HF 1735

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to transportation; imposing a sales tax
within the metropolitan area with the proceeds
dedicated to metropolitan transportation and transit
improvements and services; providing for allocation of
revenues for the motor vehicle sales tax;
appropriating money; amending Minnesota Statutes 2004,
section 297B.09, subdivision 1; proposing coding for
new law in Minnesota Statutes, chapter 174; proposing
coding for new law as Minnesota Statutes, chapter 473J.

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

Section 1.

new text begin [174.56] HIGH-SPEED RAIL FUND.
new text end

new text begin A high-speed rail fund is created in the state treasury,
consisting of money credited to the fund under section 297B.09,
subdivision 1. Money in the fund is appropriated to the
commissioner of transportation for the planning and design,
including environmental studies, of the Minnesota portion of a
high-speed rail corridor between the Twin Cities and Chicago as
part of the Midwest Regional Rail System.
new text end

Sec. 2.

Minnesota Statutes 2004, section 297B.09,
subdivision 1, is amended to read:

Subdivision 1.

Deposit of revenues.

(a) Money collected
and received under this chapter must be deposited as provided in
this subdivision.

(b) deleted text begin From July 1, 2002, to June 30, 2003, 32 percent of the
money collected and received must be deposited in the highway
user tax distribution fund, 20.5 percent must be deposited in
the metropolitan area transit fund under section 16A.88, and
1.25 percent must be deposited in the greater Minnesota transit
fund under section 16A.88. The remaining money must be
deposited in the general fund.
deleted text end

deleted text begin (c) deleted text end From July 1, deleted text begin 2003 deleted text end new text begin 2005 new text end , to June 30, 2007, deleted text begin 30 deleted text end new text begin 32
new text end percent of the money collected and received must be deposited in
the highway user tax distribution fund, deleted text begin 21.5 deleted text end new text begin 31.5 new text end percent must
be deposited in the metropolitan area transit fund under section
16A.88, deleted text begin 1.43 deleted text end new text begin and nine new text end percent must be deposited in the greater
Minnesota transit fund under section 16A.88 deleted text begin , 0.65 percent must
be deposited in the county state-aid highway fund, and 0.17
percent must be deposited in the municipal state-aid street
fund deleted text end . The remaining money must be deposited in the general fund.

deleted text begin (d) On and after July 1, 2007, 32 percent of the money
collected and received must be deposited in the highway user tax
distribution fund, 20.5 percent must be deposited in the
metropolitan area transit fund under section 16A.88, and 1.25
percent must be deposited in the greater Minnesota transit fund
under section 16A.88. The remaining money must be deposited in
the general fund.
deleted text end

new text begin (c) From July 1, 2007, to June 30, 2008, 32 percent of the
money collected and received must be deposited in the highway
user tax distribution fund, 39 percent must be deposited in the
metropolitan area transit fund under section 16A.88, and 14
percent must be deposited in the greater Minnesota transit fund
under section 16A.88. The remaining money must be deposited in
the general fund.
new text end

new text begin (d) From July 1, 2008, to June 30, 2009, 32 percent of the
money collected and received must be deposited in the highway
user tax distribution fund, 41.5 percent must be deposited in
the metropolitan area transit fund under section 16A.88, and 14
percent must be deposited in the greater Minnesota transit fund
under section 16A.88. The remaining money must be deposited in
the general fund.
new text end

new text begin (e) From July 1, 2009, to June 30, 2010, 32 percent of the
money collected and received must be deposited in the highway
user tax distribution fund, 44 percent must be deposited in the
metropolitan area transit fund under section 16A.88, and 14
percent must be deposited in the greater Minnesota transit fund
under section 16A.88. The remaining money must be deposited in
the general fund.
new text end

new text begin (f) On and after July 1, 2010, 32 percent of the money
collected and received must be deposited in the highway user tax
distribution fund, 46 percent must be deposited in the
metropolitan area transit fund under section 16A.88, and 14
percent must be deposited in the greater Minnesota transit fund
under section 16A.88. The remaining money must be deposited in
the general fund.
new text end

new text begin (g) In the fiscal years ending June 30, 2006, and June 30,
2007, the commissioner shall transfer, from the amount to be
credited to the trunk highway fund from the amount deposited in
the highway user tax distribution fund under paragraph (b),
$10,000,000 for deposit in the high-speed rail fund.
new text end

