HF 65

as introduced - 84th Legislature, 2005 1st Special Session (2005 - 2005) Posted on 12/15/2009 12:00am

A bill for an act
relating to transportation; modifying distribution of
county state-aid highway funds; adjusting passenger
automobile tax rates and depreciation schedule;
increasing motor fuel tax rates; allocating revenue
from motor vehicle sales tax; authorizing issuance of
$1,000,000,000 in state trunk highway bonds;
appropriating money; amending Minnesota Statutes 2004,
sections 162.07, subdivision 1, by adding
subdivisions; 168.013, subdivision 1a; 296A.07,
subdivision 3; 296A.08, subdivision 2; 297B.09,
subdivision 1.

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

Section 1.

Minnesota Statutes 2004, section 162.07,
subdivision 1, is amended to read:

Subdivision 1.

Formula.

After deducting for
administrative costs and for the disaster account and research
account and state park roads as deleted text begin heretofore deleted text end provided new text begin in section
162.06, subdivisions 2 to 5 new text end , the remainder of the total sum
provided for in section 162.06, subdivision 1, deleted text begin shall be deleted text end new text begin is
new text end identified as the apportionment sum and deleted text begin shall be apportioned by
the commissioner to the several counties on the basis of the
needs of the counties as determined in accordance with the
following formula:
deleted text end

deleted text begin (a) An amount equal to ten percent of the apportionment sum
shall be apportioned equally among the 87 counties.
deleted text end

deleted text begin (b) An amount equal to ten percent of the apportionment sum
shall be apportioned among the several counties so that each
county shall receive of such amount the percentage that its
motor vehicle registration for the calendar year preceding the
one last past, determined by residence of registrants, bears to
the total statewide motor vehicle registration.
deleted text end

deleted text begin (c) An amount equal to 30 percent of the apportionment sum
shall be apportioned among the several counties so that each
county shall receive of such amount the percentage that its
total lane-miles of approved county state-aid highways bears to
the total lane-miles of approved statewide county state-aid
highways. In 1997 and subsequent years no county may receive,
as a result of an apportionment under this clause based on
lane-miles rather than miles of approved county state-aid
highways, an apportionment that is less than its apportionment
in 1996.
deleted text end

deleted text begin (d) An amount equal to 50 percent of the apportionment sum
shall be apportioned among the several counties so that each
county shall receive of such amount the percentage that its
money needs bears to the sum of the money needs of all of the
individual counties; provided, that the percentage of such
amount that each county is to receive shall be adjusted so that
each county shall receive in 1958 a total apportionment at least
ten percent greater than its total 1956 apportionments from the
state road and bridge fund; and provided further that those
counties whose money needs are thus adjusted shall never receive
a percentage of the apportionment sum less than the percentage
that such county received in 1958 deleted text end new text begin the excess sum new text end .

new text begin (a) The excess sum is calculated as the sum of the amounts
described in clauses (1) and (2), reduced by a proportionate
share of the deductions for administrative costs and for the
disaster account and research account, as follows:
new text end

new text begin (1) on or after July 1, 2005, the amount due to an increase
imposed in the gasoline excise tax rate above a rate of 20 cents
per gallon; or in the excise tax rate for E85, M85, and special
fuels above the energy equivalent of a gasoline tax rate of 20
cents per gallon; and
new text end

new text begin (2) the amount due to a change in the passenger vehicle
registration tax under section 168.013, imposed on or after July
1, 2005, that exceeds the amount collected in fiscal year 2005
multiplied by 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, divided by that annual average for calendar year
2004.
new text end

new text begin (b) The apportionment sum is calculated by subtracting the
excess sum from the remainder of the total sum.
new text end

Sec. 2.

Minnesota Statutes 2004, section 162.07, is
amended by adding a subdivision to read:

new text begin Subd. 1a. new text end

new text begin Apportionment sum. new text end

new text begin The commissioner shall
apportion the apportionment sum among the several counties on
the basis of the needs of the counties as determined in
accordance with the following formula:
new text end

new text begin (a) An amount equal to ten percent of the apportionment sum
must be apportioned equally among the 87 counties.
new text end

new text begin (b) An amount equal to ten percent of the apportionment sum
must be apportioned among the several counties so that each
county receives of that amount the percentage that its motor
vehicle registration for the calendar year preceding the one
last past, determined by residence of registrants, bears to the
total statewide motor vehicle registration.
new text end

new text begin (c) An amount equal to 30 percent of the apportionment sum
must be apportioned among the several counties so that each
county receives of that amount the percentage that its total
lane-miles of approved county state-aid highways bears to the
total lane-miles of approved statewide county state-aid
highways. In 1997 and subsequent years, no county may receive,
as a result of an apportionment under this paragraph based on
lane-miles rather than miles of approved county state-aid
highways, an apportionment that is less than its apportionment
in 1996.
new text end

new text begin (d) An amount equal to 50 percent of the apportionment sum
must be apportioned among the several counties so that each
county receives of that amount the percentage that its money
needs bears to the sum of the money needs of all of the
individual counties.
new text end

Sec. 3.

Minnesota Statutes 2004, section 162.07, is
amended by adding a subdivision to read:

new text begin Subd. 1b. new text end

new text begin Excess sum. new text end

new text begin The commissioner shall apportion
the excess sum to the several counties on the basis of the needs
of the counties as determined in accordance with the following
formula:
new text end

new text begin (a) An amount equal to 40 percent of the excess sum must be
apportioned among the several counties so that each county
receives of that amount the percentage that its motor vehicle
registration for the calendar year preceding the one last past,
determined by residence of registrants, bears to the total
statewide motor vehicle registration.
new text end

new text begin (b) An amount equal to 60 percent of the excess sum must be
apportioned among the several counties so that each county
receives of that amount the percentage that its money needs
bears to the sum of the money needs of all of the individual
counties.
new text end

Sec. 4.

