1.1 	A bill for an act
1.2 	relating to taxation; providing for a Metropolitan
1.3 	Council levy for transit and paratransit operating
1.4 	costs; transferring certain motor vehicle sales tax
1.5 	proceeds to greater Minnesota transit fund; amending
1.6 	Minnesota Statutes 2004, sections 297B.09, subdivision
1.7 	1; 473.388, subdivision 4; 473.446, subdivision 1, by
1.8 	adding a subdivision.
1.9 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.10 	Section 1. Minnesota Statutes 2004, section 297B.09,
1.11 	subdivision 1, is amended to read:
1.12 		Subdivision 1.Deposit of revenues.  (a) Money collected
1.13 	and received under this chapter must be deposited as provided in
1.14 	this subdivision.
1.15 	(b) From July 1, 2002, to June 30, 2003, 32 percent of the
1.16 	money collected and received must be deposited in the highway
1.17 	user tax distribution fund, 20.5 percent must be deposited in
1.18 	the metropolitan area transit fund under section 16A.88, and
1.19 	1.25 percent must be deposited in the greater Minnesota transit
1.20 	fund under section 16A.88.  The remaining money must be
1.21 	deposited in the general fund.
1.22 	(c) From July 1, 2003, to June 30, 2007, 30 percent of the
1.23 	money collected and received must be deposited in the highway
1.24 	user tax distribution fund, 21.5 percent must be deposited in
1.25 	the metropolitan area transit fund under section 16A.88, 1.43
1.26 	percent must be deposited in the greater Minnesota transit fund
1.27 	under section 16A.88, 0.65 percent must be deposited in the
2.1 	county state-aid highway fund, and 0.17 percent must be
2.2 	deposited in the municipal state-aid street fund.  The remaining
2.3 	money must be deposited in the general fund. In each of the
2.4 	fiscal years ending June 30, 2006, and June 30, 2007, the
2.5 	commissioner shall transfer $3,000,000 that would otherwise be
2.6 	allocated to the trunk highway fund from the money deposited in
2.7 	the highway user tax distribution fund under this paragraph to
2.8 	the greater Minnesota transit fund.
2.9 	(d) (c) On and after July 1, 2007, 32 percent of the money
2.10 	collected and received must be deposited in the highway user tax
2.11 	distribution fund, 20.5 percent must be deposited in the
2.12 	metropolitan area transit fund under section 16A.88, and 1.25
2.13 	percent must be deposited in the greater Minnesota transit fund
2.14 	under section 16A.88.  The remaining money must be deposited in
2.15 	the general fund.
2.16 	
EFFECTIVE DATE. This section is effective July 1, 2005.

2.17 	Sec. 2. Minnesota Statutes 2004, section 473.388,
2.18 	subdivision 4, is amended to read:
2.19 		Subd. 4.Financial assistance.  (a) The council must
2.20 	grant the requested financial assistance if it determines that
2.21 	the proposed service is intended to replace the service to the
2.22 	applying city or town or combination thereof by the council and
2.23 	that the proposed service will meet the needs of the applicant
2.24 	at least as efficiently and effectively as the existing service.
2.25 	(b) The amount of assistance which the council must provide
2.26 	to a system under this section may not be less than the sum of
2.27 	the amounts determined for each municipality comprising the
2.28 	system as follows:
2.29 	(1) the transit operating assistance grants received under
2.30 	this subdivision by the municipality in calendar year 2001 or
2.31 	the tax revenues for transit services levied by the municipality
2.32 	for taxes payable in 2001, including that portion of the levy
2.33 	derived from the areawide pool under section 473F.08,
2.34 	subdivision 3, clause (a), plus the portion of the
2.35 	municipality's aid under section 273.1398, subdivision 2,
2.36 	attributable to the transit levy; times
3.1 	(2) the ratio of (i) the appropriation from the transit
3.2 	fund to the council for nondebt transit operations for the
3.3 	current fiscal year plus, for taxes levied in 2005 and 2006
3.4 	only, the levy certified under section 473.446, subdivision 1,
3.5 	paragraph (a), clause (3),to (ii) the total levy certified by
3.6 	the council under section 473.446 and the opt-out municipalities
3.7 	under this section for taxes payable in 2001, including the
3.8 	portion of homestead and agricultural credit aid under section
3.9 	273.1398, subdivision 2, attributable to nondebt transit levies,
3.10 	times
3.11 	(3) the ratio of (i) the municipality's total taxable
3.12 	market value for taxes payable in the most recent year for which
3.13 	data is available divided by the municipality's total taxable
3.14 	market value for taxes payable in 2001, to (ii) the total
3.15 	taxable market value of all property in the metropolitan area
3.16 	for taxes payable in the most recent year for which data is
3.17 	available divided by the total taxable market value of all
3.18 	property in the metropolitan area for taxes payable in 2001.
3.19 	(c) The council shall pay the amount to be provided to the
3.20 	recipient from the funds the council would otherwise use to fund
3.21 	its transit operations.

