as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to public transit; providing state funding 1.3 for public transit; prohibiting property tax levies as 1.4 a revenue source for transit services; altering the 1.5 distribution of revenues derived from the sales tax on 1.6 motor vehicles; appropriating money; amending 1.7 Minnesota Statutes 2000, sections 174.24, subdivision 1.8 3b; 297B.09, subdivision 1; 473.388, subdivisions 4, 1.9 7; 473.446, subdivision 1, by adding a subdivision; 1.10 proposing coding for new law in Minnesota Statutes, 1.11 chapter 16A. 1.12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.13 Section 1. [16A.88] [TRANSIT FUNDING ACCOUNT.] 1.14 The transit funding account is established within the 1.15 general fund. Five percent of the funds deposited to the 1.16 account are dedicated to the funding of transit systems outside 1.17 the metropolitan area under section 174.24. Ninety-five percent 1.18 of the funds deposited to the account are dedicated to the 1.19 funding of transit systems within the metropolitan area under 1.20 sections 473.405 to 473.449. Revenues in this account may not 1.21 be used for the purposes of funding capital or operating 1.22 expenses related to the operation of a light rail line or a 1.23 commuter rail line. 1.24 [EFFECTIVE DATE.] This section is effective July 1, 2001. 1.25 Sec. 2. Minnesota Statutes 2000, section 174.24, 1.26 subdivision 3b, is amended to read: 1.27 Subd. 3b. [OPERATING ASSISTANCE.] (a) The commissioner 1.28 shall determine the total operating cost of any public transit 2.1 system receiving or applying for assistance in accordance with 2.2 generally accepted accounting principles. To be eligible for 2.3 financial assistance, an applicant or recipient shall provide to 2.4 the commissioner all financial records and other information and 2.5 shall permit any inspection reasonably necessary to determine 2.6 total operating cost and correspondingly the amount of 2.7 assistance which may be paid to the applicant or recipient. 2.8 Where more than one county or municipality contributes 2.9 assistance to the operation of a public transit system, the 2.10 commissioner shall identify one as lead agency for the purpose 2.11 of receiving moneys under this section. 2.12 (b) Prior to distributing operating assistance to eligible 2.13 recipients for any contract period, the commissioner shall place 2.14 all recipients into one of the following classifications: large 2.15 urbanized area service, urbanized area service, small urban area 2.16 service, rural area service, and elderly and handicapped 2.17 service. The commissioner shall distribute funds under this 2.18 section so that the percentage of total operating cost paid by 2.19 any recipient from local sources will not exceed the percentage 2.20 for that recipient's classification, except as provided in an 2.21 undue hardship case. The percentages shall be: for large 2.22 urbanized area service,5035 percent; for urbanized area 2.23 service and small urban area service,4025 percent; for rural 2.24 area service,3525 percent; and for elderly and handicapped 2.25 service,3525 percent. The remainder of the total operating 2.26 cost will be paid from state funds less any assistance received 2.27 by the recipient from any federal source. For purposes of this 2.28 subdivision "local sources" means all local sources of funds and 2.29 includes all operating revenue, tax levies,and contributions 2.30 from public funds, except that the commissioner may exclude from 2.31 the total assistance contract revenues derived from operations 2.32 the cost of which is excluded from the computation of total 2.33 operating cost. Property tax levies may not be used to finance 2.34 transit services provided under this section. 2.35 (c) If a recipient informs the commissioner in writing 2.36 after the establishment of these percentages but prior to the 3.1 distribution of financial assistance for any year that paying 3.2 its designated percentage of total operating cost from local 3.3 sources will cause undue hardship, the commissioner may reduce 3.4 the percentage to be paid from local sources by the recipient 3.5 and increase the percentage to be paid from local sources by one 3.6 or more other recipients inside or outside the classification, 3.7 provided that no recipient shall have its percentage thus 3.8 reduced or increased for more than two years successively. If 3.9 for any year the funds appropriated to the commissioner to carry 3.10 out the purposes of this section are insufficient to allow the 3.11 commissioner to pay the state share of total operating cost as 3.12 provided in this paragraph, the commissioner shall reduce the 3.13 state share in each classification to the extent necessary. 