as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am
Engrossments | ||
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Introduction | Posted on 04/09/2001 |
1.1 A bill for an act 1.2 relating to taxation; eliminating metropolitan 1.3 property tax levies for transit operations; reducing 1.4 the general sales and use tax and motor vehicle sales 1.5 tax rates; providing for imposition of sales taxes by 1.6 area transportation partnerships and providing for use 1.7 of the proceeds; amending Minnesota Statutes 2000, 1.8 sections 297A.62, subdivision 1; 473.388, subdivision 1.9 4; 473.446, subdivisions 1, 8; proposing coding for 1.10 new law in Minnesota Statutes, chapter 174; repealing 1.11 Minnesota Statutes 2000, sections 473.388, 1.12 subdivisions 5, 7; 473.446, subdivisions 1a, 1b. 1.13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.14 Section 1. [174.95] [AREA TRANSPORTATION PARTNERSHIPS.] 1.15 For purposes of sections 174.96 and 174.97, the phrase 1.16 "area transportation partnerships" means: 1.17 (1) in the counties of Anoka, Carver, Chisago, Dakota, 1.18 Hennepin, Ramsey, Scott, and Washington, the metropolitan 1.19 council; and 1.20 (2) in the remainder of the state, a number of area 1.21 transportation partnerships established and appointed by the 1.22 commissioner of transportation. The commissioner of 1.23 transportation shall determine the geographic area within which 1.24 each area transportation partnership under this clause has 1.25 jurisdiction. 1.26 [EFFECTIVE DATE.] This section is effective January 1, 2002. 1.27 Sec. 2. [174.96] [AREA TRANSPORTATION PARTNERSHIPS; SALES 1.28 TAXES.] 1.29 Subdivision 1. [AUTHORITY, RATE.] (a) Notwithstanding 2.1 section 477A.016, an area transportation partnership may impose 2.2 by resolution a general sales tax at the rate of .5 percent on 2.3 all sales at retail within the area transportation partnership's 2.4 jurisdiction that are taxable under section 297A.62. A 2.5 compensating use tax applies, at the same rate as the sales tax, 2.6 on the storage, use, distribution, or consumption of items 2.7 taxable under section 297A.63. The tax imposed under this 2.8 section also applies to the purchase price of any motor vehicle 2.9 purchased or acquired that is taxable under section 297B.02. 2.10 (b) A resolution imposing the taxes in paragraph (a) must 2.11 be published in the State Register together with a description 2.12 of the geographic area in which the tax is imposed. 2.13 Subd. 2. [TAX BASE.] (a) The tax imposed in subdivision 1 2.14 applies to sales taxable under chapters 297A and 297B that occur 2.15 within the jurisdiction of the area transportation partnership. 2.16 (b) Taxable services are subject to a sales tax if they are 2.17 performed either: 2.18 (1) within the area transportation partnership, or 2.19 (2) partly within and partly without the area 2.20 transportation partnership and more of the service is performed 2.21 within the area transportation partnership based on the cost of 2.22 performance. 2.23 Subd. 3. [EXEMPTIONS.] (a) All goods or services that are 2.24 otherwise exempt from taxation under chapter 297A or 297B are 2.25 exempt from the area transportation partnership's tax. 2.26 (b) The gross receipts from the sale of tangible personal 2.27 property that meets the requirement of section 297A.68, 2.28 subdivision 15, are exempt, except the qualification 2.29 requirements in that section apply based on the area of 2.30 jurisdiction of the area transportation partnership of the state 2.31 of Minnesota. 2.32 (c) All mobile transportation equipment, and parts and 2.33 accessories attached to or to be attached to the equipment are 2.34 exempt, if purchased by a holder of a motor carrier direct pay 2.35 permit under section 297A.90. 2.36 Subd. 4. [CREDIT FOR OTHER AREA TRANSPORTATION PARTNERSHIP 3.1 TAXES.] If a person paid sales or use tax to another area 3.2 transportation partnership on an item subject to tax under this 3.3 section, a credit applies against the tax imposed under this 3.4 section. The credit equals the tax the person paid to the other 3.5 area transportation partnership for the item. 3.6 Subd. 5. [ENFORCEMENT; COLLECTION; AND ADMINISTRATION.] (a) 3.7 The commissioner of revenue shall collect the taxes subject to 3.8 this section with the state sales and use tax and state motor 3.9 vehicle sales tax. All taxes under this section are subject to 3.10 the same penalties, interest, and enforcement provisions as 3.11 apply to the state sales and use tax and state motor vehicle 3.12 sales tax. 3.13 (b) A request for a refund of state sales tax paid in 3.14 excess of the amount of tax legally due includes a request for a 3.15 refund of the tax paid under this section. The commissioner 3.16 shall refund to the taxpayer the full amount of the taxes paid 3.17 on exempt sales or use. 3.18 Subd. 6. [REVENUES; COST OF COLLECTION.] (a) The 3.19 commissioner shall remit the proceeds of the tax, less refunds 3.20 and a proportionate share of the cost of collection, at least 3.21 quarterly, to the area transportation partnership. If 3.22 necessary, the commissioner may estimate the sales made in that 3.23 area in order to make the payments, and adjust subsequent 3.24 payments as necessary so that the amount remitted to the 3.25 partnership equals the proceeds of the taxes collected within 3.26 the partnership jurisdiction. 