relating to transportation, taxes, and state government finance; amending various
provisions related to transportation finance and taxes; authorizing sale and
issuance of trunk highway bonds; making technical changes; appropriating
money; amending Minnesota Statutes 2012, sections 163.051; 168.013,
subdivision 1a; 168.31, by adding a subdivision; 296A.07, subdivision 3;
296A.08, subdivision 2; 297A.61, subdivision 3; 297A.68, subdivision 3;
297A.70, subdivisions 2, 3; 297A.815, subdivision 3; 297A.94; 297A.992,
subdivisions 2, 6; 297A.993, subdivision 1; 297B.01, subdivisions 14, 16;
297B.02, subdivision 3; 297B.03; proposing coding for new law in Minnesota
Statutes, chapter 435.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. BOND APPROPRIATIONS.
1.16The sums shown in the column under "APPROPRIATIONS" are appropriated from
1.17the bond proceeds account in the trunk highway fund, or another named fund, to the state
1.18agencies or officials indicated, to be spent for public purposes. Appropriations of bond
1.19proceeds must be spent as authorized by the Minnesota Constitution, articles XI and XIV.
1.20Unless otherwise specified, money appropriated in this article for a capital program or
1.21project may be used to pay state agency staff costs that are attributed directly to the capital
1.22program or project in accordance with accounting policies adopted by the commissioner
1.23of management and budget.
|Department of Transportation
|Department of Management and Budget
|Sec. 2. DEPARTMENT OF
2.7This appropriation is to the commissioner of
2.8transportation for the purposes specified in
|Subdivision 1.Total Appropriation
2.12This appropriation is in the amount of
2.13$50,000,000 in each fiscal year for fiscal
2.14years 2014 to 2017.
|Subd. 2.Corridor Investment Management
Strategy (CIMS) Program
2.17This appropriation is for the Transportation
2.18Economic Development program under
2.19Minnesota Statutes, section 161.04,
2.20subdivision 6, and is in the amount of
2.21$50,000,000 in each fiscal year for fiscal
2.22years 2014 to 2017.
|Subd. 3.Transportation Economic
Development (TED) Program
2.24This appropriation is to the commissioner
2.25of management and budget for bond sale
2.26expenses under Minnesota Statutes, sections
2.2716A.641, subdivision 8; and 167.50,
|Sec. 3. BOND SALE EXPENSES
Sec. 4. BOND SALE AUTHORIZATION.
2.30 To provide the money appropriated in subdivision 1 from the bond proceeds account
2.31in the trunk highway fund, the commissioner of management and budget shall sell and
2.32issue bonds of the state in an amount up to $400,400,000 in the manner, upon the terms,
3.1and with the effect prescribed by Minnesota Statutes, sections 167.50 to 167.52, and
3.2by the Minnesota Constitution, article XIV, section 11, at the times and in the amounts
3.3requested by the commissioner of transportation. The proceeds of the bonds, except
3.4accrued interest and any premium received from the sale of the bonds, must be deposited
3.5in the bond proceeds account in the trunk highway fund.
Sec. 5. EFFECTIVE DATE.
3.7This article is effective the day following final enactment.
Section 1. Minnesota Statutes 2012, section 168.013, subdivision 1a, is amended to read:
Subd. 1a. Passenger automobile; hearse.
(a) On passenger automobiles as defined
168.002, subdivision 24
, and hearses, except as otherwise provided, the tax
plus an additional tax equal to
percent of the base value,
3.14as adjusted under paragraph (h)
(b) Subject to the classification provisions herein, "base value" means the
manufacturer's suggested retail price of the vehicle including destination charge using list
price information published by the manufacturer or determined by the registrar if no
suggested retail price exists, and shall not include the cost of each accessory or item of
optional equipment separately added to the vehicle and the suggested retail price.
(c) If the manufacturer's list price information contains a single vehicle identification
number followed by various descriptions and suggested retail prices, the registrar shall
select from those listings only the lowest price for determining base value.
(d) If unable to determine the base value because the vehicle is specially constructed,
or for any other reason, the registrar may establish such value upon the cost price to the
purchaser or owner as evidenced by a certificate of cost but not including Minnesota sales
or use tax or any local sales or other local tax.
(e) The registrar shall classify every vehicle in its proper base value class as follows:
and thereafter a series of classes successively set in brackets having a spread of $200
consisting of such number of classes as will permit classification of all vehicles.
(f) The base value for purposes of this section shall be the middle point between
the extremes of its class.
(g) The registrar shall establish the base value, when new, of every passenger
automobile and hearse registered prior to the effective date of Extra Session Laws 1971,
chapter 31, using list price information published by the manufacturer or any nationally
recognized firm or association compiling such data for the automotive industry. If unable
to ascertain the base value of any registered vehicle in the foregoing manner, the registrar
may use any other available source or method. The registrar shall calculate tax using base
value information available to dealers and deputy registrars at the time the application for
registration is submitted. The tax on all previously registered vehicles shall be computed
upon the base value thus determined taking into account the depreciation provisions of
(h) The annual additional tax must be computed upon a percentage of the base value
as follows: during the first year of vehicle life, upon 100 percent of the base value; for the
second year, 90 percent of such value; for the third year, 80 percent of such value; for the
fourth year, 70 percent of such value; for the fifth year, 60 percent of such value; for the
sixth year, 50 percent of such value; for the seventh year, 40 percent of such value; for the
eighth year, 30 percent of such value; for the ninth year, 20 percent of such value; for the
tenth year, ten percent of such value; for the 11th and each succeeding year, the sum of $25.
(i) In no event shall the annual additional tax be less than $25.
(j) For any vehicle previously registered in Minnesota, the annual additional tax
this subdivision paragraph (a)
must not exceed the smallest amount of annual
additional tax previously paid or due on the vehicle.
4.24EFFECTIVE DATE.This section is effective the day following final enactment
4.25and applies to taxes payable for a registration period starting on or after July 1, 2013.
