county state-aid highway formula;
authorizing county wheelage tax; modifying motor
vehicle registration taxes; increasing and indexing
motor fuel taxes; modifying allocations of motor
vehicle sales tax proceeds; establishing additional
account in transportation revolving loan fund;
authorizing trunk highway bonds; authorizing
metropolitan area one-half cent sales tax; authorizing
counties to impose regional sales tax and excise tax
for transportation after referendum; requiring report;
appropriating money; amending Minnesota Statutes 2004,
sections 161.04, by adding a subdivision; 162.07,
subdivision 1, by adding subdivisions; 163.051;
168.013, subdivision 1a; 296A.07, subdivision 3, by
adding a subdivision; 296A.08, subdivision 2, by
adding a subdivision; 297B.09, subdivision 1;
446A.085, subdivisions 3, 8, by adding a subdivision;
proposing coding for new law in Minnesota Statutes,
chapter 297A.

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

ARTICLE 1

STATE TRANSPORTATION FINANCE

Section 1.

Minnesota Statutes 2004, section 162.07,
subdivision 1, is amended to read:

Subdivision 1.

Formula.

After deducting for
administrative costs and for the disaster account and research
account and state park roads as deleted text begin heretofore deleted text end provided new text begin in section
162.06, subdivisions 2 to 5 new text end , the remainder of the total sum
provided for in section 162.06, subdivision 1, deleted text begin shall be deleted text end new text begin is
new text end identified as the apportionment sum and deleted text begin shall be apportioned by
the commissioner to the several counties on the basis of the
needs of the counties as determined in accordance with the
following formula:
deleted text end

deleted text begin (a) An amount equal to ten percent of the apportionment sum
shall be apportioned equally among the 87 counties.
deleted text end

deleted text begin (b) An amount equal to ten percent of the apportionment sum
shall be apportioned among the several counties so that each
county shall receive of such amount the percentage that its
motor vehicle registration for the calendar year preceding the
one last past, determined by residence of registrants, bears to
the total statewide motor vehicle registration.
deleted text end

deleted text begin (c) An amount equal to 30 percent of the apportionment sum
shall be apportioned among the several counties so that each
county shall receive of such amount the percentage that its
total lane-miles of approved county state-aid highways bears to
the total lane-miles of approved statewide county state-aid
highways. In 1997 and subsequent years no county may receive,
as a result of an apportionment under this clause based on
lane-miles rather than miles of approved county state-aid
highways, an apportionment that is less than its apportionment
in 1996.
deleted text end

deleted text begin (d) An amount equal to 50 percent of the apportionment sum
shall be apportioned among the several counties so that each
county shall receive of such amount the percentage that its
money needs bears to the sum of the money needs of all of the
individual counties; provided, that the percentage of such
amount that each county is to receive shall be adjusted so that
each county shall receive in 1958 a total apportionment at least
ten percent greater than its total 1956 apportionments from the
state road and bridge fund; and provided further that those
counties whose money needs are thus adjusted shall never receive
a percentage of the apportionment sum less than the percentage
that such county received in 1958 deleted text end new text begin the excess sum new text end .

new text begin (a) The excess sum is calculated as the sum of the amounts
described in clauses (1) and (2), reduced by a proportionate
share of the deductions for administrative costs and for the
disaster account and research account, as follows:
new text end

new text begin (1) on or after July 1, 2005, the amount due to an increase
imposed in the gasoline excise tax rate above a rate of 20.0
cents per gallon; or in the excise tax rate for E85, M85, and
special fuels above the energy equivalent of a gasoline tax rate
of 20.0 cents per gallon; and
new text end

new text begin (2) the amount due to a change in the passenger vehicle
registration tax under section 168.013, imposed on or after July
1, 2005, that exceeds the amount collected in fiscal year 2005
multiplied by the annual average United States Consumer Price
Index for all urban consumers, United States city average, as
determined by the United States Department of Labor for the
previous year, divided by that annual average for calendar year
2004.
new text end

new text begin (b) The apportionment sum is calculated by subtracting the
excess sum from the remainder of the total sum.
new text end

Sec. 2.

