HF 2429

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; eliminating metropolitan 
  1.3             property tax levies for transit operations; reducing 
  1.4             the general sales and use tax and motor vehicle sales 
  1.5             tax rates; providing for imposition of sales taxes by 
  1.6             area transportation partnerships and providing for use 
  1.7             of the proceeds; amending Minnesota Statutes 2000, 
  1.8             sections 297A.62, subdivision 1; 473.388, subdivision 
  1.9             4; 473.446, subdivisions 1, 8; proposing coding for 
  1.10            new law in Minnesota Statutes, chapter 174; repealing 
  1.11            Minnesota Statutes 2000, sections 473.388, 
  1.12            subdivisions 5, 7; 473.446, subdivisions 1a, 1b. 
  1.13  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.14     Section 1.  [174.95] [AREA TRANSPORTATION PARTNERSHIPS.] 
  1.15     For purposes of sections 174.96 and 174.97, the phrase 
  1.16  "area transportation partnerships" means: 
  1.17     (1) in the counties of Anoka, Carver, Chisago, Dakota, 
  1.18  Hennepin, Ramsey, Scott, and Washington, the metropolitan 
  1.19  council; and 
  1.20     (2) in the remainder of the state, a number of area 
  1.21  transportation partnerships established and appointed by the 
  1.22  commissioner of transportation.  The commissioner of 
  1.23  transportation shall determine the geographic area within which 
  1.24  each area transportation partnership under this clause has 
  1.25  jurisdiction. 
  1.26     [EFFECTIVE DATE.] This section is effective January 1, 2002.
  1.27     Sec. 2.  [174.96] [AREA TRANSPORTATION PARTNERSHIPS; SALES 
  1.28  TAXES.] 
  1.29     Subdivision 1.  [AUTHORITY, RATE.] (a) Notwithstanding 
  2.1   section 477A.016, an area transportation partnership may impose 
  2.2   by resolution a general sales tax at the rate of .5 percent on 
  2.3   all sales at retail within the area transportation partnership's 
  2.4   jurisdiction that are taxable under section 297A.62.  A 
  2.5   compensating use tax applies, at the same rate as the sales tax, 
  2.6   on the storage, use, distribution, or consumption of items 
  2.7   taxable under section 297A.63.  The tax imposed under this 
  2.8   section also applies to the purchase price of any motor vehicle 
  2.9   purchased or acquired that is taxable under section 297B.02. 
  2.10     (b) A resolution imposing the taxes in paragraph (a) must 
  2.11  be published in the State Register together with a description 
  2.12  of the geographic area in which the tax is imposed. 
  2.13     Subd. 2.  [TAX BASE.] (a) The tax imposed in subdivision 1 
  2.14  applies to sales taxable under chapters 297A and 297B that occur 
  2.15  within the jurisdiction of the area transportation partnership. 
  2.16     (b) Taxable services are subject to a sales tax if they are 
  2.17  performed either: 
  2.18     (1) within the area transportation partnership, or 
  2.19     (2) partly within and partly without the area 
  2.20  transportation partnership and more of the service is performed 
  2.21  within the area transportation partnership based on the cost of 
  2.22  performance. 
  2.23     Subd. 3.  [EXEMPTIONS.] (a) All goods or services that are 
  2.24  otherwise exempt from taxation under chapter 297A or 297B are 
  2.25  exempt from the area transportation partnership's tax. 
  2.26     (b) The gross receipts from the sale of tangible personal 
  2.27  property that meets the requirement of section 297A.68, 
  2.28  subdivision 15, are exempt, except the qualification 
  2.29  requirements in that section apply based on the area of 
  2.30  jurisdiction of the area transportation partnership of the state 
  2.31  of Minnesota. 
  2.32     (c) All mobile transportation equipment, and parts and 
  2.33  accessories attached to or to be attached to the equipment are 
  2.34  exempt, if purchased by a holder of a motor carrier direct pay 
  2.35  permit under section 297A.90. 
