1.1 	A bill for an act
1.2 	relating to transportation; allocating state general sales tax revenue related to motor 
1.3 	vehicle repair and replacement parts;amending Minnesota Statutes 2020, sections 
1.4 	297A.94; 473.388, subdivision 4.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2020, section 297A.94, is amended to read:
1.7 	297A.94 DEPOSIT OF REVENUES.
1.8 	(a) Except as provided in this section, the commissioner shall deposit the revenues, 
1.9 	including interest and penalties, derived from the taxes imposed by this chapter in the state 
1.10 	treasury and credit them to the general fund.
1.11 	(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic 
1.12 	account in the special revenue fund if:
1.13 	(1) the taxes are derived from sales and use of property and services purchased for the 
1.14 	construction and operation of an agricultural resource project; and
1.15 	(2) the purchase was made on or after the date on which a conditional commitment was 
1.16 	made for a loan guaranty for the project under section 41A.04, subdivision 3.
1.17 	The commissioner of management and budget shall certify to the commissioner the date on 
1.18 	which the project received the conditional commitment. The amount deposited in the loan 
1.19 	guaranty account must be reduced by any refunds and by the costs incurred by the Department 
1.20 	of Revenue to administer and enforce the assessment and collection of the taxes.
2.1 	(c) The commissioner shall deposit the revenues, including interest and penalties, derived 
2.2 	from the taxes imposed on sales and purchases included in section 297A.61, subdivision 3, 
2.3 	paragraph (g), clauses (1) and (4), in the state treasury, and credit them as follows:
2.4 	(1) first to the general obligation special tax bond debt service account in each fiscal 
2.5 	year the amount required by section 16A.661, subdivision 3, paragraph (b); and
2.6 	(2) after the requirements of clause (1) have been met, the balance to the general fund.
2.7 	(d) Beginning with sales taxes remitted after July 1, 2017, the commissioner shall deposit 
2.8 	in the state treasury the revenues collected under section 297A.64, subdivision 1, including 
2.9 	interest and penalties and minus refunds, and credit them to the highway user tax distribution 
2.10 	fund.
2.11 	(e) The commissioner shall deposit the revenues, including interest and penalties, 
2.12 	collected under section 297A.64, subdivision 5, in the state treasury and credit them to the 
2.13 	general fund. By July 15 of each year the commissioner shall transfer to the highway user 
2.14 	tax distribution fund an amount equal to the excess fees collected under section 297A.64, 
2.15 	subdivision 5, for the previous calendar year.
2.16 	(f) Beginning with sales taxes remitted after July 1, 2017, in conjunction with the deposit 
2.17 	of revenues under paragraph (d), the commissioner shall deposit into the state treasury and 
2.18 	credit to the highway user tax distribution fund an amount equal to the estimated revenues 
2.19 	derived from the tax rate imposed under section 297A.62, subdivision 1, on the lease or 
2.20 	rental for not more than 28 days of rental motor vehicles subject to section 297A.64. The 
2.21 	commissioner shall estimate the amount of sales tax revenue deposited under this paragraph 
2.22 	based on the amount of revenue deposited under paragraph (d).
2.23 	(g) Starting after July 1, 2017, the commissioner shall deposit an amount of the 
2.24 	remittances monthly into the state treasury and credit them to the highway user tax 
2.25 	distribution fund as a portion of the estimated amount of taxes collected from the sale and 
2.26 	purchase of motor vehicle repair parts in that month. For the remittances between July 1, 
2.27 	2017, and June 30, 2019, the monthly deposit amount is $2,628,000. For remittances in 
2.28 	each subsequent fiscal year, the monthly deposit amount is $12,137,000.The commissioner 
2.29 	must deposit the revenues derived from the taxes imposed on the sale and purchase of motor 
2.30 	vehicle repair and replacement parts in the state treasury and credit:
2.31 	(1) 53 percent to the highway user tax distribution fund;
2.32 	(2) four percent to the small cities assistance account in the special revenue fund under 
2.33 	section 162.145;
3.1 	(3) three percent to the town road account under section 162.081;
3.2 	(4) 36 percent to the metropolitan area transit account in the transit assistance fund under 
3.3 	section 16A.88; and
3.4 	(5) four percent to the greater Minnesota transit account in the transit assistance fund 
3.5 	under section 16A.88.
3.6 	For purposes of this paragraph, "motor vehicle" has the meaning given in section 297B.01, 
3.7 	subdivision 11, and "motor vehicle repair and replacement parts" includes (i) all parts, tires, 
3.8 	accessories, and equipment incorporated into or affixed to the motor vehicle as part of the 
3.9 	motor vehicle maintenance and repair, and (ii) paint, oil, and other fluids that remain on or 
3.10 	in the motor vehicle as part of the motor vehicle maintenance or repair. For purposes of this 
3.11 	paragraph, "tire" means any tire of the type used on highway vehicles, if wholly or partially 
3.12 	made of rubber and if marked according to federal regulations for highway use.
3.13 	(h) 72.43 percent of the revenues, including interest and penalties, transmitted to the 
3.14 	commissioner under section 297A.65, must be deposited by the commissioner in the state 
3.15 	treasury as follows:
3.16 	(1) 50 percent of the receipts must be deposited in the heritage enhancement account in 
3.17 	the game and fish fund, and may be spent only on activities that improve, enhance, or protect 
3.18 	fish and wildlife resources, including conservation, restoration, and enhancement of land, 
3.19 	water, and other natural resources of the state;
3.20 	(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and may 
3.21 	be spent only for state parks and trails;
3.22 	(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and may 
3.23 	be spent only on metropolitan park and trail grants;
3.24 	(4) three percent of the receipts must be deposited in the natural resources fund, and 
3.25 	may be spent only on local trail grants; and
3.26 	(5) two percent of the receipts must be deposited in the natural resources fund, and may 
3.27 	be spent only for the Minnesota Zoological Garden, the Como Park Zoo and Conservatory, 
3.28 	and the Duluth Zoo.
3.29 	(i) The revenue dedicated under paragraph (h) may not be used as a substitute for 
3.30 	traditional sources of funding for the purposes specified, but the dedicated revenue shall 
3.31 	supplement traditional sources of funding for those purposes. Land acquired with money 
3.32 	deposited in the game and fish fund under paragraph (h) must be open to public hunting 
3.33 	and fishing during the open season, except that in aquatic management areas or on lands 
4.1 	where angling easements have been acquired, fishing may be prohibited during certain times 
4.2 	of the year and hunting may be prohibited. At least 87 percent of the money deposited in 
4.3 	the game and fish fund for improvement, enhancement, or protection of fish and wildlife 
4.4 	resources under paragraph (h) must be allocated for field operations.
4.5 	(j) The commissioner must deposit the revenues, including interest and penalties minus 
4.6 	any refunds, derived from the sale of items regulated under section 624.20, subdivision 1, 
4.7 	that may be sold to persons 18 years old or older and that are not prohibited from use by 
4.8 	the general public under section 624.21, in the state treasury and credit:
4.9 	(1) 25 percent to the volunteer fire assistance grant account established under section 
4.10 	88.068;
4.11 	(2) 25 percent to the fire safety account established under section 297I.06, subdivision 
4.12 	3; and
4.13 	(3) the remainder to the general fund.
4.14 	For purposes of this paragraph, the percentage of total sales and use tax revenue derived 
4.15 	from the sale of items regulated under section 624.20, subdivision 1, that are allowed to be 
4.16 	sold to persons 18 years old or older and are not prohibited from use by the general public 
4.17 	under section 624.21, is a set percentage of the total sales and use tax revenues collected in 
4.18 	the state, with the percentage determined under Laws 2017, First Special Session chapter 
4.19 	1, article 3, section 39.
4.20 	(k) The revenues deposited under paragraphs (a) to (j) do not include the revenues, 
4.21 	including interest and penalties, generated by the sales tax imposed under section 297A.62, 
4.22 	subdivision 1a, which must be deposited as provided under the Minnesota Constitution, 
4.23 	article XI, section 15.

