SF 1284

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act
  1.2             relating to transportation; increasing maximum license 
  1.3             taxes on passenger automobiles; providing for deposit 
  1.4             of revenues from motor vehicle sales tax; requiring 
  1.5             reductions in department of transportation trunk 
  1.6             highway fund budget base; authorizing issuance of 
  1.7             state trunk highway bonds and appropriating proceeds 
  1.8             for trunk highway improvements; authorizing issuance 
  1.9             of state general obligation bonds for public transit 
  1.10            capital improvements; proposing an amendment to the 
  1.11            Minnesota Constitution by adding a section to article 
  1.12            XIV to dedicate all revenue from the motor vehicle 
  1.13            sales tax to highway and transit purposes beginning 
  1.14            July 1, 2007; appropriating money; amending Minnesota 
  1.15            Statutes 2002, sections 168.013, subdivision 1a; 
  1.16            297B.09, subdivision 1; proposing coding for new law 
  1.17            in Minnesota Statutes, chapter 161. 
  1.18  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.19     Section 1.  [161.086] [MAJOR HIGHWAY PROJECTS ACCOUNT.] 
  1.20     A major highway projects account is created in the trunk 
  1.21  highway fund.  The account consists of money credited to the 
  1.22  fund under section 297B.09, subdivision 1, and other money 
  1.23  credited by law.  Money in the account may be appropriated by 
  1.24  law for: 
  1.25     (1) improvements to trunk highways in at-risk interregional 
  1.26  corridors located primarily or entirely outside the seven-county 
  1.27  metropolitan area; 
  1.28     (2) removal of significant highway bottlenecks within the 
  1.29  metropolitan area; 
  1.30     (3) trunk highway safety and capacity improvement projects 
  1.31  not included in clauses (1) and (2), including but not limited 
  2.1   to the addition of lanes on trunk highway corridors with known 
  2.2   safety problems; and 
  2.3      (4) trunk highway advantages to transit. 
  2.4      Sec. 2.  Minnesota Statutes 2002, section 168.013, 
  2.5   subdivision 1a, is amended to read: 
  2.6      Subd. 1a.  [PASSENGER AUTOMOBILE; HEARSE.] (a) On passenger 
  2.7   automobiles as defined in section 168.011, subdivision 7, and 
  2.8   hearses, except as otherwise provided, the tax shall be $10 plus 
  2.9   an additional tax equal to 1.25 percent of the base value.  
  2.10     (b) Subject to the classification provisions herein, "base 
  2.11  value" means the manufacturer's suggested retail price of the 
  2.12  vehicle including destination charge using list price 
  2.13  information published by the manufacturer or determined by the 
  2.14  registrar if no suggested retail price exists, and shall not 
  2.15  include the cost of each accessory or item of optional equipment 
  2.16  separately added to the vehicle and the suggested retail price. 
  2.17     (c) If the manufacturer's list price information contains a 
  2.18  single vehicle identification number followed by various 
  2.19  descriptions and suggested retail prices, the registrar shall 
  2.20  select from those listings only the lowest price for determining 
  2.21  base value. 
  2.22     (d) If unable to determine the base value because the 
  2.23  vehicle is specially constructed, or for any other reason, the 
  2.24  registrar may establish such value upon the cost price to the 
  2.25  purchaser or owner as evidenced by a certificate of cost but not 
  2.26  including Minnesota sales or use tax or any local sales or other 
  2.27  local tax. 
  2.28     (e) The registrar shall classify every vehicle in its 
  2.29  proper base value class as follows: 
  2.30                        FROM                   TO
  2.31                        $  0                $199.99
  2.32                         200                 399.99
  2.33  and thereafter a series of classes successively set in brackets 
  2.34  having a spread of $200 consisting of such number of classes as 
  2.35  will permit classification of all vehicles. 
  2.36     (f) The base value for purposes of this section shall be 
  3.1   the middle point between the extremes of its class. 
  3.2      (g) The registrar shall establish the base value, when new, 
  3.3   of every passenger automobile and hearse registered prior to the 
  3.4   effective date of Extra Session Laws 1971, chapter 31, using 
  3.5   list price information published by the manufacturer or any 
  3.6   nationally recognized firm or association compiling such data 
  3.7   for the automotive industry.  If unable to ascertain the base 
  3.8   value of any registered vehicle in the foregoing manner, the 
  3.9   registrar may use any other available source or method.  The 
  3.10  registrar shall calculate tax using base value information 
  3.11  available to dealers and deputy registrars at the time the 
  3.12  application for registration is submitted.  The tax on all 
  3.13  previously registered vehicles shall be computed upon the base 
  3.14  value thus determined taking into account the depreciation 
  3.15  provisions of paragraph (h). 
