1.1 	A bill for an act
1.2 	relating to transportation; adjusting distribution
1.3 	formula for county state-aid highway fund; expanding
1.4 	authority to levy county wheelage tax; changing
1.5 	depreciation schedule and maximum and minimum
1.6 	registration taxes for passenger automobiles;
1.7 	increasing motor fuel taxes; allocating revenue from
1.8 	general sales tax and motor vehicle sales tax;
1.9 	authorizing issuance of $1,000,000,000 in state trunk
1.10 	highway bonds; modifying previously proposed amendment
1.11 	to the Minnesota Constitution by adding sections to
1.12 	article XIV to dedicate motor vehicle sales tax
1.13 	revenues; appropriating money; amending Minnesota
1.14 	Statutes 2004, sections 162.07, subdivision 1, by
1.15 	adding subdivisions; 163.051; 168.013, subdivision 1a;
1.16 	296A.07, subdivision 3; 296A.08, subdivision 2;
1.17 	297A.94; 297B.09, subdivision 1; Laws 2005, chapter
1.18 	88, article 3, section 9.
1.19 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.20 	Section 1. Minnesota Statutes 2004, section 162.07,
1.21 	subdivision 1, is amended to read:
1.22 		Subdivision 1.Formula.  After deducting for
1.23 	administrative costs and for the disaster account and research
1.24 	account and state park roads as heretofore provided in section
1.25 	162.06, subdivisions 2 to 5, the remainder of the total sum
1.26 	provided for in section 162.06, subdivision 1, shall be is 
1.27 	identified as the apportionment sum and shall be apportioned by
1.28 	the commissioner to the several counties on the basis of the
1.29 	needs of the counties as determined in accordance with the
1.30 	following formula:
1.31 	(a) An amount equal to ten percent of the apportionment sum
1.32 	shall be apportioned equally among the 87 counties.
2.1 	(b) An amount equal to ten percent of the apportionment sum
2.2 	shall be apportioned among the several counties so that each
2.3 	county shall receive of such amount the percentage that its
2.4 	motor vehicle registration for the calendar year preceding the
2.5 	one last past, determined by residence of registrants, bears to
2.6 	the total statewide motor vehicle registration.
2.7 	(c) An amount equal to 30 percent of the apportionment sum
2.8 	shall be apportioned among the several counties so that each
2.9 	county shall receive of such amount the percentage that its
2.10 	total lane-miles of approved county state-aid highways bears to
2.11 	the total lane-miles of approved statewide county state-aid
2.12 	highways.  In 1997 and subsequent years no county may receive,
2.13 	as a result of an apportionment under this clause based on
2.14 	lane-miles rather than miles of approved county state-aid
2.15 	highways, an apportionment that is less than its apportionment
2.16 	in 1996.
2.17 	(d) An amount equal to 50 percent of the apportionment sum
2.18 	shall be apportioned among the several counties so that each
2.19 	county shall receive of such amount the percentage that its
2.20 	money needs bears to the sum of the money needs of all of the
2.21 	individual counties; provided, that the percentage of such
2.22 	amount that each county is to receive shall be adjusted so that
2.23 	each county shall receive in 1958 a total apportionment at least
2.24 	ten percent greater than its total 1956 apportionments from the
2.25 	state road and bridge fund; and provided further that those
2.26 	counties whose money needs are thus adjusted shall never receive
2.27 	a percentage of the apportionment sum less than the percentage
2.28 	that such county received in 1958 the excess sum.
2.29 	(a) The excess sum is calculated as the sum of the amounts
2.30 	described in clauses (1) and (2), reduced by a proportionate
2.31 	share of the deductions for administrative costs and for the
2.32 	disaster account and research account, as follows:
2.33 	(1) on or after July 1, 2005, the amount due to an increase
2.34 	imposed in the gasoline excise tax rate above a rate of 20 cents
2.35 	per gallon; or in the excise tax rate for E85, M85, and special
2.36 	fuels above the energy equivalent of a gasoline tax rate of 20
3.1 	cents per gallon; and 
3.2 	(2) the amount due to a change in the passenger vehicle
3.3 	registration tax under section 168.013, imposed on or after July
3.4 	1, 2005, that exceeds the amount collected in fiscal year 2005
3.5 	multiplied by the annual average United States Consumer Price
3.6 	Index for all urban consumers, United States city average, as
3.7 	determined by the United States Department of Labor for the
3.8 	previous year, divided by that annual average for calendar year
3.9 	2004.