Minnesota Statutes 2004, section 162.07, is
amended by adding a subdivision to read:

new text begin Subd. 1a. new text end

new text begin Apportionment sum. new text end

new text begin The commissioner shall
apportion the apportionment sum among the several counties on
the basis of the needs of the counties as determined in
accordance with the following formula:
new text end

new text begin (a) An amount equal to ten percent of the apportionment sum
must be apportioned equally among the 87 counties.
new text end

new text begin (b) An amount equal to ten percent of the apportionment sum
must be apportioned among the several counties so that each
county receives of that amount the percentage that its motor
vehicle registration for the calendar year preceding the one
last past, determined by residence of registrants, bears to the
total statewide motor vehicle registration.
new text end

new text begin (c) An amount equal to 30 percent of the apportionment sum
must be apportioned among the several counties so that each
county receives of that amount the percentage that its total
lane-miles of approved county state-aid highways bears to the
total lane-miles of approved statewide county state-aid
highways. In 1997 and subsequent years, no county may receive,
as a result of an apportionment under this paragraph based on
lane-miles rather than miles of approved county state-aid
highways, an apportionment that is less than its apportionment
in 1996.
new text end

new text begin (d) An amount equal to 50 percent of the apportionment sum
must be apportioned among the several counties so that each
county receives of that amount the percentage that its money
needs bears to the sum of the money needs of all of the
individual counties; provided that the percentage of the amount
that each county is to receive must be adjusted so that each
county receives in 1958 a total apportionment at least ten
percent greater than its total 1956 apportionments from the
state road and bridge fund; and provided, further, that those
counties whose money needs are thus adjusted shall never receive
a percentage of the apportionment sum less than the percentage
that such county received in 1958.
new text end

Sec. 3.

Minnesota Statutes 2004, section 162.07, is
amended by adding a subdivision to read:

new text begin Subd. 1b. new text end

new text begin Excess sum. new text end

new text begin The commissioner shall apportion
the excess sum to the several counties on the basis of the needs
of the counties as determined in accordance with the following
formula:
new text end

new text begin (a) An amount equal to 40 percent of the excess sum must be
apportioned among the several counties so that each county
receives of that amount the percentage that its motor vehicle
registration for the calendar year preceding the one last past,
determined by residence of registrants, bears to the total
statewide motor vehicle registration.
new text end

new text begin (b) An amount equal to 60 percent of the excess sum must be
apportioned among the several counties so that each county
receives of that amount the percentage that its money needs
bears to the sum of the money needs of all of the individual
counties.
new text end

Sec. 4.

Minnesota Statutes 2004, section 163.051, is
amended to read:

163.051 deleted text begin METROPOLITAN deleted text end COUNTY WHEELAGE TAX.

Subdivision 1.

Tax authorized.

The board of
commissioners of each deleted text begin metropolitan deleted text end county is authorized to levy
new text begin by resolution new text end a wheelage tax of deleted text begin $5 for the year 1972 and each
subsequent year thereafter by resolution deleted text end new text begin up to $20 new text end on each motor
vehicle, except motorcycles as defined in section 169.01,
subdivision 4, which is kept in deleted text begin such deleted text end new text begin the new text end county when not in
operation and which is subject to annual registration and
taxation under chapter 168. The board may provide by resolution
for collection of the wheelage tax by county officials or it may
request that the tax be collected by the state registrar of
motor vehicles, and the state registrar of motor vehicles shall
collect deleted text begin such deleted text end new text begin the new text end tax on behalf of the county if requested, as
provided in subdivision 2.

Subd. 2.

Collection by registrar of motor vehicles.

The
wheelage tax levied by any deleted text begin metropolitan deleted text end county, if made
collectible by the state registrar of motor vehicles, deleted text begin shall deleted text end new text begin must
new text end be certified by the county auditor to the registrar not later
than August 1 in the year before the calendar year or years for
which the tax is levied, and the registrar shall collect deleted text begin such
deleted text end new text begin the new text end tax with the motor vehicle taxes on the affected vehicles
for such year or years. Every owner and every operator of deleted text begin such
deleted text end a motor vehicle new text begin subject to the wheelage tax new text end shall furnish to the
registrar all information requested by the registrar. No state
motor vehicle tax on any such motor vehicle for any such year
shall be received or deemed paid unless the applicable wheelage
tax is paid therewith. deleted text begin The proceeds of the wheelage tax levied
by any metropolitan county, less any amount retained by the
registrar to pay costs of collection of the wheelage tax, shall
be paid to the commissioner of finance and deposited in the
state treasury to the credit of the county wheelage tax fund of
each metropolitan county.
deleted text end

Subd. 2a.