3.22 	Sec. 3. Minnesota Statutes 2004, section 473.446,
3.23 	subdivision 1, is amended to read:
3.24 		Subdivision 1.Metropolitan area transit tax.  (a) For
3.25 	the purposes of sections 473.405 to 473.449 and the metropolitan
3.26 	transit system, except as otherwise provided in this
3.27 	subdivision, the council shall levy each year upon all taxable
3.28 	property within the metropolitan area, defined in section
3.29 	473.121, subdivision 2, a transit tax consisting of:
3.30 	(1) an amount necessary to provide full and timely payment
3.31 	of certificates of indebtedness, bonds, including refunding
3.32 	bonds or other obligations issued or to be issued under section
3.33 	473.39 by the council for purposes of acquisition and betterment
3.34 	of property and other improvements of a capital nature and to
3.35 	which the council has specifically pledged tax levies under this
3.36 	clause; and 
4.1 	(2) an additional amount necessary to provide full and
4.2 	timely payment of certificates of indebtedness issued by the
4.3 	council, after consultation with the commissioner of finance, if
4.4 	revenues to the metropolitan area transit fund in the fiscal
4.5 	year in which the indebtedness is issued increase over those
4.6 	revenues in the previous fiscal year by a percentage less than
4.7 	the percentage increase for the same period in the revised
4.8 	Consumer Price Index for all urban consumers for the St.
4.9 	Paul-Minneapolis metropolitan area prepared by the United States
4.10 	Department of Labor; and 
4.11 	(3) for taxes levied only in 2005 and 2006, payable in 2006
4.12 	and 2007, an amount not to exceed $30,000,000 in each year to be
4.13 	used for payment of expenses of operating transit and
4.14 	paratransit service.
4.15 	(b) Indebtedness to which property taxes have been pledged
4.16 	under paragraph (a), clause (2), that is incurred in any fiscal
4.17 	year may not exceed the amount necessary to make up the
4.18 	difference between (1) the amount that the council received or
4.19 	expects to receive in that fiscal year from the metropolitan
4.20 	area transit fund and (2) the amount the council received from
4.21 	that fund in the previous fiscal year multiplied by the
4.22 	percentage increase for the same period in the revised Consumer
4.23 	Price Index for all urban consumers for the St. Paul-Minneapolis
4.24 	metropolitan area prepared by the United States Department of
4.25 	Labor.

4.26 	Sec. 4. Minnesota Statutes 2004, section 473.446, is
4.27 	amended by adding a subdivision to read:
4.28 		Subd. 3.Rates. For purposes of the levy under
4.29 	subdivision 1, paragraph (a), clause (3), the levy on all
4.30 	taxable property within the metropolitan area but outside the
4.31 	metropolitan transit taxing district, defined in subdivision 2,
4.32 	must be at a rate equal to ten percent of the rate levied within
4.33 	the transit taxing district.
4.34 	
EFFECTIVE DATE. This section is effective for taxes
4.35 	levied only in 2005 and 2006, payable in 2006 and 2007.