3.10 	(b) The apportionment sum is calculated by subtracting the
3.11 	excess sum from the remainder of the total sum.

3.12 	Sec. 2. Minnesota Statutes 2004, section 162.07, is
3.13 	amended by adding a subdivision to read:
3.14 		Subd. 1a.Apportionment sum. The commissioner shall
3.15 	apportion the apportionment sum to the several counties on the
3.16 	basis of the following formula:
3.17 	(a) An amount equal to ten percent of the apportionment sum
3.18 	must be apportioned equally among the 87 counties.
3.19 	(b) An amount equal to ten percent of the apportionment sum
3.20 	must be apportioned among the several counties so that each
3.21 	county receives of that amount the percentage that its motor
3.22 	vehicle registration for the calendar year preceding the one
3.23 	last past, determined by residence of registrants, bears to the
3.24 	total statewide motor vehicle registration.
3.25 	(c) An amount equal to 30 percent of the apportionment sum
3.26 	must be apportioned among the several counties so that each
3.27 	county receives of that amount the percentage that its total
3.28 	lane-miles of approved county state-aid highways bears to the
3.29 	total lane-miles of approved statewide county state-aid
3.30 	highways.  In 1997 and subsequent years, no county may receive,
3.31 	as a result of an apportionment under this clause based on
3.32 	lane-miles rather than miles of approved county state-aid
3.33 	highways, an apportionment that is less than its apportionment
3.34 	in 1996.
3.35 	(d) An amount equal to 50 percent of the apportionment sum
3.36 	must be apportioned among the several counties so that each
4.1 	county receives of that amount the percentage that its money
4.2 	needs bears to the sum of the money needs of all of the
4.3 	individual counties; provided, that the percentage of such
4.4 	amount that each county receives must be adjusted so that each
4.5 	county receives in 1958 a total apportionment at least ten
4.6 	percent greater than its total 1956 apportionments from the
4.7 	state road and bridge fund; and provided further that each
4.8 	county whose money needs are thus adjusted shall never receive a
4.9 	percentage of the apportionment sum less than the percentage
4.10 	that such county received in 1958.

4.11 	Sec. 3. Minnesota Statutes 2004, section 162.07, is
4.12 	amended by adding a subdivision to read:
4.13 		Subd. 1b.Excess sum. The commissioner shall apportion
4.14 	the excess sum to the counties on the basis of the following
4.15 	formula:
4.16 	(a) An amount equal to 40 percent of the excess sum must be
4.17 	apportioned among the several counties so that each county
4.18 	receives of that amount the percentage that its motor vehicle
4.19 	registration for the calendar year preceding the one last past,
4.20 	determined by residence of registrants, bears to the total
4.21 	statewide motor vehicle registration.
4.22 	(b) An amount equal to 60 percent of the excess sum must be
4.23 	apportioned among the several counties so that each county
4.24 	receives of that amount the percentage that its money needs
4.25 	bears to the sum of the money needs of all of the individual
4.26 	counties.

4.27 	Sec. 4. Minnesota Statutes 2004, section 163.051, is
4.28 	amended to read:
4.29 	163.051  METROPOLITAN COUNTY WHEELAGE TAX.
4.30 		Subdivision 1.Tax authorized. The board of
4.31 	commissioners of each metropolitan county is authorized to levy
4.32 	by resolution a wheelage tax of $5 for the year 1972 and each
4.33 	subsequent year thereafter by resolution up to $20 on each motor
4.34 	vehicle, except motorcycles and motor vehicles with a registered
4.35 	gross vehicle weight of 26,001 pounds or greater as defined in
4.36 	section 169.01, subdivision 4, which is kept in such county when
5.1 	not in operation and which is subject to annual registration and
5.2 	taxation under chapter 168. Applicability of the wheelage tax
5.3 	to any motor vehicle must be based on the residence address of
5.4 	the registered owner or, if the registered owner is not a
5.5 	natural person, on the street address of the registered owner.
