Minnesota Legislature
HF 3150
as introduced - 92nd Legislature (2021 - 2022) Posted on 03/17/2022 05:23pm
Current Version - as introduced
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A bill for an act
relating to transportation; taxes; amending deposit of sales tax revenue attributable
to motor vehicle repair and replacement parts; amending Minnesota Statutes 2020,
section 297A.94.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2020, section 297A.94, is amended to read:
297A.94 DEPOSIT OF REVENUES.
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
(a) For purposes of this section, "motor vehicle repair and
replacement parts" includes: (1) all parts, tires, accessories, and equipment incorporated
into or affixed to the motor vehicle as part of the motor vehicle maintenance and repair;
and (2) paint, oil, and other fluids that remain on or in the motor vehicle as part of the motor
vehicle maintenance or repair.
new text end
new text begin
(b) For purposes of paragraph (a), "motor vehicle" has the meaning given in section
297B.01, subdivision 11; and "tire" means any tire of the type used on highway vehicles,
if wholly or partially made of rubber and if marked according to federal regulations for
highway use.
new text end
new text begin Subd. 2. new text end
new text begin Deposits. new text end
(a) Except as provided in this section, 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 management and budget 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) Beginning with sales taxes remitted after July 1, 2017, the commissioner shall deposit
in the state treasury the revenues collected under section 297A.64, subdivision 1, including
interest and penalties and minus refunds, and credit them to the highway user tax distribution
fund.
(e) 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.
(f) Beginning with sales taxes remitted after July 1, 2017, in conjunction with the deposit
of revenues under paragraph (d), the commissioner shall deposit into the state treasury and
credit to the highway user tax distribution fund an amount equal to the estimated revenues
derived from the tax rate imposed under section 297A.62, subdivision 1, on the lease or
rental for not more than 28 days of rental motor vehicles subject to section 297A.64. The
commissioner shall estimate the amount of sales tax revenue deposited under this paragraph
based on the amount of revenue deposited under paragraph (d).
(g) deleted text begin Starting after July 1, 2017,deleted text end The commissioner shall deposit deleted text begin an amount of the
remittancesdeleted text end monthly into the state treasury and credit deleted text begin themdeleted text end to the highway user tax
distribution fund deleted text begin as a portion ofdeleted text end new text begin an amount related tonew text end the estimated deleted text begin amount ofdeleted text end taxes collected
from the sale and purchase of motor vehicle repairnew text begin and replacementnew text end parts in that month. deleted text begin For
the remittancesdeleted text end Between July 1, deleted text begin 2017deleted text end new text begin 2022new text end , and June 30, deleted text begin 2019deleted text end new text begin 2023new text end , the monthly deposit
amount is deleted text begin $2,628,000deleted text end new text begin $27,704,000new text end . deleted text begin For remittancesdeleted text end In each subsequent fiscal year, the
monthly deposit amount is deleted text begin $12,137,000deleted text end new text begin equal to the most recent percentage estimate under
subdivision 3, multiplied by the total sales tax revenues collected in the prior monthnew text end . deleted text begin For
purposes of this paragraph, "motor vehicle" has the meaning given in section 297B.01,
subdivision 11, and "motor vehicle repair and replacement parts" includes (i) all parts, tires,
accessories, and equipment incorporated into or affixed to the motor vehicle as part of the
motor vehicle maintenance and repair, and (ii) paint, oil, and other fluids that remain on or
in the motor vehicle as part of the motor vehicle maintenance or repair. For purposes of this
paragraph, "tire" means any tire of the type used on highway vehicles, if wholly or partially
made of rubber and if marked according to federal regulations for highway use.
deleted text end
(h) 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.
(i) The revenue dedicated under paragraph (h) 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 (h) 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 (h) must be allocated for field operations.
(j) The commissioner must deposit the revenues, including interest and penalties minus
any refunds, derived from the sale of items regulated under section 624.20, subdivision 1,
that may be sold to persons 18 years old or older and that are not prohibited from use by
the general public under section 624.21, in the state treasury and credit:
(1) 25 percent to the volunteer fire assistance grant account established under section
88.068;
(2) 25 percent to the fire safety account established under section 297I.06, subdivision
3; and
(3) the remainder to the general fund.
For purposes of this paragraph, the percentage of total sales and use tax revenue derived
from the sale of items regulated under section 624.20, subdivision 1, that are allowed to be
sold to persons 18 years old or older and are not prohibited from use by the general public
under section 624.21, is a set percentage of the total sales and use tax revenues collected in
the state, with the percentage determined under Laws 2017, First Special Session chapter
1, article 3, section 39.
(k) The revenues deposited under paragraphs (a) to (j) do not include the revenues,
including interest and penalties, generated by the sales tax imposed under section 297A.62,
subdivision 1a, which must be deposited as provided under the Minnesota Constitution,
article XI, section 15.
new text begin Subd. 3. new text end
new text begin Sales tax estimates. new text end
new text begin
(a) By March 1 in each odd-numbered year, or more
frequently at the commissioner's discretion, the commissioner must estimate the percentage
of total sales tax revenues, including interest and penalties, collected in the previous calendar
year that is attributable to sales and purchases of motor vehicle repair and replacement parts.
The estimate must be based on federal data and department consumption models. Beginning
July 1 following each estimate revision under this subdivision, the estimate is effective for
deposits under subdivision 2, paragraph (g).
new text end
new text begin
(b) The commissioner must maintain information concerning each revised estimate and
the estimation methodology on a department website.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2022.
new text end