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SF 1668

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

  1.1                          A bill for an act 
  1.2             relating to transportation; reducing percentage of 
  1.3             base value for calculation of vehicle registration 
  1.4             tax; changing depreciation schedule for computing 
  1.5             registration tax on passenger automobiles; 
  1.6             establishing transit assistance fund; deleting 
  1.7             provisions regarding distribution of transit fund; 
  1.8             requiring annual indexing of gasoline tax rate; 
  1.9             allocating revenues from motor vehicle sales tax; 
  1.10            providing for financing of metropolitan area transit 
  1.11            and paratransit capital expenditures; authorizing the 
  1.12            issuance of state trunk highway bonds for replacement 
  1.13            and reconstruction of key bridges on the state trunk 
  1.14            highway system; proposing constitutional amendment; 
  1.15            appropriating money; amending Minnesota Statutes 1998, 
  1.16            sections 168.013, subdivision 1a; 174.32; 296A.07, by 
  1.17            adding a subdivision; 297B.09, subdivision 1; and 
  1.18            473.39, by adding subdivisions. 
  1.19  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.20                             ARTICLE 1
  1.21     Section 1.  Minnesota Statutes 1998, section 168.013, 
  1.22  subdivision 1a, is amended to read: 
  1.23     Subd. 1a.  [PASSENGER AUTOMOBILE; HEARSE.] (a) On passenger 
  1.24  automobiles as defined in section 168.011, subdivision 7, and 
  1.25  hearses, except as otherwise provided, the tax shall be $10 plus 
  1.26  an additional tax equal to 1.25 one percent of the base value.  
  1.27     (b) Subject to the classification provisions herein, "base 
  1.28  value" means the manufacturer's suggested retail price of the 
  1.29  vehicle including destination charge using list price 
  1.30  information published by the manufacturer or determined by the 
  1.31  registrar if no suggested retail price exists, and shall not 
  1.32  include the cost of each accessory or item of optional equipment 
  2.1   separately added to the vehicle and the suggested retail price. 
  2.2      (c) If the manufacturer's list price information contains a 
  2.3   single vehicle identification number followed by various 
  2.4   descriptions and suggested retail prices, the registrar shall 
  2.5   select from those listings only the lowest price for determining 
  2.6   base value. 
  2.7      (d) If unable to determine the base value because the 
  2.8   vehicle is specially constructed, or for any other reason, the 
  2.9   registrar may establish such value upon the cost price to the 
  2.10  purchaser or owner as evidenced by a certificate of cost but not 
  2.11  including Minnesota sales or use tax or any local sales or other 
  2.12  local tax. 
  2.13     (e) The registrar shall classify every vehicle in its 
  2.14  proper base value class as follows: 
  2.15                        FROM                   TO
  2.16                        $  0                $199.99
  2.17                         200                 399.99
  2.18  and thereafter a series of classes successively set in brackets 
  2.19  having a spread of $200 consisting of such number of classes as 
  2.20  will permit classification of all vehicles. 
  2.21     (f) The base value for purposes of this section shall be 
  2.22  the middle point between the extremes of its class. 
  2.23     (g) The registrar shall establish the base value, when new, 
  2.24  of every passenger automobile and hearse registered prior to the 
  2.25  effective date of Extra Session Laws 1971, chapter 31, using 
  2.26  list price information published by the manufacturer or any 
  2.27  nationally recognized firm or association compiling such data 
  2.28  for the automotive industry.  If unable to ascertain the base 
  2.29  value of any registered vehicle in the foregoing manner, the 
  2.30  registrar may use any other available source or method.  The tax 
  2.31  on all previously registered vehicles shall be computed upon the 
  2.32  base value thus determined taking into account the depreciation 
  2.33  provisions of paragraph (h). 
  2.34     (h) Except as provided in paragraph (i), The annual 
  2.35  additional tax computed upon the base value as provided herein, 
  2.36  during the first and second years year of vehicle life shall be 
  3.1   computed upon 100 percent of the base value; for the third and 
  3.2   fourth years second year, 90 percent of such value; for 
  3.3   the third year, 80 percent of such value; for the fourth year, 
  3.4   70 percent of such value; for the fifth and sixth years year, 75 
  3.5   60 percent of such value; for the sixth year, 50 percent of such 
  3.6   value; for the seventh year, 60 40 percent of such value; for 
  3.7   the eighth year, 40 30 percent of such value; for the ninth 
  3.8   year, 30 20 percent of such value; for the tenth year, ten 
  3.9   percent of such value; for the 11th and each succeeding year, 
  3.10  the sum of $25.  