5.6 	The board may provide by resolution for collection of the
5.7 	wheelage tax by county officials or it may request that the tax
5.8 	be collected by the state registrar of motor vehicles, and the
5.9 	state registrar of motor vehicles shall collect such the tax on
5.10 	behalf of the county if requested, as provided in subdivision 2.
5.11 		Subd. 2.Collection by registrar of motor vehicles. The
5.12 	wheelage tax levied by any metropolitan a county, if made
5.13 	collectible by the state registrar of motor vehicles, shall must 
5.14 	be certified by the county auditor to the registrar not later
5.15 	than August 1 in the year before the calendar year or years for
5.16 	which the tax is levied, and the registrar shall collect such 
5.17 	the tax with the motor vehicle taxes on the affected vehicles
5.18 	for such year or years.  Every owner and every operator of such 
5.19 	a motor vehicle subject to the wheelage tax shall furnish to the
5.20 	registrar all information requested by the registrar. No A 
5.21 	state motor vehicle tax on any such motor vehicle for any such
5.22 	year shall may not be received or deemed paid unless the
5.23 	applicable wheelage tax is paid therewith. The proceeds of the
5.24 	wheelage tax levied by any metropolitan county, less any amount
5.25 	retained by the registrar to pay costs of collection of the
5.26 	wheelage tax, shall be paid to the commissioner of finance and
5.27 	deposited in the state treasury to the credit of the county
5.28 	wheelage tax fund of each metropolitan county.Wheelage taxes
5.29 	collected by the registrar may not be refunded.
5.30 		Subd. 2a.Tax proceeds deposited; costs of collection;
5.31 	appropriation. Notwithstanding the provisions of any other law,
5.32 	the state registrar of motor vehicles shall deposit the proceeds
5.33 	of the wheelage tax imposed by subdivision 2, to the credit of
5.34 	the county wheelage tax road and bridge fund of each
5.35 	metropolitan county levying the tax.  The amount necessary to
5.36 	pay the costs of collection of said collecting the tax is
6.1 	appropriated to the state registrar of motor vehicles from the
6.2 	county wheelage tax road and bridge fund of each metropolitan 
6.3 	county to the state registrar of motor vehicles levying the tax.
6.4 		Subd. 3.Distribution to metropolitan county;
6.5 	appropriation. On or before April 1 in 1972 and each subsequent
6.6 	year, the commissioner of finance shall issue a warrant in favor
6.7 	of the treasurer of each metropolitan county for which the
6.8 	registrar has collected a wheelage tax in the amount of such tax
6.9 	then on hand in the county wheelage tax fund.  There is hereby
6.10 	appropriated from the county wheelage tax fund each year, to
6.11 	each metropolitan county entitled to payments authorized by this
6.12 	section, sufficient moneys to make such payments.
6.13 		Subd. 4.Use of tax. The treasurer of each metropolitan
6.14 	county receiving moneys under subdivision 3 shall deposit such
6.15 	moneys in the county road and bridge fund.  The moneys shall be
6.16 	used for purposes authorized by law which are highway purposes
6.17 	within the meaning of the Minnesota Constitution, article 14.A
6.18 	county levying a wheelage tax under this section may use the
6.19 	proceeds only for highway purposes.
6.20 		Subd. 5.Effect on road and bridge levy. The county
6.21 	auditor of each metropolitan county shall reduce the amount of
6.22 	the property taxes levied pursuant to law in 1973 for collection
6.23 	in 1974, by the board of commissioners of such county for the
6.24 	county road and bridge fund, by the following amount:  Anoka
6.25 	County, $341,750; Carver County, $86,725; Dakota County,
6.26 	$386,165; Hennepin County, $2,728,425; Ramsey County,
6.27 	$1,276,815; Scott County, $104,805; Washington County, $227,220,
6.28 	and shall spread only the balance thereof on the tax rolls for
6.29 	collection in 1972.  The county auditor shall also reduce the
6.30 	amount of such taxes levied pursuant to law in 1972 and any
6.31 	subsequent year, for collection in the respective ensuing years,
6.32 	by the amount of wheelage taxes received by the county in the 12
6.33 	months immediately preceding such levy.
