Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

SF 10

as introduced - 91st Legislature (2019 - 2020) Posted on 01/10/2019 03:44pm

KEY: stricken = removed, old language.
underscored = added, new language.
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 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 2.34 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 3.29 3.30 3.31 3.32 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28
4.29 4.30 4.31 4.32 4.33 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19 5.20
5.21

A bill for an act
relating to transportation; allocating state general sales tax revenue related to motor
vehicle repair and replacement parts exclusively to fund roads; appropriating
money to construct state roads; authorizing the sale and issuance of trunk highway
bonds; amending Minnesota Statutes 2018, section 297A.94.

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

Section 1.

Minnesota Statutes 2018, section 297A.94, is amended to read:


297A.94 DEPOSIT OF REVENUES.

new text begin Subdivision 1. new text end

new text begin Deposits. new text end

(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 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) Beginning with sales taxes remitted after July 1, 2017, the commissioner shall deposit
in the state treasury the revenues collected under section 297A.64, subdivision 1, including
interest and penalties and minus refunds, and credit them to the highway user tax distribution
fund.

(e) 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.

(f) Beginning with sales taxes remitted after July 1, 2017, in conjunction with the deposit
of revenues under paragraph (d), the commissioner shall deposit into the state treasury and
credit to the highway user tax distribution fund an amount equal to the estimated revenues
derived from the tax rate imposed under section 297A.62, subdivision 1, on the lease or
rental for not more than 28 days of rental motor vehicles subject to section 297A.64. The
commissioner shall estimate the amount of sales tax revenue deposited under this paragraph
based on the amount of revenue deposited under paragraph (d).

(g) deleted text begin Starting after July 1, 2017,deleted text end The commissioner shall deposit deleted text begin an amount of the
remittances
deleted text end monthly into the state treasury and credit deleted text begin themdeleted text end to the highway user tax
distribution fund deleted text begin as a portion ofdeleted text end the deleted text begin estimated amount ofdeleted text end taxes collected from the sale and
purchase of motor vehicle repair new text begin and replacement new text end parts in that monthnew text begin , in the amount provided
under this paragraph
new text end . For the remittances between July 1, 2017, and June 30, 2019, the
monthly deposit amount is $2,628,000. new text begin For remittances between July 1, 2019, and June 30,
2020, the monthly deposit amount is $22,500,000.
new text end For remittances in each subsequent fiscal
year, the monthly deposit amount is deleted text begin $12,137,000deleted text end new text begin equal to 1/12 of the most recent percentage
estimate for the fiscal year under subdivision 2, multiplied by the total sales tax revenues
collected in the previous calendar year
new text end . For purposes of this paragraph, "motor vehicle" has
the meaning given in section 297B.01, subdivision 11, and "motor vehicle repair and
replacement parts" includes (i) all parts, tires, accessories, and equipment incorporated into
or affixed to the motor vehicle as part of the motor vehicle maintenance and repair, and (ii)
paint, oil, and other fluids that remain on or in the motor vehicle as part of the motor vehicle
maintenance or repair. For purposes of this paragraph, "tire" means any tire of the type used
on highway vehicles, if wholly or partially made of rubber and if marked according to
federal regulations for highway use.

(h) 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.

(i) The revenue dedicated under paragraph (h) 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 (h) 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 (h) must be allocated for field operations.

(j) The commissioner must deposit the revenues, including interest and penalties minus
any refunds, derived from the sale of items regulated under section 624.20, subdivision 1,
that may be sold to persons 18 years old or older and that are not prohibited from use by
the general public under section 624.21, in the state treasury and credit:

(1) 25 percent to the volunteer fire assistance grant account established under section
88.068;

(2) 25 percent to the fire safety account established under section 297I.06, subdivision
3; and

(3) the remainder to the general fund.

For purposes of this paragraph, the percentage of total sales and use tax revenue derived
from the sale of items regulated under section 624.20, subdivision 1, that are allowed to be
sold to persons 18 years old or older and are not prohibited from use by the general public
under section 624.21, is a set percentage of the total sales and use tax revenues collected in
the state, with the percentage determined under Laws 2017, First Special Session chapter
1, article 3, section 39.

(k) The revenues deposited under paragraphs (a) to (j) do not include the revenues,
including interest and penalties, generated by the sales tax imposed under section 297A.62,
subdivision 1a
, which must be deposited as provided under the Minnesota Constitution,
article XI, section 15.

new text begin Subd. 2. new text end

new text begin Motor vehicle repair and replacement parts estimation; legislative report. new text end

new text begin (a)
Beginning June 30, 2020, and by June 30 of every second year or more frequently thereafter,
the commissioner must estimate the percentage of total sales tax revenues, including interest
and penalties, collected in the previous calendar year that is attributable to sales and purchases
of motor vehicle repair and replacement parts, based on federal data and department
consumption models. Beginning July 1 following a percentage estimate revision, the estimate
is effective for deposits under subdivision 1, paragraph (g).
new text end

new text begin (b) By November 1 in a fiscal year in which a revised estimate becomes effective, the
commissioner must submit a report on the estimate and estimation methodology to the chairs
and ranking minority members of the house of representatives and senate committees with
jurisdiction over transportation policy and finance.
new text end

Sec. 2. new text begin TRANSPORTATION BONDS.
new text end

new text begin Subdivision 1. new text end

new text begin Appropriation; state road construction. new text end

new text begin $135,000,000 is appropriated
from the bond proceeds account in the trunk highway fund to the commissioner of
transportation for construction, reconstruction, and improvement of trunk highways, including
design-build contracts and use of consultants to support these activities. This includes the
cost of actual payment to landowners for lands acquired for highway rights-of-way, payment
to lessees, interest subsidies, and relocation expenses.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation; corridors of commerce. new text end

new text begin $135,000,000 is appropriated from
the bond proceeds account in the trunk highway fund to the commissioner of transportation
for the corridors of commerce program under Minnesota Statutes, section 161.088. The
commissioner may identify projects based on previous selection processes or may perform
a new selection. The commissioner may use up to 17 percent of the amount for program
delivery.
new text end

new text begin Subd. 3. new text end

new text begin Bond sale. new text end

new text begin To provide the money appropriated in subdivisions 1 and 2 from
the bond proceeds account in the trunk highway fund, the commissioner of management
and budget shall sell and issue bonds of the state in an amount up to $270,000,000, in the
manner, upon the terms, and with the effect prescribed by Minnesota Statutes, sections
167.50 to 167.52, 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 from the sale of the bonds, must
be deposited in the bond proceeds account in the trunk highway fund.
new text end

new text begin Subd. 4. new text end

new text begin Bond sale expenses. new text end

new text begin $270,000 is appropriated from the bond proceeds account
in the trunk highway fund to the commissioner of management and budget for bond sale
expenses under Minnesota Statutes, sections 16A.641, subdivision 8, and 167.50, subdivision
4.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2019.
new text end