3.14 [EFFECTIVE DATE.] This section is effective for transit 3.15 services provided and property taxes payable in calendar year 3.16 2002 and subsequent years. 3.17 Sec. 3. Minnesota Statutes 2000, section 297B.09, 3.18 subdivision 1, is amended to read: 3.19 Subdivision 1. [GENERAL FUND SHARE.] Money collected and 3.20 received under this chapter must be deposited as provided in 3.21 this subdivision. 3.22 Thirty-two percent of the money collected and received must 3.23 be deposited in the highway user tax distribution fund, and. 3.24 Twenty and one-half percent must be deposited in the transit 3.25 funding account under section 1. The remaining6847.5 percent 3.26 of the money must be deposited in the general fund. 3.27 [EFFECTIVE DATE.] This section is effective July 1, 2001. 3.28 Sec. 4. Minnesota Statutes 2000, section 473.388, 3.29 subdivision 4, is amended to read: 3.30 Subd. 4. [FINANCIAL ASSISTANCE.] The councilmaymust 3.31 grant the requested financial assistance if it determines that 3.32 the proposed service is intended to replace the service to the 3.33 applying city or town or combination thereof by the council and 3.34 that the proposed service will meet the needs of the applicant 3.35 at least as efficiently and effectively as the existing service. 3.36 The amount of assistance which the council may provide 4.1 under this section may notexceed the sum ofbe less than: 4.2 (a)the portion of the available local transit funds which4.3the applicant proposes to use to subsidize the proposed4.4servicethe grants received under this subdivision by the 4.5 applicant in calendar year 2001 and the tax revenues for transit 4.6 services levied within the city or town, whether by the city or 4.7 town itself or by the metropolitan council, for taxes payable in 4.8 2001;andtimes 4.9 (b)an amount of financial assistance bearing an identical4.10proportional relationship to the amount under clause (a) as the4.11total amount of funds used by the council to fund its transit4.12operations bears tothe ratio of the total appropriation to the 4.13 council for nondebt transit operations in the current fiscal 4.14 year to the sum of the total appropriation to the council for 4.15 nondebt transit operations in fiscal year 2001 and the total 4.16 amount of taxes collected by the council under section 4.17 473.446 and the opt-out municipalities under section 473.388 in 4.18 calendar year 2001, including the portion of homestead and 4.19 agricultural credit aid under section 273.1398 attributable to 4.20 the nondebt transit levy. The council shall pay the amount to 4.21 be provided to the recipient from the funds the council would 4.22 otherwise use to fund its transit operations. 4.23For purposes of this section, "available local transit4.24funds" means 90 percent of the tax revenues which would accrue4.25to the council from the tax it levies under section 473.446 in4.26the applicant city or town or combination thereof.4.27 For purposes of this section, "tax revenues" in the city or 4.28 town means the sum of the following: 4.29 (1) the nondebt spread levy, which is the total of the 4.30 taxes extended by application of the local tax rate for nondebt 4.31 purposes on the taxable net tax capacity; 4.32 (2) the portion of the fiscal disparity distribution levy 4.33 under section 473F.08, subdivision 3, attributable to nondebt 4.34 purposes; and 4.35 (3) the portion of the homestead credit and agricultural 4.36 credit aid and disparity reduction aid amounts under section 5.1 273.1398, subdivisions 2 and 3, attributable to nondebt purposes. 5.2 Tax revenues do not include the state feathering 5.3 reimbursement under section 473.446. 5.4 [EFFECTIVE DATE.] This section is effective for calendar 5.5 year 2002 and subsequent years. 