Tax proceeds deposited; costs of collection;
appropriation.

Notwithstanding deleted text begin the provisions of deleted text end any other law,
the state registrar of motor vehicles shall deposit the proceeds
of the wheelage tax imposed by subdivision 2, to the credit of
the deleted text begin county wheelage tax deleted text end new text begin road and bridge new text end fund of each
deleted text begin metropolitan deleted text end county new text begin levying the tax new text end . The amount necessary to
pay the costs of collection of deleted text begin said deleted text end new text begin the new text end tax is appropriated new text begin to
the state registrar of motor vehicles new text end from the deleted text begin county wheelage
tax deleted text end new text begin road and bridge new text end fund of each deleted text begin metropolitan deleted text end county deleted text begin to the
state registrar of motor vehicles deleted text end new text begin levying the tax new text end .

deleted text begin Subd. 3. deleted text end

deleted text begin Distribution to metropolitan county;
appropriation. deleted text end

deleted text begin On or before April 1 in 1972 and each subsequent
year, the commissioner of finance shall issue a warrant in favor
of the treasurer of each metropolitan county for which the
registrar has collected a wheelage tax in the amount of such tax
then on hand in the county wheelage tax fund. There is hereby
appropriated from the county wheelage tax fund each year, to
each metropolitan county entitled to payments authorized by this
section, sufficient moneys to make such payments.
deleted text end

deleted text begin Subd. 4. deleted text end

deleted text begin Use of tax. deleted text end

deleted text begin The treasurer of each metropolitan
county receiving moneys under subdivision 3 shall deposit such
moneys in the county road and bridge fund. The moneys shall be
used for purposes authorized by law which are highway purposes
within the meaning of the Minnesota Constitution, article 14.
deleted text end

deleted text begin Subd. 5. deleted text end

deleted text begin Effect on road and bridge levy. deleted text end

deleted text begin The county
auditor of each metropolitan county shall reduce the amount of
the property taxes levied pursuant to law in 1973 for collection
in 1974, by the board of commissioners of such county for the
county road and bridge fund, by the following amount: Anoka
County, $341,750; Carver County, $86,725; Dakota County,
$386,165; Hennepin County, $2,728,425; Ramsey County,
$1,276,815; Scott County, $104,805; Washington County, $227,220,
and shall spread only the balance thereof on the tax rolls for
collection in 1972. The county auditor shall also reduce the
amount of such taxes levied pursuant to law in 1972 and any
subsequent year, for collection in the respective ensuing years,
by the amount of wheelage taxes received by the county in the 12
months immediately preceding such levy.
deleted text end

deleted text begin Subd. 6. deleted text end

deleted text begin Metropolitan county defined. deleted text end

deleted text begin "Metropolitan
county" means any of the counties of Anoka, Carver, Dakota,
Hennepin, Ramsey, Scott, and Washington.
deleted text end

Subd. 7.

Offenses; penalties; application of other laws.

Any owner or operator of a motor vehicle who deleted text begin shall deleted text end willfully
deleted text begin give deleted text end new text begin gives new text end any false information relative to the tax deleted text begin herein
deleted text end authorized new text begin under this section new text end to the registrar of motor vehicles
or any deleted text begin metropolitan deleted text end county, or who deleted text begin shall deleted text end willfully deleted text begin fail or
refuse deleted text end new text begin fails or refuses new text end to furnish any such information, deleted text begin shall
be deleted text end new text begin is new text end guilty of a misdemeanor. Except as otherwise herein
provided, the collection and payment of a wheelage tax and all
matters relating thereto shall be subject to all provisions of
law relating to collection and payment of motor vehicle taxes so
far as applicable.

Sec. 5.

Minnesota Statutes 2004, section 168.013,
subdivision 1a, is amended to read:

Subd. 1a.

Passenger automobile; hearse.

(a) On passenger
automobiles as defined in section 168.011, subdivision 7, and
hearses, except as otherwise provided, the tax shall be $10 plus
an additional tax equal to 1.25 percent of the base value.