  3.11     In no event shall the annual additional tax be less than 
  3.12  $25.  
  3.13     (i) The annual additional tax under paragraph (h) on a 
  3.14  motor vehicle on which the first annual tax was paid before 
  3.15  January 1, 1990, must not exceed the tax that was paid on that 
  3.16  vehicle the year before. 
  3.17     Sec. 2.  Minnesota Statutes 1998, section 174.32, is 
  3.18  amended to read: 
  3.19     174.32 [TRANSIT ASSISTANCE PROGRAM.] 
  3.20     Subdivision 1.  [ESTABLISHMENT; PURPOSE; FUND.] A transit 
  3.21  assistance program is established to provide transit assistance 
  3.22  within the state from the transit assistance fund created in 
  3.23  subdivision 2 to eligible recipients for transit service 
  3.24  activities as provided in this section.  The transit assistance 
  3.25  fund is established to receive money distributed under section 
  3.26  297B.09. 
  3.27     Subd. 2.  [TRANSIT ASSISTANCE FUND; DISTRIBUTION.] The 
  3.28  transit assistance fund receives money distributed under section 
  3.29  297B.09.  Eighty percent of the receipts of the fund must be 
  3.30  placed into a metropolitan account for distribution to 
  3.31  recipients located in the metropolitan area and 20 percent into 
  3.32  a separate account for distribution to recipients located 
  3.33  outside of the metropolitan area.  Except as otherwise provided 
  3.34  in this subdivision, the metropolitan council is responsible for 
  3.35  distributing assistance from the metropolitan account, and the 
  3.36  commissioner is responsible for distributing assistance from the 
  4.1   other account.  
  4.2      Subd. 3.  [ELIGIBLE RECIPIENT.] The department of 
  4.3   transportation; a legislatively established public transit 
  4.4   commission; a public authority organized and existing under 
  4.5   chapter 398A; the metropolitan council; a county or statutory or 
  4.6   home rule charter city operating, intending to operate, or 
  4.7   providing financial assistance to a transit service; a rail 
  4.8   authority; or a private operator of public transit is eligible 
  4.9   for assistance under the program.  The National Railroad 
  4.10  Passenger Corporation, known as Amtrak, and any trolley system 
  4.11  outside the metropolitan area are not eligible for assistance 
  4.12  under the program. 
  4.13     Subd. 4.  [ELIGIBLE SERVICE.] Transit services eligible for 
  4.14  assistance under the program include but are not limited to: 
  4.15     (1) public transit; 
  4.16     (2) light rail transit; 
  4.17     (3) commuter rail; 
  4.18     (4) commuter van, car pool, ride share, and park and ride; 
  4.19  and 
  4.20     (4) (5) other services that further the purposes of section 
  4.21  174.21.  
  4.22     Subd. 5.  [ELIGIBLE ACTIVITY.] Activities eligible for 
  4.23  assistance under the program include but are not limited to: 
  4.24     (1) planning and engineering design for transit services; 
  4.25     (2) capital assistance to purchase or refurbish transit 
  4.26  vehicles, purchase rail lines and associated facilities for 
  4.27  light rail transit and commuter rail, purchase rights-of-way, 
  4.28  and other capital expenditures necessary to provide a transit 
  4.29  service; and 
  4.30     (3) other assistance for public transit services.  
  4.31     Subd. 6.  [INVESTMENT OF TRANSIT ASSISTANCE FUND MONEY.] 
  4.32  For money deposited in the transit assistance fund on or after 
  4.33  January 15 1, 1985 2000, the commissioner of transportation 
  4.34  shall certify to the state board of investment the amount of the 
  4.35  transit assistance fund that in the judgment of the commissioner 
  4.36  is not required for immediate use.  The certified amount of the 
  5.1   transit assistance fund not currently needed shall be invested 
  5.2   by the state board of investment subject to section 11A.25.  All 
  5.3   investment income and all investment losses attributable to the 
  5.4   investments must be credited to the transit assistance fund.  
  5.5   The commissioner of finance is the custodian of securities 
  5.6   purchased under this section. 
  5.7      Sec. 3.  Minnesota Statutes 1998, section 296A.07, is 
  5.8   amended by adding a subdivision to read: 
  5.9      Subd. 5.  [ANNUAL GASOLINE TAX RATE ADJUSTMENT.] (a) Before 
  5.10  April 1 of each year, the commissioner of revenue shall 
  5.11  recompute and publish the rate of the gasoline excise tax.  The 
  5.12  new rate per gallon must be calculated by multiplying the rate 
  5.13  in effect at the time of the calculation by an amount obtained 
  5.14  under paragraph (b).  The new rate must be rounded to the 
  5.15  nearest 0.1 cent and is effective on April 1 of each year. 