5.6 Sec. 5. Minnesota Statutes 2000, section 473.388, 5.7 subdivision 7, is amended to read: 5.8 Subd. 7. [LOCAL LEVY OPTION.](a)A statutory or home rule 5.9 charter city or town that is eligible for assistance under this 5.10 section, in lieu of receiving the assistance,may levy a taxfor5.11payment of the operating and capital expenditures for transit5.12and other related activities and to providefor payment of 5.13 obligations issued by the municipality forsuch purposes,5.14provided that the tax must be sufficient to maintain the level5.15of transit service provided in the municipality in the previous5.16yearcapital expenditures for transit and other related 5.17 activities, provided that property taxes were pledged to satisfy 5.18 the obligations, and provided that legislative appropriations 5.19 are insufficient to satisfy the obligations. 5.20(b) The transit tax revenues derived by the municipality5.21may not exceed:5.22(1) for the first transit levy year and any subsequent5.23transit levy year immediately following a year in which the5.24municipality declines to make the levy, the maximum available5.25local transit funds for the municipality for taxes payable in5.26the current year under section 473.446, calculated as if the5.27percentage of transit tax revenues for the municipality were 885.28percent instead of 90 percent, and multiplied by the5.29municipality's market value adjustment ratio; and5.30(2) for taxes levied in any year that immediately follows a5.31year in which the municipality elects to levy under this5.32subdivision, the maximum transit tax that the municipality may5.33have levied in the previous year under this subdivision,5.34multiplied by the municipality's market value adjustment ratio.5.35The commissioner of revenue shall certify the5.36municipality's levy limitation under this subdivision to the6.1municipality by June 1 of the levy year. The tax must be6.2accumulated and kept in a separate fund to be known as the6.3"replacement transit fund."6.4(c) To enable the municipality to receive revenues6.5described in clauses (2) and (3) of the definition of "tax6.6revenues" in subdivision 4, that would otherwise be lost if the6.7municipality's transit tax levy was not treated as a successor6.8levy to that made by the council under section 473.446:6.9(1) in the first transit levy year and any subsequent6.10transit levy year immediately following a year in which the6.11municipality declined to make the levy, 88 percent of the6.12council's nondebt spread levy for the current taxes payable year6.13shall be treated as levied by the municipality, and not the6.14council, for purposes of section 473F.08, subdivision 3, for the6.15purpose of determining its local tax rate for the preceding6.16year; and6.17(2) 88 percent of the revenues described in clause (3) of6.18the definition of "tax revenues" in subdivision 4, payable in6.19the first transit levy year, or payable in any subsequent6.20transit levy year following a year in which a municipality6.21declined to make the levy, shall be permanently transferred from6.22the council to the municipality. If a municipality levies a tax6.23under this subdivision in one year, but declines to levy in a6.24subsequent year, the aid transferred under this clause shall be6.25transferred back to the council.6.26(d) Any transit taxes levied under this subdivision are not6.27subject to, or counted towards, any limit hereafter imposed by6.28law on the levy of taxes upon taxable property within any6.29municipality unless the law specifically includes the transit6.30tax.6.31(e) This subdivision is consistent with the transit6.32redesign plan. Eligible municipalities opting to levy the6.33transit tax under this subdivision shall continue to meet the6.34regional performance standards established by the council.6.35(f) Within the designated Americans with Disabilities Act6.36area, metro mobility remains the obligation of the state.7.1(g) For purposes of this subdivision, "transit levy year"7.2is any year in which the municipality elects to levy under this7.3subdivision.7.4(h) A municipality may not levy taxes under this7.5subdivision in any year unless it notifies the council and the7.6commissioner of revenue of its intent to levy before July 1 of7.7the levy year. The notification must include the amount of the7.8municipality's proposed transit tax for the current levy year.7.9After June 30 in the levy year, a municipality's decision to7.10levy or not levy taxes under this subdivision is irrevocable for7.11that levy year.7.12 [EFFECTIVE DATE.] This section is effective for taxes 7.13 payable in 2002 and subsequent years. 