Sec. 3.

new text begin [473J.01] METROPOLITAN TRANSPORTATION AREA.
new text end

new text begin The metropolitan transportation area is the area within the
counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and
Washington.
new text end

Sec. 4.

new text begin [473J.02] SALES TAX.
new text end

new text begin A sales tax and a use tax of 0.50 percent is imposed on
retail sales and uses taxable under chapter 297A that occur in
the metropolitan transportation area. These taxes are in
addition to the taxes imposed by sections 297A.62, subdivision
1, and 297A.63, subdivision 1, and any local taxes imposed
pursuant to a special law.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and
purchases made after June 30, 2005.
new text end

Sec. 5.

new text begin [473J.03] TAX COLLECTION.
new text end

new text begin The taxes imposed by section 473J.02 must be reported and
paid to the commissioner of revenue with the taxes imposed by
chapter 297A and in accordance with an agreement between the
counties in the metropolitan transportation area and the
commissioner of revenue. The taxes are subject to the same
interest, penalty, and other provisions provided for sales and
use taxes under chapters 289A and 297A. The commissioner has
the same powers to assess and collect the taxes as are given the
commissioner in chapters 270, 289A, and 297A to assess and
collect sales and use taxes. The commissioner shall deposit the
revenues, including interest and penalties, derived from the
taxes in the state treasury and credit them to the general fund.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and
purchases made after June 30, 2005.
new text end

Sec. 6.

new text begin [473J.04] METROPOLITAN TRANSPORTATION SALES TAX
ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Transfer to fund. new text end

new text begin (a) The revenue
collected under section 473J.03, less the cost of collection, is
appropriated from the general fund to the commissioner of
finance for transfer to a special account within the
metropolitan area transit fund in the state treasury, to be
called the metropolitan transportation sales tax account.
new text end

new text begin (b) The cost of collection equals the direct and indirect
costs of the Department of Revenue to administer, audit, and
collect the revenue, plus the metropolitan transportation area's
proportionate share of the indirect cost of administering all
local sales and use taxes under section 297A.99.
new text end

new text begin Subd. 2. new text end

new text begin Use of fund. new text end

new text begin Money in the metropolitan
transportation sales tax account is appropriated as follows:
new text end

new text begin (1) 85 percent to the Metropolitan Council:
new text end

new text begin (i) for capital and operating costs of bus, rail, and
paratransit service within the metropolitan transportation area,
including special transportation service under section 473.386
and replacement transit service under section 473.388; and
new text end

new text begin (ii) to provide for implementation by 2020 of the transit
portion of the Metropolitan Council's "2030 Transportation
Policy Plan"; and
new text end

new text begin (2) 15 percent to the Metropolitan Council for annual
distribution based on population to counties in the metropolitan
transportation area that are eligible for distribution under
section 473J.05, subdivision 2, with a minimum annual
distribution to each qualifying county of $1,500,000. For
purposes of this subdivision, "population" has the meaning given
in section 477A.011, subdivision 3. This money must be used as
provided in section 473J.05 by counties, home rule charter and
statutory cities, and towns to plan, design, build, maintain,
promote, and operate public transit, bicycle, and pedestrian
projects, and to plan, design, and provide transportation
infrastructure associated with transit-oriented development.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and
purchases made after June 30, 2005.
new text end

Sec. 7.