3.27 (b) The commissioner shall deduct from the proceeds 3.28 remitted an amount that equals: 3.29 (1) the direct and indirect costs of the commissioner to 3.30 administer, audit, and collect the area transportation 3.31 partnership's tax, plus; 3.32 (2) the area transportation partnership's proportionate 3.33 share of the indirect cost of administering all taxes under this 3.34 section. 3.35 [EFFECTIVE DATE.] This section is effective January 1, 3.36 2002, for sales and purchases occurring after June 30, 2002. 4.1 Sec. 3. [174.97] [TRANSPORTATION AND TRANSIT FUNDING.] 4.2 Subdivision 1. [USE OF TAX PROCEEDS.] Tax proceeds 4.3 remitted to an area transportation partnership must be used for 4.4 highway and public transit purposes as determined by the 4.5 partnership, including (1) operating assistance to public 4.6 transit systems, and (2) matching funding for federal funds for 4.7 transportation projects undertaken within the jurisdiction of 4.8 the area transportation partnership, and (3) grants to political 4.9 subdivisions for highway and public transit purposes. 4.10 Subd. 2. [METROPOLITAN AREA.] In the area in which the 4.11 area transportation partnership is the metropolitan council: 4.12 (1) the metropolitan transportation advisory board shall 4.13 advise the metropolitan council in determining the use of funds 4.14 under subdivision 1; and 4.15 (2) funds for transit services to a statutory or home rule 4.16 city or town that levied a tax under Minnesota Statutes 2000, 4.17 section 473.388, subdivision 7, must not be less than the amount 4.18 levied by the city or town for taxes payable in 2002. 4.19 [EFFECTIVE DATE.] This section is effective January 1, 2002. 4.20 Sec. 4. Minnesota Statutes 2000, section 297A.62, 4.21 subdivision 1, is amended to read: 4.22 Subdivision 1. [GENERALLY.] Except as otherwise provided 4.23 in subdivision 2 or 3 or in this chapter, a sales tax of6.5six 4.24 percent is imposed on the gross receipts from retail sales as 4.25 defined in section 297A.61, subdivision 4, made in this state or 4.26 to a destination in this state by a person who is required to 4.27 have or voluntarily obtains a permit under section 297A.83, 4.28 subdivision 1. 4.29 [EFFECTIVE DATE.] This section is effective for sales and 4.30 purchases occurring after June 30, 2002. 4.31 Sec. 5. Minnesota Statutes 2000, section 473.388, 4.32 subdivision 4, is amended to read: 4.33 Subd. 4. [FINANCIAL ASSISTANCE.] The council may grant the 4.34 requested financial assistance if it determines that the 4.35 proposed service is intended to replace the service to the 4.36 applying city or town or combination thereof by the council and 5.1 that the proposed service will meet the needs of the applicant 5.2 at least as efficiently and effectively as the existing service. 5.3The amount of assistance which the council may provide5.4under this section may not exceed the sum of:5.5(a) the portion of the available local transit funds which5.6the applicant proposes to use to subsidize the proposed service;5.7and5.8(b) an amount of financial assistance bearing an identical5.9proportional relationship to the amount under clause (a) as the5.10total amount of funds used by the council to fund its transit5.11operations bears to the total amount of taxes collected by the5.12council under section 473.446. The council shall pay the amount5.13to be provided to the recipient from the funds the council would5.14otherwise use to fund its transit operations.5.15For purposes of this section, "available local transit5.16funds" means 90 percent of the tax revenues which would accrue5.17to the council from the tax it levies under section 473.446 in5.18the applicant city or town or combination thereof.5.19For purposes of this section, "tax revenues" in the city or5.20town means the sum of the following:5.21(1) the nondebt spread levy, which is the total of the5.22taxes extended by application of the local tax rate for nondebt5.23purposes on the taxable net tax capacity;5.24(2) the portion of the fiscal disparity distribution levy5.25under section 473F.08, subdivision 3, attributable to nondebt5.26purposes; and5.27(3) the portion of the homestead credit and agricultural5.28credit aid and disparity reduction aid amounts under section5.29273.1398, subdivisions 2 and 3, attributable to nondebt purposes.5.30Tax revenues do not include the state feathering5.31reimbursement under section 473.446.5.32 [EFFECTIVE DATE.] This section is effective for taxes 5.33 levied in 2002, payable in 2003, and thereafter. 