Sec. 2. Minnesota Statutes 2012, section 168.31, is amended by adding a subdivision
4.28 Subd. 5a. Late payment penalty. (a) The owner of a vehicle subject to registration
4.29tax under section 168.013, sections 1a to 11, owes a late payment penalty if the registration
4.30tax due for the vehicle is not fully paid within 30 days of the first day of the registration
4.31period for which the tax is owed. The amount of the penalty is equal to five percent of the
4.32total registration tax amount for the registration period, rounded to the nearest dollar.
4.33(b) The commissioner shall include notice of potential late payment penalties in
4.34its registration tax notifications.
5.1(c) A late payment penalty is included as a fee under this chapter, and chapters 168A
5.2and 169, for registration and operation of the vehicle on public streets and highways,
5.3including but not limited to requirements (1) under sections 168.09, subdivision 1, 168A.08,
5.4and 169.79, subdivision 1; and (2) related to issuance of plates and validation stickers.
5.5(d) Proceeds from penalties collected under this subdivision must be deposited in
5.6the highway user tax distribution fund. Of the first dollars deposited, an amount equal to
5.7the total start-up costs associated with implementation of this subdivision is appropriated
5.8from the highway user tax distribution fund to the commissioner of public safety.
5.9(e) This subdivision does not apply to (1) a vehicle for which installment payments
5.10are made under subdivision 4 or 4a; or (2) a vehicle registered under section 168.012,
5.11168.031, or 168.187. A late payment penalty is not subject to refund under section
5.12168.022 or 168.16.
5.13EFFECTIVE DATE.This section is effective the day following final enactment
5.14and applies to taxes payable for a registration period starting on or after January 1, 2014.
Sec. 3. Minnesota Statutes 2012, section 296A.07, subdivision 3, is amended to read:
Subd. 3. Rate of tax.
The gasoline excise tax is imposed
at the following rates: as
5.17specified in the following tax rate schedule.
5.18 (1) E85 is taxed at the rate of
17.75 cents per gallon;
5.19 (2) M85 is taxed at the rate of
14.25 cents per gallon; and
5.20 (3) all other gasoline is taxed at the rate of 25 cents per gallon.
5.29EFFECTIVE DATE.This section is effective October 1, 2013, and applies to all
5.30gasoline, undyed diesel fuel, and special fuel in distributor storage on that date.
|Tax Rate Schedule (in cents per gallon)
|Type of Fuel
October 1, 2013,
to June 30, 2014
|Rate in Fiscal
|Rate in Fiscal
|Rate in Fiscal
Year 2017 and
Sec. 4. Minnesota Statutes 2012, section 296A.08, subdivision 2, is amended to read:
Subd. 2. Rate of tax. (a)
The special fuel excise tax is imposed
at the following
5.33 rates: as specified in the following tax rate schedule.
5.34 (a) Liquefied petroleum gas or propane is taxed at the rate of
18.75 cents per gallon.
5.35 (b) Liquefied natural gas is taxed at the rate of 15 cents per gallon.
|Tax Rate Schedule (in cents per gallon unless otherwise specified)
|Type of Fuel
October 1, 2013,
to June 30, 2014
|Rate in Fiscal
|Rate in Fiscal
|Rate in Fiscal
Year 2017 and
petroleum gas or
feet, or 30.0 cents
feet, or 31.5 cents
feet, or 33.0 cents
feet, or 34.5 cents
(c) Compressed natural gas is taxed at the rate of $2.174 per thousand cubic feet; or
6.16 25 cents per gasoline equivalent. For purposes of this paragraph, (b) For purposes of the
6.17tax rate schedule under paragraph (a),
"gasoline equivalent," as defined by the National
Conference on Weights and Measures, is
pounds of natural gas.
All other special fuel is taxed at the same rate as the gasoline excise tax as
specified in the tax rate schedule under
296A.07, subdivision 2
. The tax is payable
in the form and manner prescribed by the commissioner.
6.22EFFECTIVE DATE.This section is effective October 1, 2013, and applies to all
6.23gasoline, undyed diesel fuel, and special fuel in distributor storage on that date.
Sec. 5. Minnesota Statutes 2012, section 297A.815, subdivision 3, is amended to read:
Subd. 3. Motor vehicle lease sales tax revenue allocation.
(a) For purposes of
this subdivision, "net revenue" means an amount equal to
the revenues, including
interest and penalties, collected under this section, during the fiscal year
; less(2) in fiscal
6.28 year 2011, $30,100,000; in fiscal year 2012, $31,100,000; and in fiscal year 2013 and
6.29 following fiscal years, $32,000,000
(b) On or before June 30 of each fiscal year, the commissioner of revenue shall
amount of the revenues and subtraction under paragraph (a) net revenue
for the current fiscal year.
(c) On or after July 1 of the subsequent fiscal year, the commissioner of management
and budget shall transfer the net revenue as estimated in paragraph (b) from the general
fund, as follows:
(1) 50 percent to the greater Minnesota transit account; and
(2) 50 percent to the county state-aid highway fund. Notwithstanding any other law
to the contrary, the commissioner of transportation shall allocate the funds transferred
under this clause to the counties in the metropolitan area, as defined in section
excluding the counties of Hennepin and Ramsey,
so that each county shall
receive of such amount the percentage that its population, as defined in section
subdivision 3, estimated or established by July 15 of the year prior to the current calendar
year, bears to the total population of the counties receiving funds under this clause.
(d) For fiscal years 2010 and 2011, the amount under paragraph (a), clause (1), must
7.7 be calculated using the following percentages of the total revenues:
7.8 (1) for fiscal year 2010, 83.75 percent; and
7.9 (2) for fiscal year 2011, 93.75 percent.
7.10EFFECTIVE DATE.This section is effective June 30, 2013.
