HF 1395

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to transportation; modifying passenger 
  1.3             vehicle registration tax depreciation schedule and 
  1.4             removing maximum taxes; increasing motor fuel taxes; 
  1.5             providing for distribution of certain county state-aid 
  1.6             highway funds; authorizing ten-year imposition of 
  1.7             one-half cent sales tax for transportation in certain 
  1.8             counties if authorized in a regional referendum; 
  1.9             authorizing sale of state bonds; appropriating money; 
  1.10            amending Minnesota Statutes 2002, sections 162.07, 
  1.11            subdivision 1, by adding subdivisions; 168.013, 
  1.12            subdivision 1a; 296A.07, subdivision 3; 296A.08, 
  1.13            subdivision 2; 297B.09, subdivision 1; proposing 
  1.14            coding for new law in Minnesota Statutes, chapter 174; 
  1.15            proposing coding for new law as Minnesota Statutes, 
  1.16            chapter 473J. 
  1.17  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.18     Section 1.  Minnesota Statutes 2002, section 162.07, 
  1.19  subdivision 1, is amended to read: 
  1.20     Subdivision 1.  [FORMULA.] (a) After deducting for 
  1.21  administrative costs and for the disaster account and research 
  1.22  account and state park roads as heretofore provided in section 
  1.23  162.06, subdivisions 2 through 5, the remainder of the total sum 
  1.24  provided for in section 162.06, subdivision 1, shall be is 
  1.25  identified as the apportionment sum and shall be apportioned by 
  1.26  the commissioner to the several counties on the basis of the 
  1.27  needs of the counties as determined in accordance with the 
  1.28  following formula: the excess sum. 
  1.29     (a) An amount equal to ten percent of the apportionment sum 
  1.30  shall be apportioned equally among the 87 counties.  
  1.31     (b) An amount equal to ten percent of the apportionment sum 
  2.1   shall be apportioned among the several counties so that each 
  2.2   county shall receive of such amount the percentage that its 
  2.3   motor vehicle registration for the calendar year preceding the 
  2.4   one last past, determined by residence of registrants, bears to 
  2.5   the total statewide motor vehicle registration.  
  2.6      (c) An amount equal to 30 percent of the apportionment sum 
  2.7   shall be apportioned among the several counties so that each 
  2.8   county shall receive of such amount the percentage that its 
  2.9   total lane-miles of approved county state-aid highways bears to 
  2.10  the total lane-miles of approved statewide county state-aid 
  2.11  highways.  In 1997 and subsequent years no county may receive, 
  2.12  as a result of an apportionment under this clause based on 
  2.13  lane-miles rather than miles of approved county state-aid 
  2.14  highways, an apportionment that is less than its apportionment 
  2.15  in 1996. 
  2.16     (d) An amount equal to 50 percent of the apportionment sum 
  2.17  shall be apportioned among the several counties so that each 
  2.18  county shall receive of such amount the percentage that its 
  2.19  money needs bears to the sum of the money needs of all of the 
  2.20  individual counties; provided, that the percentage of such 
  2.21  amount that each county is to receive shall be adjusted so that 
  2.22  each county shall receive in 1958 a total apportionment at least 
  2.23  ten percent greater than its total 1956 apportionments from the 
  2.24  state road and bridge fund; and provided further that those 
  2.25  counties whose money needs are thus adjusted shall never receive 
  2.26  a percentage of the apportionment sum less than the percentage 
  2.27  that such county received in 1958.  
  2.28     (b) For purposes of this section: 
  2.29     (1) the "excess sum" is the money available for 
  2.30  apportionment to the counties that is attributable to motor fuel 
  2.31  tax rates under sections 296A.07, subdivision 3, and 296A.08, 
  2.32  subdivision 2, that are in excess of the rates for the taxes 
  2.33  under those provisions that were in effect on January 1, 2003; 
  2.34  and 
  2.35     (2) the "apportionment sum" is the total sum less the 
  2.36  excess sum. 
