HF 2545

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

A bill for an act
relating to natural resources; proposing an amendment
to the Minnesota Constitution by adding a section to
article XI; increasing the sales and use tax by
one-quarter percent and dedicating the proceeds for
natural resource and clean water purposes; amending
Minnesota Statutes 2004, sections 297A.62, subdivision
1; 297A.94; 297B.02, subdivision 1.

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

ARTICLE 1

CONSTITUTIONAL AMENDMENT

Section 1. new text begin CONSTITUTIONAL AMENDMENT.
new text end

new text begin An amendment to the Minnesota Constitution is proposed to
the people. If the amendment is adopted, a section will be
added to article XI, to read:
new text end

new text begin Sec. 15. Beginning July 1, 2007, the state sales and use
tax is increased by one-fourth of one percent on sales and uses
taxable under the general state sales and use tax law and the
proceeds, plus penalties and interest and reduced by any
refunds, are dedicated as follows: 50 percent of the receipts
shall be deposited in the game and fish heritage fund and may be
spent primarily to provide hunter and angler access or improve,
enhance, or protect game and fish habitat; and 50 percent of the
receipts shall be deposited in the clean water fund and may be
spent only for assessment, protection, and restoration of the
state's lakes, rivers, streams, wetlands, and groundwater. A
game and fish heritage fund and clean water fund are created in
the state treasury. The money dedicated under this section
shall be appropriated by law. The money dedicated under this
section shall not be used as a substitute for traditional
funding sources for the purposes specified, but the dedicated
money shall supplement traditional sources of funding for those
purposes. Easements acquired with money deposited in the game
and fish heritage fund under this section must be open to public
taking of fish and game during the open season.
new text end

Sec. 2. new text begin SUBMISSION TO VOTERS.
new text end

new text begin The proposed amendment shall be submitted to the people at
the 2006 general election. The question submitted shall be:
new text end

new text begin "Shall the Minnesota Constitution be amended to provide
funding beginning July 1, 2007, by dedicating additional sales
and use tax receipts equal to the state sales and use tax of .25
percent on taxable sales as follows: one-half to provide hunter
and angler access or improve, enhance, or protect game and fish
habitat; and one-half to protect and restore the state's lakes,
rivers, streams, wetlands, and groundwater?
new text end

new text begin Yes .......
No ........"
new text end

Sec. 3. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 and 2 apply to sales and uses occurring after
June 30, 2007.
new text end

ARTICLE 2

CONFORMING CHANGES

Section 1.

Minnesota Statutes 2004, section 297A.62,
subdivision 1, is amended to read:

Subdivision 1.

Generally.

new text begin (a) new text end Except as otherwise
provided in subdivision 2 or 3 or in this chapter, a sales tax
of 6.5 percent is imposed on the gross receipts from retail
sales as defined in section 297A.61, subdivision 4, made in this
state or to a destination in this state by a person who is
required to have or voluntarily obtains a permit under section
297A.83, subdivision 1.

new text begin (b) A sales tax of .25 percent is imposed on the gross
receipts from retail sales taxable under paragraph (a). This
tax is imposed pursuant to Minnesota Constitution, article XI,
section 15, and is in addition to the tax imposed in paragraph
(a). Unless specifically provided otherwise, any reference in
laws or statutes to the general sales and use tax or the tax
imposed under this section includes this tax; except that the
proceeds of the tax imposed under this paragraph must be
deposited and spent as provided in Minnesota Constitution,
article XI, section 15.
new text end

Sec. 2.

Minnesota Statutes 2004, section 297A.94, is
amended to read:

297A.94 DEPOSIT OF REVENUES.

(a) Except as provided in this section new text begin and the Minnesota
Constitution, article XI, section 15 new text end , the commissioner shall
deposit the revenues, including interest and penalties, derived
from the taxes imposed by this chapter in the state treasury and
credit them to the general fund.

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

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

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

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

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

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

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

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

(e) For fiscal year 2001, 97 percent; for fiscal years 2002
and 2003, 87 percent; and for fiscal year 2004 and thereafter,
72.43 percent of the revenues, including interest and penalties,
transmitted to the commissioner under section 297A.65, must be
deposited by the commissioner in the state treasury as follows:

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

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

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

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

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

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

Sec. 3.

Minnesota Statutes 2004, section 297B.02,
subdivision 1, is amended to read:

Subdivision 1.

Rate.

There is imposed an excise tax at
the rate provided in deleted text begin chapter 297A deleted text end new text begin section 297A.62, subdivision
1, paragraph (a), new text end on the purchase price of any motor vehicle
purchased or acquired, either in or outside of the state of
Minnesota, which is required to be registered under the laws of
this state.

The excise tax is also imposed on the purchase price of
motor vehicles purchased or acquired on Indian reservations when
the tribal council has entered into a sales tax on motor
vehicles refund agreement with the state of Minnesota.

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

new text begin Sections 1 to 3 are effective July 1, 2007, if the
constitutional amendment proposed in article 1 is adopted by the
voters.
new text end