HF 1339

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to transportation; limiting license 
  1.3             registration taxes on passenger automobiles; providing 
  1.4             for appropriations from the transit assistance fund; 
  1.5             dedicating certain revenue from the sales tax to the 
  1.6             transit assistance fund; proposing an amendment to the 
  1.7             Minnesota Constitution, article XIV, to dedicate net 
  1.8             proceeds from the motor vehicle sales tax to the 
  1.9             highway user tax distribution fund; amending Minnesota 
  1.10            Statutes 2000, sections 168.013, subdivision 1a; 
  1.11            174.32, subdivisions 2, 3, and 4; 297A.94; and 
  1.12            297B.09, subdivision 1. 
  1.13  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.14     Section 1.  Minnesota Statutes 2000, section 168.013, 
  1.15  subdivision 1a, is amended to read: 
  1.16     Subd. 1a.  [PASSENGER AUTOMOBILE; HEARSE.] (a) On passenger 
  1.17  automobiles as defined in section 168.011, subdivision 7, and 
  1.18  hearses, except as otherwise provided, the tax shall be $10 plus 
  1.19  an additional tax equal to 1.25 percent of the base value.  
  1.20     (b) Subject to the classification provisions herein, "base 
  1.21  value" means the manufacturer's suggested retail price of the 
  1.22  vehicle including destination charge using list price 
  1.23  information published by the manufacturer or determined by the 
  1.24  registrar if no suggested retail price exists, and shall not 
  1.25  include the cost of each accessory or item of optional equipment 
  1.26  separately added to the vehicle and the suggested retail price. 
  1.27     (c) If the manufacturer's list price information contains a 
  1.28  single vehicle identification number followed by various 
  1.29  descriptions and suggested retail prices, the registrar shall 
  2.1   select from those listings only the lowest price for determining 
  2.2   base value. 
  2.3      (d) If unable to determine the base value because the 
  2.4   vehicle is specially constructed, or for any other reason, the 
  2.5   registrar may establish such value upon the cost price to the 
  2.6   purchaser or owner as evidenced by a certificate of cost but not 
  2.7   including Minnesota sales or use tax or any local sales or other 
  2.8   local tax. 
  2.9      (e) The registrar shall classify every vehicle in its 
  2.10  proper base value class as follows: 
  2.11                        FROM                   TO
  2.12                        $  0                $199.99
  2.13                         200                 399.99
  2.14  and thereafter a series of classes successively set in brackets 
  2.15  having a spread of $200 consisting of such number of classes as 
  2.16  will permit classification of all vehicles. 
  2.17     (f) The base value for purposes of this section shall be 
  2.18  the middle point between the extremes of its class. 
  2.19     (g) The registrar shall establish the base value, when new, 
  2.20  of every passenger automobile and hearse registered prior to the 
  2.21  effective date of Extra Session Laws 1971, chapter 31, using 
  2.22  list price information published by the manufacturer or any 
  2.23  nationally recognized firm or association compiling such data 
  2.24  for the automotive industry.  If unable to ascertain the base 
  2.25  value of any registered vehicle in the foregoing manner, the 
  2.26  registrar may use any other available source or method.  The tax 
  2.27  on all previously registered vehicles shall be computed upon the 
  2.28  base value thus determined taking into account the depreciation 
  2.29  provisions of paragraph (h). 
  2.30     (h) (1) Except as provided in paragraph (i), the annual 
  2.31  additional tax computed upon the base value as provided herein, 
  2.32  during the first and second years of vehicle life shall be 
  2.33  computed upon 100 percent of the base value; for the third and 
  2.34  fourth years, 90 percent of such value; for the fifth and sixth 
  2.35  years, 75 percent of such value; for the seventh year, 60 
  2.36  percent of such value; for the eighth year, 40 percent of such 
  3.1   value; for the ninth year, 30 percent of such value; for the 
  3.2   tenth year, ten percent of such value; for the 11th and each 
  3.3   succeeding year, the sum of $25.  
  3.4   In no event shall the annual additional tax be less than $25.  
  3.5      (2) Until superseded by clause (3), the total tax under 
  3.6   this subdivision shall not exceed $189 upon the initial 
  3.7   registration of any vehicle first subject to registration tax in 
  3.8   Minnesota prior to the end of the first year of vehicle life.  
  3.9   The total tax under this subdivision shall not exceed $189 $89 
  3.10  for the first any renewal period and shall not exceed $99 for 
  3.11  subsequent renewal periods.  The total tax under this 
  3.12  subdivision on or for any vehicle filing its initial 
  3.13  registration in Minnesota in the second year of vehicle 
  3.14  life shall not exceed $189 and shall not exceed $99 for 
  3.15  subsequent renewal periods.  The total tax under this 
  3.16  subdivision on any vehicle filing its initial registration in 
  3.17  Minnesota in the third or subsequent year of vehicle life shall 
  3.18  not exceed $99 and shall not exceed $99 in any subsequent 
  3.19  renewal period or later. 
  3.20     (3) Beginning in 2006, the total tax under this subdivision 
  3.21  shall not exceed $75.  
