HF 2307

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

A bill for an act
relating to transportation; increasing motor fuel tax
rates and providing for annual indexing; allocating
revenue from motor vehicle sales tax; authorizing
issuance of $2,100,000,000 in state trunk highway
bonds; appropriating money; amending Minnesota
Statutes 2004, sections 296A.07, subdivision 3;
296A.08, subdivision 2; 297B.09, subdivision 1;
proposing coding for new law in Minnesota Statutes,
chapter 296A.

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

Section 1.

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 17.75 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 14.25 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 25 new text end cents
per gallon.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 1, 2005,
and applies to all gasoline in distributor storage on that date.
new text end

Sec. 2.

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 18.75 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
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 $2.174 new text end per thousand cubic feet; or deleted text begin 20 deleted text end new text begin 25 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.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 1, 2005.
new text end

Sec. 3.

new text begin [296A.081] ANNUAL ADJUSTMENT.
new text end

new text begin (a) On April 1, 2008, and each April 1 thereafter, the
commissioner of revenue shall recompute and publish the rate of
each fuel tax provided for in sections 296A.07, subdivision 3,
and 296A.08, subdivision 2. The new rate for each fuel tax must
be calculated by multiplying the rate in effect at the time of
the calculation by an amount obtained as follows: 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

new text begin (b) The new rate must be rounded to the nearest 0.1 cent,
is effective on June 1 of each year, and applies to all gasoline
in distributor storage on that date.
new text end

Sec. 4.

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, 2007, 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.

deleted text begin (d) deleted text end new text begin (c) new text end On and after July 1, 2007, deleted text begin 32 deleted text end new text begin 50 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 47 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 3 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. 5. new text begin APPROPRIATION; TRUNK HIGHWAY FUND.
new text end

new text begin (a) $210,000,000 is appropriated from the bond proceeds
account in the trunk highway fund to the commissioner of
transportation on the first day of each fiscal year from July 1,
2006, through June 30, 2016, for improvements to the state trunk
highway system. Of this appropriation:
new text end

new text begin (1) $105,000,000 each year is for improvements to the
interregional corridor system as identified by the commissioner
where the improvements are physically located entirely or
primarily outside the seven-county metropolitan area; and
new text end

new text begin (2) $105,000,000 each year is for the elimination of
traffic bottlenecks on arterial highways physically located
entirely within the seven-county metropolitan area.
new text end

new text begin (b) The commissioner may spend up to 15 percent of this
appropriation each year on program delivery.
new text end

Sec. 6. new text begin HIGHWAY BOND SALE AUTHORIZATION.
new text end

new text begin To provide the money appropriated in section 5 from the
bond proceeds account in the trunk highway fund, the
commissioner of finance shall sell and issue bonds of the state
in an amount up to $2,100,000,000 in the manner, upon the terms,
and with the effect prescribed by Minnesota Statutes, sections
167.50 to 167.52, and by the Minnesota Constitution, article
XIV, section 11, at the times and in the amounts requested by
the commissioner of transportation. 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.
new text end