HF 1044

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

A bill for an act
relating to transportation; transit finance; reallocating revenues from motor
vehicle lease sales tax; imposing metropolitan area sales tax for transit,
bicycle, and pedestrian improvements; providing for use of sales tax revenues;
authorizing issuance of state bonds; appropriating money; amending Minnesota
Statutes 2012, sections 297A.815, subdivision 3; 297A.992, subdivision 4;
proposing coding for new law in Minnesota Statutes, chapter 297A.

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

Section 1.

Minnesota Statutes 2012, section 297A.815, subdivision 3, is amended to
read:

Subd. 3.

Motor vehicle lease sales tax revenue.

deleted text begin (a) For purposes of this
subdivision, "net revenue" means an amount equal to:
deleted text end

deleted text begin (1) the revenues, including interest and penalties, collected under this section, during
the fiscal year; less
deleted text end

deleted text begin (2) in fiscal year 2011, $30,100,000; in fiscal year 2012, $31,100,000; and in fiscal
year 2013 and following fiscal years, $32,000,000 deleted text end .

deleted text begin (b) On or before June 30 of each fiscal year, the commissioner of revenue shall
estimate the amount of the revenues and subtraction under paragraph (a) for the current
fiscal year.
deleted text end

deleted text begin (c) deleted text end On or after July 1 of deleted text begin the subsequent fiscal deleted text end new text begin each new text end year, the commissioner of
management and budget shall transfer the deleted text begin net revenue as estimated in paragraph (b) from
the general fund deleted text end new text begin revenues, including interest and penalties, collected under this section
during the previous fiscal year new text end , as follows:

deleted text begin (1) 50 percent to the greater Minnesota transit account; and
deleted text end

deleted text begin (2) 50 percent deleted text end new text begin (1) $9,000,000 new text end to the county state-aid highway fund. Notwithstanding
any other law to the contrary, the commissioner of transportation shall allocate the funds
transferred under this clause to the counties in the metropolitan area, as defined in section
473.121, subdivision 4, excluding the counties of Hennepin and Ramsey, so that each
county shall receive of such amount the percentage that its population, as defined in
section 477A.011, subdivision 3, estimated or established by July 15 of the year prior to
the current calendar year, bears to the total population of the counties receiving funds
under this clause new text begin ; and
new text end

new text begin (2) the remainder to the greater Minnesota transit account new text end .

deleted text begin (d) For fiscal years 2010 and 2011, the amount under paragraph (a), clause (1), must
be calculated using the following percentages of the total revenues:
deleted text end

deleted text begin (1) for fiscal year 2010, 83.75 percent; and
deleted text end

deleted text begin (2) for fiscal year 2011, 93.75 percent.
deleted text end

Sec. 2.

new text begin [297A.985] METROPOLITAN AREA TRANSIT SALES AND USE TAX.
new text end

new text begin Subdivision 1. new text end

new text begin Authorization and imposition. new text end

new text begin (a) Notwithstanding any law to the
contrary, the taxes described in this subdivision are imposed:
new text end

new text begin (1) a transit sales and use tax at a rate of three-quarters of one percent is imposed on
retail sales and uses taxable under this chapter that occur within the metropolitan area; and
new text end

new text begin (2) an excise tax of $20 is imposed on each motor vehicle, as defined in section
297B.01, subdivision 11, purchased or acquired from any person engaged in the business
of selling motor vehicles at retail, occurring within the metropolitan area.
new text end

new text begin (b) The taxes authorized in this section and the manner in which they are imposed
are exempt from section 297A.99, subdivisions 1, 2, 3, and 12. Provisions of section
297A.99 that relate to imposition, administration, collection, and enforcement apply to the
taxes authorized in this section.
new text end

new text begin (c) The taxes authorized in this section shall not be used in determining a tax if doing
so will result in the total tax on lodging in the city of Minneapolis exceeding the maximum
allowed tax under Laws 1986, chapter 396, section 5, as amended by Laws 2001, First
Special Session chapter 5, article 12, section 87, and Laws 2012, chapter 299, article 3,
section 3, or in determining a tax that may be imposed under any other limitation.
new text end

new text begin (d) For the purposes of this section, "metropolitan area" means the counties of
Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
new text end

new text begin Subd. 2. new text end

new text begin Allocation of revenues. new text end

new text begin After deductions allowed in section 297A.99,
subdivision 11, the commissioner of revenue shall remit the proceeds of the tax imposed
under this section on a monthly basis, as provided in this subdivision:
new text end

new text begin (1) 41.5 percent to the Metropolitan Council for bus transit in the metropolitan
area, including suburban transit providers;
new text end

new text begin (2) 41.5 percent to the Counties Transit Improvement Board;
new text end

new text begin (3) seven percent to cities in the metropolitan area as provided in subdivision 5;
new text end

new text begin (4) seven percent to counties in the metropolitan area as provided in subdivision 5; and
new text end

new text begin (5) three percent to the Metropolitan Council for regional bicycle, trail, and
pedestrian infrastructure and maintenance to be distributed as grants to park districts in the
metropolitan area and to local units of government in the metropolitan area.
new text end

new text begin Subd. 3. new text end

new text begin Use of revenues for transit by Metropolitan Council. new text end

new text begin (a) Funds remitted
to the council under subdivision 2, clause (1), must be used to expand and upgrade bus
service and related amenities, to ensure that fares are affordable, and to support capital
and operating needs of public transit, including paratransit, necessary to implement the
council's transportation policy plan.
new text end