Section 1. Minnesota Statutes 2012, section 297A.61, subdivision 3, is amended to read:
Subd. 3. Sale and purchase.
(a) "Sale" and "purchase" include, but are not limited
to, each of the transactions listed in this subdivision.
(b) Sale and purchase include:
(1) any transfer of title or possession, or both, of tangible personal property, whether
absolutely or conditionally, for a consideration in money or by exchange or barter; and
(2) the leasing of or the granting of a license to use or consume, for a consideration
in money or by exchange or barter, tangible personal property, other than a manufactured
home used for residential purposes for a continuous period of 30 days or more.
(c) Sale and purchase include the production, fabrication, printing, or processing of
tangible personal property for a consideration for consumers who furnish either directly or
indirectly the materials used in the production, fabrication, printing, or processing.
(d) Sale and purchase include the preparing for a consideration of food.
297A.67, subdivision 2
, taxable food includes, but is not limited
to, the following:
(1) prepared food sold by the retailer;
(2) soft drinks;
(4) dietary supplements; and
(5) all food sold through vending machines.
(e) A sale and a purchase includes the furnishing for a consideration of electricity,
gas, water, or steam for use or consumption within this state.
(f) A sale and a purchase includes the transfer for a consideration of prewritten
computer software whether delivered electronically, by load and leave, or otherwise.
(g) A sale and a purchase includes the furnishing for a consideration of the following
(1) the privilege of admission to places of amusement, recreational areas, or athletic
events, and the making available of amusement devices, tanning facilities, reducing
salons, steam baths, Turkish baths, health clubs, and spas or athletic facilities;
(2) lodging and related services by a hotel, rooming house, resort, campground,
motel, or trailer camp, including furnishing the guest of the facility with access to
telecommunication services, and the granting of any similar license to use real property in
a specific facility, other than the renting or leasing of it for a continuous period of 30 days
or more under an enforceable written agreement that may not be terminated without prior
notice and including accommodations intermediary services provided in connection with
other services provided under this clause;
(3) nonresidential parking services, whether on a contractual, hourly, or other
periodic basis, except for parking at a meter;
(4) the granting of membership in a club, association, or other organization if:
(i) the club, association, or other organization makes available for the use of its
members sports and athletic facilities, without regard to whether a separate charge is
assessed for use of the facilities; and
(ii) use of the sports and athletic facility is not made available to the general public
on the same basis as it is made available to members.
Granting of membership means both onetime initiation fees and periodic membership
dues. Sports and athletic facilities include golf courses; tennis, racquetball, handball, and
squash courts; basketball and volleyball facilities; running tracks; exercise equipment;
swimming pools; and other similar athletic or sports facilities;
(5) delivery of aggregate materials by a third party, excluding delivery of aggregate
material used in road construction; and delivery of concrete block by a third party if the
delivery would be subject to the sales tax if provided by the seller of the concrete block;
(6) services as provided in this clause:
(i) laundry and dry cleaning services including cleaning, pressing, repairing, altering,
and storing clothes, linen services and supply, cleaning and blocking hats, and carpet,
drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do not
include services provided by coin operated facilities operated by the customer;
(ii) motor vehicle washing, waxing, and cleaning services, including services
provided by coin operated facilities operated by the customer, and rustproofing,
undercoating, and towing of motor vehicles;
(iii) building and residential cleaning, maintenance, and disinfecting services and
pest control and exterminating services;
(iv) detective, security, burglar, fire alarm, and armored car services; but not including
services performed within the jurisdiction they serve by off-duty licensed peace officers as
defined in section
626.84, subdivision 1
, or services provided by a nonprofit organization
for monitoring and electronic surveillance of persons placed on in-home detention
pursuant to court order or under the direction of the Minnesota Department of Corrections;
(v) pet grooming services;
(vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting
and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor
plant care; tree, bush, shrub, and stump removal, except when performed as part of a land
clearing contract as defined in section
297A.68, subdivision 40
; and tree trimming for
public utility lines. Services performed under a construction contract for the installation of
shrubbery, plants, sod, trees, bushes, and similar items are not taxable;
(vii) massages, except when provided by a licensed health care facility or
professional or upon written referral from a licensed health care facility or professional for
treatment of illness, injury, or disease; and
(viii) the furnishing of lodging, board, and care services for animals in kennels and
other similar arrangements, but excluding veterinary and horse boarding services
9.23 (7) the repair and maintenance of motor vehicles; excluding repair and maintenance
9.24covered by a warranty, service contract, or a manufacturer's recall.
9.25 (h) A sale and a purchase include the furnishing for consideration of a warranty or
9.26service contract for the repair or maintenance of a motor vehicle.
In applying the provisions of this chapter, the terms "tangible personal property"
and "retail sale" include taxable services listed in clause (6), items (i) to (vi) and (viii),
and the provision of these taxable services, unless specifically provided otherwise.
Services performed by an employee for an employer are not taxable. Services performed
by a partnership or association for another partnership or association are not taxable if
one of the entities owns or controls more than 80 percent of the voting power of the
equity interest in the other entity. Services performed between members of an affiliated
group of corporations are not taxable. For purposes of the preceding sentence, "affiliated
group of corporations" means those entities that would be classified as members of an
affiliated group as defined under United States Code, title 26, section 1504, disregarding
the exclusions in section 1504(b).
For purposes of clause (5), "road construction" means construction of (1) public
roads, (2) cartways, and (3) private roads in townships located outside of the seven-county
metropolitan area up to the point of the emergency response location sign.
A sale and a purchase includes the furnishing for a consideration of tangible
personal property or taxable services by the United States or any of its agencies or
instrumentalities, or the state of Minnesota, its agencies, instrumentalities, or political
A sale and a purchase includes the furnishing for a consideration of
telecommunications services, ancillary services associated with telecommunication
services, cable television services, and direct satellite services. Telecommunication
services include, but are not limited to, the following services, as defined in section
: air-to-ground radiotelephone service, mobile telecommunication service,
postpaid calling service, prepaid calling service, prepaid wireless calling service, and
private communication services. The services in this paragraph are taxed to the extent
allowed under federal law.
