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HF 1044

as introduced - 88th Legislature (2013 - 2014) Posted on 02/28/2013 11:43am

KEY: stricken = removed, old language. underscored = added, new language.

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Introduction Pdf Posted on 02/28/2013

Current Version - as introduced

1.1A bill for an act
1.2relating to transportation; transit finance; reallocating revenues from motor
1.3vehicle lease sales tax; imposing metropolitan area sales tax for transit,
1.4bicycle, and pedestrian improvements; providing for use of sales tax revenues;
1.5authorizing issuance of state bonds; appropriating money;amending Minnesota
1.6Statutes 2012, sections 297A.815, subdivision 3; 297A.992, subdivision 4;
1.7proposing coding for new law in Minnesota Statutes, chapter 297A.
1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.9    Section 1. Minnesota Statutes 2012, section 297A.815, subdivision 3, is amended to
1.10read:
1.11    Subd. 3. Motor vehicle lease sales tax revenue. (a) For purposes of this
1.12subdivision, "net revenue" means an amount equal to:
1.13    (1) the revenues, including interest and penalties, collected under this section, during
1.14the fiscal year; less
1.15    (2) in fiscal year 2011, $30,100,000; in fiscal year 2012, $31,100,000; and in fiscal
1.16year 2013 and following fiscal years, $32,000,000.
1.17    (b) On or before June 30 of each fiscal year, the commissioner of revenue shall
1.18estimate the amount of the revenues and subtraction under paragraph (a) for the current
1.19fiscal year.
1.20    (c) On or after July 1 of the subsequent fiscal each year, the commissioner of
1.21management and budget shall transfer the net revenue as estimated in paragraph (b) from
1.22the general fund revenues, including interest and penalties, collected under this section
1.23during the previous fiscal year, as follows:
1.24    (1) 50 percent to the greater Minnesota transit account; and
2.1    (2) 50 percent (1) $9,000,000 to the county state-aid highway fund. Notwithstanding
2.2any other law to the contrary, the commissioner of transportation shall allocate the funds
2.3transferred under this clause to the counties in the metropolitan area, as defined in section
2.4473.121 , subdivision 4, excluding the counties of Hennepin and Ramsey, so that each
2.5county shall receive of such amount the percentage that its population, as defined in
2.6section 477A.011, subdivision 3, estimated or established by July 15 of the year prior to
2.7the current calendar year, bears to the total population of the counties receiving funds
2.8under this clause; and
2.9    (2) the remainder to the greater Minnesota transit account.
2.10    (d) For fiscal years 2010 and 2011, the amount under paragraph (a), clause (1), must
2.11be calculated using the following percentages of the total revenues:
2.12    (1) for fiscal year 2010, 83.75 percent; and
2.13    (2) for fiscal year 2011, 93.75 percent.

2.14    Sec. 2. [297A.985] METROPOLITAN AREA TRANSIT SALES AND USE TAX.
2.15    Subdivision 1. Authorization and imposition. (a) Notwithstanding any law to the
2.16contrary, the taxes described in this subdivision are imposed:
2.17(1) a transit sales and use tax at a rate of three-quarters of one percent is imposed on
2.18retail sales and uses taxable under this chapter that occur within the metropolitan area; and
2.19(2) an excise tax of $20 is imposed on each motor vehicle, as defined in section
2.20297B.01, subdivision 11, purchased or acquired from any person engaged in the business
2.21of selling motor vehicles at retail, occurring within the metropolitan area.
2.22(b) The taxes authorized in this section and the manner in which they are imposed
2.23are exempt from section 297A.99, subdivisions 1, 2, 3, and 12. Provisions of section
2.24297A.99 that relate to imposition, administration, collection, and enforcement apply to the
2.25taxes authorized in this section.
2.26(c) The taxes authorized in this section shall not be used in determining a tax if doing
2.27so will result in the total tax on lodging in the city of Minneapolis exceeding the maximum
2.28allowed tax under Laws 1986, chapter 396, section 5, as amended by Laws 2001, First
2.29Special Session chapter 5, article 12, section 87, and Laws 2012, chapter 299, article 3,
2.30section 3, or in determining a tax that may be imposed under any other limitation.
2.31(d) For the purposes of this section, "metropolitan area" means the counties of
2.32Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
2.33    Subd. 2. Allocation of revenues. After deductions allowed in section 297A.99,
2.34subdivision 11, the commissioner of revenue shall remit the proceeds of the tax imposed
2.35under this section on a monthly basis, as provided in this subdivision:
3.1(1) 41.5 percent to the Metropolitan Council for bus transit in the metropolitan
3.2area, including suburban transit providers;
3.3(2) 41.5 percent to the Counties Transit Improvement Board;
3.4(3) seven percent to cities in the metropolitan area as provided in subdivision 5;
3.5(4) seven percent to counties in the metropolitan area as provided in subdivision 5; and
3.6(5) three percent to the Metropolitan Council for regional bicycle, trail, and
3.7pedestrian infrastructure and maintenance to be distributed as grants to park districts in the
3.8metropolitan area and to local units of government in the metropolitan area.
3.9    Subd. 3. Use of revenues for transit by Metropolitan Council. (a) Funds remitted
3.10to the council under subdivision 2, clause (1), must be used to expand and upgrade bus
3.11service and related amenities, to ensure that fares are affordable, and to support capital
3.12and operating needs of public transit, including paratransit, necessary to implement the
3.13council's transportation policy plan.
3.14(b) Funds remitted to the council under subdivision 2, clause (1), must supplement,
3.15not supplant, operating and capital assistance to the Metropolitan Council provided by
3.16the state.
3.17(c) Beginning in 2015, and in each subsequent year, the council shall by February 15
3.18submit a report to the chairs and ranking minority members of the legislative committees
3.19and divisions with jurisdiction over transit policy and finance, that describes the uses of
3.20the funds under subdivision 2, clause (1), and explains how the funds supplemented and
3.21did not supplant state assistance to the council.
3.22    Subd. 4. Uses of revenues by Counties Transit Improvement Board. (a) From
3.23the funds remitted to the Counties Transit Improvement Board, an amount equal to 41.5
3.24percent of the amount of sales tax revenue collected within each county that is not a
3.25member of the Counties Transit Improvement Board joint powers must be transferred to
3.26the county. The county must use this amount only for transit way planning, capital costs,
3.27and operating expenses.
3.28(b) A county that receives revenue under paragraph (a) must report to the Counties
3.29Transit Improvement Board by February 15 concerning the amount received in the
3.30previous fiscal year and the use of the funds.
3.31(c) After the transfers under paragraph (a), funds remitted to the Counties Transit
3.32Improvement Board must be allocated and used in all respects according to section
3.33297A.992.
3.34    Subd. 5. Allocation and use of revenues by cities and counties. (a) The
3.35commissioner of revenue shall allocate and transfer the funds allocated:
4.1(1) under subdivision 2, clause (3), to cities in the metropolitan area, so that each
4.2city shall receive of this amount the percentage that its population, as defined in section
4.3477A.011, subdivision 3, estimated or established by July 15 of the year prior to the
4.4current calendar year, bears to the total population of cities in the metropolitan area; and
4.5(2) under subdivision 2, clause (4), to counties in the metropolitan area, so that each
4.6county shall receive of this amount the percentage that its population, as defined in section
4.7477A.011, subdivision 3, estimated or established by July 15 of the year prior to the
4.8current calendar year, bears to the total population of counties in the metropolitan area.
4.9(b) Cities and counties must use funds received under this subdivision for any of the
4.10following purposes: to provide transit service; to improve safety, convenience, and access
4.11for people who use public transit, walk, bicycle, or use mobility assistance devices, through
4.12planning and engineering projects, facilities, and infrastructure; and to acquire equipment.
4.13Examples include but are not limited to sidewalks, pedestrian facilities, bicycle routes and
4.14facilities, safe routes to school, transit shuttles, and projects to enhance accessibility or
4.15otherwise comply with the Americans with Disabilities Act. The funds may not be used
4.16for ordinary administrative expenses incurred in carrying out the provisions of this section.
4.17(c) Beginning in 2015, and in each subsequent year, each city and county receiving
4.18funds under this subdivision must report to the Metropolitan Council by February 15
4.19concerning the amount received and the use of the funds.