new text begin (b) Funds remitted to the council under subdivision 2, clause (1), must supplement,
not supplant, operating and capital assistance to the Metropolitan Council provided by
the state.
new text end

new text begin (c) Beginning in 2015, and in each subsequent year, the council shall by February 15
submit a report to the chairs and ranking minority members of the legislative committees
and divisions with jurisdiction over transit policy and finance, that describes the uses of
the funds under subdivision 2, clause (1), and explains how the funds supplemented and
did not supplant state assistance to the council.
new text end

new text begin Subd. 4. new text end

new text begin Uses of revenues by Counties Transit Improvement Board. new text end

new text begin (a) From
the funds remitted to the Counties Transit Improvement Board, an amount equal to 41.5
percent of the amount of sales tax revenue collected within each county that is not a
member of the Counties Transit Improvement Board joint powers must be transferred to
the county. The county must use this amount only for transit way planning, capital costs,
and operating expenses.
new text end

new text begin (b) A county that receives revenue under paragraph (a) must report to the Counties
Transit Improvement Board by February 15 concerning the amount received in the
previous fiscal year and the use of the funds.
new text end

new text begin (c) After the transfers under paragraph (a), funds remitted to the Counties Transit
Improvement Board must be allocated and used in all respects according to section
297A.992.
new text end

new text begin Subd. 5. new text end

new text begin Allocation and use of revenues by cities and counties. new text end

new text begin (a) The
commissioner of revenue shall allocate and transfer the funds allocated:
new text end

new text begin (1) under subdivision 2, clause (3), to cities in the metropolitan area, so that each
city shall receive of this amount the percentage that its population, as defined in section
477A.011, subdivision 3, estimated or established by July 15 of the year prior to the
current calendar year, bears to the total population of cities in the metropolitan area; and
new text end

new text begin (2) under subdivision 2, clause (4), to counties in the metropolitan area, so that each
county shall receive of this amount the percentage that its population, as defined in section
477A.011, subdivision 3, estimated or established by July 15 of the year prior to the
current calendar year, bears to the total population of counties in the metropolitan area.
new text end

new text begin (b) Cities and counties must use funds received under this subdivision for any of the
following purposes: to provide transit service; to improve safety, convenience, and access
for people who use public transit, walk, bicycle, or use mobility assistance devices, through
planning and engineering projects, facilities, and infrastructure; and to acquire equipment.
Examples include but are not limited to sidewalks, pedestrian facilities, bicycle routes and
facilities, safe routes to school, transit shuttles, and projects to enhance accessibility or
otherwise comply with the Americans with Disabilities Act. The funds may not be used
for ordinary administrative expenses incurred in carrying out the provisions of this section.
new text end

new text begin (c) Beginning in 2015, and in each subsequent year, each city and county receiving
funds under this subdivision must report to the Metropolitan Council by February 15
concerning the amount received and the use of the funds.
new text end

Sec. 3.

Minnesota Statutes 2012, section 297A.992, subdivision 4, is amended to read:

Subd. 4.

Joint powers board.

(a) The joint powers board must consist of one
or more commissioners of each county that is in the metropolitan transportation area,
appointed by its county board, and the chair of the Metropolitan Council, who must have
voting rights, subject to subdivision 3, clause (4). The joint powers board has the powers
and duties provided in this section and section 471.59.

(b) The joint powers board may utilize new text begin for ordinary administrative expenses incurred
in carrying out the provisions of this section new text end no more than three-fourths of one percent of the
proceeds of new text begin : (1) new text end the taxes imposed under this section deleted text begin for ordinary administrative expenses
incurred in carrying out the provisions of this section deleted text end new text begin ; and (2) that portion of the taxes
imposed under section 297A.985 that are received by the Counties Transit Improvement
Board new text end . Any additional administrative expenses must be paid by the participating counties.

(c) The joint powers board may establish a technical advisory group that is separate
from the GEARS Committee. The group must consist of representatives of cities, counties,
or public agencies, including the Metropolitan Council. The technical advisory group
must be used solely for technical consultation purposes.

Sec. 4. new text begin APPROPRIATION FOR GREATER MINNESOTA TRANSIT.
new text end

new text begin $8,000,000 is appropriated from the bond proceeds fund to the commissioner
of transportation for capital assistance for publicly owned greater Minnesota transit
systems to be used to design, construct, and equip transit capital facilities under Minnesota
Statutes, section 174.24, subdivision 3c.
new text end

Sec. 5. new text begin APPROPRIATION FOR TRANSIT CORRIDORS.
new text end

new text begin $95,000,000 is appropriated from the bond proceeds fund to the Metropolitan
Council to perform environmental studies, preliminary engineering, property acquisition,
design, and construction of facilities and infrastructure to facilitate all modes of travel for
the following transit way corridors: Bottineau Boulevard, Riverview, Gateway, Nicollet
Avenue, Snelling Avenue, Southwest Light Rail, Red Rock, Robert Street, and Rush Line.
new text end

Sec. 6. new text begin BOND SALE AUTHORIZATION.
new text end

new text begin To provide the money appropriated in sections 4 and 5 from the bond proceeds fund,
the commissioner of management and budget shall sell and issue bonds of the state in an
amount up to $103,000,000 in the manner, upon the terms, and with the effect prescribed
by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota Constitution,
article XI, sections 4 to 7.
new text end

Sec. 7. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 3 are effective January 1, 2014, and apply to sales and purchases on
and after that date in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott,
and Washington. Sections 4 to 6 are effective the day following final enactment.
new text end