as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am
Engrossments | ||
---|---|---|
Introduction | Posted on 02/23/2000 |
1.1 A bill for an act 1.2 relating to taxation; reducing passenger automobile 1.3 registration tax; proposing an amendment to the 1.4 Minnesota Constitution, article XIV, section 9, and 1.5 dedicating the net proceeds of the sales tax on motor 1.6 vehicles to the highway user tax distribution fund; 1.7 clarifying and changing obsolete, archaic, or 1.8 redundant statutory language; amending Minnesota 1.9 Statutes 1998, sections 168.013, subdivision 1a; and 1.10 297B.09. 1.11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.12 Section 1. Minnesota Statutes 1998, section 168.013, 1.13 subdivision 1a, is amended to read: 1.14 Subd. 1a. [PASSENGER AUTOMOBILE; HEARSE.] (a) On passenger 1.15 automobilesas defined in section 168.011, subdivision 7,and 1.16 hearses, except as otherwise provided, the taxshall beis $10 1.17 plus an additional tax equal to1.250.625 percent of the base 1.18 value, subject to a total minimum tax of $17.50. 1.19 (b) Subject to the classification provisionshereinin this 1.20 subdivision, "base value" means the manufacturer's suggested 1.21 retail price of the vehicle, including destination charge, using 1.22 list price information published by the manufacturer or 1.23 determined by the registrar if no suggested retail price exists,1.24and shall. Base value does not include the cost of each 1.25 accessory or item of optional equipment separately added to the 1.26 vehicle and the suggested retail price. 1.27 (c) If the manufacturer's list price information contains a 1.28 single vehicle identification number followed by various 2.1 descriptions and suggested retail prices, the registrar shall 2.2 select from those listings only the lowest price for determining 2.3 base value. 2.4 (d) If unable to determine the base value because the 2.5 vehicle is specially constructed, orfordue to any other 2.6 reason, the registrar may establishsuchthe value upon the cost 2.7 price to the purchaser or owner as evidenced by a certificate of 2.8 cost but not including Minnesota sales or use tax or any local 2.9 sales or other local tax. 2.10 (e) The registrar shall classify every vehicle in its 2.11 proper base value class as follows: 2.12 FROM TO 2.13 $ 0 $199.99 2.14 200 399.99 2.15 and thereafter, consisting of a series of classes successively 2.16 set in brackets having a spread of $200consisting of such, with 2.17 that number of classes aswillrequired to permit classification 2.18 of all vehicles. 2.19 (f) The base value for purposes of this sectionshall beis 2.20 the middle point between the extremes of its class. 2.21 (g) The registrar shall establish the base value, when new, 2.22 of every passenger automobile and hearseregistered prior to the2.23effective date of Extra Session Laws 1971, chapter 31, using 2.24 list price information published by the manufacturer or any 2.25 nationally recognized firm or association compiling such data 2.26 for the automotive industry. If unable to ascertain the base 2.27 value of any registered vehicle inthe foregoingthis manner, 2.28 the registrar may use any other available source or method. The 2.29 tax on all previously registered vehiclesshallmust be computed 2.30 upon the base value thus determined taking into account the 2.31 depreciation provisions of paragraph (h). 2.32 (h)Except as provided in paragraph (i),The annual 2.33 additional tax computed upon the base valueas provided herein2.34 of a passenger automobile or hearse, during the first and second 2.35 years of its vehicle lifeshall beis computed upon 100 percent 2.36 of the base value; for the third and fourth years, 90 percent of 3.1suchthat value; for the fifth and sixth years, 75 percent 3.2 ofsuchthat value; for the seventh year, 60 percent ofsuch3.3 that value; for the eighth year, 40 percent ofsuchthat value; 3.4 for the ninth year, 30 percent ofsuchthat value; for the tenth 3.5 year, ten percent ofsuchthat value; and, for the 11th and each 3.6 succeeding year, the sum of$25$7.50. 3.7In no event shallThe annual additional tax must not be 3.8 less than$25$7.50. 3.9(i) The annual additional tax under paragraph (h) on a3.10motor vehicle on which the first annual tax was paid before3.11January 1, 1990, must not exceed the tax that was paid on that3.12vehicle the year before.3.13 Sec. 2. Minnesota Statutes 1998, section 297B.09, is 3.14 amended to read: 3.15 297B.09 [ALLOCATION OF REVENUE.] 