  5.16     (b) Divide the annual average United States Consumer Price 
  5.17  Index for all urban consumers, United States city average, as 
  5.18  determined by the United States Department of Labor for the 
  5.19  previous year by that annual average for the year before the 
  5.20  previous year. 
  5.21     Sec. 4.  Minnesota Statutes 1998, section 297B.09, 
  5.22  subdivision 1, is amended to read: 
  5.23     Subdivision 1.  [GENERAL FUND SHARE ALLOCATION OF 
  5.24  RECEIPTS.] (a) Money collected and received under this chapter 
  5.25  must be deposited in the state treasury and credited to the 
  5.26  general fund.  The amounts collected and received shall be 
  5.27  credited as provided in this subdivision, and transferred from 
  5.28  the general fund on July 15 and February 15 of each fiscal 
  5.29  year.  The commissioner of finance must make each transfer based 
  5.30  upon the actual receipts of the preceding six calendar months 
  5.31  and include the interest earned during that six-month period.  
  5.32  The commissioner of finance may establish a quarterly or other 
  5.33  schedule providing for more frequent payments to the transit 
  5.34  assistance fund if the commissioner determines it is necessary 
  5.35  or desirable to provide for the cash flow needs of the 
  5.36  recipients of money from the transit assistance fund.  
  6.1      (b) Twenty-five percent of the money collected and received 
  6.2   under this chapter after June 30, 1990, and before July 1, 1991, 
  6.3   must be transferred to the highway user tax distribution fund 
  6.4   and the transit assistance fund for apportionment as follows:  
  6.5   75 percent must be transferred to the highway user tax 
  6.6   distribution fund for apportionment in the same manner and for 
  6.7   the same purposes as other money in that fund, and the remaining 
  6.8   25 percent of the money must be transferred to the transit 
  6.9   assistance fund to be appropriated to the commissioner of 
  6.10  transportation for transit assistance within the state and to 
  6.11  the metropolitan council.  
  6.12     (c) The distributions under this subdivision to the highway 
  6.13  user tax distribution fund until June 30, 1991, and to the trunk 
  6.14  highway fund thereafter, must be reduced by the amount necessary 
  6.15  to fund the appropriation under section 41A.09, subdivision 1.  
  6.16  For the fiscal years ending June 30, 1988, and June 30, 1989, 
  6.17  the commissioner of finance, before making the transfers 
  6.18  required on July 15 and January 15 of each year, shall estimate 
  6.19  the amount required to fund the appropriation under section 
  6.20  41A.09, subdivision 1, for the six-month period for which the 
  6.21  transfer is being made.  The commissioner shall then reduce the 
  6.22  amount transferred to the highway user tax distribution fund by 
  6.23  the amount of that estimate.  The commissioner shall reduce the 
  6.24  estimate for any six-month period by the amount by which the 
  6.25  estimate for the previous six-month period exceeded the amount 
  6.26  needed to fund the appropriation under section 41A.09, 
  6.27  subdivision 1, for that previous six-month period.  If at any 
  6.28  time during a six-month period in those fiscal years the amount 
  6.29  of reduction in the transfer to the highway user tax 
  6.30  distribution fund is insufficient to fund the appropriation 
  6.31  under section 41A.09, subdivision 1, for that period, the 
  6.32  commissioner shall transfer to the general fund from the highway 
  6.33  user tax distribution fund an additional amount sufficient to 
  6.34  fund the appropriation for that period, but the additional 
  6.35  amount so transferred to the general fund in a six-month period 
  6.36  may not exceed the amount transferred to the highway user tax 
  7.1   distribution fund for that six-month period as follows: 
  7.2      (1) 50 percent to the general fund; 
  7.3      (2) 20 percent to the transit assistance fund; and 
  7.4      (3) 30 percent to the highway user tax distribution fund. 
  7.5      Sec. 5.  Minnesota Statutes 1998, section 473.39, is 
  7.6   amended by adding a subdivision to read: 
  7.7      Subd. 1g.  [OBLIGATIONS; 2000-2002.] In addition to the 
  7.8   authority in subdivisions 1a, 1b, 1c, 1d, and 1e, the council 
  7.9   may issue certificates of indebtedness, bonds, or other 
  7.10  obligations under this section in an amount not exceeding 
  7.11  $52,000,000 which may be used for capital expenditures as 
  7.12  prescribed in the council's transit capital improvement program 
  7.13  and for related costs, including the costs of issuance and sale 
  7.14  of the obligations. 