  2.36     Subd. 4.  [CREDIT FOR OTHER AREA TRANSPORTATION PARTNERSHIP 
  3.1   TAXES.] If a person paid sales or use tax to another area 
  3.2   transportation partnership on an item subject to tax under this 
  3.3   section, a credit applies against the tax imposed under this 
  3.4   section.  The credit equals the tax the person paid to the other 
  3.5   area transportation partnership for the item. 
  3.6      Subd. 5.  [ENFORCEMENT; COLLECTION; AND ADMINISTRATION.] (a)
  3.7   The commissioner of revenue shall collect the taxes subject to 
  3.8   this section with the state sales and use tax and state motor 
  3.9   vehicle sales tax.  All taxes under this section are subject to 
  3.10  the same penalties, interest, and enforcement provisions as 
  3.11  apply to the state sales and use tax and state motor vehicle 
  3.12  sales tax. 
  3.13     (b) A request for a refund of state sales tax paid in 
  3.14  excess of the amount of tax legally due includes a request for a 
  3.15  refund of the tax paid under this section.  The commissioner 
  3.16  shall refund to the taxpayer the full amount of the taxes paid 
  3.17  on exempt sales or use. 
  3.18     Subd. 6.  [REVENUES; COST OF COLLECTION.] (a) The 
  3.19  commissioner shall remit the proceeds of the tax, less refunds 
  3.20  and a proportionate share of the cost of collection, at least 
  3.21  quarterly, to the area transportation partnership.  If 
  3.22  necessary, the commissioner may estimate the sales made in that 
  3.23  area in order to make the payments, and adjust subsequent 
  3.24  payments as necessary so that the amount remitted to the 
  3.25  partnership equals the proceeds of the taxes collected within 
  3.26  the partnership jurisdiction. 
  3.27     (b) The commissioner shall deduct from the proceeds 
  3.28  remitted an amount that equals: 
  3.29     (1) the direct and indirect costs of the commissioner to 
  3.30  administer, audit, and collect the area transportation 
  3.31  partnership's tax, plus; 
  3.32     (2) the area transportation partnership's proportionate 
  3.33  share of the indirect cost of administering all taxes under this 
  3.34  section. 
  3.35     [EFFECTIVE DATE.] This section is effective January 1, 
  3.36  2002, for sales and purchases occurring after June 30, 2002. 
  4.1      Sec. 3.  [174.97] [TRANSPORTATION AND TRANSIT FUNDING.] 
  4.2      Subdivision 1.  [USE OF TAX PROCEEDS.] Tax proceeds 
  4.3   remitted to an area transportation partnership must be used for 
  4.4   highway and public transit purposes as determined by the 
  4.5   partnership, including (1) operating assistance to public 
  4.6   transit systems, and (2) matching funding for federal funds for 
  4.7   transportation projects undertaken within the jurisdiction of 
  4.8   the area transportation partnership, and (3) grants to political 
  4.9   subdivisions for highway and public transit purposes. 
  4.10     Subd. 2.  [METROPOLITAN AREA.] In the area in which the 
  4.11  area transportation partnership is the metropolitan council: 
  4.12     (1) the metropolitan transportation advisory board shall 
  4.13  advise the metropolitan council in determining the use of funds 
  4.14  under subdivision 1; and 
  4.15     (2) funds for transit services to a statutory or home rule 
  4.16  city or town that levied a tax under Minnesota Statutes 2000, 
  4.17  section 473.388, subdivision 7, must not be less than the amount 
  4.18  levied by the city or town for taxes payable in 2002. 
  4.19     [EFFECTIVE DATE.] This section is effective January 1, 2002.
  4.20     Sec. 4.  Minnesota Statutes 2000, section 297A.62, 
  4.21  subdivision 1, is amended to read: 
  4.22     Subdivision 1.  [GENERALLY.] Except as otherwise provided 
  4.23  in subdivision 2 or 3 or in this chapter, a sales tax of 6.5 six 
  4.24  percent is imposed on the gross receipts from retail sales as 
  4.25  defined in section 297A.61, subdivision 4, made in this state or 
  4.26  to a destination in this state by a person who is required to 
  4.27  have or voluntarily obtains a permit under section 297A.83, 
  4.28  subdivision 1.  