  3.16     (h) The annual additional tax computed upon the base value 
  3.17  as provided herein, during the first and second years of vehicle 
  3.18  life shall be computed upon 100 percent of the base value; for 
  3.19  the third and fourth years, 90 percent of such value; for the 
  3.20  fifth and sixth years, 75 percent of such value; for the seventh 
  3.21  year, 60 percent of such value; for the eighth year, 40 percent 
  3.22  of such value; for the ninth year, 30 percent of such value; for 
  3.23  the tenth year, ten percent of such value; for the 11th and each 
  3.24  succeeding year, the sum of $25.  
  3.25  In no event shall the annual additional tax be less than $25.  
  3.26     (i) The total tax under this subdivision on any vehicle 
  3.27  filing its initial registration in Minnesota in the first year 
  3.28  of vehicle life shall not exceed $189 for the first renewal 
  3.29  period and shall not exceed $99 for subsequent renewal periods:  
  3.30     (1) $200 in the first renewal period; 
  3.31     (2) $175 in the second renewal period; 
  3.32     (3) $125 in the third renewal period; and 
  3.33     (4) $99 in the fourth and subsequent renewal periods. 
  3.34     (j) The total tax under this subdivision on any vehicle 
  3.35  filing its initial registration in Minnesota in the second year 
  3.36  of vehicle life shall not exceed $189 and shall not exceed $99 
  4.1   for subsequent renewal periods:  
  4.2      (1) $200 in the first renewal period; 
  4.3      (2) $175 in the second renewal period; 
  4.4      (3) $125 in the third renewal period; and 
  4.5      (4) $99 in the fourth and subsequent renewal periods. 
  4.6      (k) The total tax under this subdivision on any vehicle 
  4.7   filing its initial registration in Minnesota in the third or 
  4.8   subsequent year of vehicle life shall not exceed $99 and shall 
  4.9   not exceed $99 in any subsequent renewal period: 
  4.10     (1) $175 in the third year of vehicle life; 
  4.11     (2) $125 in the fourth year of vehicle life; and 
  4.12     (3) $99 in the fifth and subsequent years of vehicle life. 
  4.13     (i) (l) As used in this subdivision and section 168.017, 
  4.14  the following terms have the meanings given:  "initial 
  4.15  registration" means the 12 consecutive months calendar period 
  4.16  from the day of first registration of a vehicle in Minnesota; 
  4.17  and "renewal periods" means the 12 consecutive calendar months 
  4.18  periods following the initial registration period. 
  4.19     Sec. 3.  Minnesota Statutes 2002, section 297B.09, 
  4.20  subdivision 1, is amended to read: 
  4.21     Subdivision 1.  [DEPOSIT OF REVENUES.] (a) Money collected 
  4.22  and received under this chapter must be deposited as provided in 
  4.23  this subdivision.  
  4.24     (b) From July 1, 2001, to June 30, 2002, 30.86 percent of 
  4.25  the money collected and received must be deposited in the 
  4.26  highway user tax distribution fund, and the remaining money must 
  4.27  be deposited in the general fund.  
  4.28     (c) On and after July 1, 2002, 32 Of the money collected 
  4.29  and received from July 1, 2003, through June 30, 2007, 27.46 
  4.30  percent of the money collected and received must be deposited in 
  4.31  the highway user tax distribution fund, 20.5 percent must be 
  4.32  deposited in the metropolitan area transit fund under section 
  4.33  16A.88, and 1.25 percent must be deposited in the greater 
  4.34  Minnesota transit fund under section 16A.88.  In fiscal year 
  4.35  2004 and thereafter, and two percent of the money collected and 
  4.36  received must be deposited in the metropolitan area transit 
  5.1   appropriation account under section 16A.88.  The remaining money 
  5.2   must be deposited in the general fund. 
  5.3      (c) Of the money collected and received on and after July 
  5.4   1, 2007: 
  5.5      (1) 20.5 percent must be deposited in the metropolitan area 
  5.6   transit fund; 
  5.7      (2) 1.25 percent must be deposited in the greater Minnesota 
  5.8   transit fund; 
  5.9      (3) two percent must be deposited in the metropolitan area 
  5.10  transit appropriation account; 
  5.11     (4) 21.25 percent must be deposited in the transit 
  5.12  assistance fund; 
  5.13     (5) 23 percent must be deposited in the major highway 
  5.14  projects account in the trunk highway fund; and 
  5.15     (6) 32 percent must be deposited in the highway user tax 
  5.16  distribution fund. 
