HF 103

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to transportation; reducing rates of taxation 
  1.3             on passenger automobiles; creating a Minnesota 
  1.4             transportation trust fund for highways and transit; 
  1.5             requiring appropriations for the state patrol to be 
  1.6             made from the general fund; proposing an amendment to 
  1.7             the Minnesota Constitution, article XIV, to require 
  1.8             all proceeds from the motor vehicle sales tax to be 
  1.9             deposited in the Minnesota transportation trust fund; 
  1.10            amending Minnesota Statutes 1998, sections 168.013, 
  1.11            subdivision 1a; 297B.09, subdivision 1; 299D.01, by 
  1.12            adding a subdivision; and 299D.03, subdivision 5; 
  1.13            proposing coding for new law in Minnesota Statutes, 
  1.14            chapter 174. 
  1.15  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.16     Section 1.  Minnesota Statutes 1998, section 168.013, 
  1.17  subdivision 1a, is amended to read: 
  1.18     Subd. 1a.  [PASSENGER AUTOMOBILE; HEARSE.] (a) On passenger 
  1.19  automobiles as defined in section 168.011, subdivision 7, and 
  1.20  hearses, except as otherwise provided, the tax shall be $10 plus 
  1.21  an additional tax equal to 1.25 percent of the base value.  
  1.22     (b) Subject to the classification provisions herein, "base 
  1.23  value" means the manufacturer's suggested retail price of the 
  1.24  vehicle including destination charge using list price 
  1.25  information published by the manufacturer or determined by the 
  1.26  registrar if no suggested retail price exists, and shall not 
  1.27  include the cost of each accessory or item of optional equipment 
  1.28  separately added to the vehicle and the suggested retail price. 
  1.29     (c) If the manufacturer's list price information contains a 
  1.30  single vehicle identification number followed by various 
  2.1   descriptions and suggested retail prices, the registrar shall 
  2.2   select from those listings only the lowest price for determining 
  2.3   base value. 
  2.4      (d) If unable to determine the base value because the 
  2.5   vehicle is specially constructed, or for any other reason, the 
  2.6   registrar may establish such value upon the cost price to the 
  2.7   purchaser or owner as evidenced by a certificate of cost but not 
  2.8   including Minnesota sales or use tax or any local sales or other 
  2.9   local tax. 
  2.10     (e) The registrar shall classify every vehicle in its 
  2.11  proper base value class as follows: 
  2.12                        FROM                   TO
  2.13                        $  0                $199.99
  2.14                         200                 399.99
  2.15  and thereafter a series of classes successively set in brackets 
  2.16  having a spread of $200 consisting of such number of classes as 
  2.17  will permit classification of all vehicles. 
  2.18     (f) The base value for purposes of this section shall be 
  2.19  the middle point between the extremes of its class. 
  2.20     (g) The registrar shall establish the base value, when new, 
  2.21  of every passenger automobile and hearse registered prior to the 
  2.22  effective date of Extra Session Laws 1971, chapter 31, using 
  2.23  list price information published by the manufacturer or any 
  2.24  nationally recognized firm or association compiling such data 
  2.25  for the automotive industry.  If unable to ascertain the base 
  2.26  value of any registered vehicle in the foregoing manner, the 
  2.27  registrar may use any other available source or method.  The tax 
  2.28  on all previously registered vehicles shall be computed upon the 
  2.29  base value thus determined taking into account the depreciation 
  2.30  provisions of paragraph (h). 
  2.31     (h) Except as provided in paragraph (i), the annual 
  2.32  additional tax computed upon the base value as provided herein, 
  2.33  during the first and second years of vehicle life shall be 
  2.34  computed upon 100 percent of the base value; for the third and 
  2.35  fourth years, 90 percent of such value; for the fifth and sixth 
  2.36  years, 75 percent of such value; for the seventh year, 60 
  3.1   percent of such value; for the eighth year, 40 percent of such 
  3.2   value; for the ninth year, 30 percent of such value; for the 
  3.3   tenth year, ten percent of such value; for the 11th and each 
  3.4   succeeding year, the sum of $25.  
  3.5      In no event shall the annual additional tax be less than 
  3.6   $25.  
  3.7      (i) The annual additional tax under paragraph (h) on a 
  3.8   motor vehicle on which the first annual tax was paid before 
  3.9   January 1, 1990, must not exceed the tax that was paid on that 
  3.10  vehicle the year before $35. 
  3.11     Sec. 2.  [174.45] [MINNESOTA TRANSPORTATION TRUST FUND.] 
  3.12     Subdivision 1.  [FUND CREATED.] The Minnesota 
  3.13  transportation trust fund is created in the state treasury.  The 
  3.14  fund consists of money allocated to the fund under sections 
  3.15  168.651 and 297B.09 and all other money appropriated or credited 
  3.16  to the fund by law.  A county transportation account and a 
  3.17  municipal transportation account are created as accounts within 
  3.18  the fund. 