  7.15     Sec. 6.  Minnesota Statutes 1998, section 473.39, is 
  7.16  amended by adding a subdivision to read: 
  7.17     Subd. 1h.  [OBLIGATIONS.] After July 1, 2001, in addition 
  7.18  to the authority in subdivisions 1a, 1b, 1c, 1d, 1e, and 1g, the 
  7.19  council may issue certificates of indebtedness, bonds, or other 
  7.20  obligations under this section for capital expenditures as 
  7.21  prescribed in the council's transit capital improvement programs 
  7.22  and for related costs, including the costs of issuance and sale 
  7.23  of the obligations.  The amount of the obligations issued under 
  7.24  this subdivision in any year may not exceed an amount equal to 
  7.25  the following limitations, except as provided in this 
  7.26  subdivision: 
  7.27     (1) for 2002, the limitation is $27,000,000; and 
  7.28     (2) for each subsequent year, the limitation is equal to 
  7.29  the previous year's limitation calculated under this subdivision 
  7.30  multiplied by an index for market valuation changes equal to the 
  7.31  total market valuation of all taxable property located within 
  7.32  the transit taxing district for the current taxes payable year 
  7.33  divided by the total market valuation of all taxable property 
  7.34  located within the transit taxing district for the previous 
  7.35  taxes payable year.  For any year in which the council does not 
  7.36  issue obligations totaling the limitation calculated under this 
  8.1   subdivision, the remaining available limitation amount may be 
  8.2   carried forward to subsequent years.  The council may issue 
  8.3   obligations in a carryforward year in an amount exceeding the 
  8.4   annual limitation for that year by the limitation amount carried 
  8.5   forward, but the limitation amount carried forward is not a 
  8.6   permanent increase in the annual limitation calculated under 
  8.7   this subdivision. 
  8.8      For the purposes of this subdivision, "total market 
  8.9   valuation" means the total market valuation of all taxable 
  8.10  property within the transit taxing district without valuation 
  8.11  adjustments for fiscal disparities (chapter 473F), tax increment 
  8.12  financing (sections 469.174 to 469.179), and high voltage 
  8.13  transmission lines (section 273.425).  "Transit taxing district" 
  8.14  means the transit taxing district established in section 473.446.
  8.15     Sec. 7.  [TRUNK HIGHWAY BONDS; ISSUANCE.] 
  8.16     The commissioner of finance is authorized and directed, on 
  8.17  recommendation of the commissioner of transportation, to issue 
  8.18  and sell Minnesota trunk highway bonds under Minnesota Statutes, 
  8.19  sections 167.50 to 167.52, and the Minnesota Constitution, 
  8.20  article XI, sections 4 to 7, and article XIV, section 11, at 
  8.21  such times and in such amounts as are determined by the 
  8.22  commissioner of transportation.  Bonds issued under this section 
  8.23  are authorized in an aggregate principal amount of $.......  Not 
  8.24  more than $....... of the bonds authorized under this section 
  8.25  may be sold in any fiscal year.  The proceeds from the bonds 
  8.26  must be deposited in a separate bridge construction account in 
  8.27  the trunk highway fund. 
  8.28     Sec. 8.  [CONSTITUTIONAL AMENDMENT PROPOSED.] 
  8.29     An amendment to the Minnesota Constitution, article XIV, is 
  8.30  proposed to the people.  If adopted the article will be amended 
  8.31  by adding a section to read: 
  8.32     Sec. 12.  Of the proceeds of any tax levied by law on the 
  8.33  sale price of new and used motor vehicles, not less than 30 
  8.34  percent must be paid into the highway user tax distribution fund 
  8.35  and not less than 20 percent must be paid into a fund 
  8.36  established by law for public transit assistance. 
  9.1      Sec. 9.  [SUBMISSION TO VOTERS.] 
  9.2      The constitutional amendment proposed in section 8 must be 
  9.3   submitted at the 2000 general election.  The question submitted 
  9.4   must be: 
  9.5      "Shall the Minnesota Constitution be amended to require 
  9.6   that of the proceeds from a sales tax on new and used motor 
  9.7   vehicles at least 30 percent must be paid into the highway user 
  9.8   tax distribution fund and at least 20 percent must be paid into 
  9.9   a fund for public transit assistance? 
