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HF 323

as introduced - 90th Legislature (2017 - 2018) Posted on 01/26/2017 04:55pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to transportation; governing transportation finance; proposing a
constitutional amendment to the Minnesota Constitution, article XIV, to allocate
state tax revenue related to motor vehicle repair or maintenance exclusively to
fund roads; amending Minnesota Statutes 2016, section 297A.94.

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

ARTICLE 1

CONSTITUTIONAL AMENDMENT

Section 1. new text beginCONSTITUTIONAL AMENDMENT PROPOSED.
new text end

new text begin An amendment to the Minnesota Constitution is proposed to the people. If the amendment
is adopted, article XIV, section 5, will read:
new text end

Sec. 5.

There is hereby created a highway user tax distribution fund to be used solely
for highway purposes as specified in this article. The fund consists of the proceeds of any
taxes authorized by sections 9 and 10 of this articlenew text begin, and the revenue specified under section
14 of this article
new text end. The net proceeds of the taxes shall be apportioned: 62 percent to the trunk
highway fund; 29 percent to the county state-aid highway fund; nine percent to the municipal
state-aid street fund. Five percent of the net proceeds of the highway user tax distribution
fund may be set aside and apportioned by law to one or more of the three foregoing funds.
The balance of the highway user tax distribution fund shall be transferred to the trunk
highway fund, the county state-aid highway fund, and the municipal state-aid street fund
in accordance with the percentages set forth in this section. No change in the apportionment
of the five percent may be made within six years of the last previous change.

new text begin a section shall be added to article XIV, to read:
new text end

new text begin Sec. 14. new text end

new text begin The revenue from a sales and use tax imposed by the state on the repair or
maintenance of a motor vehicle, including on the sale of motor vehicle parts and tires, must
be allocated solely to the highway user tax distribution fund. The revenue under this section
does not include the amount provided under article XI, section 15.
new text end

Sec. 2. new text beginSUBMISSION TO VOTERS.
new text end

new text begin The proposed amendment under section 1 must be submitted to the people at the 2018
general election. The question submitted must be:
new text end

new text begin "Shall the Minnesota Constitution be amended to dedicate revenue from any state taxes
on the repair or maintenance of motor vehicles exclusively to roads, including state and
local streets, highways, and bridges, effective July 1, 2019?
new text end

new text begin Yes .
new text end
new text begin No .
new text end
new text begin "
new text end

Sec. 3. new text beginEFFECTIVE DATE.
new text end

new text begin If the constitutional amendment in this article is adopted, the constitutional provision in
section 1 is effective July 1, 2019.
new text end

ARTICLE 2

CONSTITUTIONAL AMENDMENT IMPLEMENTATION

Section 1.

Minnesota Statutes 2016, section 297A.94, is amended to read:


297A.94 DEPOSIT OF REVENUES.

(a) Except as provided in this section, the commissioner shall deposit the revenues,
including interest and penalties, derived from the taxes imposed by this chapter in the state
treasury and credit them to the general fund.

(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic
account in the special revenue fund if:

(1) the taxes are derived from sales and use of property and services purchased for the
construction and operation of an agricultural resource project; and

(2) the purchase was made on or after the date on which a conditional commitment was
made for a loan guaranty for the project under section 41A.04, subdivision 3.

The commissioner of management and budget shall certify to the commissioner the date on
which the project received the conditional commitment. The amount deposited in the loan
guaranty account must be reduced by any refunds and by the costs incurred by the Department
of Revenue to administer and enforce the assessment and collection of the taxes.

(c) The commissioner shall deposit the revenues, including interest and penalties, derived
from the taxes imposed on sales and purchases included in section 297A.61, subdivision 3,
paragraph (g), clauses (1) and (4), in the state treasury, and credit them as follows:

(1) first to the general obligation special tax bond debt service account in each fiscal
year the amount required by section 16A.661, subdivision 3, paragraph (b); and

(2) after the requirements of clause (1) have been met, the balance to the general fund.