  3.19     Subd. 2.  [TRANSPORTATION ACCOUNTS.] (a) On the tenth day 
  3.20  of each month the commissioner of finance shall, from money in 
  3.21  the Minnesota transportation trust fund, credit to their 
  3.22  respective accounts the following percentages of total revenue 
  3.23  that the commissioner determines would have been received in the 
  3.24  previous month from taxes and fees imposed under chapter 168 if 
  3.25  the rates of taxation under section 168.013, subdivision 1a, 
  3.26  that were in effect on June 30, 1999, were still in effect 
  3.27  during that month: 
  3.28     (1) to the county transportation account, 27.55 percent; 
  3.29     (2) to the municipal transportation account, 8.55 percent; 
  3.30     (3) to the town road account established in section 
  3.31  162.081, 1.53 percent; 
  3.32     (4) to the town bridge account established in section 
  3.33  161.082, subdivision 2a, 0.8 percent; and 
  3.34     (5) to the flexible account established in section 161.081, 
  3.35  subdivision 3, 2.68 percent. 
  3.36     (b) In making the determination under paragraph (a), the 
  4.1   commissioner of revenue shall: 
  4.2      (1) use registration year 1999 as a base year for making 
  4.3   assumptions concerning revenue from motor vehicle license taxes; 
  4.4      (2) assume annual increases of three percent in revenue 
  4.5   from motor vehicle license taxes; and 
  4.6      (3) assume deductions from motor vehicle license tax 
  4.7   revenue for refunds, collection costs, state indirect costs, 
  4.8   reimbursements to other funds, and transfers to a contingent 
  4.9   account. 
  4.10     (c) Money in the county and municipal transportation 
  4.11  accounts is appropriated to the commissioner. 
  4.12     Subd. 3.  [COUNTY TRANSPORTATION ACCOUNT ALLOCATIONS.] At 
  4.13  the same time the commissioner makes apportionments under 
  4.14  section 162.06, the commissioner shall distribute amounts in the 
  4.15  county transportation account to each county so that each county 
  4.16  receives the same percentage of money to be distributed as its 
  4.17  percentage for that year of county state-aid highway fund 
  4.18  allocations.  A county may spend money received under this 
  4.19  subdivision to match federal funds available to the county for 
  4.20  highway and transit purposes, and for any other highway or 
  4.21  transit purpose. 
  4.22     Subd. 4.  [MUNICIPAL TRANSPORTATION ACCOUNT.] At the same 
  4.23  time the commissioner makes apportionments under section 162.12, 
  4.24  the commissioner shall distribute money in the municipal 
  4.25  transportation account to each city eligible to receive an 
  4.26  allocation from the municipal state-aid street fund so that each 
  4.27  city receives the same percentage of money to be distributed as 
  4.28  its percentage for that year of municipal state-aid street fund 
  4.29  allocations.  A city may spend money received under this 
  4.30  subdivision to match federal funds available to the city for 
  4.31  highway and transit purposes, and for any other highway or 
  4.32  transit purpose. 
  4.33     Subd. 5.  [APPROPRIATIONS.] Not later than January 1 of 
  4.34  each odd-numbered year, the commissioner shall submit to the 
  4.35  legislature a list of recommended appropriations from the 
  4.36  anticipated balance in the fund for the next biennium after 
  5.1   amounts have been credited under subdivisions 2 and 3.  The list 
  5.2   must be based on the most recent state transportation plan and 
  5.3   statewide transportation improvement program, and on the goals 
  5.4   established under section 174.01, subdivision 2.  The 
  5.5   recommendations must provide for allocating funds to the 
  5.6   commissioner, local road authorities, and other government and 
  5.7   private entities those amounts that the commissioner determines 
  5.8   are necessary to match available federal funds not matched under 
  5.9   subdivision 2 or 3, to the extent that the anticipated balance 
  5.10  in the fund permits, for (1) highway construction, 
  5.11  reconstruction, improvement, and maintenance, (2) acquisition of 
  5.12  public transit vehicles, (3) public transit capital 
  5.13  improvements, (4) transportation enhancements, and (5) other 
  5.14  transportation expenditures that are required to be included in 
  5.15  a statewide transportation improvement program in order to be 
  5.16  eligible for federal participation. 