  3.22     (i) The annual additional tax under paragraph (h) on a 
  3.23  motor vehicle on which the first annual tax was paid before 
  3.24  January 1, 1990, must not exceed the tax that was paid on that 
  3.25  vehicle the year before. 
  3.26     Sec. 2.  Minnesota Statutes 2000, section 174.32, 
  3.27  subdivision 2, is amended to read: 
  3.28     Subd. 2.  [TRANSIT ASSISTANCE FUND; DISTRIBUTION.] The 
  3.29  transit assistance fund receives money distributed under section 
  3.30  297B.09 297A.94.  Eighty percent of the receipts of the fund 
  3.31  must be placed into a metropolitan account for distribution to 
  3.32  recipients located in the metropolitan area and 20 percent into 
  3.33  a separate account for distribution to recipients located 
  3.34  outside of the metropolitan area.  Except as otherwise provided 
  3.35  in this subdivision, the metropolitan council is responsible for 
  3.36  distributing assistance from the metropolitan account, and the 
  4.1   commissioner is responsible for distributing assistance from the 
  4.2   other account.  
  4.3      Sec. 3.  Minnesota Statutes 2000, section 174.32, 
  4.4   subdivision 3, is amended to read: 
  4.5      Subd. 3.  [ELIGIBLE RECIPIENT.] A legislatively established 
  4.6   public transit commission; the metropolitan council; a public 
  4.7   authority organized and existing under chapter 398A; a county or 
  4.8   statutory or home rule charter city operating, intending to 
  4.9   operate, or providing financial assistance to a transit service; 
  4.10  a rail authority; or a private operator of public transit is 
  4.11  eligible for assistance under the program.  The National 
  4.12  Railroad Passenger Corporation, known as Amtrak, and any trolley 
  4.13  system outside the metropolitan area are not eligible for 
  4.14  assistance under the program. 
  4.15     Sec. 4.  Minnesota Statutes 2000, section 174.32, 
  4.16  subdivision 4, is amended to read: 
  4.17     Subd. 4.  [ELIGIBLE SERVICE APPROPRIATIONS FROM 
  4.18  FUND.] Transit services eligible for assistance under the 
  4.19  program include but are not limited to: 
  4.20     (1) public transit; 
  4.21     (2) light rail transit; 
  4.22     (3) commuter van, car pool, ride share, and park and ride; 
  4.23  and 
  4.24     (4) other services that further the purposes of section 
  4.25  174.21.  Money in the transit assistance fund may be 
  4.26  appropriated by law only for capital and operating assistance to 
  4.27  eligible recipients under subdivision 3.  
  4.28     Sec. 5.  Minnesota Statutes 2000, section 297A.94, is 
  4.29  amended to read: 
  4.30     297A.94 [DEPOSIT OF REVENUES.] 
  4.31     (a) Except as provided in this section, the commissioner 
  4.32  shall deposit the revenues, including interest and penalties, 
  4.33  derived from the taxes imposed by this chapter in the state 
  4.34  treasury and credit them to the general fund.  
  4.35     (b) The commissioner shall deposit taxes in the Minnesota 
  4.36  agricultural and economic account in the special revenue fund if:
  5.1      (1) the taxes are derived from sales and use of property 
  5.2   and services purchased for the construction and operation of an 
  5.3   agricultural resource project; and 
  5.4      (2) the purchase was made on or after the date on which a 
  5.5   conditional commitment was made for a loan guaranty for the 
  5.6   project under section 41A.04, subdivision 3. 
  5.7   The commissioner of finance shall certify to the commissioner 
  5.8   the date on which the project received the conditional 
  5.9   commitment.  The amount deposited in the loan guaranty account 
  5.10  must be reduced by any refunds and by the costs incurred by the 
  5.11  department of revenue to administer and enforce the assessment 
  5.12  and collection of the taxes.  
  5.13     (c) The commissioner shall deposit the revenues, including 
  5.14  interest and penalties, derived from the taxes imposed on sales 
  5.15  and purchases included in section 297A.61, subdivision 16, 
  5.16  paragraphs (b) and (f), in the state treasury, and credit them 
  5.17  as follows: 
  5.18     (1) first to the general obligation special tax bond debt 
  5.19  service account in each fiscal year the amount required by 
  5.20  section 16A.661, subdivision 3, paragraph (b); and 
  5.21     (2) after the requirements of clause (1) have been met, the 
  5.22  balance to the general fund. 
  5.23     (d) The commissioner shall deposit the revenues, including 
  5.24  interest and penalties, collected under section 297A.64, 
  5.25  subdivision 5, in the state treasury and credit them to the 
  5.26  general fund.  By July 15 of each year the commissioner shall 
  5.27  transfer to the highway user tax distribution fund an amount 
  5.28  equal to the excess fees collected under section 297A.64, 
  5.29  subdivision 5, for the previous calendar year. 