A sale and a purchase includes the furnishing for a consideration of installation
if the installation charges would be subject to the sales tax if the installation were provided
by the seller of the item being installed.
A sale and a purchase includes the rental of a vehicle by a motor vehicle
dealer to a customer when (1) the vehicle is rented by the customer for a consideration,
or (2) the motor vehicle dealer is reimbursed pursuant to a service contract as defined in
10.25EFFECTIVE DATE.This section is effective for sales and purchases made after
10.26December 31, 2013.
Sec. 2. Minnesota Statutes 2012, section 297A.68, subdivision 3, is amended to read:
Subd. 3. Materials used in providing certain taxable services.
(a) Materials stored,
used, or consumed in providing a taxable service listed in section
297A.61, subdivision 3
(6) and (7)
, intended to be sold ultimately at retail are exempt.
(b) This exemption includes, but is not limited to:
(1) chemicals, lubricants, packaging materials, seeds, trees, fertilizers, and
herbicides, if these items are used or consumed in providing the taxable service;
(2) chemicals used to treat waste generated as a result of providing the taxable service;
(3) accessory tools, equipment, and other items that are separate detachable units used
in providing the service and that have an ordinary useful life of less than 12 months;
(4) fuel, electricity, gas, and steam used or consumed in the production process,
except that electricity, gas, or steam used for space heating, cooling, or lighting is exempt
if (i) it is in excess of average climate control or lighting, and (ii) it is necessary to produce
that particular service
11.7(5) parts and materials incorporated into a motor vehicle as part of automotive repair.
(c) This exemption does not include machinery, equipment, implements, tools,
accessories, appliances, contrivances, furniture, and fixtures used in providing the taxable
11.11EFFECTIVE DATE.This section is effective for sales and purchases made after
11.12December 31, 2013.
Sec. 3. Minnesota Statutes 2012, section 297A.70, subdivision 2, is amended to read:
Subd. 2. Sales to government.
(a) All sales, except those listed in paragraph (b),
to the following governments and political subdivisions, or to the listed agencies or
instrumentalities of governments and political subdivisions, are exempt:
(1) the United States and its agencies and instrumentalities;
(2) school districts, the University of Minnesota, state universities, community
colleges, technical colleges, state academies, the Perpich Minnesota Center for Arts
Education, and an instrumentality of a political subdivision that is accredited as an
optional/special function school by the North Central Association of Colleges and Schools;
(3) hospitals and nursing homes owned and operated by political subdivisions of
the state of tangible personal property and taxable services used at or by hospitals and
(4) the Metropolitan Council, for its purchases of vehicles and repair parts to equip
operations provided for in section
11.27(5) purchasers of goods and services by a local government for transit purposes if
11.28the purchase is funded by revenue from the metropolitan area transit account under section
11.2916A.88 or the greater Minnesota transit account under section 16A.88;
other states or political subdivisions of other states, if the sale would be
exempt from taxation if it occurred in that state;
public libraries, public library systems, multicounty, multitype library systems
as defined in section
, county law libraries under chapter 134A, state agency
libraries, the state library under section
, and the Legislative Reference Library; and
(b) This exemption does not apply to the sales of the following products and services:
(1) building, construction, or reconstruction materials purchased by a contractor
or a subcontractor as a part of a lump-sum contract or similar type of contract with a
guaranteed maximum price covering both labor and materials for use in the construction,
alteration, or repair of a building or facility;
(2) construction materials purchased by tax exempt entities or their contractors to
be used in constructing buildings or facilities which will not be used principally by the
tax exempt entities;
(3) the leasing of a motor vehicle as defined in section
297B.01, subdivision 11
except for leases entered into by the United States or its agencies or instrumentalities;
(4) lodging as defined under section
297A.61, subdivision 3
, paragraph (g), clause
(2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section
12.13297A.67, subdivision 2
, except for lodging, prepared food, candy, soft drinks, and alcoholic
beverages purchased directly by the United States or its agencies or instrumentalities; or
(5) goods or services purchased by a town as inputs to goods and services that are
generally provided by a private business and the purchases would be taxable if made by a
private business engaged in the same activity.
(c) As used in this subdivision, "school districts" means public school entities and
districts of every kind and nature organized under the laws of the state of Minnesota, and
any instrumentality of a school district, as defined in section
(d) As used in this subdivision, "goods or services generally provided by a private
business" include, but are not limited to, goods or services provided by liquor stores, gas
and electric utilities, golf courses, marinas, health and fitness centers, campgrounds, cafes,
and laundromats. "Goods or services generally provided by a private business" do not
include housing services, sewer and water services, wastewater treatment, ambulance and
other public safety services, correctional services, chore or homemaking services provided
to elderly or disabled individuals, or road and street maintenance or lighting.
12.28EFFECTIVE DATE.This section is effective for sales and purchases made after
12.29June 30, 2013.
Sec. 4. Minnesota Statutes 2012, section 297A.70, subdivision 3, is amended to read:
Subd. 3. Sales of certain goods and services to government.