  5.17     Subd. 6.  [ALLOCATION OF BALANCE.] Any money remaining in 
  5.18  the Minnesota transportation trust fund at the end of a fiscal 
  5.19  year after amounts have been credited under subdivision 2 and 
  5.20  appropriations made under subdivision 4 must be credited 62 
  5.21  percent to the trunk highway fund, 29 percent to the county 
  5.22  state-aid highway fund, and nine percent to the municipal 
  5.23  state-aid street fund. 
  5.24     Sec. 3.  Minnesota Statutes 1998, section 297B.09, 
  5.25  subdivision 1, is amended to read: 
  5.26     Subdivision 1.  [GENERAL FUND SHARE.] (a) Money collected 
  5.27  and received under this chapter must be deposited in the state 
  5.28  treasury and credited to the general fund.  The amounts 
  5.29  collected and received shall be credited as provided in this 
  5.30  subdivision, and transferred from the general fund on July 15 
  5.31  and February 15 of each fiscal year.  The commissioner of 
  5.32  finance must make each transfer based upon the actual receipts 
  5.33  of the preceding six calendar months and include the interest 
  5.34  earned during that six-month period.  The commissioner of 
  5.35  finance may establish a quarterly or other schedule providing 
  5.36  for more frequent payments to the transit assistance fund if the 
  6.1   commissioner determines it is necessary or desirable to provide 
  6.2   for the cash flow needs of the recipients of money from the 
  6.3   transit assistance fund.  
  6.4      (b) Twenty-five percent of the money collected and received 
  6.5   under this chapter after June 30, 1990, and before July 1, 1991, 
  6.6   must be transferred to the highway user tax distribution fund 
  6.7   and the transit assistance fund for apportionment as follows:  
  6.8   75 percent must be transferred to the highway user tax 
  6.9   distribution fund for apportionment in the same manner and for 
  6.10  the same purposes as other money in that fund, and the remaining 
  6.11  25 percent of the money must be transferred to the transit 
  6.12  assistance fund to be appropriated to the commissioner of 
  6.13  transportation for transit assistance within the state and to 
  6.14  the metropolitan council.  
  6.15     (c) The distributions under this subdivision to the highway 
  6.16  user tax distribution fund until June 30, 1991, and to the trunk 
  6.17  highway fund thereafter, must be reduced by the amount necessary 
  6.18  to fund the appropriation under section 41A.09, subdivision 1.  
  6.19  For the fiscal years ending June 30, 1988, and June 30, 1989, 
  6.20  the commissioner of finance, before making the transfers 
  6.21  required on July 15 and January 15 of each year, shall estimate 
  6.22  the amount required to fund the appropriation under section 
  6.23  41A.09, subdivision 1, for the six-month period for which the 
  6.24  transfer is being made.  The commissioner shall then reduce the 
  6.25  amount transferred to the highway user tax distribution fund by 
  6.26  the amount of that estimate.  The commissioner shall reduce the 
  6.27  estimate for any six-month period by the amount by which the 
  6.28  estimate for the previous six-month period exceeded the amount 
  6.29  needed to fund the appropriation under section 41A.09, 
  6.30  subdivision 1, for that previous six-month period.  If at any 
  6.31  time during a six-month period in those fiscal years the amount 
  6.32  of reduction in the transfer to the highway user tax 
  6.33  distribution fund is insufficient to fund the appropriation 
  6.34  under section 41A.09, subdivision 1, for that period, the 
  6.35  commissioner shall transfer to the general fund from the highway 
  6.36  user tax distribution fund an additional amount sufficient to 
  7.1   fund the appropriation for that period, but the additional 
  7.2   amount so transferred to the general fund in a six-month period 
  7.3   may not exceed the amount transferred to the highway user tax 
  7.4   distribution fund for that six-month period Minnesota 
  7.5   transportation trust fund. 
  7.6      Sec. 4.  Minnesota Statutes 1998, section 299D.01, is 
  7.7   amended by adding a subdivision to read: 
  7.8      Subd. 9.  [APPROPRIATIONS.] Appropriations for the 
  7.9   operations of the state patrol, other than commercial motor 
  7.10  vehicle inspection and enforcement activities, must be from the 
  7.11  general fund. 
  7.12     Sec. 5.  Minnesota Statutes 1998, section 299D.03, 
  7.13  subdivision 5, is amended to read: 
  7.14     Subd. 5.  [FINES AND FORFEITED BAIL MONEY.] (a) All fines 
  7.15  and forfeited bail money, from traffic and motor vehicle law 
  7.16  violations, collected from persons apprehended or arrested by 
  7.17  officers of the state patrol, shall be paid by the person or 
  7.18  officer collecting the fines, forfeited bail money or 
  7.19  installments thereof, on or before the tenth day after the last 
  7.20  day of the month in which these moneys were collected, to the 
  7.21  county treasurer of the county where the violation occurred.  