  3.1      Sec. 2.  Minnesota Statutes 2002, section 162.07, is 
  3.2   amended by adding a subdivision to read: 
  3.3      Subd. 1a.  [APPORTIONMENT SUM.] The commissioner shall 
  3.4   apportion the apportionment sum to the several counties on the 
  3.5   basis of the needs of the counties as determined in accordance 
  3.6   with the following formula: 
  3.7      (a) An amount equal to ten percent of the apportionment sum 
  3.8   must be apportioned equally among the 87 counties.  
  3.9      (b) An amount equal to ten percent of the apportionment sum 
  3.10  must be apportioned among the several counties so that each 
  3.11  county receives of that amount the percentage that its motor 
  3.12  vehicle registration for the calendar year preceding the one 
  3.13  last past, determined by residence of registrants, bears to the 
  3.14  total statewide motor vehicle registration.  
  3.15     (c) An amount equal to 30 percent of the apportionment sum 
  3.16  must be apportioned among the several counties so that each 
  3.17  county receives of that amount the percentage that its total 
  3.18  lane-miles of approved county state-aid highways bears to the 
  3.19  total lane-miles of approved statewide county state-aid 
  3.20  highways.  In 1997 and subsequent years, no county may receive, 
  3.21  as a result of an apportionment under this paragraph based on 
  3.22  lane-miles rather than miles of approved county state-aid 
  3.23  highways, an apportionment that is less than its apportionment 
  3.24  in 1996. 
  3.25     (d) An amount equal to 50 percent of the apportionment sum 
  3.26  must be apportioned among the several counties so that each 
  3.27  county receives of that amount the percentage that its money 
  3.28  needs bears to the sum of the money needs of all of the 
  3.29  individual counties; provided, that the percentage of the amount 
  3.30  that each county is to receive must be adjusted so that each 
  3.31  county receives in 1958 a total apportionment at least ten 
  3.32  percent greater than its total 1956 apportionments from the 
  3.33  state road and bridge fund; and provided further, that those 
  3.34  counties whose money needs are thus adjusted shall never receive 
  3.35  a percentage of the apportionment sum less than the percentage 
  3.36  that the county received in 1958.  
  4.1      Sec. 3.  Minnesota Statutes 2002, section 162.07, is 
  4.2   amended by adding a subdivision to read: 
  4.3      Subd. 1b.  [EXCESS SUM.] The commissioner shall apportion 
  4.4   the excess sum to the several counties on the basis of the needs 
  4.5   of the counties as determined in accordance with the following 
  4.6   formula: 
  4.7      (a) An amount equal to ... percent of the excess sum must 
  4.8   be apportioned equally among the 87 counties. 
  4.9      (b) An amount equal to ... percent of the excess sum must 
  4.10  be apportioned among the several counties so that each county 
  4.11  receives of that amount the percentage that its total lane-miles 
  4.12  of approved county state-aid highways bears to the total 
  4.13  lane-miles of approved statewide county state-aid highways. 
  4.14     (c) An amount equal to ... percent of the excess sum must 
  4.15  be apportioned among the several counties so that each county 
  4.16  shall receive of that amount the percentage that its motor 
  4.17  vehicle registration for the calendar year preceding the one 
  4.18  last past, determined by residence of registrants, bears to the 
  4.19  total statewide motor vehicle registration.  
  4.20     (d) An amount equal to ... percent of the excess sum must 
  4.21  be apportioned among the several counties so that each county 
  4.22  shall receive of that amount the percentage that its motor 
  4.23  vehicle registration for the calendar year preceding the one 
  4.24  last past, determined by residence of registrants, bears to the 
  4.25  total statewide motor vehicle registration. 
  4.26     (e) An amount equal to ... percent of the excess sum must 
  4.27  be apportioned among the several counties so that each county 
  4.28  receives of that amount the percentage that its money needs 
  4.29  bears to the sum of the money needs of all of the individual 
  4.30  counties. 
  4.31     Sec. 4.  Minnesota Statutes 2002, section 168.013, 
  4.32  subdivision 1a, is amended to read: 
  4.33     Subd. 1a.  [PASSENGER AUTOMOBILE; HEARSE.] (a) On passenger 
  4.34  automobiles as defined in section 168.011, subdivision 7, and 
  4.35  hearses, except as otherwise provided, the tax shall be $10 plus 
  4.36  an additional tax equal to 1.25 percent of the base value.  