7.14 Sec. 6. Minnesota Statutes 2000, section 473.446, 7.15 subdivision 1, is amended to read: 7.16 Subdivision 1. [WITHIN TRANSIT TAXING DISTRICT.] For the 7.17 purposes of sections 473.405 to 473.449 and the metropolitan 7.18 transit system, except as otherwise provided in this subdivision 7.19 and subdivision 1b, the council shall levy each year upon all 7.20 taxable property within the metropolitan transit taxing 7.21 district, defined in subdivision 2, a transit tax consisting of: 7.22 (a)an amount which shall be used for payment of the7.23expenses of operating transit and paratransit service and to7.24provide for payment of obligations issued by the council under7.25section 473.436, subdivision 6;7.26(b)anadditionalamount, if any, the council determines to 7.27 be necessary to provide for the full and timely payment of its 7.28 certificates of indebtedness and other obligations outstanding 7.29 on July 1, 1985, to which property taxes under this section have 7.30 been pledged; and 7.31(c)(b) an additional amount necessary to provide full and 7.32 timely payment of certificates of indebtedness, bonds, including 7.33 refunding bonds or other obligations issued or to be issued 7.34 under section 473.39 by the council for purposes of acquisition 7.35 and betterment of property and other improvements of a capital 7.36 nature and to which the council has specifically pledged tax 8.1 levies under this clause. 8.2The property tax levied by the council for general purposes8.3under paragraph (a) must not exceed the following amount for the8.4years specified:8.5(1) for taxes payable in 1995, the council's property tax8.6levy limitation for general transit purposes is equal to the8.7former regional transit board's property tax levy limitation for8.8general transit purposes under this subdivision, for taxes8.9payable in 1994, multiplied by an index for market valuation8.10changes equal to the total market valuation of all taxable8.11property located within the metropolitan transit taxing district8.12for the current taxes payable year divided by the total market8.13valuation of all taxable property located within the8.14metropolitan transit taxing district for the previous taxes8.15payable year; and8.16(2) for taxes payable in 1996 and subsequent years, the8.17product of (i) the council's property tax levy limitation for8.18general transit purposes for the previous year determined under8.19this subdivision before reduction by the amount levied by any8.20municipality in the previous year under section 473.388,8.21subdivision 7, multiplied by (ii) an index for market valuation8.22changes equal to the total market valuation of all taxable8.23property located within the metropolitan transit taxing district8.24for the current taxes payable year divided by the total market8.25valuation of all taxable property located within the8.26metropolitan transit taxing district for the previous taxes8.27payable year, minus the amount levied by any municipality in the8.28current levy year under section 473.388, subdivision 7.8.29The portion of the property tax levy for transit district8.30operating purposes attributable to a municipality that has8.31exercised a local levy option under section 473.388, subdivision8.327, is the amount as determined under subdivision 1b. The8.33portion of the property tax levy for transit district operating8.34purposes attributable to the remaining municipalities within the8.35transit district is found by subtracting the portions8.36attributable to the municipalities that have exercised a local9.1levy option under section 473.388, subdivision 7.9.2For the taxes payable year 1995, the index for market9.3valuation changes shall be multiplied by an amount equal to the9.4sum of the regional transit board's property tax levy limitation9.5for the taxes payable year 1994 and $160,665. The $160,6659.6increase shall be a permanent adjustment to the levy limit base9.7used in determining the regional transit board's property tax9.8levy limitation for general purposes for subsequent taxes9.9payable years.9.10For the purpose of determining the council's property tax9.11levy limitation for general transit purposes under this9.12subdivision, "total market valuation" means the total market9.13valuation of all taxable property within the metropolitan9.14transit taxing district without valuation adjustments for fiscal9.15disparities (chapter 473F), tax increment financing (sections9.16469.174 to 469.179), and high voltage transmission lines9.17(section 273.425).9.18The county auditor shall reduce the tax levied pursuant to9.19this