Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature
Office of the Revisor of Statutes

HF 4171

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

KEY: stricken = removed, old language.
underscored = added, new language.
Version List Authors and Status
Rtf

Bill Text Versions

Engrossments
Introduction Posted on 04/25/2006

Current Version - as introduced

Line numbers 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8
1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20
1.21 1.22 2.1 2.2 2.3
2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15
2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30
2.31 2.32 2.33 3.1 3.2 3.3
3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18
3.19 3.20 3.21 3.22 3.23 3.24
3.25 3.26 3.27 3.28

A bill for an act
 relating to transportation; imposing a highway user fee on gasoline and special
fuel; creating accounts; authorizing issuance of $2,750,000,000 in state trunk
highway bonds; appropriating money; amending Minnesota Statutes 2004,
sections 161.04, by adding subdivisions; 296A.07, subdivision 4, by adding a
subdivision; 296A.08, subdivision 3, by adding a subdivision; proposing coding
for new law in Minnesota Statutes, chapters 161; 296A.

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

Section 1.

Minnesota Statutes 2004, section 161.04, is amended by adding a
subdivision to read:


new text begin Subd. 5. new text end

new text begin Debt service account. new text end

new text begin (a) A debt service account is established in the
trunk highway fund, solely consisting of revenues from taxes collected under sections
168.013, 296A.07, 296A.08, and 297B.02. The account receives money distributed
under paragraph (b), and any other money as specified by law. Money in the account is
appropriated to the commissioner for payment of principal and interest on trunk highway
bonds issued under section 161.045.
new text end

new text begin (b) Upon any distribution of revenue into the highway user fee account under
sections 296A.07, subdivision 3a, and 296A.08, subdivision 2a, the commissioner of
finance shall transfer an amount equal to such distribution from the trunk highway fund to
the debt service account.
 new text end

Sec. 2.

Minnesota Statutes 2004, section 161.04, is amended by adding a subdivision
to read:


new text begin Subd. 6. new text end

new text begin Highway user fee account. new text end

new text begin A highway user fee account is established in
the trunk highway fund. The account receives money distributed under sections 296A.07,
subdivision 3a, and 296A.08, subdivision 2a, and any other money as specified by law.
 new text end

Sec. 3.

new text begin [161.045] APPROPRIATION; BOND SALE AUTHORIZATION.
 new text end

new text begin Subdivision 1. new text end

new text begin Appropriation. new text end

new text begin $275,000,000 is appropriated on each September 1
of fiscal years 2007 through 2016 from the bond proceeds account in the trunk highway
fund to the commissioner of transportation for trunk highway improvements.
 new text end

new text begin Subd. 2. new text end

new text begin Bond sale. new text end

new text begin To provide the money appropriated from the bond proceeds
account under subdivision 1, the commissioner of finance shall sell and issue bonds of
the state in an amount up to $2,750,000,000 in the manner, upon the terms, and with
the effect prescribed by sections to , and by the Minnesota Constitution,
article XIV, section 11, at the times and in the amounts requested by the commissioner
of transportation. The proceeds of the bonds, except accrued interest and any premium
received on the sale of the bonds, must be credited to the bond proceeds account in the
trunk highway fund.
 new text end

Sec. 4.

Minnesota Statutes 2004, section 296A.07, is amended by adding a subdivision
to read:


new text begin Subd. 3a. new text end

new text begin Highway user fee. new text end

new text begin (a) A highway user fee, determined as provided in
paragraph (b), is imposed on gasoline, E-85, and M-85, in addition to the taxes imposed
under subdivision 3. The highway user fee imposed on E-85 and M-85 must be in the
same proportion to the fee on gasoline as the taxes on those fuels are in proportion to the
tax on gasoline under subdivision 3. Proceeds from the fee must be deposited in the
highway user tax distribution fund, and those proceeds that are allocated to the trunk
highway fund must be deposited in the highway user fee account.
 new text end

new text begin (b) On August 1 of each fiscal year the commissioner of revenue shall determine the
amount of highway user fees on gasoline, E-85, and M-85 so that the fees deposited in the
highway user fee account, when combined with highway user fees under section 296A.08,
subdivision 2a, will equal an amount needed to pay principal and interest in the next 12
months on bonds issued under section 161.045. The amount of the fee so determined is
effective on September 1 of each year through August 31 of the following year.
 new text end

Sec. 5.

Minnesota Statutes 2004, section 296A.07, subdivision 4, is amended to read:


Subd. 4.

Exemptions.

The provisions of deleted text begin subdivision deleted text end new text begin subdivisions new text end 1 new text begin and 3a new text end do not
apply to gasoline purchased by:

(1) a transit system or transit provider receiving financial assistance or
reimbursement under section 174.24, 256B.0625, subdivision 17, or 473.384; or

(2) an ambulance service licensed under chapter 144E.

Sec. 6.

Minnesota Statutes 2004, section 296A.08, is amended by adding a subdivision
to read:


new text begin Subd. 2a. new text end

new text begin Highway user fee. new text end

new text begin (a) A highway user fee is imposed on special fuel
in addition to the taxes imposed under subdivision 2. The highway user fee imposed on
liquefied petroleum gas, liquefied natural gas, and compressed natural gas must be in
the same proportion to the fee on other special fuel as the taxes on those fuels are in
proportion to the tax on other special fuels under subdivision 2. Proceeds from the fee
must be deposited in the highway user tax distribution fund, and those proceeds that are
allocated to the trunk highway fund must be deposited in the highway user fee account.
 new text end

new text begin (b) On August 1 of each fiscal year the commissioner of revenue shall determine
the amount of highway user fees on special fuel so that the fees deposited in the highway
user fee account, when combined with the highway user fees under section 296A.07,
subdivision 3a, will equal an amount needed to pay principal and interest in the next 12
months on bonds issued under section 161.045. The amount of fee so determined is
effective on September 1 of each year through August 31 of the following year.
 new text end

Sec. 7.

Minnesota Statutes 2004, section 296A.08, subdivision 3, is amended to read:


Subd. 3.

Exemptions.

The provisions of subdivisions 1 deleted text begin anddeleted text end new text begin ,new text end 2new text begin , and 2a new text end do not apply
to special fuel or alternative fuels purchased by:

(1) a transit system or transit provider receiving financial assistance or
reimbursement under section 174.24, 256B.0625, subdivision 17, or 473.384; or

(2) an ambulance service licensed under chapter 144E.

Sec. 8.

new text begin [296A.081] COLLECTION OF HIGHWAY USER FEE.
 new text end

new text begin All provisions of this chapter that apply to the collection of taxes on gasoline
and special fuel apply to the collection of highway user fees established under sections
296A.07, subdivision 3a, and 296A.08, subdivision 2a.
 new text end