(a) The following
sales to or use by the specified governments and political subdivisions of the state are
(1) repair and replacement parts for emergency rescue vehicles, fire trucks, and
fire apparatus to a political subdivision;
(2) machinery and equipment, except for motor vehicles, used directly for mixed
municipal solid waste management services at a solid waste disposal facility as defined in
115A.03, subdivision 10
(3) chore and homemaking services to a political subdivision of the state to be
provided to elderly or disabled individuals;
(4) telephone services to the Office of Enterprise Technology that are used to provide
telecommunications services through the enterprise technology revolving fund;
(5) firefighter personal protective equipment as defined in paragraph (b), if purchased
or authorized by and for the use of an organized fire department, fire protection district, or
fire company regularly charged with the responsibility of providing fire protection to the
state or a political subdivision;
(6) bullet-resistant body armor that provides the wearer with ballistic and trauma
protection, if purchased by a law enforcement agency of the state or a political subdivision
of the state, or a licensed peace officer, as defined in section
626.84, subdivision 1
(7) motor vehicles purchased or leased by political subdivisions of the state if the
vehicles are exempt from registration under section
168.012, subdivision 1
, paragraph (b),
exempt from taxation under section
, or exempt from the motor vehicle sales tax
(8) equipment designed to process, dewater, and recycle biosolids for wastewater
treatment facilities of political subdivisions, and materials incidental to installation of
(9) the removal of trees, bushes, or shrubs for the construction and maintenance
of roads, trails, or firebreaks when purchased by an agency of the state or a political
subdivision of the state;
(10) purchases by the Metropolitan Council or the Department of Transportation of
vehicles and repair parts to equip operations provided for in section
but not limited to, the Northstar Corridor Rail project;
(11) purchases of water used directly in providing public safety services by an
organized fire department, fire protection district, or fire company regularly charged with
the responsibility of providing fire protection to the state or a political subdivision
13.31(12) taxable services purchased by:
13.32(i) the Department of Transportation and funded by revenues from the trunk highway
13.34(ii) a county and funded by revenues from the county state-aid highway fund; or
13.35(iii) a home-rule charter or statutory city and funded by revenues from the municipal
13.36state-aid street fund.
(b) For purposes of this subdivision, "firefighters personal protective equipment"
means helmets, including face shields, chin straps, and neck liners; bunker coats and
pants, including pant suspenders; boots; gloves; head covers or hoods; wildfire jackets;
protective coveralls; goggles; self-contained breathing apparatus; canister filter masks;
personal alert safety systems; spanner belts; optical or thermal imaging search devices;
and all safety equipment required by the Occupational Safety and Health Administration.
(c) For purchases of items listed in paragraph (a), clause (10), the tax must be
imposed and collected as if the rate under section
297A.62, subdivision 1
, applied and
then refunded in the manner provided in section
14.10EFFECTIVE DATE.This section is effective for sales and purchases made after
14.11June 30, 2013.
Sec. 5. Minnesota Statutes 2012, section 297A.94, is amended to read:
14.13297A.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
(c) The commissioner shall deposit the revenues, including interest and penalties,
derived from the taxes imposed on sales and purchases included in section
, paragraph (g), clauses (1) and (4), in the state treasury, and credit them
(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
, for the previous calendar year.
(e) For fiscal year 2001, 97 percent; for fiscal years 2002 and 2003, 87 percent; and
for fiscal year 2004 and thereafter,
percent of the revenues, including interest and
penalties, transmitted to the commissioner under section
, 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.
(f) The revenue dedicated under paragraph (e) 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 (e) 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 (e) must be allocated for field operations.
(g) On or before June 30 of each fiscal year, the commissioner shall estimate the
15.33revenues, including interest and penalties collected during the fiscal year, on sales made
15.34by and sales made to all vendors classified as auto repair and maintenance businesses
15.35under the North American Industry Classification System code number 8111, minus any
15.36refunds made on those sales and purchases. On or after July 1 of the subsequent fiscal
16.1year, the commissioner of management and budget shall transfer from the general fund the
16.2amounts in clauses (1) and (2) estimated under this paragraph:
16.3(1) 50 percent to the greater Minnesota transit account in the transit assistance
16.5(2) 50 percent to the county state-aid highway fund.
The revenues deposited under paragraphs (a) to
do not include the
revenues, including interest and penalties, generated by the sales tax imposed under
297A.62, subdivision 1a
, which must be deposited as provided under the
Minnesota Constitution, article XI, section 15.
16.10EFFECTIVE DATE.This section is effective for revenues collected in fiscal year
16.112014 and thereafter.
16.13MOTOR VEHICLE SALES TAX
Section 1. Minnesota Statutes 2012, section 297B.01, subdivision 14, is amended to
Subd. 14. Purchase price.
(a) "Purchase price" means the total consideration
valued in money for a sale, whether paid in money or otherwise. The purchase price
excludes the amount of a manufacturer's rebate paid or payable to the purchaser. If a motor
vehicle is taken in trade as a credit or as part payment on a motor vehicle taxable under
this chapter, the credit or trade-in value allowed by the person selling the motor vehicle
shall be deducted from the total selling price to establish the purchase price of the vehicle
being sold and the trade-in allowance allowed by the seller shall constitute the purchase
price of the motor vehicle accepted as a trade-in. The purchase price in those instances
where the motor vehicle is acquired by gift or by any other transfer for a nominal or no
monetary consideration shall also include the average value of similar motor vehicles,
established by standards and guides as determined by the motor vehicle registrar. The
purchase price in those instances where a motor vehicle is manufactured by a person who
registers it under the laws of this state shall mean the manufactured cost of such motor
vehicle and manufactured cost shall mean the amount expended for materials, labor,
and other properly allocable costs of manufacture, except that in the absence of actual
expenditures for the manufacture of a part or all of the motor vehicle, manufactured costs
shall mean the reasonable value of the completed motor vehicle.
(b) The term "purchase price" shall not include the portion of the value of a motor
vehicle due solely to modifications necessary to make the motor vehicle disability
(c) The term "purchase price" shall not include the transfer of a motor vehicle by
way of gift between a husband and wife or parent and child, or to a nonprofit organization
as provided under subdivision 16, paragraph (c), clause
, nor shall it include
the transfer of a motor vehicle by a guardian to a ward when there is no monetary
consideration and the title to such vehicle was registered in the name of the guardian, as
guardian, only because the ward was a minor.
