1.1 	A bill for an act
1.2 	relating to transportation; imposing highway user debt
1.3 	service fee on gasoline and special fuel; imposing
1.4 	0.25 percent sales tax for transit purposes in
1.5 	counties of Anoka, Carver, Chisago, Dakota, Hennepin,
1.6 	Isanti, Ramsey, Scott, Sherburne, Washington, and
1.7 	Wright if approved in a referendum; authorizing
1.8 	issuance of $2,750,000,000 in state trunk highway
1.9 	bonds; appropriating money; amending Minnesota
1.10 	Statutes 2004, sections 296A.07, subdivision 4, by
1.11 	adding a subdivision; 296A.08, subdivision 3, by
1.12 	adding a subdivision; proposing coding for new law in
1.13 	Minnesota Statutes, chapters 161; 296A; 297A.
1.14 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.15 	Section 1. [161.042] DEBT SERVICE ACCOUNT.
1.16 	A debt service account is established in the trunk highway
1.17 	fund, consisting of money credited to the account by law.  Money
1.18 	in the account is appropriated to the commissioner for payment
1.19 	of principal and interest on trunk highway bonds issued under
1.20 	section 9.

1.21 	Sec. 2. Minnesota Statutes 2004, section 296A.07, is
1.22 	amended by adding a subdivision to read:
1.23 		Subd. 3a.Highway user debt service fee. (a) A highway
1.24 	user debt service fee, determined as provided in paragraph (b),
1.25 	is imposed on gasoline, E-85, and M-85 in addition to the taxes
1.26 	imposed under subdivision 3.  The highway user debt service fee
1.27 	imposed on E-85 and M-85 must be in the same proportion to the
1.28 	fee on gasoline as the taxes on those fuels are in proportion to
1.29 	the tax on gasoline under subdivision 3.  Proceeds from the fee
2.1 	must be deposited in the highway user tax distribution fund.
2.2 	Proceeds from the fee that are allocated to the trunk highway
2.3 	fund must be credited to the debt service account.
2.4 	(b) On August 1 of each fiscal year the commissioner of
2.5 	revenue shall determine the amount of highway user debt service
2.6 	fee on gasoline, E-85, and M-85 that, when combined with highway
2.7 	user debt service fees under section 296A.08, subdivision 2a,
2.8 	will be needed in the next 12 months to pay principal and
2.9 	interest in that period on bonds issued under section 9.  The
2.10 	fee determined under this subdivision must be added to the taxes
2.11 	imposed under subdivision 3.  The amount of fee so determined is
2.12 	effective on September 1 of each year through August 31 of the
2.13 	following year.

2.14 	Sec. 3. Minnesota Statutes 2004, section 296A.07,
2.15 	subdivision 4, is amended to read:
2.16 		Subd. 4.Exemptions.  The provisions of subdivision 
2.17 	subdivisions 1 and 3a do not apply to gasoline purchased by:
2.18 	(1) a transit system or transit provider receiving
2.19 	financial assistance or reimbursement under section 174.24,
2.20 	256B.0625, subdivision 17, or 473.384; or
2.21 	(2) an ambulance service licensed under chapter 144E.

2.22 	Sec. 4. Minnesota Statutes 2004, section 296A.08, is
2.23 	amended by adding a subdivision to read:
2.24 		Subd. 2a.Highway user debt service fee. (a) A highway
2.25 	user debt service fee is imposed on special fuel in addition to
2.26 	the taxes imposed under subdivision 2.  The highway user debt
2.27 	service fee imposed on liquefied petroleum gas, liquefied
2.28 	natural gas, and compressed natural gas must be in the same
2.29 	proportion to the fee on other special fuel as the taxes on
2.30 	those fuels are in proportion to the tax on other special fuels
2.31 	under subdivision 2.  Proceeds from the fee must be deposited in
2.32 	the highway user tax distribution fund.  Proceeds from the fee
2.33 	that are allocated to the trunk highway fund must be credited to
2.34 	the debt service account.
2.35 	(b) On August 1 of each fiscal year the commissioner of
2.36 	revenue shall determine the amount of highway user debt service
3.1 	fee on special fuel, when combined with the highway user debt
3.2 	service fee under section 296A.07, subdivision 3a, will be
3.3 	needed in the next 12 months to pay principal and interest in
3.4 	that period on bonds issued under section 9.  The fee determined
3.5 	under this subdivision must be added to the taxes imposed under
3.6 	subdivision 3.  The amount of fee so determined is effective on
3.7 	September 1 of each year through August 31 of the following year.