  4.29     [EFFECTIVE DATE.] This section is effective for sales and 
  4.30  purchases occurring after June 30, 2002. 
  4.31     Sec. 5.  Minnesota Statutes 2000, section 473.388, 
  4.32  subdivision 4, is amended to read: 
  4.33     Subd. 4.  [FINANCIAL ASSISTANCE.] The council may grant the 
  4.34  requested financial assistance if it determines that the 
  4.35  proposed service is intended to replace the service to the 
  4.36  applying city or town or combination thereof by the council and 
  5.1   that the proposed service will meet the needs of the applicant 
  5.2   at least as efficiently and effectively as the existing service. 
  5.3      The amount of assistance which the council may provide 
  5.4   under this section may not exceed the sum of:  
  5.5      (a) the portion of the available local transit funds which 
  5.6   the applicant proposes to use to subsidize the proposed service; 
  5.7   and 
  5.8      (b) an amount of financial assistance bearing an identical 
  5.9   proportional relationship to the amount under clause (a) as the 
  5.10  total amount of funds used by the council to fund its transit 
  5.11  operations bears to the total amount of taxes collected by the 
  5.12  council under section 473.446.  The council shall pay the amount 
  5.13  to be provided to the recipient from the funds the council would 
  5.14  otherwise use to fund its transit operations.  
  5.15     For purposes of this section, "available local transit 
  5.16  funds" means 90 percent of the tax revenues which would accrue 
  5.17  to the council from the tax it levies under section 473.446 in 
  5.18  the applicant city or town or combination thereof.  
  5.19     For purposes of this section, "tax revenues" in the city or 
  5.20  town means the sum of the following: 
  5.21     (1) the nondebt spread levy, which is the total of the 
  5.22  taxes extended by application of the local tax rate for nondebt 
  5.23  purposes on the taxable net tax capacity; 
  5.24     (2) the portion of the fiscal disparity distribution levy 
  5.25  under section 473F.08, subdivision 3, attributable to nondebt 
  5.26  purposes; and 
  5.27     (3) the portion of the homestead credit and agricultural 
  5.28  credit aid and disparity reduction aid amounts under section 
  5.29  273.1398, subdivisions 2 and 3, attributable to nondebt purposes.
  5.30     Tax revenues do not include the state feathering 
  5.31  reimbursement under section 473.446. 
  5.32     [EFFECTIVE DATE.] This section is effective for taxes 
  5.33  levied in 2002, payable in 2003, and thereafter. 
  5.34     Sec. 6.  Minnesota Statutes 2000, section 473.446, 
  5.35  subdivision 1, is amended to read: 
  5.36     Subdivision 1.  [WITHIN TRANSIT TAXING DISTRICT.] For the 
  6.1   purposes of sections 473.405 to 473.449 and the metropolitan 
  6.2   transit system, except as otherwise provided in this subdivision 
  6.3   and subdivision 1b, the council shall may levy each year upon 
  6.4   all taxable property within the metropolitan transit taxing 
  6.5   district, defined in subdivision 2, a transit tax consisting of: 
  6.6      (a) an amount which shall be used for payment of the 
  6.7   expenses of operating transit and paratransit service and to 
  6.8   provide for payment of obligations issued by the council under 
  6.9   section 473.436, subdivision 6; 
  6.10     (b) an additional amount, if any, the council determines to 
  6.11  be necessary to provide for the full and timely payment of its 
  6.12  certificates of indebtedness and other obligations outstanding 
  6.13  on July 1, 1985, to which property taxes under this section have 
  6.14  been pledged; and 
  6.15     (c) an additional amount necessary to provide full and 
  6.16  timely payment of certificates of indebtedness, bonds, including 
  6.17  refunding bonds or other obligations issued or to be issued 
  6.18  under section 473.39 by the council for purposes of acquisition 
  6.19  and betterment of property and other improvements of a capital 
  6.20  nature and to which the council has specifically pledged tax 
  6.21  levies under this clause. 