(d) The term "purchase price" shall not include the transfer of a motor vehicle as a
gift between a foster parent and foster child. For purposes of this subdivision, a foster
relationship exists, regardless of the age of the child, if (1) a foster parent's home is or was
licensed as a foster family home under Minnesota Rules, parts 9545.0010 to 9545.0260,
and (2) the county verifies that the child was a state ward or in permanent foster care.
(e) There shall not be included in "purchase price" the amount of any tax imposed by
the United States upon or with respect to retail sales whether imposed upon the retailer or
Sec. 2. Minnesota Statutes 2012, section 297B.01, subdivision 16, is amended to read:
Subd. 16. Sale, sells, selling, purchase, purchased, or acquired.
"sells," "selling," "purchase," "purchased," or "acquired" means any transfer of title of any
motor vehicle, whether absolutely or conditionally, for a consideration in money or by
exchange or barter for any purpose other than resale in the regular course of business.
(b) Any motor vehicle utilized by the owner only by leasing such vehicle to others
or by holding it in an effort to so lease it, and which is put to no other use by the owner
other than resale after such lease or effort to lease, shall be considered property purchased
(c) The terms also shall include any transfer of title or ownership of a motor vehicle
by other means, for or without consideration, except that these terms shall not include:
(1) the acquisition of a motor vehicle by inheritance from or by bequest of, a
decedent who owned it;
(2) the transfer of a motor vehicle which was previously licensed in the names of
two or more joint tenants and subsequently transferred without monetary consideration to
one or more of the joint tenants;
(3) the transfer of a motor vehicle by way of
gift between individuals, or
from a limited used vehicle dealer licensed under section
168.27, subdivision 4a
, to an
individual, when the transfer is with no monetary or other consideration or expectation
of consideration and the parties to the transfer submit an affidavit to that effect at the
time the title transfer is recorded;
(4) the transfer of a motor vehicle by gift between spouses or between parent and
the voluntary or involuntary transfer of a motor vehicle between a husband and
wife in a divorce proceeding; or
the transfer of a motor vehicle by way of a gift to an organization that is exempt
from federal income taxation under section 501(c)(3) of the Internal Revenue Code when
the motor vehicle will be used exclusively for religious, charitable, or educational purposes.
Sec. 3. Minnesota Statutes 2012, section 297B.02, subdivision 3, is amended to read:
Subd. 3. In lieu tax for collector vehicle.
In lieu of the tax imposed in subdivision
1, there is imposed a tax of
on the purchase price of a passenger automobile or a
fire truck described in section
297B.025, subdivision 2
Sec. 4. Minnesota Statutes 2012, section 297B.03, is amended to read:
There is specifically exempted from the provisions of this chapter and from
computation of the amount of tax imposed by it the following:
(1) purchase or use, including use under a lease purchase agreement or installment
sales contract made pursuant to section
, of any motor vehicle by the United States
and its agencies and instrumentalities and by any person described in and subject to the
conditions provided in section
297A.67, subdivision 11
(2) purchase or use of any motor vehicle by any person who was a resident of
18.24 another state or country at the time of the purchase and who subsequently becomes a
18.25 resident of Minnesota, provided the purchase occurred more than 60 days prior to the date
18.26 such person began residing in the state of Minnesota and the motor vehicle was registered
18.27 in the person's name in the other state or country;
18.28 (3) (2)
purchase or use of any motor vehicle by any person making a valid election
to be taxed under the provisions of section
purchase or use of any motor vehicle previously registered in the state of
Minnesota when such transfer constitutes a transfer within the meaning of section 118,
331, 332, 336, 337, 338, 351, 355, 368, 721, 731, 1031, 1033, or 1563(a) of the Internal
purchase or use of any vehicle owned by a resident of another state and
leased to a Minnesota-based private or for-hire carrier for regular use in the transportation
of persons or property in interstate commerce provided the vehicle is titled in the state
of the owner or secured party, and that state does not impose a sales tax or sales tax on
motor vehicles used in interstate commerce;
purchase or use of a motor vehicle by a private nonprofit or public educational
institution for use as an instructional aid in automotive training programs operated by the
institution. "Automotive training programs" includes motor vehicle body and mechanical
repair courses but does not include driver education programs;
purchase of a motor vehicle by an ambulance service licensed under section
when that vehicle is equipped and specifically intended for emergency response
or for providing ambulance service;
purchase of a motor vehicle by or for a public library, as defined in section
19.14134.001, subdivision 2
, as a bookmobile or library delivery vehicle;
purchase of a ready-mixed concrete truck;
purchase or use of a motor vehicle by a town for use exclusively for road
maintenance, including snowplows and dump trucks, but not including automobiles,
vans, or pickup trucks;
purchase or use of a motor vehicle by a corporation, society, association,
foundation, or institution organized and operated exclusively for charitable, religious, or
educational purposes, except a public school, university, or library, but only if the vehicle is:
(i) a truck, as defined in section
, a bus, as defined in section
, or a
passenger automobile, as defined in section
, if the automobile is designed and
used for carrying more than nine persons including the driver; and
(ii) intended to be used primarily to transport tangible personal property or
individuals, other than employees, to whom the organization provides service in
performing its charitable, religious, or educational purpose;
purchase of a motor vehicle for use by a transit provider exclusively to
provide transit service is exempt if the transit provider is either (i) receiving financial
assistance or reimbursement under section
, or (ii) operating under
purchase or use of a motor vehicle by a qualified business, as defined
, located in a job opportunity building zone, if the motor vehicle is
principally garaged in the job opportunity building zone and is primarily used as part of or
in direct support of the person's operations carried on in the job opportunity building zone.
The exemption under this clause applies to sales, if the purchase was made and delivery
received during the duration of the job opportunity building zone. The exemption under
this clause also applies to any local sales and use tax;
purchase of a leased vehicle by the lessee who was a participant in a
lease-to-own program from a charitable organization that is:
(i) described in section 501(c)(3) of the Internal Revenue Code; and
(ii) licensed as a motor vehicle lessor under section
168.27, subdivision 4
purchase of a motor vehicle used exclusively as a mobile medical unit
for the provision of medical or dental services by a federally qualified health center, as
defined under title 19 of the Social Security Act, as amended by Section 4161 of the
Omnibus Budget Reconciliation Act of 1990.
