SF 2350

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to public transit; providing state funding 
  1.3             for public transit; prohibiting property tax levies as 
  1.4             a revenue source for transit services; altering the 
  1.5             distribution of revenues derived from the sales tax on 
  1.6             motor vehicles; appropriating money; amending 
  1.7             Minnesota Statutes 2000, sections 174.24, subdivision 
  1.8             3b; 297B.09, subdivision 1; 473.388, subdivisions 4, 
  1.9             7; 473.446, subdivision 1, by adding a subdivision; 
  1.10            proposing coding for new law in Minnesota Statutes, 
  1.11            chapter 16A. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13     Section 1.  [16A.88] [TRANSIT FUNDING ACCOUNT.] 
  1.14     The transit funding account is established within the 
  1.15  general fund.  Five percent of the funds deposited to the 
  1.16  account are dedicated to the funding of transit systems outside 
  1.17  the metropolitan area under section 174.24.  Ninety-five percent 
  1.18  of the funds deposited to the account are dedicated to the 
  1.19  funding of transit systems within the metropolitan area under 
  1.20  sections 473.405 to 473.449.  Revenues in this account may not 
  1.21  be used for the purposes of funding capital or operating 
  1.22  expenses related to the operation of a light rail line or a 
  1.23  commuter rail line. 
  1.24     [EFFECTIVE DATE.] This section is effective July 1, 2001. 
  1.25     Sec. 2.  Minnesota Statutes 2000, section 174.24, 
  1.26  subdivision 3b, is amended to read: 
  1.27     Subd. 3b.  [OPERATING ASSISTANCE.] (a) The commissioner 
  1.28  shall determine the total operating cost of any public transit 
  2.1   system receiving or applying for assistance in accordance with 
  2.2   generally accepted accounting principles.  To be eligible for 
  2.3   financial assistance, an applicant or recipient shall provide to 
  2.4   the commissioner all financial records and other information and 
  2.5   shall permit any inspection reasonably necessary to determine 
  2.6   total operating cost and correspondingly the amount of 
  2.7   assistance which may be paid to the applicant or recipient.  
  2.8   Where more than one county or municipality contributes 
  2.9   assistance to the operation of a public transit system, the 
  2.10  commissioner shall identify one as lead agency for the purpose 
  2.11  of receiving moneys under this section.  
  2.12     (b) Prior to distributing operating assistance to eligible 
  2.13  recipients for any contract period, the commissioner shall place 
  2.14  all recipients into one of the following classifications:  large 
  2.15  urbanized area service, urbanized area service, small urban area 
  2.16  service, rural area service, and elderly and handicapped 
  2.17  service.  The commissioner shall distribute funds under this 
  2.18  section so that the percentage of total operating cost paid by 
  2.19  any recipient from local sources will not exceed the percentage 
  2.20  for that recipient's classification, except as provided in an 
  2.21  undue hardship case.  The percentages shall be:  for large 
  2.22  urbanized area service, 50 35 percent; for urbanized area 
  2.23  service and small urban area service, 40 25 percent; for rural 
  2.24  area service, 35 25 percent; and for elderly and handicapped 
  2.25  service, 35 25 percent.  The remainder of the total operating 
  2.26  cost will be paid from state funds less any assistance received 
  2.27  by the recipient from any federal source.  For purposes of this 
  2.28  subdivision "local sources" means all local sources of funds and 
  2.29  includes all operating revenue, tax levies, and contributions 
  2.30  from public funds, except that the commissioner may exclude from 
  2.31  the total assistance contract revenues derived from operations 
  2.32  the cost of which is excluded from the computation of total 
  2.33  operating cost.  Property tax levies may not be used to finance 
  2.34  transit services provided under this section. 
  2.35     (c) If a recipient informs the commissioner in writing 
  2.36  after the establishment of these percentages but prior to the 
  3.1   distribution of financial assistance for any year that paying 
  3.2   its designated percentage of total operating cost from local 
  3.3   sources will cause undue hardship, the commissioner may reduce 
  3.4   the percentage to be paid from local sources by the recipient 
  3.5   and increase the percentage to be paid from local sources by one 
  3.6   or more other recipients inside or outside the classification, 
  3.7   provided that no recipient shall have its percentage thus 
  3.8   reduced or increased for more than two years successively.  If 
  3.9   for any year the funds appropriated to the commissioner to carry 
  3.10  out the purposes of this section are insufficient to allow the 
  3.11  commissioner to pay the state share of total operating cost as 
  3.12  provided in this paragraph, the commissioner shall reduce the 
  3.13  state share in each classification to the extent necessary. 
  3.14     [EFFECTIVE DATE.] This section is effective for transit 
  3.15  services provided and property taxes payable in calendar year 
  3.16  2002 and subsequent years. 
