SF 137

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to natural resources; proposing an amendment to the Minnesota
Constitution, article XI, by adding a section; increasing the sales tax rate by
one-fourth of one percent and dedicating the receipts for natural resources, clean
water, and arts purposes; establishing a great outdoors, clean water, and arts
fund; authorizing the sale of state bonds; amending Minnesota Statutes 2006,
sections 297A.62, subdivision 1; 297A.94; 297B.02, subdivision 1; proposing
coding for new law in Minnesota Statutes, chapter 103F.

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

Section 1. new text begin CONSTITUTIONAL AMENDMENT PROPOSED.
new text end

new text begin An amendment to the Minnesota Constitution is proposed to the people. If the
amendment is adopted, a section will be added to article XI, to read:
new text end

new text begin Sec. 15. new text end

new text begin Beginning July 1, 2009, until June 30, 2049, the sales and use tax rate shall be
increased by one-fourth of one percent on sales and uses taxable under the general state
sales and use tax law. Receipts from the increase, plus penalties and interest and reduced
by any refunds, are dedicated to and must be deposited in the great outdoors, clean water,
and arts fund. Money in the fund must be appropriated by law and may be spent only:
new text end

new text begin (1) to protect and restore the state's lakes, rivers, streams, wetlands, and groundwater;
new text end

new text begin (2) to protect, preserve, and enhance the state's fish and wildlife habitat, parks,
trails, and natural areas; and
new text end

new text begin (3) to support arts, humanities, history, museums, and public broadcasting.
new text end

new text begin A great outdoors, clean water, and arts fund is established in the state treasury.
new text end

new text begin From July 1, 2009, until June 30, 2029, the commissioner of finance may sell and
issue bonds for the purposes of the fund. The proceeds of the bonds shall be paid into
the fund. The priority fund expenditure is to pay principal and interest due on issued
bonds. If the fund is not adequate to pay principal and interest on the bonds when due, the
legislature shall appropriate money from the state treasury to the fund.
new text end

Sec. 2. new text begin SUBMISSION TO VOTERS.
new text end

new text begin The proposed amendment must be submitted to the people at the 2008 general
election. The question submitted must be:
new text end

new text begin "Shall the Minnesota Constitution be amended to provide funding to protect,
preserve, and enhance the state's fish and wildlife habitat, parks, trails, and natural areas;
to protect and restore the state's lakes, rivers, streams, wetlands, and groundwater; and
to support arts, humanities, history, museums, and public broadcasting by increasing the
sales and use tax rate by one-fourth of one percent on taxable sales until the year 2049 and
by authorizing the sale and issuance of bonds until the year 2029?
new text end

new text begin Yes ....... new text end

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

Sec. 3.

new text begin [103F.906] GREAT OUTDOORS, CLEAN WATER, AND ARTS FUND.
new text end

new text begin The great outdoors, clean water, and arts fund is established in the Minnesota
Constitution, article XI, section 15. The commissioner of finance shall credit to the fund
the increased tax receipts and proceeds from the sale of bonds pursuant to that section. All
contributions, gifts, and money earned by the fund must be credited to the fund. No more
than three percent of the fund may be used for administrative purposes. A great outdoors
account, a clean water account, and an arts and humanities account shall be created in
the fund. A minimum of $100,000,000 each year must be deposited in the clean water
account and a minimum of $....... each year must be deposited in the arts and humanities
account from the tax receipts collected or bonding proceeds, as provided in the Minnesota
Constitution, article XI, section 15.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009, if the constitutional
amendment proposed in section 1 is adopted.
new text end

Sec. 4.

Minnesota Statutes 2006, section 297A.62, subdivision 1, is amended to read:

Subdivision 1.

Generally.

new text begin (a) new text end Except as otherwise provided in subdivision 2 or 3
or in this chapter, a sales tax of 6.5 percent is imposed on the gross receipts from retail
sales as defined in section 297A.61, subdivision 4, made in this state or to a destination
in this state by a person who is required to have or voluntarily obtains a permit under
section 297A.83, subdivision 1.

new text begin (b) The increased rate required under the Minnesota Constitution, article XI, section
15, is in addition to the rate imposed under paragraph (a).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009, if the constitutional
amendment proposed in section 1 is adopted.
new text end

Sec. 5.

Minnesota Statutes 2006, section 297A.94, is amended to read:

297A.94 DEPOSIT OF REVENUES.

(a) Except as provided in this section new text begin and the Minnesota Constitution, article XI,
section 15 new text end , 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 finance 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) For fiscal year 2001, 97 percent; for fiscal years 2002 and 2003, 87 percent; and
for fiscal year 2004 and thereafter, 72.43 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.

(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.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009, if the constitutional
amendment proposed in section 1 is adopted.
new text end

Sec. 6.

Minnesota Statutes 2006, section 297B.02, subdivision 1, is amended to read:

Subdivision 1.

Rate.

There is imposed an excise tax at the rate provided in deleted text begin chapter
297A deleted text end new text begin section 297A.62, subdivision 1, paragraph (a), new text end on the purchase price of any motor
vehicle purchased or acquired, either in or outside of the state of Minnesota, which is
required to be registered under the laws of this state.

The excise tax is also imposed on the purchase price of motor vehicles purchased
or acquired on Indian reservations when the tribal council has entered into a sales tax on
motor vehicles refund agreement with the state of Minnesota.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009, if the constitutional
amendment proposed in section 1 is adopted.
new text end