as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to transportation; eliminating motor vehicle 1.3 emissions inspection program; establishing surface 1.4 transportation fund; reducing rate of vehicle 1.5 registration tax; dedicating portion of revenues from 1.6 sales tax on motor vehicles to transportation; 1.7 proposing constitutional amendment to dedicate minimum 1.8 of 50 percent of receipts from the sales tax on motor 1.9 vehicles to transportation; making technical 1.10 corrections; appropriating money; amending Minnesota 1.11 Statutes 1996, sections 168.013, subdivision 1a; and 1.12 297B.09, subdivision 1; proposing coding for new law 1.13 in Minnesota Statutes, chapter 174; repealing 1.14 Minnesota Statutes 1996, sections 116.60; 116.61; 1.15 116.62; 116.63; 116.64; and 116.65. 1.16 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.17 Section 1. Minnesota Statutes 1996, section 168.013, 1.18 subdivision 1a, is amended to read: 1.19 Subd. 1a. [PASSENGER AUTOMOBILES; HEARSES.] (a) On 1.20 passenger automobiles as defined in section 168.011, subdivision 1.21 7, and hearses, except as otherwise provided, the tax shall be 1.22 $10 plus an additional tax equal to1.250.625 percent of the 1.23 base value. 1.24 (b) Subject to the classification provisions herein, "base 1.25 value" means the manufacturer's suggested retail price of the 1.26 vehicle including destination charge using list price 1.27 information published by the manufacturer or determined by the 1.28 registrar if no suggested retail price exists, and shall not 1.29 include the cost of each accessory or item of optional equipment 1.30 separately added to the vehicle and the suggested retail price. 2.1 (c) If the manufacturer's list price information contains a 2.2 single vehicle identification number followed by various 2.3 descriptions and suggested retail prices, the registrar shall 2.4 select from those listings only the lowest price for determining 2.5 base value. 2.6 (d) If unable to determine the base value because the 2.7 vehicle is specially constructed, or for any other reason, the 2.8 registrar may establish such value upon the cost price to the 2.9 purchaser or owner as evidenced by a certificate of cost but not 2.10 including Minnesota sales or use tax or any local sales or other 2.11 local tax. 2.12 (e) The registrar shall classify every vehicle in its 2.13 proper base value class as follows: 2.14 FROM TO 2.15 $ 0 $199.99 2.16 200 399.99 2.17 and thereafter a series of classes successively set in brackets 2.18 having a spread of $200 consisting of such number of classes as 2.19 will permit classification of all vehicles. 2.20 (f) The base value for purposes of this section shall be 2.21 the middle point between the extremes of its class. 2.22 (g) The registrar shall establish the base value, when new, 2.23 of every passenger automobile and hearse registered prior to the 2.24 effective date of Extra Session Laws 1971, chapter 31, using 2.25 list price information published by the manufacturer or any 2.26 nationally recognized firm or association compiling such data 2.27 for the automotive industry. If unable to ascertain the base 2.28 value of any registered vehicle in the foregoing manner, the 2.29 registrar may use any other available source or method. The tax 2.30 on all previously registered vehicles shall be computed upon the 2.31 base value thus determined taking into account the depreciation 2.32 provisions of paragraph (h). 2.33 (h)Except as provided in paragraph (i),The annual 2.34 additional tax computed upon the base value as provided herein, 2.35 during the first and second years of vehicle life shall be 2.36 computed upon 100 percent of the base value; for the third and 3.1 fourth years, 90 percent of such value; for the fifth and sixth 3.2 years, 75 percent of such value; for the seventh year, 60 3.3 percent of such value; for the eighth year, 40 percent of such 3.4 value; for the ninth year, 30 percent of such value; for the 3.5 tenth year, ten percent of such value; for the 11th and each 3.6 succeeding year, the sum of $25. 3.7 In no event shall the annual additional tax be less than 3.8 $25. 3.9(i) The annual additional tax under paragraph (h) on a3.10motor vehicle on which the first annual tax was paid before3.11January 1, 1990, must not exceed the tax that was paid on that3.12vehicle the year before.3.13 Sec. 2. [174.40] [SURFACE TRANSPORTATION FUND.] 3.14 Subdivision 1. [FUND CREATED.] A surface transportation 3.15 fund is created in the state treasury. The fund consists of all 3.16 money appropriated or credited to the fund by law. 3.17 Subd. 2. [EXPENDITURES FROM FUND.] Money in the surface 3.18 transportation fund may be expended by appropriation for costs 3.19 related to any state surface transportation purpose, including, 3.20 but not limited to: operating and capital assistance to 3.21 transit; construction, improvement, and maintenance of public 3.22 highways; operating and capital assistance to rail and waterway 3.23 transportation systems; state patrol operations; motor carrier 3.24 regulation; driver licensing and education; transportation 3.25 safety; and hazardous materials and hazardous waste 3.26 transportation. 