(b) Subject to the classification provisions herein, "base
value" means the manufacturer's suggested retail price of the
vehicle including destination charge using list price
information published by the manufacturer or determined by the
registrar if no suggested retail price exists, and shall not
include the cost of each accessory or item of optional equipment
separately added to the vehicle and the suggested retail price.

(c) If the manufacturer's list price information contains a
single vehicle identification number followed by various
descriptions and suggested retail prices, the registrar shall
select from those listings only the lowest price for determining
base value.

(d) If unable to determine the base value because the
vehicle is specially constructed, or for any other reason, the
registrar may establish such value upon the cost price to the
purchaser or owner as evidenced by a certificate of cost but not
including Minnesota sales or use tax or any local sales or other
local tax.

(e) The registrar shall classify every vehicle in its
proper base value class as follows:

FROM TO
$ 0 $199.99
200 399.99

and thereafter a series of classes successively set in brackets
having a spread of $200 consisting of such number of classes as
will permit classification of all vehicles.

(f) The base value for purposes of this section shall be
the middle point between the extremes of its class.

(g) The registrar shall establish the base value, when new,
of every passenger automobile and hearse registered prior to the
effective date of Extra Session Laws 1971, chapter 31, using
list price information published by the manufacturer or any
nationally recognized firm or association compiling such data
for the automotive industry. If unable to ascertain the base
value of any registered vehicle in the foregoing manner, the
registrar may use any other available source or method. The
registrar shall calculate tax using base value information
available to dealers and deputy registrars at the time the
application for registration is submitted. The tax on all
previously registered vehicles shall be computed upon the base
value thus determined taking into account the depreciation
provisions of paragraph (h).

(h) The annual additional tax computed upon the base value
as provided herein, during the first deleted text begin and second years deleted text end new text begin year new text end of
vehicle life shall be computed upon 100 percent of the base
value; new text begin for the second year, 80 percent of such value; new text end for the
third deleted text begin and fourth years, 90 deleted text end new text begin year, 70 new text end percent of such value; new text begin for
the fourth year, 60 percent of such value; new text end for the fifth deleted text begin and
sixth years, 75 deleted text end new text begin year, 50 new text end percent of such value; new text begin for the sixth
year, 40 percent of such value; new text end for the seventh year, deleted text begin 60 deleted text end new text begin 35
new text end percent of such value; for the eighth year, deleted text begin 40 deleted text end new text begin 30 new text end percent of
such value; for the ninth year, deleted text begin 30 deleted text end new text begin 20 new text end percent of such value; for
the tenth year, ten percent of such value; for the 11th and each
succeeding year, the sum of $25.

In no event shall the annual additional tax be less than
$25. deleted text begin The total tax under this subdivision shall not exceed $189
for the first renewal period and shall not exceed $99 for
subsequent renewal periods. The total tax under this
subdivision on any vehicle filing its initial registration in
Minnesota in the second year of vehicle life shall not exceed
$189 and shall not exceed $99 for subsequent renewal periods.
The total tax under this subdivision on any vehicle filing its
initial registration in Minnesota in the third or subsequent
year of vehicle life shall not exceed $99 and shall not exceed
$99 in any subsequent renewal period. deleted text end new text begin The total tax paid by an
individual under this subdivision shall not exceed the amount
paid by that individual for the same vehicle in the previous
year.
new text end

deleted text begin (i) As used in this subdivision and section 168.017, the
following terms have the meanings given: "initial registration"
means the 12 consecutive months calendar period from the day of
first registration of a vehicle in Minnesota; and "renewal
periods" means the 12 consecutive calendar months periods
following the initial registration period.
deleted text end

Sec. 6.

Minnesota Statutes 2004, section 296A.07,
subdivision 3, is amended to read:

Subd. 3.

Rate of tax.

The gasoline excise tax is imposed
at the following rates:

(1) E85 is taxed at the rate of deleted text begin 14.2 deleted text end new text begin 18.5 new text end cents per gallon;

(2) M85 is taxed at the rate of deleted text begin 11.4 deleted text end new text begin 14.8 new text end cents per gallon;
and

(3) all other gasoline is taxed at the rate of deleted text begin 20 deleted text end new text begin 26 new text end cents
per gallon.

Sec. 7.