  5.17     Sec. 4.  [BUDGET BASE REDUCTIONS.] 
  5.18     For the biennium ending June 30, 2005, and subsequent 
  5.19  bienniums, the commissioner of transportation shall make the 
  5.20  following reductions in the department of transportation's 
  5.21  2002-2003 trunk highway fund budget base: 
  5.22     (1) multimodal programs, $1,000,000; 
  5.23     (2) state roads, $32,421,000; and 
  5.24     (3) general support, $16,665,000.  
  5.25     Sec. 5.  [TRANSPORTATION APPROPRIATIONS.] 
  5.26     Subdivision 1.  [TRUNK HIGHWAY IMPROVEMENTS.] (a) The 
  5.27  following amounts in the following fiscal years are appropriated 
  5.28  from the bond proceeds account in the trunk highway fund to the 
  5.29  commissioner of transportation: 
  5.30     (1) in fiscal year 2004, $150,000,000; 
  5.31     (2) in fiscal year 2005, $150,000,000; 
  5.32     (3) in fiscal year 2006, $200,000,000; 
  5.33     (4) in fiscal year 2007, $250,000,000; 
  5.34     (5) in fiscal year 2008, $250,000,000; 
  5.35     (6) in fiscal year 2009, $250,000,000; and 
  5.36     (7) in fiscal year 2010, $250,000,000. 
  6.1      (b) The commissioner shall spend the amounts appropriated 
  6.2   under paragraph (a) in each fiscal year as follows: 
  6.3      (1) 45 percent for improvements to trunk highways in 
  6.4   at-risk interregional corridors located primarily or entirely 
  6.5   outside the seven-county metropolitan area; 
  6.6      (2) 45 percent for removal of significant highway 
  6.7   bottlenecks within the metropolitan area; 
  6.8      (3) five percent for trunk highway advantages to transit; 
  6.9   and 
  6.10     (4) five percent for trunk highway safety and capacity 
  6.11  improvement projects not included in clauses (1) and (2), 
  6.12  including but not limited to the addition of lanes on trunk 
  6.13  highway corridors with known safety problems.  In spending the 
  6.14  amount under this clause, the commissioner shall select from 
  6.15  projects submitted by local units of government.  All necessary 
  6.16  additional right-of-way, engineering costs, and local cost share 
  6.17  for these projects are the responsibility of local units of 
  6.18  government.  Amounts allocated for this purpose in fiscal year 
  6.19  2004 are available in fiscal years 2004, 2005, and 2006. 
  6.20     Subd. 2.  [TRANSIT CAPITAL IMPROVEMENTS.] (a) The following 
  6.21  amounts in the following fiscal years are appropriated from the 
  6.22  bond proceeds fund to the commissioner of transportation: 
  6.23     (1) in fiscal year 2004, $6,800,000; 
  6.24     (2) in fiscal year 2005, $6,800,000; 
  6.25     (3) in fiscal year 2006, $9,200,000; 
  6.26     (4) in fiscal year 2007, $11,400,000; 
  6.27     (5) in fiscal year 2008, $11,400,000; 
  6.28     (6) in fiscal year 2009, $11,400,000; and 
  6.29     (7) in fiscal year 2010, $11,400,000. 
  6.30     (b) The commissioner shall spend the amounts appropriated 
  6.31  in paragraph (a) for assistance to eligible recipients, as 
  6.32  defined in Minnesota Statutes, section 174.24, subdivision 2, 
  6.33  for transit capital improvements under Minnesota Statutes, 
  6.34  section 174.24, subdivision 3c.  Any facilities constructed or 
  6.35  acquired with funds under this paragraph must be publicly owned. 
  6.36     Subd. 3.  [GREATER MINNESOTA TRANSIT OPERATING 
  7.1   ASSISTANCE.] $4,400,000 in fiscal year 2004 and $4,400,000 in 
  7.2   fiscal year 2005 are appropriated from the general fund to the 
  7.3   commissioner of transportation for transit operating assistance 
  7.4   under Minnesota Statutes, section 174.24, subdivision 3b.  This 
  7.5   appropriation is in addition to any other appropriation made by 
  7.6   law in those fiscal years for this purpose. 
  7.7      Subd. 4.  [TRUNK HIGHWAY BOND DEBT SERVICE.] $15,833,000 in 
  7.8   fiscal year 2004 and $38,623,000 in fiscal year 2005 are 
  7.9   appropriated from the trunk highway fund to the commissioner of 
  7.10  transportation for payment of principal and interest on trunk 
  7.11  highway bonds issued under section 6, subdivision 2. 
