HF 337

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             proposing an amendment to the Minnesota Constitution, 
  1.3             article XIV, sections 5, 9, and by adding sections; 
  1.4             dedicating proceeds from vehicle registration taxes 
  1.5             and 20 percent of the proceeds from the sales tax on 
  1.6             motor vehicles to a Minnesota transportation fund; 
  1.7             increasing motor fuels tax; providing for transit 
  1.8             operating levy; amending Minnesota Statutes 1996, 
  1.9             sections 296.02, subdivision 1b; 296.025, subdivision 
  1.10            1b; 297B.09, subdivision 1; and 473.446, by adding a 
  1.11            subdivision; proposing coding for new law in Minnesota 
  1.12            Statutes, chapters 168; and 174; repealing Minnesota 
  1.13            Statutes 1996, section 473.388, subdivisions 1, 2, 3, 
  1.14            4, and 5. 
  1.15  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.16     Section 1.  [168.651] [DEPOSIT OF REVENUES.] 
  1.17     Except as otherwise provided by law, all revenues received 
  1.18  from taxes imposed under section 168.013, less any refunds 
  1.19  authorized by this chapter, and all fees collected by the 
  1.20  commissioner under this chapter not otherwise provided for, must 
  1.21  be deposited in the state treasury and credited to the Minnesota 
  1.22  transportation trust fund established under section 174.52. 
  1.23     Sec. 2.  [174.52] [MINNESOTA TRANSPORTATION TRUST FUND.] 
  1.24     Subdivision 1.  [FUND CREATED.] The Minnesota 
  1.25  transportation trust fund is created in the state treasury.  The 
  1.26  fund consists of money allocated to the fund under section 
  1.27  168.651 and all other money appropriated or credited to the fund 
  1.28  by law. 
  1.29     Subd. 2.  [APPROPRIATIONS FROM FUND.] Not later than 
  1.30  January 1 of each odd-numbered year the commissioner shall 
  2.1   submit to the legislature a list of recommended appropriations 
  2.2   from the fund.  The list must be based on the state 
  2.3   transportation plan and the transportation goals established 
  2.4   under section 174.01, subdivision 2.  At a minimum the list must 
  2.5   provide for appropriations for: 
  2.6      (1) trunk highway construction, maintenance, and 
  2.7   administration; 
  2.8      (2) operating and capital assistance for transit in the 
  2.9   metropolitan area provided or assisted by the metropolitan 
  2.10  council; 
  2.11     (3) operating and capital assistance to transit in greater 
  2.12  Minnesota; 
  2.13     (4) county state-aids; and 
  2.14     (5) municipal state-aids. 
  2.15     Sec. 3.  Minnesota Statutes 1996, section 296.02, 
  2.16  subdivision 1b, is amended to read: 
  2.17     Subd. 1b.  [RATES IMPOSED.] The gasoline excise tax is 
  2.18  imposed at the following rates: 
  2.19     (1) E85 is taxed at the rate of 14.2 17.7 cents per gallon; 
  2.20     (2) M85 is taxed at the rate of 11.4 14.3 cents per gallon; 
  2.21  and 
  2.22     (3) all other gasoline is taxed at the rate of 20 25 cents 
  2.23  per gallon.  
  2.24     Sec. 4.  Minnesota Statutes 1996, section 296.025, 
  2.25  subdivision 1b, is amended to read: 
  2.26     Subd. 1b.  [TAX RATES.] The special fuel excise tax is 
  2.27  imposed at the following rates: 
  2.28     (1) Liquefied petroleum gas or propane is taxed at the rate 
  2.29  of 15 18.7 cents per gallon. 
  2.30     (2) Liquefied natural gas is taxed at the rate of 12 15 
  2.31  cents per gallon. 
  2.32     (3) Compressed natural gas is taxed at the rate of $1.739 
  2.33  $2.174 per thousand cubic feet; or 20 25 cents per gasoline 
  2.34  equivalent, as defined by the National Conference on Weights and 
  2.35  Measures, which is 5.66 pounds of natural gas. 
  2.36     (4) All other special fuel is taxed at the same rate as the 
  3.1   gasoline excise tax. 