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

new text begin Subd. 5. new text end

new text begin Annual gasoline tax rate adjustment. new text end

new text begin (a) Before
April 1 of each year, the commissioner of revenue shall
recompute and publish the rate of the gasoline excise tax. The
new rate per gallon must be calculated by multiplying the rate
in effect at the time of the calculation by an amount obtained
under paragraph (b). The new rate must be rounded to the
nearest 0.1 cent and is effective on April 1 of each year.
new text end

new text begin (b) Divide the annual average United States Consumer Price
Index for all urban consumers, United States city average, as
determined by the United States Department of Labor for the
previous year by that annual average for the year before the
previous year.
new text end

Sec. 8.

Minnesota Statutes 2004, section 296A.08,
subdivision 2, is amended to read:

Subd. 2.

Rate of tax.

The special fuel excise tax is
imposed at the following rates:

(a) Liquefied petroleum gas or propane is taxed at the rate
of deleted text begin 15 deleted text end new text begin 19.50 new text end cents per gallon.

(b) Liquefied natural gas is taxed at the rate of deleted text begin 12 deleted text end new text begin 15.6
new text end cents per gallon.

(c) Compressed natural gas is taxed at the rate
of deleted text begin $1.739 deleted text end new text begin $2.261 new text end per thousand cubic feet; or deleted text begin 20 deleted text end new text begin 26 new text end cents per
gasoline equivalent, as defined by the National Conference on
Weights and Measures, which is 5.66 pounds of natural gas.

(d) All other special fuel is taxed at the same rate as the
gasoline excise tax as specified in section 296A.07, subdivision
2. The tax is payable in the form and manner prescribed by the
commissioner.

Sec. 9.

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

new text begin Subd. 7. new text end

new text begin Annual special fuel tax rate adjustment. new text end

new text begin (a)
Before June 1 of each year, the commissioner of revenue shall
recompute and publish the rate of the special fuel tax. The new
rate must be calculated by multiplying the rate in effect at the
time of the calculation by an amount obtained under paragraph
(b). The new rate must be rounded to the nearest 0.1 cent and
is effective on June 1 of each year.
new text end

new text begin (b) Divide the annual average United States Consumer Price
Index for all urban consumers, United States city average, as
determined by the United States Department of Labor for the
previous year by that annual average for the year before the
previous year.
new text end

Sec. 10.

Minnesota Statutes 2004, section 297B.09,
subdivision 1, is amended to read:

Subdivision 1.

Deposit of revenues.

(a) Money collected
and received under this chapter must be deposited as provided in
this subdivision.

(b) deleted text begin From July 1, 2002, to June 30, 2003, 32 percent of the
money collected and received must be deposited in the highway
user tax distribution fund, 20.5 percent must be deposited in
the metropolitan area transit fund under section 16A.88, and
1.25 percent must be deposited in the greater Minnesota transit
fund under section 16A.88. The remaining money must be
deposited in the general fund.
deleted text end

deleted text begin (c) deleted text end From July 1, 2003, to June 30, deleted text begin 2007 deleted text end new text begin 2005 new text end , 30 percent of
the money collected and received must be deposited in the
highway user tax distribution fund, 21.5 percent must be
deposited in the metropolitan area transit fund under section
16A.88, 1.43 percent must be deposited in the greater Minnesota
transit fund under section 16A.88, 0.65 percent must be
deposited in the county state-aid highway fund, and 0.17 percent
must be deposited in the municipal state-aid street fund. The
remaining money must be deposited in the general fund.

new text begin (c) From July 1, 2005, to June 30, 2007, 24 percent of the
money collected and received must be deposited in the highway
user tax distribution fund, 1.00 percent to the right-of-way
advance acquisition loan account in the transportation revolving
loan fund established under section 446A.085, subdivision 3,
26.25 percent must be deposited in the metropolitan area transit
fund under section 16A.88, and 2.50 percent must be deposited in
the greater Minnesota transit fund under section 16A.88. The
remaining money must be deposited in the general fund.
new text end

(d) On and after July 1, 2007, deleted text begin 32 deleted text end new text begin 25 new text end percent of the money
collected and received must be deposited in the highway user tax
distribution fund, deleted text begin 20.5 deleted text end new text begin 26.25 new text end percent must be deposited in the
metropolitan area transit fund under section 16A.88, and deleted text begin 1.25
deleted text end new text begin 2.50 new text end percent must be deposited in the greater Minnesota transit
fund under section 16A.88. The remaining money must be
deposited in the general fund.