  9.10                                     Yes .......
  9.11                                     No ........"
  9.12     Sec. 10.  [APPLICATION.] 
  9.13     Sections 5 and 6 apply in the counties of Anoka, Carver, 
  9.14  Dakota, Hennepin, Ramsey, Scott, and Washington. 
  9.15     Sec. 11.  [EFFECTIVE DATE.] 
  9.16     Section 1 is effective November 15, 1999, for registration 
  9.17  year 2000 and subsequent years.  Sections 2 and 4 are effective 
  9.18  January 1, 2000, but sections 1 and 4 are repealed July 1, 2001, 
  9.19  if the constitutional amendment proposed in section 8 is not 
  9.20  adopted at the 2000 general election. 
  9.21                             ARTICLE 2
  9.22  Section 1.  [TRANSPORTATION AND OTHER AGENCIES APPROPRIATIONS.] 
  9.23     The sums shown in the columns marked "APPROPRIATIONS" are 
  9.24  appropriated from the general fund, or another named fund, to 
  9.25  the agencies and for the purposes specified in this act, to be 
  9.26  available for the fiscal years indicated for each purpose.  The 
  9.27  figures "2000" and "2001," where used in this act, mean that the 
  9.28  appropriations listed under them are available for the year 
  9.29  ending June 30, 2000, or June 30, 2001, respectively.  If the 
  9.30  figures are not used, the appropriations are available for the 
  9.31  year ending June 30, 2000, or June 30, 2001, respectively.  The 
  9.32  term "first year" means the year ending June 30, 2000, and the 
  9.33  term "second year" means the year ending June 30, 2001.  
  9.34                                            2000           2001 
  9.35  Sec. 2.  TRANSIT APPROPRIATIONS
  9.36  Subdivision 1.  Total
 10.1   Appropriation                          $72,683,000    $72,693,000
 10.2                 Summary by Fund
 10.3   General Fund             72,683,000    19,300,000
 10.4   Transit Assistance
 10.5   Fund                    -0-            53,393,000
 10.6   The amounts that may be spent from this 
 10.7   appropriation for each activity are as 
 10.8   follows: 
 10.9   (a) Greater Minnesota Transit
 10.10          15,882,000     15,892,000
 10.11                Summary by Fund
 10.12  General Fund             15,882,000   -0-    
 10.13  Transit Assistance
 10.14  Fund                    -0-            15,892,000
 10.15  This appropriation is to the 
 10.16  commissioner of transportation.  Of 
 10.17  this amount, $476,000 the first year 
 10.18  and $486,000 the second year is for 
 10.19  transit administration.  Any 
 10.20  unencumbered balance the first year 
 10.21  does not cancel but is available for 
 10.22  the second year. 
 10.23  (b) Metropolitan Transit     
 10.24          56,801,000     56,801,000
 10.25                Summary by Fund
 10.26  General Fund             56,801,000    19,300,000
 10.27  Transit Assistance
 10.28  Fund                    -0-            37,501,000
 10.29  This appropriation is to the 
 10.30  metropolitan council.  Of this 
 10.31  appropriation, $19,300,000 each year 
 10.32  from the general fund is for metro 
 10.33  mobility. 
 10.34  (c) Hiawatha Avenue Light-Rail Transit
 10.35  $60,000,000 is appropriated from the 
 10.36  transit assistance fund to the 
 10.37  commissioner of transportation for 
 10.38  construction of light-rail transit in 
 10.39  the Hiawatha Avenue corridor.  This 
 10.40  appropriation is available beginning 
 10.41  July 1, 2001.  The commissioner of 
 10.42  transportation and the chair of the 
 10.43  metropolitan council must, by February 
 10.44  1, 2000, provide recommendations to the 
 10.45  legislature regarding timing of 
 10.46  spending of this appropriation and 
 10.47  whether the project should be 
 10.48  constructed utilizing bond proceeds. 
 10.49  The recommendations must also include 
 10.50  recommendations for other transit 
 10.51  projects to be funded from the transit 
 10.52  assistance fund. 
 11.1      Sec. 3.  [APPROPRIATION FOR TRUNK HIGHWAY BRIDGES.] 
 11.2      $....... is appropriated in each of the fiscal years ending 
 11.3   June 30, 2000, to June 30, 2004, from the separate bridge 
 11.4   account in the trunk highway fund created in article 1, section 
 11.5   7, to the commissioner of transportation.  This appropriation is 
 11.6   for the reconstruction and replacement of key bridges on the 
 11.7   state trunk highway system.