HF 110

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

A bill for an act
relating to taxation; imposing 0.25 percent sales tax
in the metropolitan area for infrastructure debt
service and transit operations; proposing coding for
new law as Minnesota Statutes, chapter 473J.

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

Section 1.

new text begin [473J.01] METROPOLITAN INFRASTRUCTURE SALES
TAX AREA.
new text end

new text begin The metropolitan infrastructure sales tax area is the area
within the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,
Scott, and Washington.
new text end

Sec. 2.

new text begin [473J.02] SALES TAX.
new text end

new text begin A sales and use tax of 0.25 percent is imposed on retail
sales and uses taxable under chapter 297A that occur in the
metropolitan infrastructure sales tax area. This tax is in
addition to the taxes imposed by sections 297A.62, subdivision
1, and 297A.63, subdivision 1, and any local taxes imposed
pursuant to a special law.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and
purchases made after July 31, 2005.
new text end

Sec. 3.

new text begin [473J.03] TAX COLLECTION.
new text end

new text begin The tax imposed by section 473J.02 must be reported and
paid to the commissioner of revenue with the taxes imposed by
chapter 297A and in accordance with an agreement between the
counties in the metropolitan infrastructure sales tax area and
the commissioner of revenue. The taxes are subject to the same
interest, penalty, and other provisions provided for sales and
use taxes under chapters 289A and 297A. The commissioner has
the same powers to assess and collect the tax as are given the
commissioner in chapters 270, 289A, and 297A to assess and
collect sales and use taxes. The commissioner shall deposit the
revenues, including interest and penalties, derived from the tax
in the state treasury and credit them to the general fund.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and
purchases made after July 31, 2005.
new text end

Sec. 4.

new text begin [473J.04] METROPOLITAN INFRASTRUCTURE SALES TAX
ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Transfer to fund. new text end

new text begin (a) The revenue
collected under section 473J.03, less the cost of collection, is
appropriated from the general fund to the commissioner of
finance for transfer to a special account within the general
fund in the state treasury, to be called the metropolitan
infrastructure sales tax account.
new text end

new text begin (b) The cost of collection equals the direct and indirect
costs of the Department of Revenue to administer, audit, and
collect the revenue, plus the metropolitan infrastructure sales
tax area's proportionate share of the indirect cost of
administering all local sales and use taxes under section
297A.99.
new text end

new text begin Subd. 2. new text end

new text begin Use of fund. new text end

new text begin Money in the metropolitan
infrastructure sales tax account is appropriated as follows:
new text end

new text begin (1) 60 percent to the Metropolitan Council for annual
distribution among the counties in the metropolitan
infrastructure sales tax area, so that each county receives 60
percent of the revenues under section 473J.02 derived from sales
and uses in that county in the previous year, to be used by each
county for debt service relating to major infrastructure
improvements as identified by each county, or for costs of
operating transit, or for both purposes; and
new text end

new text begin (2) 40 percent to the Metro Transitways Development Board
for transit purposes in the metropolitan infrastructure sales
tax area.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and
purchases made after July 31, 2005.
new text end

Sec. 5. new text begin APPLICATION.
new text end

new text begin Sections 1 to 4 apply in the counties of Anoka, Carver,
Dakota, Hennepin, Ramsey, Scott, and Washington.
new text end