Sec. 11.

Minnesota Statutes 2004, section 446A.085,
subdivision 3, is amended to read:

Subd. 3.

Establishment of fund new text begin ; accounts new text end .

new text begin (a) new text end A
transportation revolving loan fund is established to make loans
for the purposes described in subdivision 2. A highway account
is established in the fund for highway projects eligible under
United States Code, title 23. A transit account is established
in the fund for transit capital projects eligible under United
States Code, title 49. A state funds general loan account is
established in the fund for transportation projects eligible
under state law. new text begin A right-of-way advance acquisition loan
account is established in the fund for projects described in
subdivision 10a. new text end Other accounts may be established in the fund
as necessary for its management and administration.

new text begin (b) new text end The transportation revolving loan fund receives federal
money under the act and money from any source. Money received
under this section must be paid to the commissioner of finance
and credited to the transportation revolving loan fund. Money
in the fund is annually appropriated to the authority and does
not lapse. The fund must be credited with investment income,
and with repayments of principal and interest, except for
servicing fees assessed under sections 446A.04, subdivision 5,
and 446A.11, subdivision 8.

Sec. 12.

Minnesota Statutes 2004, section 446A.085,
subdivision 8, is amended to read:

Subd. 8.

Certification of projects.

new text begin (a) Except as
provided in paragraph (b), new text end the commissioner of transportation
shall consider the following information when evaluating
projects to certify for funding to the Transportation Committee:

(1) a description of the nature and purpose of the proposed
transportation project including an explanation of the need for
the project and the reasons why it is in the public interest;

(2) the relationship of the project to the area
transportation improvement program, the approved statewide
transportation improvement program, and to any transportation
plans required under state or federal law;

(3) the estimated cost of the project and the amount of
loans sought;

(4) proposed sources of funding in addition to loans sought
from the transportation revolving loan fund;

(5) the need for the project as part of the overall
transportation system;

(6) the overall economic impact of the project; and

(7) the extent to which completion of the project will
improve the movement of people and freight.

new text begin (b) For loans made from the right-of-way advance
acquisition loan account, the commissioner of transportation
shall consider the following information when evaluating
projects to certify for funding to the transportation committee:
new text end

new text begin (1) a description of the highway project, including
estimated schedules and costs, for which advance acquisition of
right-of-way is sought;
new text end

new text begin (2) the importance of the project as measured by the
criteria in paragraph (a), clauses (2) and (5) to (7);
new text end

new text begin (3) other sources of funding available for the acquisition;
new text end

new text begin (4) the necessity of preserving right-of-way for the
project as a means of reducing overall project costs and
preventing incompatible land uses;
new text end

new text begin (5) other options available for right-of-way preservation;
and
new text end

new text begin (6) the overall cost-effectiveness of advance right-of-way
acquisition for the project.
new text end

Sec. 13.

Minnesota Statutes 2004, section 446A.085, is
amended by adding a subdivision to read:

new text begin Subd. 10a. new text end

new text begin Right-of-way advance acquisition loan
account. new text end

new text begin (a) Loans from the right-of-way advance acquisition
loan account may be made to the state, counties, towns, and
statutory or home rule charter cities for purchasing property
within the right-of-way of a state trunk highway shown on an
official map adopted under section 394.361 or 462.359.
new text end

new text begin (b) Loans under this subdivision may be made only:
new text end

new text begin (1) to accelerate the acquisition of primarily undeveloped
property when there is a reasonable probability that the
property will increase in value before highway construction, and
to update an expired environmental impact statement on a project
for which the right-of-way is being purchased;
new text end

new text begin (2) to avert the imminent conversion or the granting of
approvals that would allow the conversion of property to uses
that would jeopardize its availability for highway construction;
or
new text end

new text begin (3) to take advantage of open market opportunities when
developed properties become available for sale, provided all
parties involved are agreeable to the sale and funds are
available.
new text end