4.24 	EFFECTIVE DATE. This section is effective July 1, 2022.

4.25 	Sec. 2. Minnesota Statutes 2020, section 473.388, subdivision 4, is amended to read:
4.26 		Subd. 4.Financial assistance; base allocation. (a) The council must grant financial 
4.27 	assistance if (1) the service of the statutory or home rule charter city, town, or combination, 
4.28 	replaces the council's service to the statutory or home rule charter city, town, or combination, 
4.29 	and (2) the service meets the needs of the recipient at least as efficiently and effectively as 
4.30 	the council's service.
5.1 	(b) The amount of assistance which the council must provide to a system under this 
5.2 	section must not be less than the sum of (1) the amounts calculated under paragraph (c), 
5.3 	and (2) the amount calculated under subdivision 4a.
5.4 	(c) The financial assistance base allocation for each replacement service municipality 
5.5 	is calculated as:
5.6 	(1) an amount equal to 3.74 percent of the sum of (i) the total state revenues generated 
5.7 	from the taxes imposed under chapter 297B for the current fiscal year, and (ii) the amount 
5.8 	deposited in the metropolitan area transit account in the transit assistance fund as provided 
5.9 	under section 297A.94; times
5.10 	(2) the ratio of:
5.11 	(i) the transit operating assistance grants received under this subdivision by the 
5.12 	municipality in calendar year 2001 or the tax revenues for transit services levied by the 
5.13 	municipality for taxes payable in 2001, including that portion of the levy derived from the 
5.14 	areawide pool under section 473F.08, subdivision 3, clause (a), plus the portion of the 
5.15 	municipality's aid under Minnesota Statutes 2002, section 273.1398, subdivision 2, 
5.16 	attributable to the transit levy; to
5.17 	(ii) the total transit operating assistance grants received under this subdivision in calendar 
5.18 	year 2001 or the tax revenues for transit services levied by all replacement service 
5.19 	municipalities under this section for taxes payable in 2001, including that portion of the 
5.20 	levy derived from the areawide pool under section 473F.08, subdivision 3, clause (a), plus 
5.21 	the portion of homestead and agricultural credit aid under Minnesota Statutes 2002, section 
5.22 	273.1398, subdivision 2, attributable to nondebt transit levies; times
5.23 	(3) the ratio of:
5.24 	(i) the municipality's total taxable market value for taxes payable in 2006 divided by the 
5.25 	municipality's total taxable market value for taxes payable in 2001; to
5.26 	(ii) the total taxable market value of all property located in replacement service 
5.27 	municipalities for taxes payable in 2006 divided by the total taxable market value of all 
5.28 	property located in replacement service municipalities for taxes payable in 2001.
5.29 	(d) The council must pay the amount to be provided to the recipient under this subdivision 
5.30 	from the funds the council receives in the metropolitan area transit account under section 
5.31 	16A.88.

5.32 	EFFECTIVE DATE; APPLICATION. This section is effective July 1, 2022, and 
5.33 	applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.