5.34 Sec. 6. Minnesota Statutes 2000, section 473.446, 5.35 subdivision 1, is amended to read: 5.36 Subdivision 1. [WITHIN TRANSIT TAXING DISTRICT.] For the 6.1 purposes of sections 473.405 to 473.449 and the metropolitan 6.2 transit system, except as otherwise provided in this subdivision 6.3 and subdivision 1b, the councilshallmay levy each year upon 6.4 all taxable property within the metropolitan transit taxing 6.5 district, defined in subdivision 2, a transit tax consisting of: 6.6 (a) an amount which shall be usedfor payment of the6.7expenses of operating transit and paratransit service andto 6.8 provide for payment of obligations issued by the council under 6.9 section 473.436, subdivision 6; 6.10 (b) an additional amount, if any, the council determines to 6.11 be necessary to provide for the full and timely payment of its 6.12 certificates of indebtedness and other obligationsoutstanding6.13on July 1, 1985,to which property taxes under this section have 6.14 been pledged; and 6.15 (c) an additional amount necessary to provide full and 6.16 timely payment of certificates of indebtedness, bonds, including 6.17 refunding bonds or other obligations issued or to be issued 6.18 under section 473.39by the council for purposes of acquisition6.19and betterment of property and other improvements of a capital6.20natureand to which the council has specifically pledged tax 6.21 levies under this clause. 6.22The property tax levied by the council for general purposes6.23under paragraph (a) must not exceed the following amount for the6.24years specified:6.25(1) for taxes payable in 1995, the council's property tax6.26levy limitation for general transit purposes is equal to the6.27former regional transit board's property tax levy limitation for6.28general transit purposes under this subdivision, for taxes6.29payable in 1994, multiplied by an index for market valuation6.30changes equal to the total market valuation of all taxable6.31property located within the metropolitan transit taxing district6.32for the current taxes payable year divided by the total market6.33valuation of all taxable property located within the6.34metropolitan transit taxing district for the previous taxes6.35payable year; and6.36(2) for taxes payable in 1996 and subsequent years, the7.1product of (i) the council's property tax levy limitation for7.2general transit purposes for the previous year determined under7.3this subdivision before reduction by the amount levied by any7.4municipality in the previous year under section 473.388,7.5subdivision 7, multiplied by (ii) an index for market valuation7.6changes equal to the total market valuation of all taxable7.7property located within the metropolitan transit taxing district7.8for the current taxes payable year divided by the total market7.9valuation of all taxable property located within the7.10metropolitan transit taxing district for the previous taxes7.11payable year, minus the amount levied by any municipality in the7.12current levy year under section 473.388, subdivision 7.7.13The portion of the property tax levy for transit district7.14operating purposes attributable to a municipality that has7.15exercised a local levy option under section 473.388, subdivision7.167, is the amount as determined under subdivision 1b. The7.17portion of the property tax levy for transit district operating7.18purposes attributable to the remaining municipalities within the7.19transit district is found by subtracting the portions7.20attributable to the municipalities that have exercised a local7.21levy option under section 473.388, subdivision 7.7.22For the taxes payable year 1995, the index for market7.23valuation changes shall be multiplied by an amount equal to the7.24sum of the regional transit board's property tax levy limitation7.25for the taxes payable year 1994 and $160,665. The $160,6657.26increase shall be a permanent adjustment to the levy limit base7.27used in determining the regional transit board's property tax7.28levy limitation for general purposes for subsequent taxes7.29payable years.7.30For the purpose of determining the council's property tax7.31levy limitation for general transit purposes under this7.32subdivision, "total market valuation" means the total market7.33valuation of all taxable property within the metropolitan7.34transit taxing district without valuation adjustments for fiscal7.35disparities (chapter 473F), tax increment financing (sections7.36469.174 to 469.179), and high voltage