  3.2      Sec. 5.  Minnesota Statutes 1996, section 297B.09, 
  3.3   subdivision 1, is amended to read: 
  3.4      Subdivision 1.  [GENERAL FUND SHARE.] (a) Money collected 
  3.5   and received under this chapter must be deposited in the state 
  3.6   treasury and credited to the general fund.  The amounts 
  3.7   collected and received shall be credited as provided in this 
  3.8   subdivision, and transferred from the general fund on July 15 
  3.9   and February 15 of each fiscal year.  The commissioner of 
  3.10  finance must make each transfer based upon the actual receipts 
  3.11  of the preceding six calendar months and include the interest 
  3.12  earned during that six-month period.  The commissioner of 
  3.13  finance may establish a quarterly or other schedule providing 
  3.14  for more frequent payments to the transit assistance fund if the 
  3.15  commissioner determines it is necessary or desirable to provide 
  3.16  for the cash flow needs of the recipients of money from the 
  3.17  transit assistance fund.  
  3.18     (b) Twenty-five percent of the money collected and received 
  3.19  under this chapter after June 30, 1990, and before July 1, 1991, 
  3.20  must be transferred to the highway user tax distribution fund 
  3.21  and the transit assistance fund for apportionment as follows:  
  3.22  75 percent must be transferred to the highway user tax 
  3.23  distribution fund for apportionment in the same manner and for 
  3.24  the same purposes as other money in that fund, and the remaining 
  3.25  25 percent of the money must be transferred to the transit 
  3.26  assistance fund to be appropriated to the commissioner of 
  3.27  transportation for transit assistance within the state and to 
  3.28  the metropolitan council.  
  3.29     (c) The distributions under this subdivision to the highway 
  3.30  user tax distribution fund until June 30, 1991, and to the trunk 
  3.31  highway fund thereafter, must be reduced by the amount necessary 
  3.32  to fund the appropriation under section 41A.09, subdivision 1.  
  3.33  For the fiscal years ending June 30, 1988, and June 30, 1989, 
  3.34  the commissioner of finance, before making the transfers 
  3.35  required on July 15 and January 15 of each year, shall estimate 
  3.36  the amount required to fund the appropriation under section 
  4.1   41A.09, subdivision 1, for the six-month period for which the 
  4.2   transfer is being made.  The commissioner shall then reduce the 
  4.3   amount transferred to the highway user tax distribution fund by 
  4.4   the amount of that estimate.  The commissioner shall reduce the 
  4.5   estimate for any six-month period by the amount by which the 
  4.6   estimate for the previous six-month period exceeded the amount 
  4.7   needed to fund the appropriation under section 41A.09, 
  4.8   subdivision 1, for that previous six-month period.  If at any 
  4.9   time during a six-month period in those fiscal years the amount 
  4.10  of reduction in the transfer to the highway user tax 
  4.11  distribution fund is insufficient to fund the appropriation 
  4.12  under section 41A.09, subdivision 1, for that period, the 
  4.13  commissioner shall transfer to the general fund from the highway 
  4.14  user tax distribution fund an additional amount sufficient to 
  4.15  fund the appropriation for that period, but the additional 
  4.16  amount so transferred to the general fund in a six-month period 
  4.17  may not exceed the amount transferred to the highway user tax 
  4.18  distribution fund for that six-month period as follows: 
  4.19     (1) twenty percent must be credited to the Minnesota 
  4.20  transportation trust fund established under section 174.52; and 
  4.21     (2) the remainder must be credited to the general fund. 
  4.22     Sec. 6.  Minnesota Statutes 1996, section 473.446, is 
  4.23  amended by adding a subdivision to read: 
  4.24     Subd. 9.  [TRANSIT OPERATING LEVY.] The amount levied for 
  4.25  operating transit and paratransit services under subdivision 1, 
  4.26  paragraph (a) must be: 
  4.27     (1) for taxes levied in calendar year 1997, two-thirds of 
  4.28  the tax levied for those purposes in calendar year 1996; and 
  4.29     (2) for taxes levied in calendar year 1998, one-third of 
  4.30  the tax levied for those purposes in calendar year 1996. 
  4.31     In calendar year 1999 and subsequent years the council 
  4.32  shall not levy any tax under subdivision 1, paragraph (a), for 
  4.33  operating transit and paratransit service. 
  4.34     Sec. 7.  [CONSTITUTIONAL AMENDMENT PROPOSED.] 
  4.35     An amendment is proposed to the Minnesota Constitution, 
  4.36  article XIV, sections 5, 9, and by adding sections.  