6.34 		Subd. 6.Metropolitan county defined. "Metropolitan
6.35 	county" means any of the counties of Anoka, Carver, Dakota,
6.36 	Hennepin, Ramsey, Scott, and Washington.
7.1 		Subd. 7.Offenses; penalties; application of other laws.
 7.2 	Any owner or operator of a motor vehicle who shall 
7.3 	willfully give gives any false information relative to the tax
7.4 	herein authorized under this section to the registrar of motor
7.5 	vehicles or any metropolitan county, or who shall willfully fail
7.6 	or refuse fails or refuses to furnish any such
7.7 	information, shall be is guilty of a misdemeanor.  Except as
7.8 	otherwise herein provided, the collection and payment of a
7.9 	wheelage tax and all matters relating thereto shall be are 
7.10 	subject to all provisions of law relating to collection and
7.11 	payment of motor vehicle taxes so far as applicable.

7.12 	Sec. 5. Minnesota Statutes 2004, section 168.013,
7.13 	subdivision 1a, is amended to read:
7.14 		Subd. 1a.Passenger automobile; hearse.  (a) On passenger
7.15 	automobiles as defined in section 168.011, subdivision 7, and
7.16 	hearses, except as otherwise provided, the tax shall be $10 plus
7.17 	an additional tax equal to 1.25 percent of the base value.
7.18 	(b) Subject to the classification provisions herein, "base
7.19 	value" means the manufacturer's suggested retail price of the
7.20 	vehicle including destination charge using list price
7.21 	information published by the manufacturer or determined by the
7.22 	registrar if no suggested retail price exists, and shall not
7.23 	include the cost of each accessory or item of optional equipment
7.24 	separately added to the vehicle and the suggested retail price.
7.25 	(c) If the manufacturer's list price information contains a
7.26 	single vehicle identification number followed by various
7.27 	descriptions and suggested retail prices, the registrar shall
7.28 	select from those listings only the lowest price for determining
7.29 	base value.
7.30 	(d) If unable to determine the base value because the
7.31 	vehicle is specially constructed, or for any other reason, the
7.32 	registrar may establish such value upon the cost price to the
7.33 	purchaser or owner as evidenced by a certificate of cost but not
7.34 	including Minnesota sales or use tax or any local sales or other
7.35 	local tax.
7.36 	(e) The registrar shall classify every vehicle in its
8.1 	proper base value class as follows:
8.2 	FROM                   TO
8.3 	                      $  0                $199.99
8.4 	                       200                 399.99
8.5 	and thereafter a series of classes successively set in brackets
8.6 	having a spread of $200 consisting of such number of classes as
8.7 	will permit classification of all vehicles.
8.8 	(f) The base value for purposes of this section shall be
8.9 	the middle point between the extremes of its class.
8.10 	(g) The registrar shall establish the base value, when new,
8.11 	of every passenger automobile and hearse registered prior to the
8.12 	effective date of Extra Session Laws 1971, chapter 31, using
8.13 	list price information published by the manufacturer or any
8.14 	nationally recognized firm or association compiling such data
8.15 	for the automotive industry.  If unable to ascertain the base
8.16 	value of any registered vehicle in the foregoing manner, the
8.17 	registrar may use any other available source or method.  The
8.18 	registrar shall calculate tax using base value information
8.19 	available to dealers and deputy registrars at the time the
8.20 	application for registration is submitted.  The tax on all
8.21 	previously registered vehicles shall be computed upon the base
8.22 	value thus determined taking into account the depreciation
8.23 	provisions of paragraph (h).
8.24 	(h) The annual additional tax computed upon the base value
8.25 	as provided herein, during the first and second years year of
8.26 	vehicle life shall be computed upon 100 percent of the base
8.27 	value; for the second year, 80 percent of such value;for the
8.28 	third and fourth years year, 90 70 percent of such value; for
8.29 	the fourth year, 60 percent of such value;for the fifth and
8.30 	sixth years year, 75 50 percent of such value; for the sixth
8.31 	year, 40 percent of such value;for the seventh year, 60 35 
8.32 	percent of such value; for the eighth year, 40 30 percent of
8.33 	such value; for the ninth year, 30 20 percent of such value; for
8.34 	the tenth year, ten percent of such value; for the 11th and each
8.35 	succeeding year, the sum of $25.