4.20    Sec. 3. Minnesota Statutes 2012, section 297A.992, subdivision 4, is amended to read:
4.21    Subd. 4. Joint powers board. (a) The joint powers board must consist of one
4.22or more commissioners of each county that is in the metropolitan transportation area,
4.23appointed by its county board, and the chair of the Metropolitan Council, who must have
4.24voting rights, subject to subdivision 3, clause (4). The joint powers board has the powers
4.25and duties provided in this section and section 471.59.
4.26    (b) The joint powers board may utilize for ordinary administrative expenses incurred
4.27in carrying out the provisions of this section no more than three-fourths of one percent of the
4.28proceeds of: (1) the taxes imposed under this section for ordinary administrative expenses
4.29incurred in carrying out the provisions of this section; and (2) that portion of the taxes
4.30imposed under section 297A.985 that are received by the Counties Transit Improvement
4.31Board. Any additional administrative expenses must be paid by the participating counties.
4.32    (c) The joint powers board may establish a technical advisory group that is separate
4.33from the GEARS Committee. The group must consist of representatives of cities, counties,
4.34or public agencies, including the Metropolitan Council. The technical advisory group
4.35must be used solely for technical consultation purposes.

5.1    Sec. 4. APPROPRIATION FOR GREATER MINNESOTA TRANSIT.
5.2$8,000,000 is appropriated from the bond proceeds fund to the commissioner
5.3of transportation for capital assistance for publicly owned greater Minnesota transit
5.4systems to be used to design, construct, and equip transit capital facilities under Minnesota
5.5Statutes, section 174.24, subdivision 3c.

5.6    Sec. 5. APPROPRIATION FOR TRANSIT CORRIDORS.
5.7$95,000,000 is appropriated from the bond proceeds fund to the Metropolitan
5.8Council to perform environmental studies, preliminary engineering, property acquisition,
5.9design, and construction of facilities and infrastructure to facilitate all modes of travel for
5.10the following transit way corridors: Bottineau Boulevard, Riverview, Gateway, Nicollet
5.11Avenue, Snelling Avenue, Southwest Light Rail, Red Rock, Robert Street, and Rush Line.

5.12    Sec. 6. BOND SALE AUTHORIZATION.
5.13To provide the money appropriated in sections 4 and 5 from the bond proceeds fund,
5.14the commissioner of management and budget shall sell and issue bonds of the state in an
5.15amount up to $103,000,000 in the manner, upon the terms, and with the effect prescribed
5.16by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota Constitution,
5.17article XI, sections 4 to 7.

5.18    Sec. 7. EFFECTIVE DATE.
5.19Sections 1 to 3 are effective January 1, 2014, and apply to sales and purchases on
5.20and after that date in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott,
5.21and Washington. Sections 4 to 6 are effective the day following final enactment.

700 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155 ♦ Phone: (651) 296-2868 ♦ TTY: 1-800-627-3529 ♦ Fax: (651) 296-0569