  5.1      If the amendment is adopted article XIV, section 5, will 
  5.2   read: 
  5.3      Sec. 5.  [HIGHWAY USER TAX DISTRIBUTION FUND.] 
  5.4      There is hereby created a highway user tax distribution 
  5.5   fund to be used solely for highway purposes as specified in this 
  5.6   article.  The fund consists of the proceeds of any taxes 
  5.7   authorized by sections 9 and section 10 of this article.  The 
  5.8   net proceeds of the taxes shall be apportioned:  62 percent to 
  5.9   the trunk highway fund; 29 percent to the county state-aid 
  5.10  highway fund; nine percent to the municipal state-aid street 
  5.11  fund.  Five percent of the net proceeds of the highway user tax 
  5.12  distribution fund may be set aside and apportioned by law to one 
  5.13  or more of the three foregoing funds.  The balance of the 
  5.14  highway user tax distribution fund shall be transferred to the 
  5.15  trunk highway fund, the county state-aid highway fund, and the 
  5.16  municipal state-aid street fund in accordance with the 
  5.17  percentages set forth in this section.  No change in the 
  5.18  apportionment of the five percent may be made within six years 
  5.19  of the last previous change. 
  5.20     article XIV, section 9, will read: 
  5.21     Sec. 9.  The legislature by law may tax motor vehicles 
  5.22  using the public streets and highways on a more onerous basis 
  5.23  than other personal property.  Any such tax on motor vehicles 
  5.24  shall be in lieu of all other taxes thereon, except wheelage 
  5.25  taxes imposed by political subdivisions solely for highway 
  5.26  purposes.  The legislature may impose this tax on motor vehicles 
  5.27  of companies paying taxes under the gross earnings system of 
  5.28  taxation notwithstanding that earnings from the vehicles may be 
  5.29  included in the earnings on which gross earnings taxes are 
  5.30  computed.  The proceeds of the tax shall be paid into 
  5.31  the highway user tax distribution fund created in section 12.  
  5.32  The law may exempt from taxation any motor vehicle owned by a 
  5.33  nonresident of the state properly licensed in another state and 
  5.34  transiently or temporarily using the streets and highways of the 
  5.35  state. 
  5.36     article XIV, section 12, will read: 
  6.1      Sec. 12.  A Minnesota transportation trust fund is created 
  6.2   to be used exclusively for highway and transit purposes as 
  6.3   defined by law.  The fund consists of money paid into it under 
  6.4   section 9 and other money as provided by law.  The commissioner 
  6.5   of transportation or its successor agency shall recommend to the 
  6.6   legislature appropriations from the fund for highway and transit 
  6.7   purposes for each legislative budget period. 
  6.8      and article XIV, section 13, will read: 
  6.9      Sec. 13.  Twenty percent of the proceeds from a tax levied 
  6.10  on the purchase price of new and used motor vehicles must be 
  6.11  allocated by law to the Minnesota transportation trust fund 
  6.12  established in section 12. 
  6.13     Sec. 8.  [SUBMISSION TO VOTERS.] 
  6.14     The constitutional amendment shall be submitted to the 
  6.15  people at the 1998 general election.  The question submitted 
  6.16  must be: 
  6.17     "Shall the Minnesota Constitution be amended to dedicate 
  6.18  (1) the proceeds from state registration taxes on motor 
  6.19  vehicles, and (2) 20 percent of the proceeds from a sales tax on 
  6.20  new and used motor vehicles to a Minnesota transportation trust 
  6.21  fund dedicated exclusively to highway and transit purposes as 
  6.22  defined by law? 
  6.23                                     Yes .......
  6.24                                     No ........"
  6.25     Sec. 9.  [REPEALER.] 
  6.26     Minnesota Statutes 1996, section 473.388, subdivisions 1, 
  6.27  2, 3, 4, and 5, are repealed. 
  6.28     Sec. 10.  [EFFECTIVE DATE.] 
  6.29     (a) Except as provided in paragraph (b): 
  6.30     (1) Sections 1, 2, 5, 6, 8, and 9 are effective July 1, 
  6.31  1998. 
  6.32     (2) Sections 3 and 4 are effective July 1, 1998.  Section 3 
  6.33  applies to all gasoline in distributor storage on that date. 
  6.34     (b) If the constitutional amendment proposed in section 8 
  6.35  is not adopted at the 1998 general election, sections 1 to 5 and 
  6.36  9 shall not take effect and, notwithstanding Minnesota Statutes, 
  7.1   section 645.34, the tax rates in sections 3 and 4 will revert to 
  7.2   the rate in effect on June 30, 1998.