8.36 	In no event shall the annual additional tax be less than
9.1 	$25. The total tax under this subdivision shall not exceed $189
9.2 	for the first renewal period and shall not exceed $99 for
9.3 	subsequent renewal periods.  The total tax under this
9.4 	subdivision on any vehicle filing its initial registration in
9.5 	Minnesota in the second year of vehicle life shall not exceed
9.6 	$189 and shall not exceed $99 for subsequent renewal periods.
9.7 	The total tax under this subdivision on any vehicle filing its
9.8 	initial registration in Minnesota in the third or subsequent
9.9 	year of vehicle life shall not exceed $99 and shall not exceed
9.10 	$99 in any subsequent renewal period.
9.11 	(i) As used in this subdivision and section 168.017, the
9.12 	following terms have the meanings given:  "initial registration"
9.13 	means the 12 consecutive months calendar period from the day of
9.14 	first registration of a vehicle in Minnesota; and "renewal
9.15 	periods" means the 12 consecutive calendar months periods
9.16 	following the initial registration period.
9.17 	(j) The annual additional tax under paragraph (h) must not
9.18 	exceed the annual additional tax that was previously paid or due
9.19 	on that vehicle.
9.20 	
EFFECTIVE DATE. This section is effective November 1,
9.21 	2005, for registration year 2006 and subsequent years.

9.22 	Sec. 6. Minnesota Statutes 2004, section 296A.07,
9.23 	subdivision 3, is amended to read:
9.24 		Subd. 3.Rate of tax.  The gasoline excise tax is imposed
9.25 	at the following rates:
9.26 	(1) E85 is taxed at the rate of 14.2 17.75 cents per gallon
9.27 	until July 31, 2007, and 21.3 cents per gallon thereafter;
9.28 	(2) M85 is taxed at the rate of 11.4 14.25 cents per gallon
9.29 	until July 31, 2007, and 17.1 cents per gallon thereafter; and
9.30 	(3) all other gasoline is taxed at the rate of 20 25 cents
9.31 	per gallon until July 31, 2007, and 30 cents per gallon
9.32 	thereafter.
9.33 	
EFFECTIVE DATE. This section is effective August 1, 2005.

9.34 	Sec. 7. Minnesota Statutes 2004, section 296A.08,
9.35 	subdivision 2, is amended to read:
9.36 		Subd. 2.Rate of tax.  The special fuel excise tax is
10.1 	imposed at the following rates:
10.2 	(a) Liquefied petroleum gas or propane is taxed at the rate
10.3 	of 15 18.75 cents per gallon until July 31, 2007, and 22.5 cents
10.4 	per gallon thereafter.
10.5 	(b) Liquefied natural gas is taxed at the rate of 12 15 
10.6 	cents per gallon until July 31, 2007, and 18 cents per gallon
10.7 	thereafter.
10.8 	(c) Compressed natural gas is taxed at the rate
10.9 	of $1.739 $2.174 per thousand cubic feet; or 20 25 cents per
10.10 	gasoline equivalent, as defined by the National Conference on
10.11 	Weights and Measures, which is 5.66 pounds of natural gas, until
10.12 	July 31, 2007, and $2.609 per thousand cubic feet, or 30 cents
10.13 	per gasoline equivalent thereafter.
10.14 	(d) All other special fuel is taxed at the same rate as the
10.15 	gasoline excise tax as specified in section 296A.07, subdivision
10.16 	2.  The tax is payable in the form and manner prescribed by the
10.17 	commissioner.
10.18 	
EFFECTIVE DATE. This section is effective August 1, 2005.

10.19 	Sec. 8. Minnesota Statutes 2004, section 297A.94, is
10.20 	amended to read:
10.21 	297A.94 DEPOSIT OF REVENUES.
10.22 	(a) Except as provided in this section, the commissioner
10.23 	shall deposit the revenues, including interest and penalties,
10.24 	derived from the taxes imposed by this chapter in the state
10.25 	treasury and credit them to the general fund.
10.26 	(b) The commissioner shall deposit taxes in the Minnesota
10.27 	agricultural and economic account in the special revenue fund if:
10.28 	(1) the taxes are derived from sales and use of property
10.29 	and services purchased for the construction and operation of an
10.30 	agricultural resource project; and
10.31 	(2) the purchase was made on or after the date on which a
10.32 	conditional commitment was made for a loan guaranty for the
10.33 	project under section 41A.04, subdivision 3.