  5.1      (b) Subject to the classification provisions herein, "base 
  5.2   value" means the manufacturer's suggested retail price of the 
  5.3   vehicle including destination charge using list price 
  5.4   information published by the manufacturer or determined by the 
  5.5   registrar if no suggested retail price exists, and shall not 
  5.6   include the cost of each accessory or item of optional equipment 
  5.7   separately added to the vehicle and the suggested retail price. 
  5.8      (c) If the manufacturer's list price information contains a 
  5.9   single vehicle identification number followed by various 
  5.10  descriptions and suggested retail prices, the registrar shall 
  5.11  select from those listings only the lowest price for determining 
  5.12  base value. 
  5.13     (d) If unable to determine the base value because the 
  5.14  vehicle is specially constructed, or for any other reason, the 
  5.15  registrar may establish such value upon the cost price to the 
  5.16  purchaser or owner as evidenced by a certificate of cost but not 
  5.17  including Minnesota sales or use tax or any local sales or other 
  5.18  local tax. 
  5.19     (e) The registrar shall classify every vehicle in its 
  5.20  proper base value class as follows: 
  5.21                        FROM                   TO
  5.22                        $  0                $199.99
  5.23                         200                 399.99
  5.24  and thereafter a series of classes successively set in brackets 
  5.25  having a spread of $200 consisting of such number of classes as 
  5.26  will permit classification of all vehicles. 
  5.27     (f) The base value for purposes of this section shall be 
  5.28  the middle point between the extremes of its class. 
  5.29     (g) The registrar shall establish the base value, when new, 
  5.30  of every passenger automobile and hearse registered prior to the 
  5.31  effective date of Extra Session Laws 1971, chapter 31, using 
  5.32  list price information published by the manufacturer or any 
  5.33  nationally recognized firm or association compiling such data 
  5.34  for the automotive industry.  If unable to ascertain the base 
  5.35  value of any registered vehicle in the foregoing manner, the 
  5.36  registrar may use any other available source or method.  The 
  6.1   registrar shall calculate tax using base value information 
  6.2   available to dealers and deputy registrars at the time the 
  6.3   application for registration is submitted.  The tax on all 
  6.4   previously registered vehicles shall be computed upon the base 
  6.5   value thus determined taking into account the depreciation 
  6.6   provisions of paragraph (h). 
  6.7      (h) The annual additional tax computed upon the base value 
  6.8   as provided herein, during the first and second years year of 
  6.9   vehicle life shall be computed upon 100 percent of the base 
  6.10  value; for the second year, 80 percent of such value; for the 
  6.11  third and fourth years, 90 year, 70 percent of such value; for 
  6.12  the fourth year, 60 percent of such value; for the fifth and 
  6.13  sixth years, 75 year, 50 percent of such value; for the sixth 
  6.14  year, 40 percent of such value; for the seventh year, 60 35 
  6.15  percent of such value; for the eighth year, 40 30 percent of 
  6.16  such value; for the ninth year, 30 20 percent of such value; for 
  6.17  the tenth year, ten percent of such value; for the 11th and each 
  6.18  succeeding year, the sum of $25 $30.  In no event shall the 
  6.19  annual additional tax be less than $25 $30.  
  6.20  The total tax under this subdivision shall not exceed $189 for 
  6.21  the first renewal period and shall not exceed $99 for subsequent 
  6.22  renewal periods.  The total tax under this subdivision on any 
  6.23  vehicle filing its initial registration in Minnesota in the 
  6.24  second year of vehicle life shall not exceed $189 and shall not 
  6.25  exceed $99 for subsequent renewal periods.  The total tax under 
  6.26  this subdivision on any vehicle filing its initial registration 
  6.27  in Minnesota in the third or subsequent year of vehicle life 
  6.28  shall not exceed $99 and shall not exceed $99 in any subsequent 
  6.29  renewal period. 
  6.30     (i) As used in this subdivision and section 168.017, the 
  6.31  following terms have the meanings given:  "initial registration" 
  6.32  means the 12 consecutive months calendar period from the day of 
  6.33  first registration of a vehicle in Minnesota; and "renewal 
  6.34  periods" means the 12 consecutive calendar months periods 
  6.35  following the initial registration period. 