(d) The commissioner shall deposit the revenues, including interest and penalties,
collected under section 297A.64, subdivision 5, in the state treasury and credit them to the
general fund. By July 15 of each year the commissioner shall transfer to the highway user
tax distribution fund an amount equal to the excess fees collected under section 297A.64,
subdivision 5
, for the previous calendar year.

(e) new text beginStarting after July 1, 2019, the commissioner must deposit monthly an amount of
the remittances into the state treasury and credit them to the highway user tax distribution
fund, as a portion of the estimated amount of taxes collected from the sales and purchase
of motor vehicle repair and replacement parts in that month. The monthly deposit amount
is 1/12 of the product of (1) the estimated percentage of sales tax attributable to the sale and
purchase of motor vehicle repair and replacement parts calculated under this paragraph, and
(2) the total sales tax revenues for the calendar year ending before the start of that fiscal
year. By June 30, 2019, and June 30 of every second year thereafter, the commissioner must
estimate the percentage of total sales tax revenues collected in the previous calendar year
that is attributable to sales and purchases, including interest and penalties, of motor vehicle
repair and replacement parts based on federal data and department consumption models.
For purposes of this paragraph, "motor vehicle" has the meaning given in section 297B.01,
subdivision 11, and "motor vehicle repair and replacement parts" includes (1) all parts, tires,
accessories, and equipment incorporated into or affixed to the motor vehicle as part of the
motor vehicle maintenance or repair, and (2) paint, oil, and other fluids that remain on or
in the motor vehicle as part of the motor vehicle maintenance or repair.
new text end

new text begin (f) new text end72.43 percent of the revenues, including interest and penalties, transmitted to the
commissioner under section 297A.65, must be deposited by the commissioner in the state
treasury as follows:

(1) 50 percent of the receipts must be deposited in the heritage enhancement account in
the game and fish fund, and may be spent only on activities that improve, enhance, or protect
fish and wildlife resources, including conservation, restoration, and enhancement of land,
water, and other natural resources of the state;

(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and may
be spent only for state parks and trails;

(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and may
be spent only on metropolitan park and trail grants;

(4) three percent of the receipts must be deposited in the natural resources fund, and
may be spent only on local trail grants; and

(5) two percent of the receipts must be deposited in the natural resources fund, and may
be spent only for the Minnesota Zoological Garden, the Como Park Zoo and Conservatory,
and the Duluth Zoo.

deleted text begin (f)deleted text endnew text begin (g)new text end The revenue dedicated under paragraph deleted text begin(e)deleted text endnew text begin (f)new text end may not be used as a substitute for
traditional sources of funding for the purposes specified, but the dedicated revenue shall
supplement traditional sources of funding for those purposes. Land acquired with money
deposited in the game and fish fund under paragraph deleted text begin(e)deleted text endnew text begin (f)new text end must be open to public hunting
and fishing during the open season, except that in aquatic management areas or on lands
where angling easements have been acquired, fishing may be prohibited during certain times
of the year and hunting may be prohibited. At least 87 percent of the money deposited in
the game and fish fund for improvement, enhancement, or protection of fish and wildlife
resources under paragraph deleted text begin(e)deleted text endnew text begin (f)new text end must be allocated for field operations.

deleted text begin (g)deleted text endnew text begin (h)new text end The revenues deposited under paragraphs (a) to deleted text begin(f)deleted text endnew text begin (g)new text end do not include the revenues,
including interest and penalties, generated by the sales tax imposed under section 297A.62,
subdivision 1a
, which must be deposited as provided under the Minnesota Constitution,
article XI, section 15.

new text begin (i) The estimation and deposit of funds under paragraph (e) must conform with the
Minnesota Constitution, article XIV, section 14.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 30, 2019, if the constitutional
amendment in article 1 is adopted.
new text end