new text begin (c) A private property owner whose property is purchased
with proceeds of a loan under this subdivision may elect to
receive the purchase price either in a lump sum or in not more
than four annual installments without interest on the deferred
installments. If the purchase agreement provides for
installment payments, the loan may be made in installments
corresponding to those in the purchase agreement. The recipient
of an acquisition loan shall convey the property for the
construction of the highway at the same price the recipient paid
for the property. The price may include the costs of preparing
environmental documents that were required for the acquisition
and that were paid for with money that the recipient received
from the account. Upon notification by the commissioner to the
loan recipient that the plan to construct the highway has been
abandoned or the anticipated location of the highway changed,
the recipient shall sell the property at market value in
accordance with the procedures required for the disposition of
the property.
new text end

new text begin (d) All rents and other money received by the loan
recipient because of the recipient's ownership of the property
and all proceeds from the conveyance or sale of the property
must be paid to the commissioner for deposit in the account.
Amounts so received may be applied to repayment of the loan.
new text end

Sec. 14. new text begin TRUNK HIGHWAY BONDS; ISSUANCE.
new text end

new text begin The commissioner of finance shall, on recommendation of the
commissioner of transportation, sell and issue Minnesota trunk
highway bonds under Minnesota Statutes, sections 167.50 to
167.52, and the Minnesota Constitution, article XI, sections 4
to 7, and article XIV, section 11, at such times and in such
amounts as are determined by the commissioner of
transportation. Bonds issued under this section are authorized
in an aggregate principal amount of $1,000,000,000 over a
ten-year period. 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. Notwithstanding Minnesota Statutes, section 16A.642, this
authorization must not be canceled before February 1, 2017.
new text end

Sec. 15. new text begin HIGHWAYS APPROPRIATION.
new text end

new text begin $1,000,000,000 is appropriated to the commissioner of
transportation from the separate bond proceeds account in the
trunk highway fund for the construction, reconstruction, and
improvement of trunk highways, including acquisition of real
property. No more than $100,000,000 of this appropriation may
be encumbered in each of fiscal years 2006 to 2015. Up to 15
percent of the appropriation each year may be used by the
department for program delivery.
new text end

Sec. 16. new text begin STATE ROAD CONSTRUCTION APPROPRIATIONS.
new text end

new text begin $....... in fiscal year 2006 and $....... in fiscal year
2007 are appropriated from the trunk highway fund to the
commissioner of transportation for state road construction.
new text end

Sec. 17. new text begin EFFECTIVE DATE.
new text end

new text begin Section 5 is effective for first registrations in this
state occurring on or after July 1, 2005, and for renewals of
registrations that have been assigned expiration dates of August
2005 or later. All other sections are effective July 1, 2005.
Sections 6 and 8 apply to all gasoline, undyed diesel fuel, and
special fuel in distributor storage on July 1, 2005.
new text end

ARTICLE 2

LOCAL TRANSPORTATION SALES TAX

Section 1.

Minnesota Statutes 2004, section 161.04, is
amended by adding a subdivision to read:

new text begin Subd. 5. new text end

new text begin Highway spending in metropolitan transportation
district. new text end

new text begin In any year during which taxes authorized in section
297A.992, subdivision 3, are imposed, and exclusive of the
expenditure of these revenues, the percentage of total trunk
highway fund expenditures attributable to projects in the
metropolitan transportation area, within the meaning of section
297A.992, subdivision 1, may not vary more than two percentage
points from the average of the previous five years of trunk
highway fund metropolitan transportation area expenditures.
new text end

Sec. 2.

new text begin [297A.992] LOCAL TRANSPORTATION SALES AND EXCISE
TAX.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section
and section 161.04, subdivision 5:
new text end

new text begin (a) "Metropolitan transportation area" means the counties
of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and
Washington; and any adjacent county that is declared by
resolution of its county board to be a part of the metropolitan
transportation area.
new text end

new text begin (b) "Joint powers board" means the Metropolitan
Transportation Area Joint Powers Board.
new text end

new text begin Subd. 2. new text end

new text begin Authorization; rates. new text end

new text begin Notwithstanding sections
297A.99, subdivisions 1, 2, 3, 5, and 13; 477A.016; or any other
law, the joint powers board may impose a transportation sales
and use tax, at a rate of one-half of one percent on retail
sales and uses taxable under chapter 297A, and may impose an
excise tax on the sale of new motor vehicles, at the rate of $20
per vehicle, occurring within the jurisdiction of the taxing
authority, to fund transportation improvements, as provided in
this section.
new text end