3.27 Sec. 3. Minnesota Statutes 1996, section 297B.09, 3.28 subdivision 1, is amended to read: 3.29 Subdivision 1. [GENERAL FUND SHAREALLOCATION OF 3.30 RECEIPTS.](a) Money collected and received under this chapter3.31must be deposited in the state treasury and credited to the3.32general fund. The amounts collected and received shall be3.33credited as provided in this subdivision, and transferred from3.34the general fund on July 15 and February 15 of each fiscal3.35year. The commissioner of finance must make each transfer based3.36upon the actual receipts of the preceding six calendar months4.1and include the interest earned during that six-month period.4.2The commissioner of finance may establish a quarterly or other4.3schedule providing for more frequent payments to the transit4.4assistance fund if the commissioner determines it is necessary4.5or desirable to provide for the cash flow needs of the4.6recipients of money from the transit assistance fund.4.7(b) Twenty-five percent of the money collected and received4.8under this chapter after June 30, 1990, and before July 1, 1991,4.9must be transferred to the highway user tax distribution fund4.10and the transit assistance fund for apportionment as follows:4.1175 percent must be transferred to the highway user tax4.12distribution fund for apportionment in the same manner and for4.13the same purposes as other money in that fund, and the remaining4.1425 percent of the money must be transferred to the transit4.15assistance fund to be appropriated to the commissioner of4.16transportation for transit assistance within the state and to4.17the metropolitan council.4.18(c) The distributions under this subdivision to the highway4.19user tax distribution fund until June 30, 1991, and to the trunk4.20highway fund thereafter, must be reduced by the amount necessary4.21to fund the appropriation under section 41A.09, subdivision 1.4.22For the fiscal years ending June 30, 1988, and June 30, 1989,4.23the commissioner of finance, before making the transfers4.24required on July 15 and January 15 of each year, shall estimate4.25the amount required to fund the appropriation under section4.2641A.09, subdivision 1, for the six-month period for which the4.27transfer is being made. The commissioner shall then reduce the4.28amount transferred to the highway user tax distribution fund by4.29the amount of that estimate. The commissioner shall reduce the4.30estimate for any six-month period by the amount by which the4.31estimate for the previous six-month period exceeded the amount4.32needed to fund the appropriation under section 41A.09,4.33subdivision 1, for that previous six-month period. If at any4.34time during a six-month period in those fiscal years the amount4.35of reduction in the transfer to the highway user tax4.36distribution fund is insufficient to fund the appropriation5.1under section 41A.09, subdivision 1, for that period, the5.2commissioner shall transfer to the general fund from the highway5.3user tax distribution fund an additional amount sufficient to5.4fund the appropriation for that period, but the additional5.5amount so transferred to the general fund in a six-month period5.6may not exceed the amount transferred to the highway user tax5.7distribution fund for that six-month periodReceipts from the 5.8 tax imposed under this chapter must be deposited in the state 5.9 treasury and credited as follows: 5.10 (1) 50 percent to the surface transportation fund 5.11 established under section 174.40; and 5.12 (2) the remainder to the general fund. 5.13 Sec. 4. [MOTOR VEHICLE INSPECTION PROGRAM CONTRACT.] 5.14 The pollution control agency shall not enter into a 5.15 contract relating to public inspection stations or related 5.16 services or functions pertaining to the motor vehicle inspection 5.17 program under Minnesota Statutes, section 116.62, subdivision 3, 5.18 paragraph (b). 5.19 Sec. 5. [TRANSFER OF FUNDS.] 5.20 Any amounts remaining in the vehicle emission inspection 5.21 account after payment of allowable program costs and 5.22 administrative costs are transferred to the general fund. 5.23 Sec. 6. [CONSTITUTIONAL AMENDMENT PROPOSED.] 5.24 An amendment is proposed to the Minnesota Constitution, 5.25 article XIV. If the amendment is adopted, the title of article 5.26 XIV will be "TRANSPORTATION" and article XIV will be amended by 5.27 adding a section to read: 5.28 Sec. 12. The legislature shall appropriate in each fiscal 5.29 year for surface transportation needs an amount equal to or 5.30 greater than 50 percent of the net proceeds from a sales and 5.31 excise tax imposed by law on the purchase price of new and used 5.32 vehicles. 5.33 Sec. 7. [SUBMISSION TO VOTERS.] 5.34 The constitutional amendment proposed in section 6 must be 5.35 submitted to the people at the 1998 general election. The 5.36 question submitted must be: 6.1 "Shall the Minnesota Constitution be amended to require 6.2 that the legislature must annually appropriate for surface 6.3 transportation needs an amount equal to at least 50 percent of 6.4 net proceeds from the sales tax on new and used motor vehicles? 6.5 Yes ....... 6.6 No ........" 6.7 Sec. 8. [APPROPRIATION.] 6.8 $180,000,000 is appropriated from the surface 6.9 transportation fund to the commissioner of finance for transfer 6.10 to the highway user tax distribution fund. $16,000,000 is 6.11 appropriated from the surface transportation fund to the 6.12 metropolitan council for transit capital. 6.13 Sec. 9. [REPEALER.] 6.14 Minnesota Statutes 1996, sections 116.60; 116.61; 116.62; 6.15 116.63; 116.64; and 116.65, are repealed. 6.16 Sec. 10. [EFFECTIVE DATE.] 6.17 Section 4 is effective the day following final enactment. 6.18 Sections 1 to 3, 5, 8, and 9 are effective July 1, 1998.