section and section 473.388 on all property within9.20statutory and home rule charter cities and towns that receive9.21full-peak service and limited off-peak service by an amount9.22equal to the tax levy that would be produced by applying a rate9.23of 0.510 percent of net tax capacity on the property. The9.24county auditor shall reduce the tax levied pursuant to this9.25section and section 473.388 on all property within statutory and9.26home rule charter cities and towns that receive limited peak9.27service by an amount equal to the tax levy that would be9.28produced by applying a rate of 0.765 percent of net tax capacity9.29on the property. The amounts so computed by the county auditor9.30shall be submitted to the commissioner of revenue as part of the9.31abstracts of tax lists required to be filed with the9.32commissioner under section 275.29. Any prior year adjustments9.33shall also be certified in the abstracts of tax lists. The9.34commissioner shall review the certifications to determine their9.35accuracy and may make changes in the certification as necessary9.36or return a certification to the county auditor for10.1corrections. The commissioner shall pay to the council and to10.2the municipalities levying under section 473.388, subdivision 7,10.3the amounts certified by the county auditors on the dates10.4provided in section 273.1398, apportioned between the council10.5and the municipality in the same proportion as the total transit10.6levy is apportioned within the municipality. There is annually10.7appropriated from the general fund in the state treasury to the10.8department of revenue the amounts necessary to make these10.9payments.10.10For the purposes of this subdivision, "full-peak and10.11limited off-peak service" means peak period regular route10.12service, plus weekday midday regular route service at intervals10.13longer than 60 minutes on the route with the greatest frequency;10.14and "limited peak period service" means peak period regular10.15route service only.10.16For the purposes of property taxes payable in the following10.17year, the council shall annually determine which cities and10.18towns qualify for the 0.510 percent or 0.765 percent tax10.19capacity rate reduction and shall certify this list to the10.20county auditor of the county wherein such cities and towns are10.21located on or before September 15. No changes may be made to10.22the annual list after September 15.10.23 [EFFECTIVE DATE.] This section is effective for taxes 10.24 payable in 2002 and subsequent years. 10.25 Sec. 7. Minnesota Statutes 2000, section 473.446, is 10.26 amended by adding a subdivision to read: 10.27 Subd. 1c. [TRANSIT LEVY AFTER 2001.] Notwithstanding any 10.28 other provision of this section, beginning with taxes payable in 10.29 2002, the council may levy the transit tax authorized under 10.30 subdivision 1 only for the purpose of providing for the full and 10.31 timely payment of bonds, certificates of indebtedness, and other 10.32 obligations issued by the council, to which property taxes have 10.33 been pledged. 10.34 [EFFECTIVE DATE.] This section is effective for taxes 10.35 payable in 2002 and subsequent years. 10.36 Sec. 8. [HOMESTEAD AND AGRICULTURAL CREDIT AID 11.1 ADJUSTMENTS.] 11.2 (a) Homestead and agricultural credit aid payments to the 11.3 metropolitan council are permanently reduced for 2002 and 11.4 subsequent years by the homestead and agricultural credit aid 11.5 attributable to nondebt transit levies for aids payable in 2001. 11.6 (b) Homestead and agricultural credit aid payments to 11.7 opt-out municipalities levying under Minnesota Statutes, section 11.8 473.388, subdivision 7, are permanently reduced for 2002 and 11.9 subsequent years by the amount of the homestead and agricultural 11.10 credit aid attributable to the opt-out transit levy for aids 11.11 payable in 2001. 11.12 [EFFECTIVE DATE.] This section is effective for taxes 11.13 payable in 2002 and subsequent years. 11.14 Sec. 9. [APPROPRIATION.] 11.15 $6,000,000 is appropriated from the transit funding account 11.16 to the commissioner of transportation to finance nonmetropolitan 11.17 transit systems under Minnesota Statutes, section 174.24, for 11.18 fiscal year 2002. $110,000,000 is appropriated from the transit 11.19 funding account to the metropolitan council to provide transit 11.20 services for fiscal year 2002. 11.21 [EFFECTIVE DATE.] This section is effective July 1, 2001.