3.8 	Sec. 5. Minnesota Statutes 2004, section 296A.08,
3.9 	subdivision 3, is amended to read:
3.10 		Subd. 3.Exemptions.  The provisions of subdivisions
3.11 	1 and ,2, and 2a do not apply to special fuel or alternative
3.12 	fuels purchased by:
3.13 	(1) a transit system or transit provider receiving
3.14 	financial assistance or reimbursement under section 174.24,
3.15 	256B.0625, subdivision 17, or 473.384; or
3.16 	(2) an ambulance service licensed under chapter 144E.

3.17 	Sec. 6. [296A.081] COLLECTION OF HIGHWAY USER DEBT
3.18 	SERVICE FEE.
3.19 	All provisions of this chapter that apply to the collection
3.20 	of taxes on gasoline and special fuel apply to the collection of
3.21 	highway user debt service fees established under sections
3.22 	296A.07, subdivision 3a, and 296A.08, subdivision 2a.

3.23 	Sec. 7. [297A.996] METROPOLITAN TRANSPORTATION AREA;
3.24 	SALES TAX FOR TRANSPORTATION.
3.25 		Subdivision 1.Definition. For purposes of this section,
3.26 	"metropolitan transportation area" or "area" means the 11-county
3.27 	area consisting of Anoka, Carver, Chisago, Dakota, Hennepin,
3.28 	Isanti, Ramsey, Scott, Sherburne, Washington, and Wright
3.29 	Counties.
3.30 		Subd. 2.Tax authorized. If approved by the voters of
3.31 	the area at an election held November 8, 2005, a general sales
3.32 	tax of one-quarter of one percent is imposed on sales within the
3.33 	area, in addition to the taxes imposed under sections 297A.62 to
3.34 	297A.64 and any other local sales taxes imposed in the area.
3.35 		Subd. 3.Tax base. The tax applies to sales taxable
3.36 	under this chapter that occur within the area.  Taxable goods or
4.1 	services are subject to the tax if they are sourced to the area
4.2 	pursuant to section 297A.668.
4.3 		Subd. 4.Use tax. A compensating use tax applies, at the
4.4 	same rate as the sales tax, on the use, storage, distribution,
4.5 	or consumption of tangible personal property or taxable services.
4.6 		Subd. 5.Application of other laws. (a) Section 297A.99,
4.7 	subdivisions 7, 8, 9, 10, and 11 apply to taxes authorized under
4.8 	this section.
4.9 	(b) The commissioner has the same powers to assess and
4.10 	collect the taxes as are given the commissioner in this chapter
4.11 	and chapters 270 and 289A, to assess and collect sales and use
4.12 	taxes.
4.13 		Subd. 6.Allocation of revenue. The commissioner shall
4.14 	allocate revenue from the tax imposed under this section as
4.15 	follows:
4.16 	(a) Revenue collected in Anoka, Carver, Dakota, Hennepin,
4.17 	Ramsey, Scott, and Washington Counties must be paid to the
4.18 	Metropolitan Council.  The council may use the revenue only for
4.19 	the operation of, or assistance to, public transit as defined in
4.20 	section 174.22, subdivision 7, within the metropolitan transit
4.21 	area as defined in section 473.121, subdivision 16.
4.22 	(b) Revenue collected in each other county in the area must
4.23 	be paid to the treasurer of each such county.  Money so paid may
4.24 	be spent by the county only for the operation of, or assistance
4.25 	to, public transit as defined in section 174.22, subdivision 7.

4.26 	Sec. 8. APPROPRIATION.
 4.27 	$275,000,000 is appropriated on each September 1 of fiscal
4.28 	years 2006 through 2015 from the bond proceeds account in the
4.29 	trunk highway fund to the commissioner of transportation for
4.30 	trunk highway improvements.

4.31 	Sec. 9. BOND SALE AUTHORIZATION.
 4.32 	To provide the money appropriated from the bond proceeds
4.33 	account under section 8, the commissioner of finance shall sell
4.34 	and issue bonds of the state in an amount up to $2,750,000,000
4.35 	in the manner, upon the terms, and with the effect prescribed by
4.36 	Minnesota Statutes, sections 167.50 to 167.52, and by the
5.1 	Minnesota Constitution, article XIV, section 11, at the times
5.2 	and in the amounts requested by the commissioner of
5.3 	transportation.  The proceeds of the bonds, except accrued
5.4 	interest and any premium received on the sale of the bonds, must
5.5 	be credited to the bond proceeds account in the trunk highway
5.6 	fund.