  6.22     The property tax levied by the council for general purposes 
  6.23  under paragraph (a) must not exceed the following amount for the 
  6.24  years specified: 
  6.25     (1) for taxes payable in 1995, the council's property tax 
  6.26  levy limitation for general transit purposes is equal to the 
  6.27  former regional transit board's property tax levy limitation for 
  6.28  general transit purposes under this subdivision, for taxes 
  6.29  payable in 1994, multiplied by an index for market valuation 
  6.30  changes equal to the total market valuation of all taxable 
  6.31  property located within the metropolitan transit taxing district 
  6.32  for the current taxes payable year divided by the total market 
  6.33  valuation of all taxable property located within the 
  6.34  metropolitan transit taxing district for the previous taxes 
  6.35  payable year; and 
  6.36     (2) for taxes payable in 1996 and subsequent years, the 
  7.1   product of (i) the council's property tax levy limitation for 
  7.2   general transit purposes for the previous year determined under 
  7.3   this subdivision before reduction by the amount levied by any 
  7.4   municipality in the previous year under section 473.388, 
  7.5   subdivision 7, multiplied by (ii) an index for market valuation 
  7.6   changes equal to the total market valuation of all taxable 
  7.7   property located within the metropolitan transit taxing district 
  7.8   for the current taxes payable year divided by the total market 
  7.9   valuation of all taxable property located within the 
  7.10  metropolitan transit taxing district for the previous taxes 
  7.11  payable year, minus the amount levied by any municipality in the 
  7.12  current levy year under section 473.388, subdivision 7. 
  7.13     The portion of the property tax levy for transit district 
  7.14  operating purposes attributable to a municipality that has 
  7.15  exercised a local levy option under section 473.388, subdivision 
  7.16  7, is the amount as determined under subdivision 1b.  The 
  7.17  portion of the property tax levy for transit district operating 
  7.18  purposes attributable to the remaining municipalities within the 
  7.19  transit district is found by subtracting the portions 
  7.20  attributable to the municipalities that have exercised a local 
  7.21  levy option under section 473.388, subdivision 7. 
  7.22     For the taxes payable year 1995, the index for market 
  7.23  valuation changes shall be multiplied by an amount equal to the 
  7.24  sum of the regional transit board's property tax levy limitation 
  7.25  for the taxes payable year 1994 and $160,665.  The $160,665 
  7.26  increase shall be a permanent adjustment to the levy limit base 
  7.27  used in determining the regional transit board's property tax 
  7.28  levy limitation for general purposes for subsequent taxes 
  7.29  payable years. 
  7.30     For the purpose of determining the council's property tax 
  7.31  levy limitation for general transit purposes under this 
  7.32  subdivision, "total market valuation" means the total market 
  7.33  valuation of all taxable property within the metropolitan 
  7.34  transit taxing district without valuation adjustments for fiscal 
  7.35  disparities (chapter 473F), tax increment financing (sections 
  7.36  469.174 to 469.179), and high voltage transmission lines 
  8.1   (section 273.425). 
  8.2      The county auditor shall reduce the tax levied pursuant to 
  8.3   this section and section 473.388 on all property within 
  8.4   statutory and home rule charter cities and towns that receive 
  8.5   full-peak service and limited off-peak service by an amount 
  8.6   equal to the tax levy that would be produced by applying a rate 
  8.7   of 0.510 percent of net tax capacity on the property.  The 
  8.8   county auditor shall reduce the tax levied pursuant to this 
  8.9   section and section 473.388 on all property within statutory and 
  8.10  home rule charter cities and towns that receive limited peak 
  8.11  service by an amount equal to the tax levy that would be 
  8.12  produced by applying a rate of 0.765 percent of net tax capacity 
  8.13  on the property.  The amounts so computed by the county auditor 
  8.14  shall be submitted to the commissioner of revenue as part of the 
  8.15  abstracts of tax lists required to be filed with the 
  8.16  commissioner under section 275.29.  Any prior year adjustments 
  8.17  shall also be certified in the abstracts of tax lists.  The 
  8.18  commissioner shall review the certifications to determine their 
  8.19  accuracy and may make changes in the certification as necessary 
  8.20  or return a certification to the county auditor for 
  8.21  corrections.  The commissioner shall pay to the council and to 
  8.22  the municipalities levying under section 473.388, subdivision 7, 
  8.23  the amounts certified by the county auditors on the dates 
  8.24  provided in section 273.1398, apportioned between the council 
  8.25  and the municipality in the same proportion as the total transit 
  8.26  levy is apportioned within the municipality.  There is annually 
  8.27  appropriated from the general fund in the state treasury to the 
  8.28  department of revenue the amounts necessary to make these 
  8.29  payments.  