transmission lines8.1(section 273.425).8.2The county auditor shall reduce the tax levied pursuant to8.3this section and section 473.388 on all property within8.4statutory and home rule charter cities and towns that receive8.5full-peak service and limited off-peak service by an amount8.6equal to the tax levy that would be produced by applying a rate8.7of 0.510 percent of net tax capacity on the property. The8.8county auditor shall reduce the tax levied pursuant to this8.9section and section 473.388 on all property within statutory and8.10home rule charter cities and towns that receive limited peak8.11service by an amount equal to the tax levy that would be8.12produced by applying a rate of 0.765 percent of net tax capacity8.13on the property. The amounts so computed by the county auditor8.14shall be submitted to the commissioner of revenue as part of the8.15abstracts of tax lists required to be filed with the8.16commissioner under section 275.29. Any prior year adjustments8.17shall also be certified in the abstracts of tax lists. The8.18commissioner shall review the certifications to determine their8.19accuracy and may make changes in the certification as necessary8.20or return a certification to the county auditor for8.21corrections. The commissioner shall pay to the council and to8.22the municipalities levying under section 473.388, subdivision 7,8.23the amounts certified by the county auditors on the dates8.24provided in section 273.1398, apportioned between the council8.25and the municipality in the same proportion as the total transit8.26levy is apportioned within the municipality. There is annually8.27appropriated from the general fund in the state treasury to the8.28department of revenue the amounts necessary to make these8.29payments.8.30For the purposes of this subdivision, "full-peak and8.31limited off-peak service" means peak period regular route8.32service, plus weekday midday regular route service at intervals8.33longer than 60 minutes on the route with the greatest frequency;8.34and "limited peak period service" means peak period regular8.35route service only.8.36For the purposes of property taxes payable in the following9.1year, the council shall annually determine which cities and9.2towns qualify for the 0.510 percent or 0.765 percent tax9.3capacity rate reduction and shall certify this list to the9.4county auditor of the county wherein such cities and towns are9.5located on or before September 15. No changes may be made to9.6the annual list after September 15.9.7 The council may levy the tax without limitation to pay the 9.8 principal and interest due on the bonds, certificates of 9.9 indebtedness, or other obligations issued by the council before 9.10 January 1, 2002, under section 473.39 or 473.436. After January 9.11 1, 2002, the tax levy must not exceed the annual principal and 9.12 interest due on obligations issued under section 473.39 or 9.13 473.436. The taxes under this subdivision must be levied and 9.14 collected in the manner specified in section 473.13, subdivision 9.15 2. 9.16 [EFFECTIVE DATE.] This section is effective for taxes 9.17 levied in 2002, payable in 2003, and thereafter. 9.18 Sec. 7. Minnesota Statutes 2000, section 473.446, 9.19 subdivision 8, is amended to read: 9.20 Subd. 8. [STATE REVIEW.] The commissioner of revenue shall 9.21 certify the council's levy limitation under this section to the 9.22 council by August 1 of the levy year.The council must certify9.23its proposed property tax levy under this section to the9.24commissioner of revenue by September 1 of the levy year. The9.25commissioner of revenue shall annually determine whether the9.26property tax for transit purposes certified by the council for9.27levy following the adoption of its proposed budget is within the9.28levy limitation imposed by subdivisions 1 and 1b. The9.29commissioner shall also annually determine whether the transit9.30tax imposed on all taxable property within the metropolitan9.31transit area but outside of the metropolitan transit taxing9.32district is within the levy limitation imposed by subdivision9.331a. The determination must be completed prior to September 109.34of each year. If current information regarding market valuation9.35in any county is not transmitted to the commissioner in a timely9.36manner, the commissioner may estimate the current market10.1valuation within that county for purposes of making the10.2calculations.10.3 [EFFECTIVE DATE.] This section is effective for taxes 10.4 levied in 2002, payable in 2003, and thereafter. 10.5 Sec. 8. [REPEALER.] 10.6 Minnesota Statutes 2000, sections 473.388, subdivisions 5 10.7 and 7; and 473.446, subdivisions 1a and 1b, are repealed. 10.8 [EFFECTIVE DATE.] This section is effective for taxes 10.9 levied in 2002, payable in 2003, and thereafter.