10.34 	The commissioner of finance shall certify to the commissioner
10.35 	the date on which the project received the conditional
10.36 	commitment.  The amount deposited in the loan guaranty account
11.1 	must be reduced by any refunds and by the costs incurred by the
11.2 	Department of Revenue to administer and enforce the assessment
11.3 	and collection of the taxes.
11.4 	(c) The commissioner shall deposit the revenues, including
11.5 	interest and penalties, derived from the taxes imposed on sales
11.6 	and purchases included in section 297A.61, subdivision 3,
11.7 	paragraph (g), clauses (1) and (4), in the state treasury, and
11.8 	credit them as follows:
11.9 	(1) first to the general obligation special tax bond debt
11.10 	service account in each fiscal year the amount required by
11.11 	section 16A.661, subdivision 3, paragraph (b); and
11.12 	(2) after the requirements of clause (1) have been met, the
11.13 	balance to the general fund.
11.14 	(d) The commissioner shall deposit the revenues, including
11.15 	interest and penalties, collected under section 297A.64,
11.16 	subdivision 5, in the state treasury and credit them to the
11.17 	general fund.  By July 15 of each year the commissioner shall
11.18 	transfer to the highway user tax distribution fund an amount
11.19 	equal to the excess fees collected under section 297A.64,
11.20 	subdivision 5, for the previous calendar year.
11.21 	(e) For fiscal year 2001, 97 percent; for fiscal years 2002
11.22 	and 2003, 87 percent; and for fiscal year 2004 and thereafter,
11.23 	72.43 percent of the revenues, including interest and penalties,
11.24 	transmitted to the commissioner under section 297A.65, must be
11.25 	deposited by the commissioner in the state treasury as follows:
11.26 	(1) 50 percent of the receipts must be deposited in the
11.27 	heritage enhancement account in the game and fish fund, and may
11.28 	be spent only on activities that improve, enhance, or protect
11.29 	fish and wildlife resources, including conservation,
11.30 	restoration, and enhancement of land, water, and other natural
11.31 	resources of the state;
11.32 	(2) 22.5 percent of the receipts must be deposited in the
11.33 	natural resources fund, and may be spent only for state parks
11.34 	and trails;
11.35 	(3) 22.5 percent of the receipts must be deposited in the
11.36 	natural resources fund, and may be spent only on metropolitan
12.1 	park and trail grants;
12.2 	(4) three percent of the receipts must be deposited in the
12.3 	natural resources fund, and may be spent only on local trail
12.4 	grants; and
12.5 	(5) two percent of the receipts must be deposited in the
12.6 	natural resources fund, and may be spent only for the Minnesota
12.7 	Zoological Garden, the Como Park Zoo and Conservatory, and the
12.8 	Duluth Zoo.
12.9 	(f) The revenue dedicated under paragraph (e) may not be
12.10 	used as a substitute for traditional sources of funding for the
12.11 	purposes specified, but the dedicated revenue shall supplement
12.12 	traditional sources of funding for those purposes.  Land
12.13 	acquired with money deposited in the game and fish fund under
12.14 	paragraph (e) must be open to public hunting and fishing during
12.15 	the open season, except that in aquatic management areas or on
12.16 	lands where angling easements have been acquired, fishing may be
12.17 	prohibited during certain times of the year and hunting may be
12.18 	prohibited.  At least 87 percent of the money deposited in the
12.19 	game and fish fund for improvement, enhancement, or protection
12.20 	of fish and wildlife resources under paragraph (e) must be
12.21 	allocated for field operations.
12.22 	(g) Of the revenues that the commissioner determines are
12.23 	derived from sales and use in the counties of Anoka, Carver,
12.24 	Dakota, Hennepin, Ramsey, Scott, and Washington, the
12.25 	commissioner shall deposit 3.08 percent into the metropolitan
12.26 	area transit fund created in section 16A.88, subdivision 2, and
12.27 	0.77 percent into the greater Minnesota transit fund created
12.28 	under section 16A.88, subdivision 1.