Sec. 5. EFFECTIVE DATE.
20.12Except as otherwise specified, sections 1 to 4 are effective July 1, 2013, and apply to
20.13transfers of title that occur on or after that date.
20.15LOCAL OPTION TRANSPORTATION FINANCE
Section 1. Minnesota Statutes 2012, section 163.051, is amended to read:
METROPOLITAN COUNTY WHEELAGE TAX.
Subdivision 1. Tax authorized.
(a) Except as provided in paragraph (b), the board
of commissioners of each
county is authorized to levy by resolution
of $5 for the year 1972 in an amount set by the county for calendar year
and each subsequent year thereafter
on each motor vehicle that is kept
in such county when not in operation and that is subject to annual registration and taxation
under chapter 168. The board may provide by resolution for collection of the wheelage
tax by county officials or it may request that the tax be collected by the state registrar of
motor vehicles, and the state registrar of motor vehicles shall collect such tax on behalf
of the county if requested, as provided in subdivision 2.
(b) The following vehicles are exempt from the wheelage tax:
(1) motorcycles, as defined in section
169.011, subdivision 44
(2) motorized bicycles, as defined in section
169.011, subdivision 45
electric-assisted bicycles, as defined in section
169.011, subdivision 27 ; and
motorized foot scooters, as defined in section
169.011, subdivision 46
Subd. 2. Collection by registrar of motor vehicles.
The wheelage tax levied by
county, if made collectible by the state registrar of motor vehicles,
shall be certified by the county auditor to the registrar not later than August 1 in the year
before the calendar year or years for which the tax is levied, and the registrar shall collect
such tax with the motor vehicle taxes on the affected vehicles for such year or years.
Every owner and every operator of such a motor vehicle shall furnish to the registrar all
information requested by the registrar. No state motor vehicle tax on any such motor
vehicle for any such year shall be received or deemed paid unless the applicable wheelage
tax is paid therewith.
The proceeds of the wheelage tax levied by any metropolitan county,
21.8 less any amount retained by the registrar to pay costs of collection of the wheelage tax,
21.9 shall be paid to the commissioner of management and budget and deposited in the state
21.10 treasury to the credit of the county wheelage tax fund of each metropolitan county.
Subd. 2a. Tax proceeds deposited; costs of collection; appropriation.
Notwithstanding the provisions of any other law, the state registrar of motor vehicles shall
deposit the proceeds of the wheelage tax imposed by subdivision 2, to the credit of the
county wheelage tax
county. The amount necessary to
pay the costs of collection of said tax is appropriated from the county wheelage tax
county to the state registrar of motor vehicles.
Subd. 3. Distribution to
metropolitan county; appropriation. On or before April
21.18 1 in 1972 and each subsequent year, the commissioner of management and budget On a
21.19monthly basis, the state registrar of motor vehicles
shall issue a warrant in favor of the
treasurer of each
county for which the registrar has collected a wheelage tax
in the amount of such tax then on hand in the county wheelage tax
is hereby appropriated from the county wheelage tax
each year, to each
county entitled to payments authorized by this section, sufficient
to make such payments.
Subd. 4. Use of tax.
The treasurer of each
under subdivision 3 shall deposit such
in the county road and
bridge fund. The
shall be used for purposes authorized by law which are
highway purposes within the meaning of the Minnesota Constitution, article 14.
Subd. 6. Metropolitan county defined. "Metropolitan county" means any of the
21.30 counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
Subd. 7. Offenses; penalties; application of other laws. (a)
Any owner or operator
of a motor vehicle who
any false information relative to the tax
authorized under this section
to the registrar of motor vehicles or any
county, or who
fail or refuse fails or refuses
to furnish any such information,
shall be is
guilty of a misdemeanor.
Except as otherwise
provided under this section
, the collection and payment
of a wheelage tax and all matters relating thereto
shall be are
subject to all provisions of
law relating to collection and payment of motor vehicle taxes so far as applicable.
22.4EFFECTIVE DATE.This section is effective August 1, 2013.
Sec. 2. Minnesota Statutes 2012, section 297A.992, subdivision 2, is amended to read:
Subd. 2. Authorization; rates.
(a) Notwithstanding section
1, 2, and 3, or
, or any other law, the board of a county participating in a
joint powers agreement as specified in this section shall impose by resolution (1) a
transportation sales and use tax at a rate of
of one percent on
retail sales and uses taxable under this chapter, and (2) an excise tax of $20 per motor
vehicle, as defined in section
297B.01, subdivision 11
, purchased or acquired from any
person engaged in the business of selling motor vehicles at retail, occurring within the
jurisdiction of the taxing authority. The taxes authorized are to fund transportation
improvements as specified in this section, including debt service on obligations issued
to finance such improvements pursuant to subdivision 7.
(b) The tax imposed under this section is not included in determining if the total tax
on lodging in the city of Minneapolis exceeds the maximum allowed tax under Laws 1986,
chapter 396, section 5, as amended by Laws 2001, First Special Session chapter 5, article
12, section 87, or in determining a tax that may be imposed under any other limitations.
22.20EFFECTIVE DATE.This section is effective July 1, 2013.
Sec. 3. Minnesota Statutes 2012, section 297A.992, subdivision 6, is amended to read:
Subd. 6. Allocation of grant awards.
