HF 2376

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

A bill for an act
relating to taxation; providing for a Metropolitan
Council levy for transit and paratransit operating
costs; transferring certain motor vehicle sales tax
proceeds to greater Minnesota transit fund; amending
Minnesota Statutes 2004, sections 297B.09, subdivision
1; 473.388, subdivision 4; 473.446, subdivision 1, by
adding a subdivision.

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

Section 1.

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, 2003, to June 30, 2007, 30 percent of the
money collected and received must be deposited in the highway
user tax distribution fund, 21.5 percent must be deposited in
the metropolitan area transit fund under section 16A.88, 1.43
percent must be deposited in the greater Minnesota transit fund
under section 16A.88, 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. The remaining
money must be deposited in the general fund. new text begin In each of the
fiscal years ending June 30, 2006, and June 30, 2007, the
commissioner shall transfer $3,000,000 that would otherwise be
allocated to the trunk highway fund from the money deposited in
the highway user tax distribution fund under this paragraph to
the greater Minnesota transit fund.
new text end

deleted text begin (d) deleted text end new text begin (c) new text end 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.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2005.
new text end

Sec. 2.

Minnesota Statutes 2004, section 473.388,
subdivision 4, is amended to read:

Subd. 4.

Financial assistance.

(a) The council must
grant the requested financial assistance if it determines that
the proposed service is intended to replace the service to the
applying city or town or combination thereof by the council and
that the proposed service will meet the needs of the applicant
at least as efficiently and effectively as the existing service.

(b) The amount of assistance which the council must provide
to a system under this section may not be less than the sum of
the amounts determined for each municipality comprising the
system as follows:

(1) the transit operating assistance grants received under
this subdivision by the municipality in calendar year 2001 or
the tax revenues for transit services levied by the municipality
for taxes payable in 2001, including that portion of the levy
derived from the areawide pool under section 473F.08,
subdivision 3, clause (a), plus the portion of the
municipality's aid under section 273.1398, subdivision 2,
attributable to the transit levy; times

(2) the ratio of (i) the appropriation from the transit
fund to the council for nondebt transit operations for the
current fiscal year new text begin plus, for taxes levied in 2005 and 2006
only, the levy certified under section 473.446, subdivision 1,
paragraph (a), clause (3), new text end to (ii) the total levy certified by
the council under section 473.446 and the opt-out municipalities
under this section for taxes payable in 2001, including the
portion of homestead and agricultural credit aid under section
273.1398, subdivision 2, attributable to nondebt transit levies,
times

(3) the ratio of (i) the municipality's total taxable
market value for taxes payable in the most recent year for which
data is available divided by the municipality's total taxable
market value for taxes payable in 2001, to (ii) the total
taxable market value of all property in the metropolitan area
for taxes payable in the most recent year for which data is
available divided by the total taxable market value of all
property in the metropolitan area for taxes payable in 2001.

(c) The council shall pay the amount to be provided to the
recipient from the funds the council would otherwise use to fund
its transit operations.

Sec. 3.

Minnesota Statutes 2004, section 473.446,
subdivision 1, is amended to read:

Subdivision 1.

Metropolitan area transit tax.

(a) For
the purposes of sections 473.405 to 473.449 and the metropolitan
transit system, except as otherwise provided in this
subdivision, the council shall levy each year upon all taxable
property within the metropolitan area, defined in section
473.121, subdivision 2, a transit tax consisting of:

(1) an amount necessary to provide full and timely payment
of certificates of indebtedness, bonds, including refunding
bonds or other obligations issued or to be issued under section
473.39 by the council for purposes of acquisition and betterment
of property and other improvements of a capital nature and to
which the council has specifically pledged tax levies under this
clause; deleted text begin and
deleted text end

(2) an additional amount necessary to provide full and
timely payment of certificates of indebtedness issued by the
council, after consultation with the commissioner of finance, if
revenues to the metropolitan area transit fund in the fiscal
year in which the indebtedness is issued increase over those
revenues in the previous fiscal year by a percentage less than
the percentage increase for the same period in the revised
Consumer Price Index for all urban consumers for the St.
Paul-Minneapolis metropolitan area prepared by the United States
Department of Labor new text begin ; and
new text end

new text begin (3) for taxes levied only in 2005 and 2006, payable in 2006
and 2007, an amount not to exceed $30,000,000 in each year to be
used for payment of expenses of operating transit and
paratransit service new text end .

(b) Indebtedness to which property taxes have been pledged
under paragraph (a), clause (2), that is incurred in any fiscal
year may not exceed the amount necessary to make up the
difference between (1) the amount that the council received or
expects to receive in that fiscal year from the metropolitan
area transit fund and (2) the amount the council received from
that fund in the previous fiscal year multiplied by the
percentage increase for the same period in the revised Consumer
Price Index for all urban consumers for the St. Paul-Minneapolis
metropolitan area prepared by the United States Department of
Labor.

Sec. 4.

Minnesota Statutes 2004, section 473.446, is
amended by adding a subdivision to read:

new text begin Subd. 3. new text end

new text begin Rates. new text end

new text begin For purposes of the levy under
subdivision 1, paragraph (a), clause (3), the levy on all
taxable property within the metropolitan area but outside the
metropolitan transit taxing district, defined in subdivision 2,
must be at a rate equal to ten percent of the rate levied within
the transit taxing district.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
levied only in 2005 and 2006, payable in 2006 and 2007.
new text end