  6.36     Sec. 5.  [174.33] [TRANSIT WAYS FUND.] 
  7.1      Subdivision 1.  [FUND CREATED.] A transit ways fund is 
  7.2   created in the state treasury.  The fund consists of money 
  7.3   credited to the fund under section 297B.09, subdivision 1, and 
  7.4   other money credited by law. 
  7.5      Subd. 2.  [USES OF FUND.] Money in the fund must be 
  7.6   appropriated for public transit purposes with the following 
  7.7   order of priority: 
  7.8      (1) paying principal and interest on bonds issued for the 
  7.9   planning, design, environmental review, and construction of 
  7.10  transit ways, and for acquisition of vehicles for operation on 
  7.11  transit ways; 
  7.12     (2) operating assistance to transit service on transit 
  7.13  ways; 
  7.14     (3) other public transit capital improvements; and 
  7.15     (4) operating assistance for regular route transit service 
  7.16  operated or assisted by the metropolitan council or the 
  7.17  commissioner of transportation on routes other than transit ways.
  7.18     Subd. 3.  [DEFINITION.] For purposes of this section, 
  7.19  "transit way" means (1) a transportation facility dedicated 
  7.20  exclusively for use by public transit vehicles, including rail 
  7.21  vehicles, and (2) lanes on public highways reserved for use by 
  7.22  public transit vehicles, including buses, carpools, and vanpools.
  7.23     Sec. 6.  Minnesota Statutes 2002, section 296A.07, 
  7.24  subdivision 3, is amended to read: 
  7.25     Subd. 3.  [RATE OF TAX.] The gasoline excise tax is imposed 
  7.26  at the following rates: 
  7.27     (1) E85 is taxed at the rate of 14.2 18.46 cents per 
  7.28  gallon; 
  7.29     (2) M85 is taxed at the rate of 11.4 14.82 cents per 
  7.30  gallon; and 
  7.31     (3) all other gasoline is taxed at the rate of 20 26 cents 
  7.32  per gallon. 
  7.33     Sec. 7.  Minnesota Statutes 2002, section 296A.08, 
  7.34  subdivision 2, is amended to read: 
  7.35     Subd. 2.  [RATE OF TAX.] The special fuel excise tax is 
  7.36  imposed at the following rates: 
  8.1      (1) Liquefied petroleum gas or propane is taxed at the rate 
  8.2   of 15 19.5 cents per gallon. 
  8.3      (2) Liquefied natural gas is taxed at the rate of 12 15.6 
  8.4   cents per gallon. 
  8.5      (3) Compressed natural gas is taxed at the rate of $1.739 
  8.6   $2.261 per thousand cubic feet; or 20 26 cents per gasoline 
  8.7   equivalent, as defined by the National Conference on Weights and 
  8.8   Measures, which is 5.66 pounds of natural gas. 
  8.9      (4) All other special fuel is taxed at the same rate as the 
  8.10  gasoline excise tax as specified in section 296A.07, subdivision 
  8.11  2.  The tax is payable in the form and manner prescribed by the 
  8.12  commissioner. 
  8.13     Sec. 8.  Minnesota Statutes 2002, section 297B.09, 
  8.14  subdivision 1, is amended to read: 
  8.15     Subdivision 1.  [DEPOSIT OF REVENUES.] (a) Money collected 
  8.16  and received under this chapter must be deposited as provided in 
  8.17  this subdivision.  
  8.18     (b) From July 1, 2001, to June 30, 2002, 30.86 percent of 
  8.19  the money collected and received must be deposited in the 
  8.20  highway user tax distribution fund, and the remaining money must 
  8.21  be deposited in the general fund.  
  8.22     (c) On and after July 1, 2002, 32 percent of the money 
  8.23  collected and received must be deposited in the highway user tax 
  8.24  distribution fund, 20.5 percent must be deposited in the 
  8.25  metropolitan area transit fund under section 16A.88, and 1.25 
  8.26  percent must be deposited in the greater Minnesota transit fund 
  8.27  under section 16A.88.  In fiscal year 2004 and thereafter, two 
  8.28  percent of the money collected and received must be deposited in 
  8.29  the metropolitan area transit appropriation account under 
  8.30  section 16A.88.  The remaining 
  8.31     (c) The following percentages of money collected and 
  8.32  received under this chapter must be deposited in the highway 
  8.33  user tax distribution fund:  
  8.34     (1) from July 1, 2003, through June 30, 2004, 28 percent; 
  8.35     (2) from July 1, 2004, through June 30, 2005, 22 percent; 
  8.36     (3) from July 1, 2005, through June 30, 2006, 16 percent; 
  9.1      (4) from July 1, 2006, through June 30, 2007, 14 percent; 
  9.2   and 
  9.3      (5) on and after July 1, 2007, 12 percent. 