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

12.30 	Sec. 9. Minnesota Statutes 2004, section 297B.09,
12.31 	subdivision 1, is amended to read:
12.32 		Subdivision 1.Deposit of revenues.  (a) Money collected
12.33 	and received under this chapter must be deposited as provided in
12.34 	this subdivision.
12.35 	(b) From July 1, 2002, to June 30, 2003, 32 percent of the
12.36 	money collected and received must be deposited in the highway
13.1 	user tax distribution fund, 20.5 percent must be deposited in
13.2 	the metropolitan area transit fund under section 16A.88, and
13.3 	1.25 percent must be deposited in the greater Minnesota transit
13.4 	fund under section 16A.88.  The remaining money must be
13.5 	deposited in the general fund.
13.6 	(c) From July 1, 2003, to June 30, 2007 2005, 30 percent of
13.7 	the money collected and received must be deposited in the
13.8 	highway user tax distribution fund, 21.5 percent must be
13.9 	deposited in the metropolitan area transit fund under section
13.10 	16A.88, 1.43 percent must be deposited in the greater Minnesota
13.11 	transit fund under section 16A.88, 0.65 percent must be
13.12 	deposited in the county state-aid highway fund, and 0.17 percent
13.13 	must be deposited in the municipal state-aid street fund.  The
13.14 	remaining money must be deposited in the general fund.
13.15 	(d) On and after July 1, 2007, 32 percent of the money
13.16 	collected and received must be deposited in the highway user tax
13.17 	distribution fund From July 1, 2005, to June 30, 2006, 4.74
13.18 	percent must be deposited in the trunk highway fund, 8.87
13.19 	percent must be deposited in the county state-aid highway fund,
13.20 	2.33 percent must be deposited in the municipal state-aid street
13.21 	fund, 20.5 21.5 percent must be deposited in the metropolitan
13.22 	area transit fund under section 16A.88, and 1.25 1.43 percent
13.23 	must be deposited in the greater Minnesota transit fund under
13.24 	section 16A.88.  The remaining money must be deposited in the
13.25 	general fund.
13.26 	(e) From July 1, 2006, to June 30, 2007, 2.49 percent must
13.27 	be deposited in the highway user tax distribution fund, 9.64
13.28 	percent must be deposited in the county state-aid highway fund,
13.29 	2.53 percent must be deposited in the municipal state-aid street
13.30 	fund, 21.5 percent must be deposited in the metropolitan area
13.31 	transit fund under section 16A.88, and 1.43 percent must be
13.32 	deposited in the greater Minnesota transit fund under section
13.33 	16A.88.  The remaining money must be deposited in the general
13.34 	fund.
13.35 	(f) From July 1, 2007, to June 30, 2008, 10.08 percent must
13.36 	be deposited in the highway user tax distribution fund, 9.17
14.1 	percent must be deposited in the county state-aid highway fund,
14.2 	2.41 percent must be deposited in the municipal state-aid street
14.3 	fund, 24.23 percent must be deposited in the metropolitan area
14.4 	transit fund under section 16A.88, and 1.28 percent must be
14.5 	deposited in the greater Minnesota transit fund under section
14.6 	16A.88.  The remaining money must be deposited in the general
14.7 	fund.
14.8 	(g) From July 1, 2008, to June 30, 2009, 15.93 percent must
14.9 	be deposited in the highway user tax distribution fund, 9.22
14.10 	percent must be deposited in the county state-aid highway fund,
14.11 	2.42 percent must be deposited in the municipal state-aid street
14.12 	fund, 28.03 percent must be deposited in the metropolitan area
14.13 	transit fund under section 16A.88, and 1.48 percent must be
14.14 	deposited in the greater Minnesota transit fund under section
14.15 	16A.88.  The remaining money must be deposited in the general
14.16 	fund.
14.17 	(h) From July 1, 2009, to June 30, 2010, 50.25 percent must
14.18 	be deposited in the highway user tax distribution fund, 31.825
14.19 	percent must be deposited in the metropolitan area transit fund
14.20 	under section 16A.88, and 1.675 percent must be deposited in the
14.21 	greater Minnesota transit fund under section 16A.88.  The
14.22 	remaining money must be deposited in the general fund.