3.16 Subdivision 1. [GENERAL FUND SHARE.](a)Money collected 3.17 and received under this chapter must be deposited in the state 3.18 treasury and credited to thegeneralhighway user tax 3.19 distribution fund.The amounts collected and received shall be3.20credited as provided in this subdivision, and transferred from3.21the general fund on July 15 and February 15 of each fiscal3.22year. The commissioner of finance must make each transfer based3.23upon the actual receipts of the preceding six calendar months3.24and include the interest earned during that six-month period.3.25The commissioner of finance may establish a quarterly or other3.26schedule providing for more frequent payments to the transit3.27assistance fund if the commissioner determines it is necessary3.28or desirable to provide for the cash flow needs of the3.29recipients of money from the transit assistance fund.3.30(b) Twenty-five percent of the money collected and received3.31under this chapter after June 30, 1990, and before July 1, 1991,3.32must be transferred to the highway user tax distribution fund3.33and the transit assistance fund for apportionment as follows:3.3475 percent must be transferred to the highway user tax3.35distribution fund for apportionment in the same manner and for3.36the same purposes as other money in that fund, and the remaining4.125 percent of the money must be transferred to the transit4.2assistance fund to be appropriated to the commissioner of4.3transportation for transit assistance within the state and to4.4the metropolitan council.4.5(c) The distributions under this subdivision to the highway4.6user tax distribution fund until June 30, 1991, and to the trunk4.7highway fund thereafter, must be reduced by the amount necessary4.8to fund the appropriation under section 41A.09, subdivision 1.4.9For the fiscal years ending June 30, 1988, and June 30, 1989,4.10the commissioner of finance, before making the transfers4.11required on July 15 and January 15 of each year, shall estimate4.12the amount required to fund the appropriation under section4.1341A.09, subdivision 1, for the six-month period for which the4.14transfer is being made. The commissioner shall then reduce the4.15amount transferred to the highway user tax distribution fund by4.16the amount of that estimate. The commissioner shall reduce the4.17estimate for any six-month period by the amount by which the4.18estimate for the previous six-month period exceeded the amount4.19needed to fund the appropriation under section 41A.09,4.20subdivision 1, for that previous six-month period. If at any4.21time during a six-month period in those fiscal years the amount4.22of reduction in the transfer to the highway user tax4.23distribution fund is insufficient to fund the appropriation4.24under section 41A.09, subdivision 1, for that period, the4.25commissioner shall transfer to the general fund from the highway4.26user tax distribution fund an additional amount sufficient to4.27fund the appropriation for that period, but the additional4.28amount so transferred to the general fund in a six-month period4.29may not exceed the amount transferred to the highway user tax4.30distribution fund for that six-month period.4.31 Sec. 3. [CONSTITUTIONAL AMENDMENT.] 4.32 An amendment to the Minnesota Constitution, article XIV, 4.33 section 9, is proposed to the people. If the amendment is 4.34 adopted, the section will read: 4.35 Sec. 9. (a) The legislature by law may tax motor vehicles 4.36 using the public streets and highways on a more onerous basis 5.1 than other personal property. Any such tax on motor vehicles 5.2 shall be in lieu of all other taxes thereon, except wheelage 5.3 taxes imposed by political subdivisions solely for highway 5.4 purposes. The legislature may impose this tax on motor vehicles 5.5 of companies paying taxes under the gross earnings system of 5.6 taxation notwithstanding that earnings from the vehicles may be 5.7 included in the earnings on which gross earnings taxes are 5.8 computed. 5.9 (b) The legislature by law may impose a tax on the sale or 5.10 transfer of a new or used motor vehicle. 5.11 (c) The proceeds ofthe taxthese taxes shall be paid into 5.12 the highway user tax distribution fund. 5.13 (d) The law may exempt from taxation any motor vehicle 5.14 owned by a nonresident of the state properly licensed in another 5.15 state and transiently or temporarily using the streets and 5.16 highways of the state. 5.17 Sec. 4. [SUBMISSION TO VOTERS.] 5.18 The proposed amendment must be submitted to the people at 5.19 the 2000 general election and, if approved, takes effect for any 5.20 tax paid after June 30, 2001. The question submitted must be: 5.21 "Shall the Minnesota Constitution be amended to provide 5.22 that the sales tax on motor vehicles be deposited into the 5.23 highway user tax distribution fund to be used for streets and 5.24 highways? 5.25 Yes ....... 5.26 No ........" 5.27 Sec. 5. [EFFECTIVE DATE.] 5.28 Section 2 is effective July 1, 2001, but only if the 5.29 constitutional amendment proposed in section 4 is passed by the 5.30 people.