  5.30     (e) For fiscal year 2001, 97 percent, and for fiscal year 
  5.31  2002 and thereafter, 87 percent of the revenues, including 
  5.32  interest and penalties, transmitted to the commissioner under 
  5.33  section 297A.65, must be deposited by the commissioner in the 
  5.34  state treasury as follows: 
  5.35     (1) 50 percent of the receipts must be deposited in the 
  5.36  heritage enhancement account in the game and fish fund, and may 
  6.1   be spent only on activities that improve, enhance, or protect 
  6.2   fish and wildlife resources, including conservation, 
  6.3   restoration, and enhancement of land, water, and other natural 
  6.4   resources of the state; 
  6.5      (2) 22.5 percent of the receipts must be deposited in the 
  6.6   natural resources fund, and may be spent only for state parks 
  6.7   and trails; 
  6.8      (3) 22.5 percent of the receipts must be deposited in the 
  6.9   natural resources fund, and may be spent only on metropolitan 
  6.10  park and trail grants; 
  6.11     (4) three percent of the receipts must be deposited in the 
  6.12  natural resources fund, and may be spent only on local trail 
  6.13  grants; and 
  6.14     (5) two percent of the receipts must be deposited in the 
  6.15  natural resources fund, and may be spent only for the Minnesota 
  6.16  zoological garden, the Como park zoo and conservatory, and the 
  6.17  Duluth zoo. 
  6.18     (f) The revenue dedicated under paragraph (e) may not be 
  6.19  used as a substitute for traditional sources of funding for the 
  6.20  purposes specified, but the dedicated revenue shall supplement 
  6.21  traditional sources of funding for those purposes.  Land 
  6.22  acquired with money deposited in the game and fish fund under 
  6.23  paragraph (e) must be open to public hunting and fishing during 
  6.24  the open season.  At least 87 percent of the money deposited in 
  6.25  the game and fish fund for improvement, enhancement, or 
  6.26  protection of fish and wildlife resources under paragraph (e) 
  6.27  must be allocated for field operations. 
  6.28     (g) The revenue derived from one-half percent on each 
  6.29  dollar of gross receipts under this chapter must be deposited in 
  6.30  the transit assistance fund.  
  6.31     Sec. 6.  Minnesota Statutes 2000, section 297B.09, 
  6.32  subdivision 1, is amended to read: 
  6.33     Subdivision 1.  [GENERAL FUND SHARE.] On and after July 1, 
  6.34  2003, money collected and received under this chapter must be 
  6.35  deposited as provided in this subdivision.  
  6.36     Thirty-two percent of the money collected and received must 
  7.1   be deposited in the highway user tax distribution fund, and the 
  7.2   remaining 68 percent of the money must be deposited in the 
  7.3   general fund.  
  7.4      Sec. 7.  [CONSTITUTIONAL AMENDMENT PROPOSED.] 
  7.5      The following amendment to the Minnesota Constitution, 
  7.6   article XIV, is proposed to the people.  If the amendment is 
  7.7   adopted a new section 12 will read: 
  7.8      Sec. 12.  All of the net proceeds from any tax on the sale 
  7.9   of new and used motor vehicles imposed by the state must be 
  7.10  deposited in the highway user tax distribution fund. 
  7.11     Sec. 8.  [SUBMISSION TO VOTERS.] 
  7.12     The constitutional amendment in section 7 must be submitted 
  7.13  at the 2002 general election.  The question submitted must be: 
  7.14     "Shall the Minnesota Constitution be amended to dedicate 
  7.15  all of the net proceeds from the state sales tax on new and used 
  7.16  motor vehicles to the highway user tax distribution fund? 
  7.17                                     Yes .......
  7.18                                     No ........"
  7.19     Sec. 9.  [EFFECTIVE DATE.] 
  7.20     (a) The new law proposed in section 1 as Minnesota 
  7.21  Statutes, section 168.013, subdivision 1a, paragraph (h), clause 
  7.22  (2), is effective for vehicles first subject to registration tax 
  7.23  in Minnesota on or after January 1, 2004.  It is also effective 
  7.24  for vehicles registered in Minnesota prior to January 1, 2004, 
  7.25  beginning with the renewal of the registration of vehicles that 
  7.26  were assigned an expiration month pursuant to section 168.017 of 
  7.27  January 2004 or later.  It does not apply to vehicles that were 
  7.28  assigned an expiration month pursuant to section 168.017 of 
  7.29  December 2003 or earlier. 
  7.30     (b) The new law proposed in section 1 as Minnesota 
  7.31  Statutes, section 168.013, subdivision 1a, paragraph (h), clause 
  7.32  (3), is effective for vehicles first subject to registration tax 
  7.33  in Minnesota on or after January 1, 2006.  It is also effective 
  7.34  for vehicles registered in Minnesota prior to January 1, 2006, 
  7.35  beginning with the renewal of the registration of vehicles that 
  7.36  were assigned an expiration month pursuant to section 168.017 of 
  8.1   January 2006 or later.  It does not apply to vehicles that were 
  8.2   assigned an expiration month pursuant to section 168.017 of 
  8.3   December 2005 or earlier. 
  8.4      (c) Sections 2 to 6 are effective July 1, 2003. 
  8.5      (d) Notwithstanding paragraphs (a) to (c), if the 
  8.6   constitutional amendment proposed in section 7 is not adopted at 
  8.7   the 2002 general election, sections 1 to 6 shall not take effect.