(a) The board must allocate grant awards
only as follows:
22.24 (1) two-thirds
for the following transit purposes:
(i) capital improvements to transit ways, including, but not limited to, commuter
rail rolling stock, light rail vehicles, and transit way buses;
(ii) capital costs for park-and-ride facilities, as defined in section
(iii) feasibility studies, planning, alternatives analyses, environmental studies,
engineering, property acquisition for transit way purposes, and construction of transit
(iv) operating assistance for transit ways; and
22.33 (2) one-third for construction, reconstruction, or maintenance of county highways
(b) The joint powers board must annually award grants to each minimum guarantee
county in an amount no less than the amount of sales tax revenue collected within that
(c) No more than 1.25 percent of the
awards under paragraph (a), clause (1),
may be annually allocated for planning, studies, design, construction, maintenance, and
operation of pedestrian programs and bicycle programs and pathways.
23.7EFFECTIVE DATE.This section is effective July 1, 2013.
Sec. 4. Minnesota Statutes 2012, section 297A.993, subdivision 1, is amended to read:
Subdivision 1. Authorization; rates.
subdivisions 1, 2, 3, 5, and 13, or
, or any other law, the board of a county outside
the metropolitan transportation area, as defined under section
297A.992, subdivision 1
more than one county outside the metropolitan transportation area acting under a joint
powers agreement, may by resolution of the county board, or each of the county boards,
23.14following a public hearing
impose (1) a transportation sales tax at a rate of up to one-half
of one percent on retail sales and uses taxable under this chapter, and (2) an excise tax
of $20 per motor vehicle, as defined in section
297B.01, subdivision 11
, purchased or
acquired from any person engaged in the business of selling motor vehicles at retail,
occurring within the jurisdiction of the taxing authority.
The taxes imposed under this
23.19 section are subject to approval by a majority of the voters in each of the counties affected
23.20 at a general election who vote on the question to impose the taxes.
23.21EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 5. [435.39] MUNICIPAL STREET IMPROVEMENT DISTRICTS.
23.23 Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
23.24have the meanings given them.
23.25(b) "Governing body" means the city council of a municipality.
23.26(c) "Improvements" means construction, reconstruction, and facility upgrades
23.27involving: right-of-way acquisition; paving; curbs and gutters; bridges and culverts and
23.28their repair; milling; overlaying; drainage and storm sewers; excavation; base work;
23.29subgrade corrections; street lighting; traffic signals; signage; sidewalks; pavement
23.30markings; boulevard and easement restoration; impact mitigation; connection and
23.31reconnection of utilities; turn lanes; medians; street and alley returns; retaining walls;
23.32fences; lane additions; and fixed transit infrastructure, trails, or pathways. "Fixed transit
23.33infrastructure" does not include commuter rail rolling stock, light rail vehicles, or
24.1transit way buses; capital costs for park-and-ride facilities; feasibility studies, planning,
24.2alternative analyses, environmental studies, engineering, or construction of transit ways;
24.3or operating assistance for transit ways.
24.4(d) "Maintenance" means striping, seal coating, crack sealing, pavement repair,
24.5sidewalk maintenance, signal maintenance, street light maintenance, and signage.
24.6(e) "Municipal street" means a street, alley, or public way in which the municipality
24.7is the road authority with powers conferred by section 429.021.
24.8(f) "Municipality" means a home rule charter or statutory city.
24.9(g) "Street improvement district" means a geographic area designated by a
24.10municipality and located within the municipality within which street improvements and
24.11maintenance may be undertaken and financed according to this section.
24.12 Subd. 2. Authorization. A municipality may establish by ordinance municipal
24.13street improvement districts and may defray all or part of the total costs of municipal
24.14street improvements and maintenance by apportioning street improvement fees to all of
24.15the parcels located in the district.
24.16 Subd. 3. Uniformity. The total costs of municipal street improvements and
24.17maintenance must be apportioned to all parcels or tracts of land located in the established
24.18street improvement district on a uniform basis within each classification of real estate.
24.19 Subd. 4. Adoption of plan. Before establishing a municipal street improvement
24.20district or authorizing a street improvement fee, a municipality must propose and adopt a
24.21street improvement plan that identifies the location of the municipal street improvement
24.22district and identifies and estimates the costs of the proposed improvements during the
24.23proposed period of collection of municipal street improvement fees, which must be for
24.24a period of at least five years and at most 20 years. Notice of a public hearing on the
24.25proposed plan must be given by mail to all affected landowners at least ten days before
24.26the hearing and posted for at least ten days before the hearing. At the public hearing, the
24.27governing body must present the plan and all affected landowners in attendance must have
24.28the opportunity to comment before the governing body considers adoption of the plan.
24.29 Subd. 5. Citywide districts. A municipality that establishes a street improvement
24.30district that encompasses the entire political jurisdiction may adjust the fees annually as
24.31part of the annual budget process, utilizing truth in taxation notices and hearings to satisfy
24.32the notice and hearing requirements in this section. A citywide district may be renewed
24.33annually for an indefinite period.
24.34 Subd. 6. Use of fees. Revenues from street improvement fees must be placed in
24.35a separate account and used only for projects located within the district and identified
24.36in the municipal street improvement plan.
25.1 Subd. 7. Collection; up to 20 years. (a) An ordinance adopted under this section
25.2must provide for billing and payment of the fee on a monthly, quarterly, or other basis
25.3as directed by the governing body. The governing body may collect municipal street
25.4improvement fees within a street improvement district for a maximum of 20 years.
25.5 (b) Fees that, as of October 15 of each year, have remained unpaid for at least 30
25.6days may be certified to the county auditor for collection as a special assessment payable
25.7in the following calendar year against the affected property.
25.8 Subd. 8. Notice; hearings. A municipality may impose a municipal street
25.9improvement fee by ordinance. The ordinance must not be voted on or adopted until after
25.10a public hearing has been held on the question.
25.11 Subd. 9. Not exclusive means of financing improvements. The use of the
25.12municipal street improvement fee by a municipality does not restrict the municipality from
25.13imposing other measures to pay the costs of local street improvements or maintenance,
25.14except that a municipality must not impose special assessments for projects funded with
25.15street improvement fees.