1.1 	A bill for an act
1.2 	relating to transportation; increasing motor fuel
1.3 	taxes; adjusting percentages of motor vehicle sales
1.4 	tax dedicated to transportation; appropriating money;
1.5 	amending Minnesota Statutes 2004, sections 296A.07,
1.6 	subdivision 3; 296A.08, subdivision 2; 297B.09,
1.7 	subdivision 1.
1.8 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.9 	Section 1. Minnesota Statutes 2004, section 296A.07,
1.10 	subdivision 3, is amended to read:
1.11 		Subd. 3.Rate of tax.  The gasoline excise tax is imposed
1.12 	at the following rates:
1.13 	(1) E85 is taxed at the rate of 14.2 19.2 cents per gallon;
1.14 	(2) M85 is taxed at the rate of 11.4 15.4 cents per gallon;
1.15 	and
1.16 	(3) all other gasoline is taxed at the rate of 20 27 cents
1.17 	per gallon.
1.18 	
EFFECTIVE DATE. This section is effective August 1, 2005.

1.19 	Sec. 2. Minnesota Statutes 2004, section 296A.08,
1.20 	subdivision 2, is amended to read:
1.21 		Subd. 2.Rate of tax.  The special fuel excise tax is
1.22 	imposed at the following rates:
1.23 	(a) Liquefied petroleum gas or propane is taxed at the rate
1.24 	of 15 20.3 cents per gallon.
1.25 	(b) Liquefied natural gas is taxed at the rate of 12 16.2 
1.26 	cents per gallon.
2.1 	(c) Compressed natural gas is taxed at the rate
2.2 	of $1.739 $2.348 per thousand cubic feet; or 20 27 cents per
2.3 	gasoline equivalent, as defined by the National Conference on
2.4 	Weights and Measures, which is 5.66 pounds of natural gas.
2.5 	(d) All other special fuel is taxed at the same rate as the
2.6 	gasoline excise tax as specified in section 296A.07, subdivision
2.7 	2.  The tax is payable in the form and manner prescribed by the
2.8 	commissioner.
2.9 	
EFFECTIVE DATE. This section is effective August 1, 2005.

2.10 	Sec. 3. Minnesota Statutes 2004, section 297B.09,
2.11 	subdivision 1, is amended to read:
2.12 		Subdivision 1.Deposit of revenues.  (a) Money collected
2.13 	and received under this chapter must be deposited as provided in
2.14 	this subdivision.
2.15 	(b) From July 1, 2002, to June 30, 2003, 32 percent of the
2.16 	money collected and received must be deposited in the highway
2.17 	user tax distribution fund, 20.5 percent must be deposited in
2.18 	the metropolitan area transit fund under section 16A.88, and
2.19 	1.25 percent must be deposited in the greater Minnesota transit
2.20 	fund under section 16A.88.  The remaining money must be
2.21 	deposited in the general fund.
2.22 	(c) From July 1, 2003, to June 30, 2007 2005, 30 percent of
2.23 	the money collected and received must be deposited in the
2.24 	highway user tax distribution fund, 21.5 percent must be
2.25 	deposited in the metropolitan area transit fund under section
2.26 	16A.88, 1.43 percent must be deposited in the greater Minnesota
2.27 	transit fund under section 16A.88, 0.65 percent must be
2.28 	deposited in the county state-aid highway fund, and 0.17 percent
2.29 	must be deposited in the municipal state-aid street fund.  The
2.30 	remaining money must be deposited in the general fund.
2.31 	(d) From July 1, 2005, through June 30, 2006, 20.93 percent
2.32 	of the money collected and received must be deposited in the
2.33 	highway user tax distribution fund, 26.51 percent must be
2.34 	deposited in the metropolitan area transit fund under section
2.35 	16A.88, 1.76 percent must be deposited in the greater Minnesota
2.36 	transit fund under section 16A.88, 3.6 percent must be deposited
3.1 	in the county state-aid highway fund, and 0.95 percent must be
3.2 	deposited in the municipal state-aid street fund.  The remaining
3.3 	money must be deposited in the general fund.
3.4 	(e) From July 1, 2006, through June 30, 2007, 21.31 percent
3.5 	of the money collected and received must be deposited in the
3.6 	highway user tax distribution fund, 26.3 percent must be
3.7 	deposited in the metropolitan area transit fund under section
3.8 	16A.88, 1.75 percent must be deposited in the greater Minnesota
3.9 	transit fund under section 16A.88, 3.48 percent must be
3.10 	deposited in the county state-aid highway fund, and 0.91 percent
3.11 	must be deposited in the municipal state-aid street fund.  The
3.12 	remaining money must be deposited in the general fund.
3.13 	(f) On and after July 1, 2007, 32 percent of the money
3.14 	collected and received must be deposited in the highway user tax
3.15 	distribution fund, 20.5 percent must be deposited in the
3.16 	metropolitan area transit fund under section 16A.88, and 1.25
3.17 	percent must be deposited in the greater Minnesota transit fund
3.18 	under section 16A.88.  The remaining money must be deposited in
3.19 	the general fund.
3.20 	
EFFECTIVE DATE. This section is effective July 1, 2005.

3.21 	Sec. 4. APPROPRIATION.
 3.22 	$81,415,000 in fiscal year 2006 and $106,021,000 in fiscal
3.23 	year 2007 are appropriated from the trunk highway fund to the
3.24 	commissioner of transportation for state road construction.  The
3.25 	commissioner may spend up to 17 percent of each appropriation
3.26 	for construction support.  This appropriation is in addition to
3.27 	any other appropriation for this purpose.

3.28 	EFFECTIVE DATE. This section is effective July 1, 2005.