  7.12     Subd. 5.  [METROPOLITAN TRANSIT CAPITAL IMPROVEMENTS.] (a) 
  7.13  The following amounts in the following fiscal years are 
  7.14  appropriated from the bond proceeds fund to the metropolitan 
  7.15  council: 
  7.16     (1) in fiscal year 2004, $27,200,000; 
  7.17     (2) in fiscal year 2005, $27,200,000; 
  7.18     (3) in fiscal year 2006, $36,800,000; 
  7.19     (4) in fiscal year 2007, $45,600,000; 
  7.20     (5) in fiscal year 2008, $45,600,000; 
  7.21     (6) in fiscal year 2009, $45,600,000; and 
  7.22     (7) in fiscal year 2010, $45,600,000. 
  7.23     (b) The council shall use amounts appropriated under 
  7.24  paragraph (a) for transit capital improvements for transit 
  7.25  systems operated or assisted by the council.  Any facilities 
  7.26  constructed or acquired with funds under this paragraph must be 
  7.27  publicly owned. 
  7.28     Subd. 6.  [METROPOLITAN TRANSIT OPERATIONS.] $17,600,000 in 
  7.29  fiscal year 2004 and $17,600,000 in fiscal year 2005 are 
  7.30  appropriated from the general fund to the metropolitan council 
  7.31  for transit operations.  This appropriation is in addition to 
  7.32  any other appropriation made by law in those fiscal years for 
  7.33  this purpose. 
  7.34     Sec. 6.  [BOND SALE AUTHORIZATIONS.] 
  7.35     Subdivision 1.  [BOND PROCEEDS FUND.] To provide the money 
  7.36  appropriated by section 5, subdivisions 2 and 5, from the bond 
  8.1   proceeds fund, the commissioner of finance shall sell and issue 
  8.2   bonds of the state in an amount up to $342,000,000 in the 
  8.3   manner, upon the terms, and with the effect prescribed by 
  8.4   Minnesota Statutes, sections 16A.631 to 16A.675, and by the 
  8.5   Minnesota Constitution, article XI, sections 4 to 7.  The 
  8.6   proceeds from the sale of the bonds, except accrued interest and 
  8.7   any premium received on the sale of the bonds, must be deposited 
  8.8   in the bond proceeds fund. 
  8.9      Subd. 2.  [TRUNK HIGHWAY FUND.] To provide the money 
  8.10  appropriated by section 5, subdivision 1, the commissioner of 
  8.11  finance shall sell and issue bonds of the state in an amount up 
  8.12  to $1,500,000,000 in the manner, upon the terms, and with the 
  8.13  effect prescribed by Minnesota Statutes, sections 167.50 to 
  8.14  167.52, and by the Minnesota Constitution, article XIV, section 
  8.15  11, at the times and in the amounts requested by the 
  8.16  commissioner of transportation.  The proceeds of the bonds, 
  8.17  except accrued interest and any premium received on the sale of 
  8.18  the bonds, must be credited to the bond proceeds account in the 
  8.19  trunk highway fund. 
  8.20     Sec. 7.  [CONSTITUTIONAL AMENDMENT PROPOSED.] 
  8.21     An amendment to the Minnesota Constitution, article XIV, is 
  8.22  proposed to the people.  If the amendment is adopted, a section 
  8.23  must be added to article XIV, to read: 
  8.24     Sec. 12.  Beginning July 1, 2007, all revenue from a tax 
  8.25  imposed by the state on the sale of new and used motor vehicles 
  8.26  must be dedicated solely to highway and public transit purposes. 
  8.27     Sec. 8.  [SUBMISSION TO VOTERS.] 
  8.28     The constitutional amendment proposed in section 7 must be 
  8.29  submitted to the people at the 2004 general election.  The 
  8.30  question submitted must be: 
  8.31     "Shall the Minnesota Constitution be amended to dedicate 
  8.32  all revenue from a state tax on the sale of new and used motor 
  8.33  vehicles solely to highway and public transit purposes, 
  8.34  beginning July 1, 2007? 
  8.35                                     Yes .......
  8.36                                     No ........"
  9.1      Sec. 9.  [AUTOMOBILE LICENSE TAXES; REVERSION.] 
  9.2      Notwithstanding any other law, if the constitutional 
  9.3   amendment proposed in section 7 is adopted at the 2004 general 
  9.4   election, beginning December 1, 2009, the maximum taxes on 
  9.5   passenger automobiles under Minnesota Statutes, section 168.013, 
  9.6   subdivision 1a, paragraph (h), revert to the maximum taxes that 
  9.7   were in effect on January 1, 2003. 
  9.8      Sec. 10.  [EFFECTIVE DATE.] 
  9.9      Sections 1 to 9 are effective July 1, 2003.