  9.4      (d) The following percentages of money collected and 
  9.5   received under this chapter must be deposited in the transit 
  9.6   ways fund:  
  9.7      (1) from July 1, 2003, through June 30, 2004, four percent; 
  9.8      (2) from July 1, 2004, through June 30, 2005, ten percent; 
  9.9      (3) from July 1, 2005, through June 30, 2006, 16 percent; 
  9.10     (4) from July 1, 2006, through June 30, 2007, 18 percent; 
  9.11  and 
  9.12     (5) on and after July 1, 2007, 20 percent. 
  9.13     (e) All other money collected and received under this 
  9.14  chapter must be deposited in the general fund. 
  9.15     Sec. 9.  [473J.01] [METROPOLITAN TRANSPORTATION AREA.] 
  9.16     The metropolitan transportation area is the area within the 
  9.17  counties of Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, 
  9.18  Ramsey, Scott, Sherburne, Washington, and Wright. 
  9.19     Sec. 10.  [473J.02] [HIGHWAY SPENDING IN METROPOLITAN 
  9.20  TRANSPORTATION AREA.] 
  9.21     In any year during the period of imposition of the taxes 
  9.22  authorized in sections 473J.03 and 473J.04, and exclusive of the 
  9.23  expenditure of these revenues, the percentage of total trunk 
  9.24  highway fund expenditures attributable to projects in the 
  9.25  metropolitan transportation area may not vary more than two 
  9.26  percentage points from the average of the previous five years of 
  9.27  trunk highway fund metropolitan transportation area expenditures.
  9.28     Sec. 11.  [473J.03] [SALES TAX.] 
  9.29     There is imposed a sales and use tax of one-half of one 
  9.30  percent on retail sales and uses taxable under chapter 297A that 
  9.31  occur in the metropolitan transportation area.  This tax is in 
  9.32  addition to the taxes imposed by sections 297A.62, subdivision 
  9.33  1, and 297A.63, subdivision 1. 
  9.34     Sec. 12.  [473J.04] [MOTOR VEHICLE EXCISE TAX.] 
  9.35     There is imposed an excise tax of $20 per motor vehicle 
  9.36  purchased by a retail consumer from any person engaged within 
 10.1   the metropolitan transportation area in the business of selling 
 10.2   motor vehicles at retail. 
 10.3      Sec. 13.  [473J.05] [TAX COLLECTION.] 
 10.4      The taxes imposed by sections 473J.03 and 473J.04 must be 
 10.5   reported and paid to the commissioner of revenue with the taxes 
 10.6   imposed by chapter 297A and in accordance with an agreement 
 10.7   between the counties in the metropolitan transportation area and 
 10.8   the commissioner of revenue.  The taxes are subject to the same 
 10.9   interest, penalty, and other provisions provided for sales and 
 10.10  use taxes under chapters 289A and 297A.  The commissioner has 
 10.11  the same powers to assess and collect the taxes as are given the 
 10.12  commissioner in chapters 270, 289A, and 297A to assess and 
 10.13  collect sales and use taxes.  The commissioner shall deposit the 
 10.14  revenues, including interest and penalties, derived from the 
 10.15  taxes in the state treasury and credit them to the general fund. 
 10.16     Sec. 14.  [473J.06] [METROPOLITAN TRANSPORTATION FUND.] 
 10.17     Subdivision 1.  [TRANSFER TO FUND.] (a) The revenue 
 10.18  collected under section 473J.05, less the cost of collection, is 
 10.19  appropriated from the general fund to the commissioner of 
 10.20  finance for transfer to a special account in the state treasury, 
 10.21  to be called the metropolitan transportation fund.  