14.23 	(i) From July 1, 2010, to June 30, 2011, 56.25 percent must
14.24 	be deposited in the highway user tax distribution fund, 35.625
14.25 	percent must be deposited in the metropolitan area transit fund
14.26 	under section 16A.88, and 1.875 percent must be deposited in the
14.27 	greater Minnesota transit fund under section 16A.88.  The
14.28 	remaining money must be deposited in the general fund.
14.29 	(j) On and after July 1, 2011, 60 percent must be deposited
14.30 	in the highway user tax distribution fund, 38 percent must be
14.31 	deposited in the metropolitan area transit fund under section
14.32 	16A.88, and two percent must be deposited in the greater
14.33 	Minnesota transit fund under section 16A.88.  The remaining
14.34 	money must be deposited in the general fund.
14.35 	
EFFECTIVE DATE. This section is effective July 1, 2005.

14.36 	Sec. 10. Laws 2005, chapter 88, article 3, section 9, is
15.1 	amended to read:
15.2 	Sec. 9CONSTITUTIONAL AMENDMENT PROPOSED.
 15.3 	An amendment to the Minnesota Constitution is proposed to
15.4 	the people.  If the amendment is adopted, two sections will be
15.5 	added to article XIV to read:
15.6 	Sec. 12. Beginning with the fiscal year starting July 1,
15.7 	2007, 63.75 percent of the revenue from a tax imposed by the
15.8 	state on the sale of a new or used motor vehicle must be
15.9 	apportioned for the transportation purposes described in section
15.10 	13, then the revenue apportioned for transportation purposes
15.11 	must be increased by ten percent for each subsequent fiscal year
15.12 	through June 30, 2011, and then the revenue must be apportioned
15.13 	100 percent for transportation purposes after June 30,
15.14 	2011.The following percentages of the revenue from a tax
15.15 	imposed by the state on the sale of a new or used motor vehicle
15.16 	must be apportioned for the transportation purposes as described
15.17 	in section 13, as follows:  in fiscal year 2008, 47.2 percent;
15.18 	in fiscal year 2009, 57.1 percent; in fiscal year 2010, 83.75
15.19 	percent; in fiscal year 2011, 93.75 percent; in fiscal year 2012
15.20 	and subsequent years, 100 percent.

15.21 	Sec. 13. The revenue apportioned in section 12 must be
15.22 	allocated for the following transportation purposes:  not more
15.23 	than 60 percent must be deposited in the highway user tax
15.24 	distribution fund, and not less than 40 percent must be
15.25 	deposited in a fund dedicated solely to public transit
15.26 	assistance as defined by law.

15.27 	Sec. 11. APPROPRIATIONS; TRUNK HIGHWAY FUND.
 15.28 	(a) $100,000,000 is appropriated on the first day of each
15.29 	of fiscal years 2006 to 2015 from the bond proceeds account in
15.30 	the trunk highway fund to the commissioner of transportation for
15.31 	trunk highway improvements.
15.32 	(b) $10,660,000 in fiscal year 2006 and $25,220,000 in
15.33 	fiscal year 2007 are appropriated from the trunk highway fund to
15.34 	the commissioner of transportation for highway debt service.
15.35 	These appropriations are in addition to any other appropriations
15.36 	for this purpose.

16.1 	Sec. 12. BOND SALE AUTHORIZATIONS.
 16.2 	To provide the money appropriated in section 11 from the
16.3 	bond proceeds account in the trunk highway fund, the
16.4 	commissioner of finance shall sell and issue bonds of the state
16.5 	in an amount up to $1,000,000,000 in the manner, upon the terms,
16.6 	and with the effect prescribed by Minnesota Statutes, sections
16.7 	167.50 to 167.52, and by the Minnesota Constitution, article
16.8 	XIV, section 11, at the times and in the amounts requested by
16.9 	the commissioner of transportation.  The proceeds of the bonds,
16.10 	except accrued interest and any premium received on the sale of
16.11 	the bonds, must be credited to the bond proceeds account in the
16.12 	trunk highway fund.

16.13 	Sec. 13. EFFECTIVE DATE.
 16.14 	Sections 1 to 3 are effective January 1, 2006, for
16.15 	apportionments made on and after that date.