new text begin Subd. 3. new text end

new text begin Metropolitan transportation area sales tax. new text end

new text begin (a)
The joint powers board may impose the transportation sales and
use tax and motor vehicle excise tax within the metropolitan
transportation area, if approved by a majority of the voters in
the metropolitan transportation area who vote on the question to
impose the tax at a special election held in the metropolitan
transportation area at the time of the general election the
Tuesday after the first Monday in November 2006.
new text end

new text begin (b) A metropolitan transportation area fund is created in
the state treasury. After the deductions allowed in section
297A.99, subdivision 11, the commissioner of revenue shall
deposit all revenue from taxes imposed under this section in the
fund. Money in the fund is appropriated to the commissioner of
finance. The commissioner of finance shall allocate money in
the fund as directed by resolution of the joint powers board
under paragraph (d).
new text end

new text begin (c) Before imposing the tax under paragraph (a), counties
in the metropolitan transportation area shall enter into a joint
powers agreement to create the joint powers board to exercise
the powers provided in this section. The joint powers board
must consist of one representative of each county in the
metropolitan transportation area. The joint powers board has
the powers and duties provided in this section and in section
471.59, except that the joint powers board may not issue bonds.
new text end

new text begin (d) By May 1 of each year, the joint powers board shall, by
resolution, direct the commissioner of finance to allocate
revenue in the metropolitan transportation area fund for the
next fiscal year. The resolution must direct the commissioner
to allocate funds to the following recipients for the following
purposes:
new text end

new text begin (1) to the commissioner of transportation for metropolitan
transportation area highway projects included in the
commissioner's current ten-year highway work plan;
new text end

new text begin (2) to the commissioner of transportation for
implementation of the commissioner's greater Minnesota transit
plan in counties in the metropolitan transportation area that
are directly served by greater Minnesota transit;
new text end

new text begin (3) to the Metropolitan Council for implementation of the
public transit components of the council's 2030 transportation
policy plan, and for other public transit operations and capital
improvements provided or assisted by the council in counties in
the metropolitan transportation area;
new text end

new text begin (4) to counties in the metropolitan transportation area for
construction, maintenance, and improvement of local roads; and
new text end

new text begin (5) to counties in the metropolitan transportation area for
operation of and capital assistance to public transit systems
that the county, or one or more cities in the county owns,
operates, or contracts for.
new text end

new text begin Subd. 4. new text end

new text begin Tax in counties outside metropolitan
transportation area. new text end

new text begin Notwithstanding sections 297A.99,
subdivisions 1, 2, 3, 5, and 13; 477A.016; or any other law, the
board of a county outside the metropolitan transportation area,
or more than one county acting under a joint powers agreement,
may impose, either or both, a transportation sales tax at a rate
of one-half of one percent on retail sales and uses taxable
under chapter 297A and a motor vehicle excise tax on the sale of
new motor vehicles at the rate of $20 per vehicle, occurring
within the jurisdiction of the taxing authority subject to
approval by the voters of the county or counties at a general
election. The proceeds of the tax must be dedicated exclusively
to payment of the cost of a specific transportation project,
which is designated at least 90 days before the referendum on
imposition of the tax is conducted. The tax must terminate
after the improvement has been completed.
new text end

new text begin Subd. 5. new text end

new text begin Administration, collection, enforcement. new text end

new text begin The
administration, collection, and enforcement provisions in
section 297A.99, subdivisions 4 and 6 to 12, apply to all taxes
imposed under this section.
new text end

Sec. 3. new text begin REPORT.
new text end

new text begin In each year during the period of imposition of the taxes
authorized in Minnesota Statutes, section 297A.992, subdivision
3, the commissioner of transportation and the Metropolitan
Council shall report by February 1 to the house of
representatives and senate committees having jurisdiction over
transportation policy and finance concerning the revenues
received from the metropolitan transportation area sales tax and
the expenditures of that money.
new text end

Sec. 4. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1; 2, subdivision 3; and 3, are effective upon
approval of the sales tax by the metropolitan transportation
area voters in the 2006 election, and the taxes authorized in
section 2, subdivision 3, are effective as to sales made on and
after July 1, 2007.
new text end