new text begin [473J.05] COUNTY USE OF DISTRIBUTION.
new text end

new text begin Subdivision 1. new text end

new text begin Purposes. new text end

new text begin A county receiving money
distributed by the Metropolitan Council under section 473J.04
must distribute 50 percent of the funds to home rule charter and
statutory cities and towns within the county. To receive a
distribution from the county, a city or town shall apply for a
grant from the county under this section by the time required by
the county. The application must contain information specifying
the project, amount of funds requested, and how the funds will
be expended to further the implementation of the project. Funds
may be used by the county, or distributed to a city for use by
the city, only to:
new text end

new text begin (1) plan, design, build, maintain, promote, and operate
public transit;
new text end

new text begin (2) plan, design, build, maintain, promote, and operate
bicycle programs and pathways including, but not limited to,
bicycle racks, bicycle lockers, off-road bicycle paths,
on-street bicycle striping, signage, lighting, and other
projects with a primary focus on bicycle transportation;
new text end

new text begin (3) plan, design, build, maintain, promote, and operate
pedestrian programs within the county including, but not limited
to, sidewalks, paths, signage, lighting, and pedestrian
crossings with an emphasis on pedestrian transportation;
new text end

new text begin (4) plan, design, and provide transportation infrastructure
associated with transit-oriented development; and
new text end

new text begin (5) provide the local match for federal transportation
grants for projects that encourage transit use, bicycling, and
walking under the federal Transportation Enhancement, Congestion
Mitigation and Air Quality, or Surface Transportation programs.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility to receive money. new text end

new text begin (a) To be
eligible to receive money distributed by the Metropolitan
Council under section 473J.04, a county shall by January 1, 2006:
new text end

new text begin (1) create a separate account in its general fund to credit
the money; and
new text end

new text begin (2) set up accounting procedures to ensure that money in
the separate account is spent only for the purposes in this
section.
new text end

new text begin (b) In each following year, each county shall also submit a
report by April 1 of each year to the chair of the Metropolitan
Council detailing for the previous calendar year:
new text end

new text begin (1) how the money was spent including, but not limited to,
specific information on the planning completed, the programs
implemented, the staff resources required, and a full accounting
of how the revenues were spent and distributed to local
communities; and
new text end

new text begin (2) the resulting increase in transit, bicycle, and
pedestrian travel; the improvement in transit, bicycle, and
pedestrian safety; the impact on roadway congestion; and the
need for vehicle parking.
new text end

new text begin (c) The chair of the Metropolitan Council shall withhold
all or part of the funds to be distributed to a county under
this section if the county fails to comply with this section.
Funds withheld under this paragraph may be distributed to the
county in the following year if the requirements of this section
have been met. If a county has not met these requirements by
the date of the following year's distribution, the withheld
funds and the funds for distribution to the county in the
current year must be included in the amount for distribution to
qualifying counties.
new text end

new text begin Subd. 3. new text end

new text begin Report. new text end

new text begin By July 1 of each odd-numbered year,
the Metropolitan Council shall report on how the money was spent
and the resulting improvements within the metropolitan area in
transit, bicycle travel, pedestrian travel, and safety to the
committees of the house of representatives and senate with
jurisdiction over transportation and transportation finance.
new text end

Sec. 8. new text begin APPLICATION.
new text end

new text begin Sections 3 to 7 apply in the counties of Anoka, Carver,
Dakota, Hennepin, Ramsey, Scott, and Washington.
new text end

Sec. 9. new text begin APPROPRIATION.
new text end

new text begin $37,650,000 is appropriated July 1, 2005, from the general
fund to the commissioner of finance for deposit as follows:
$28,750,000 to the metropolitan area transit fund for use by the
Metropolitan Council as provided under Minnesota Statutes,
section 16A.88, subdivision 2; and $8,900,000 to the greater
Minnesota transit fund for use by the commissioner of
transportation as provided under Minnesota Statutes, section
16A.88, subdivision 1.
new text end