Minnesota Statutes 2004, section 168.013,
subdivision 1a, is amended to read:

Subd. 1a.

Passenger automobile; hearse.

(a) On passenger
automobiles as defined in section 168.011, subdivision 7, and
hearses, except as otherwise provided, the tax shall be $10 plus
an additional tax equal to 1.25 percent of the base value.

(b) Subject to the classification provisions herein, "base
value" means the manufacturer's suggested retail price of the
vehicle including destination charge using list price
information published by the manufacturer or determined by the
registrar if no suggested retail price exists, and shall not
include the cost of each accessory or item of optional equipment
separately added to the vehicle and the suggested retail price.

(c) If the manufacturer's list price information contains a
single vehicle identification number followed by various
descriptions and suggested retail prices, the registrar shall
select from those listings only the lowest price for determining
base value.

(d) If unable to determine the base value because the
vehicle is specially constructed, or for any other reason, the
registrar may establish such value upon the cost price to the
purchaser or owner as evidenced by a certificate of cost but not
including Minnesota sales or use tax or any local sales or other
local tax.

(e) The registrar shall classify every vehicle in its
proper base value class as follows:

FROM TO
$ 0 $199.99
200 399.99

and thereafter a series of classes successively set in brackets
having a spread of $200 consisting of such number of classes as
will permit classification of all vehicles.

(f) The base value for purposes of this section shall be
the middle point between the extremes of its class.

(g) The registrar shall establish the base value, when new,
of every passenger automobile and hearse registered prior to the
effective date of Extra Session Laws 1971, chapter 31, using
list price information published by the manufacturer or any
nationally recognized firm or association compiling such data
for the automotive industry. If unable to ascertain the base
value of any registered vehicle in the foregoing manner, the
registrar may use any other available source or method. The
registrar shall calculate tax using base value information
available to dealers and deputy registrars at the time the
application for registration is submitted. The tax on all
previously registered vehicles shall be computed upon the base
value thus determined taking into account the depreciation
provisions of paragraph (h).

(h) The annual additional tax computed upon the base value
as provided herein, during the first deleted text begin and second years deleted text end new text begin year new text end of
vehicle life shall be computed upon 100 percent of the base
value; new text begin for the second year, 80 percent of such value; new text end for the
third deleted text begin and fourth years deleted text end new text begin year new text end , deleted text begin 90 deleted text end new text begin 70 new text end percent of such value; new text begin for
the fourth year, 60 percent of such value; new text end for the fifth deleted text begin and
sixth years deleted text end new text begin year new text end , deleted text begin 75 deleted text end new text begin 50 new text end percent of such value; new text begin for the sixth
year, 40 percent of such value; new text end for the seventh year, deleted text begin 60 deleted text end new text begin 35
new text end percent of such value; for the eighth year, deleted text begin 40 deleted text end new text begin 30 new text end percent of
such value; for the ninth year, deleted text begin 30 deleted text end new text begin 20 new text end percent of such value; for
the tenth year, ten percent of such value; for the 11th and each
succeeding year, the sum of $25.

In no event shall the annual additional tax be less than $25.
new text begin In the second and subsequent years of vehicle life new text end the total tax
under this subdivision shall not exceed $189 deleted text begin for the first
renewal period and shall not exceed $99 for subsequent renewal
periods deleted text end . The total tax under this subdivision on any vehicle
filing its initial registration in Minnesota in the second deleted text begin year
deleted text end new text begin and subsequent years new text end of vehicle life shall not exceed $189 deleted text begin and
shall not exceed $99 for subsequent renewal periods. The total
tax under this subdivision on any vehicle filing its initial
registration in Minnesota in the third or subsequent year of
vehicle life shall not exceed $99 and shall not exceed $99 in
any subsequent renewal period deleted text end .

(i) As used in this subdivision and section 168.017, the
following terms have the meanings given: "initial registration"
means the 12 consecutive months calendar period from the day of
first registration of a vehicle in Minnesota; and "renewal
periods" means the 12 consecutive calendar months periods
following the initial registration period.

new text begin (j) The annual additional tax under paragraph (h) in any
registration year on a passenger automobile on which the first
annual tax was paid before November 15, 2005, must not exceed
the tax that was paid on that vehicle in the previous
registration year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective November 15,
2005, for registration year 2006 and subsequent years.
new text end

Sec. 5.

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 August 1, 2005.
new text end

Sec. 6.

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 August 1, 2005.
new text end

Sec. 7.

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, deleted text begin 30 deleted text end new text begin 26.93 new text end percent
of the money collected and received must be deposited in the
highway user tax distribution fund, deleted text begin 21.5 deleted text end new text begin 24.38 new text end percent must be
deposited in the metropolitan area transit fund under section
16A.88, deleted text begin 1.43 deleted text end new text begin 1.62 new text end 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, 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.

new text begin EFFECTIVE DATE. new text end

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

Sec. 8. new text begin APPROPRIATION; TRUNK HIGHWAY FUND.
new text end

new text begin $100,000,000 is appropriated from the bond proceeds account
in the trunk highway fund to the commissioner of transportation
on the first day of each of fiscal years 2006 through 2015, for
improvements to the state trunk highway system. Of this
appropriation:
new text end

new text begin (1) $50,000,000 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) $50,000,000 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 The commissioner may spend up to 15 percent of this
appropriation each year on program delivery.
new text end

Sec. 9. new text begin BOND SALE AUTHORIZATIONS.
new text end

new text begin To provide the money appropriated in section 8 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 $1,000,000,000 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