  7.22  Three-eighths of these receipts shall be credited to the general 
  7.23  revenue fund of the county.  The other five-eighths of these 
  7.24  receipts shall be transmitted by that officer to the state 
  7.25  treasurer and shall be credited as follows: 
  7.26     (1) In the fiscal year ending June 30, 1991, the first 
  7.27  $275,000 in money received by the state treasurer after June 4, 
  7.28  1991, must be credited to the transportation services fund, and 
  7.29  the remainder in the fiscal year credited to the trunk highway 
  7.30  fund. 
  7.31     (2) In fiscal year 1992, the first $215,000 in money 
  7.32  received by the state treasurer in the fiscal year must be 
  7.33  credited to the transportation services fund, and the remainder 
  7.34  credited to the trunk highway fund. 
  7.35     (3) In fiscal years 1993 and subsequent years, the entire 
  7.36  amount received by the state treasurer must be credited to the 
  8.1   trunk highway to the general fund.  If, however, the violation 
  8.2   occurs within a municipality and the city attorney prosecutes 
  8.3   the offense, and a plea of not guilty is entered, one-third of 
  8.4   the receipts shall be credited to the general revenue fund of 
  8.5   the county, one-third of the receipts shall be paid to the 
  8.6   municipality prosecuting the offense, and one-third shall be 
  8.7   transmitted to the state treasurer as provided in this 
  8.8   subdivision.  All costs of participation in a nationwide police 
  8.9   communication system chargeable to the state of Minnesota shall 
  8.10  be paid from appropriations for that purpose. 
  8.11     (b) Notwithstanding any other provisions of law, all fines 
  8.12  and forfeited bail money from violations of statutes governing 
  8.13  the maximum weight of motor vehicles, collected from persons 
  8.14  apprehended or arrested by employees of the state of Minnesota, 
  8.15  by means of stationary or portable scales operated by these 
  8.16  employees, shall be paid by the person or officer collecting the 
  8.17  fines or forfeited bail money, on or before the tenth day after 
  8.18  the last day of the month in which the collections were made, to 
  8.19  the county treasurer of the county where the violation 
  8.20  occurred.  Five-eighths of these receipts shall be transmitted 
  8.21  by that officer to the state treasurer and shall be credited to 
  8.22  the highway user tax distribution fund.  Three-eighths of these 
  8.23  receipts shall be credited to the general revenue fund of the 
  8.24  county.  
  8.25     Sec. 6.  [CONSTITUTIONAL AMENDMENT PROPOSED.] 
  8.26     An amendment is proposed to the Minnesota Constitution, 
  8.27  article XIV.  If the amendment is adopted, article XIV will be 
  8.28  amended by adding a section to read: 
  8.29     Sec. 12.  [MINNESOTA TRANSPORTATION TRUST FUND.] A 
  8.30  Minnesota transportation trust fund is created to be used 
  8.31  exclusively for highway and transit projects as defined by law.  
  8.32  The commissioner of the department of transportation or its 
  8.33  successor agency shall recommend to the legislature 
  8.34  appropriations from the fund for highway and transit purposes 
  8.35  for each legislative budget period.  All of the proceeds from a 
  8.36  tax levied by the state on the purchase price of new and used 
  9.1   motor vehicles must be allocated by law to the fund. 
  9.2      Sec. 7.  [SUBMISSION TO VOTERS.] 
  9.3      The constitutional amendment proposed in section 6 must be 
  9.4   submitted to the people at the 2000 general election.  The 
  9.5   question submitted must be: 
  9.6      "Shall the Minnesota Constitution be amended to create a 
  9.7   Minnesota transportation trust fund for highways and transit, 
  9.8   and to require that all proceeds from a state sales tax on new 
  9.9   and used motor vehicles be deposited in the fund? 
  9.10                                     Yes .......
  9.11                                     No ........"
  9.12     Sec. 8.  [EFFECTIVE DATE.] 
  9.13     (1) Section 1 is effective November 1, 1999, for 
  9.14  registration year 2000 and subsequent years. 
  9.15     (2) Sections 2, 4, and 5 are effective July 1, 1999. 
  9.16     (3) Section 3 is effective January 1, 2001. 
  9.17     (4) Notwithstanding clauses (1) to (3), if the 
  9.18  constitutional amendment proposed in section 6 is not adopted at 
  9.19  the 2000 general election: 
  9.20     (i) section 1 is repealed November 15, 2000, and the tax 
  9.21  rates under Minnesota Statutes, section 168.013, subdivision 1a, 
  9.22  revert to the rates in effect on November 14, 1999; and 
  9.23     (ii) section 3 shall not take effect.