  8.30     For the purposes of this subdivision, "full-peak and 
  8.31  limited off-peak service" means peak period regular route 
  8.32  service, plus weekday midday regular route service at intervals 
  8.33  longer than 60 minutes on the route with the greatest frequency; 
  8.34  and "limited peak period service" means peak period regular 
  8.35  route service only.  
  8.36     For the purposes of property taxes payable in the following 
  9.1   year, the council shall annually determine which cities and 
  9.2   towns qualify for the 0.510 percent or 0.765 percent tax 
  9.3   capacity rate reduction and shall certify this list to the 
  9.4   county auditor of the county wherein such cities and towns are 
  9.5   located on or before September 15.  No changes may be made to 
  9.6   the annual list after September 15. 
  9.7      The council may levy the tax without limitation to pay the 
  9.8   principal and interest due on the bonds, certificates of 
  9.9   indebtedness, or other obligations issued by the council before 
  9.10  January 1, 2002, under section 473.39 or 473.436.  After January 
  9.11  1, 2002, the tax levy must not exceed the annual principal and 
  9.12  interest due on obligations issued under section 473.39 or 
  9.13  473.436.  The taxes under this subdivision must be levied and 
  9.14  collected in the manner specified in section 473.13, subdivision 
  9.15  2. 
  9.16     [EFFECTIVE DATE.] This section is effective for taxes 
  9.17  levied in 2002, payable in 2003, and thereafter. 
  9.18     Sec. 7.  Minnesota Statutes 2000, section 473.446, 
  9.19  subdivision 8, is amended to read: 
  9.20     Subd. 8.  [STATE REVIEW.] The commissioner of revenue shall 
  9.21  certify the council's levy limitation under this section to the 
  9.22  council by August 1 of the levy year.  The council must certify 
  9.23  its proposed property tax levy under this section to the 
  9.24  commissioner of revenue by September 1 of the levy year.  The 
  9.25  commissioner of revenue shall annually determine whether the 
  9.26  property tax for transit purposes certified by the council for 
  9.27  levy following the adoption of its proposed budget is within the 
  9.28  levy limitation imposed by subdivisions 1 and 1b.  The 
  9.29  commissioner shall also annually determine whether the transit 
  9.30  tax imposed on all taxable property within the metropolitan 
  9.31  transit area but outside of the metropolitan transit taxing 
  9.32  district is within the levy limitation imposed by subdivision 
  9.33  1a.  The determination must be completed prior to September 10 
  9.34  of each year.  If current information regarding market valuation 
  9.35  in any county is not transmitted to the commissioner in a timely 
  9.36  manner, the commissioner may estimate the current market 
 10.1   valuation within that county for purposes of making the 
 10.2   calculations. 
 10.3      [EFFECTIVE DATE.] This section is effective for taxes 
 10.4   levied in 2002, payable in 2003, and thereafter. 
 10.5      Sec. 8.  [REPEALER.] 
 10.6      Minnesota Statutes 2000, sections 473.388, subdivisions 5 
 10.7   and 7; and 473.446, subdivisions 1a and 1b, are repealed. 
 10.8      [EFFECTIVE DATE.] This section is effective for taxes 
 10.9   levied in 2002, payable in 2003, and thereafter.