 10.22     (b) The cost of collection equals the direct and indirect 
 10.23  costs of the department of revenue to administer, audit, and 
 10.24  collect the revenue, plus the metropolitan transportation area's 
 10.25  proportionate share of the indirect cost of administering all 
 10.26  local sales and use taxes under section 297A.99. 
 10.27     Subd. 2.  [USE OF FUND.] (a) Money in the metropolitan 
 10.28  transportation fund is appropriated as follows: 
 10.29     (1) 25 percent to the metropolitan council for acquisition 
 10.30  of buses, highway shoulder improvements for buses, and other 
 10.31  capital expenses related to transit in the metropolitan 
 10.32  transportation area; and 
 10.33     (2) 75 percent to the commissioner of transportation for 
 10.34  highway system improvement, replacement, and bottleneck-removal 
 10.35  projects and metropolitan system highway expansion projects in 
 10.36  the metropolitan transportation area.  This money must be used 
 11.1   to construct the projects identified in the metropolitan 
 11.2   council's 25-year plan and the department of transportation's 
 11.3   20-year district plans that cover the counties in the 
 11.4   metropolitan transportation area. 
 11.5      (b) The metropolitan council may provide grants to the 
 11.6   commissioner of transportation for the implementation of transit 
 11.7   capital improvements in counties that are outside of the 
 11.8   metropolitan area as defined in section 473.121, subdivision 2, 
 11.9   but are within the metropolitan transportation area. 
 11.10     Sec. 15.  [APPLICATION.] 
 11.11     Sections 9 to 14 apply in the counties of Anoka, Carver, 
 11.12  Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, 
 11.13  Washington, and Wright. 
 11.14     Sec. 16.  [APPROPRIATIONS.] 
 11.15     The following amounts are appropriated from the bond 
 11.16  proceeds account in the trunk highway fund to the commissioner 
 11.17  of transportation in the fiscal years indicated for trunk 
 11.18  highway improvements: 
 11.19     (1) in fiscal year 2004, $160,000,000; 
 11.20     (2) in fiscal year 2005, $300,000,000; 
 11.21     (3) in fiscal year 2006, $240,000,000; 
 11.22     (4) in fiscal year 2007, $250,000,000; and 
 11.23     (5) in fiscal year 2008, $250,000,000. 
 11.24     Sec. 17.  [BOND SALE AUTHORIZATION.] 
 11.25     To provide the money appropriated by section 16, the 
 11.26  commissioner of finance shall sell and issue bonds of the state 
 11.27  in an amount up to $1,200,000,000 in the manner, upon the terms, 
 11.28  and with the effect prescribed by Minnesota Statutes, sections 
 11.29  167.50 to 167.52, and by the Minnesota Constitution, article 
 11.30  XIV, section 11, at the times and in the amounts requested by 
 11.31  the commissioner of transportation.  The proceeds of the bonds, 
 11.32  except accrued interest and any premium received on the sale of 
 11.33  the bonds, must be credited to the bond proceeds account in the 
 11.34  trunk highway fund. 
 11.35     Sec. 18.  [EFFECTIVE DATES; BALLOT QUESTION; SUNSET.] 
 11.36     (a) Sections 1 to 3, 5, 8, 16, and 17 are effective July 1, 
 12.1   2003.  Section 4 is effective December 1, 2003, for registration 
 12.2   year 2004 and subsequent years.  Section 6 is effective October 
 12.3   1, 2003, and applies to all gasoline in distributor storage on 
 12.4   that date.  Section 7 is effective October 1, 2003. 
 12.5      (b) Sections 9 to 15 are effective upon their approval by a 
 12.6   majority of the voters voting on the question in the 
 12.7   metropolitan transportation area at the general election in 
 12.8   November 2003 and sections 11 and 12 apply to sales made on and 
 12.9   after July 1, 2004.  The question on the ballot must be: 
 12.10     "Shall an additional tax of up to one-half of one percent 
 12.11  be imposed for ten years on sales in the 11-county metropolitan 
 12.12  area to pay for transportation improvements to relieve traffic 
 12.13  congestion in the metropolitan area? 
 12.14                                     Yes .......
 12.15                                     No ........"
 12.16     (c) Sections 9 to 16 expire June 30, 2014.