  3.17     Sec. 3.  Minnesota Statutes 2000, section 297B.09, 
  3.18  subdivision 1, is amended to read: 
  3.19     Subdivision 1.  [GENERAL FUND SHARE.] Money collected and 
  3.20  received under this chapter must be deposited as provided in 
  3.21  this subdivision.  
  3.22     Thirty-two percent of the money collected and received must 
  3.23  be deposited in the highway user tax distribution fund, and.  
  3.24  Twenty and one-half percent must be deposited in the transit 
  3.25  funding account under section 1.  The remaining 68 47.5 percent 
  3.26  of the money must be deposited in the general fund.  
  3.27     [EFFECTIVE DATE.] This section is effective July 1, 2001. 
  3.28     Sec. 4.  Minnesota Statutes 2000, section 473.388, 
  3.29  subdivision 4, is amended to read: 
  3.30     Subd. 4.  [FINANCIAL ASSISTANCE.] The council may must 
  3.31  grant the requested financial assistance if it determines that 
  3.32  the proposed service is intended to replace the service to the 
  3.33  applying city or town or combination thereof by the council and 
  3.34  that the proposed service will meet the needs of the applicant 
  3.35  at least as efficiently and effectively as the existing service. 
  3.36     The amount of assistance which the council may provide 
  4.1   under this section may not exceed the sum of be less than:  
  4.2      (a) the portion of the available local transit funds which 
  4.3   the applicant proposes to use to subsidize the proposed 
  4.4   service the grants received under this subdivision by the 
  4.5   applicant in calendar year 2001 and the tax revenues for transit 
  4.6   services levied within the city or town, whether by the city or 
  4.7   town itself or by the metropolitan council, for taxes payable in 
  4.8   2001; and times 
  4.9      (b) an amount of financial assistance bearing an identical 
  4.10  proportional relationship to the amount under clause (a) as the 
  4.11  total amount of funds used by the council to fund its transit 
  4.12  operations bears to the ratio of the total appropriation to the 
  4.13  council for nondebt transit operations in the current fiscal 
  4.14  year to the sum of the total appropriation to the council for 
  4.15  nondebt transit operations in fiscal year 2001 and the total 
  4.16  amount of taxes collected by the council under section 
  4.17  473.446 and the opt-out municipalities under section 473.388 in 
  4.18  calendar year 2001, including the portion of homestead and 
  4.19  agricultural credit aid under section 273.1398 attributable to 
  4.20  the nondebt transit levy.  The council shall pay the amount to 
  4.21  be provided to the recipient from the funds the council would 
  4.22  otherwise use to fund its transit operations.  
  4.23     For purposes of this section, "available local transit 
  4.24  funds" means 90 percent of the tax revenues which would accrue 
  4.25  to the council from the tax it levies under section 473.446 in 
  4.26  the applicant city or town or combination thereof.  
  4.27     For purposes of this section, "tax revenues" in the city or 
  4.28  town means the sum of the following: 
  4.29     (1) the nondebt spread levy, which is the total of the 
  4.30  taxes extended by application of the local tax rate for nondebt 
  4.31  purposes on the taxable net tax capacity; 
  4.32     (2) the portion of the fiscal disparity distribution levy 
  4.33  under section 473F.08, subdivision 3, attributable to nondebt 
  4.34  purposes; and 
  4.35     (3) the portion of the homestead credit and agricultural 
  4.36  credit aid and disparity reduction aid amounts under section 
  5.1   273.1398, subdivisions 2 and 3, attributable to nondebt purposes.
  5.2      Tax revenues do not include the state feathering 
  5.3   reimbursement under section 473.446. 
  5.4      [EFFECTIVE DATE.] This section is effective for calendar 
  5.5   year 2002 and subsequent years. 
  5.6      Sec. 5.  Minnesota Statutes 2000, section 473.388, 
  5.7   subdivision 7, is amended to read: 
  5.8      Subd. 7.  [LOCAL LEVY OPTION.] (a) A statutory or home rule 
  5.9   charter city or town that is eligible for assistance under this 
  5.10  section, in lieu of receiving the assistance, may levy a tax for 
  5.11  payment of the operating and capital expenditures for transit 
  5.12  and other related activities and to provide for payment of 
  5.13  obligations issued by the municipality for such purposes, 
  5.14  provided that the tax must be sufficient to maintain the level 
  5.15  of transit service provided in the municipality in the previous 
  5.16  year capital expenditures for transit and other related 
  5.17  activities, provided that property taxes were pledged to satisfy 
  5.18  the obligations, and provided that legislative appropriations 
  5.19  are insufficient to satisfy the obligations. 
  5.20     (b) The transit tax revenues derived by the municipality 
  5.21  may not exceed: 
  5.22     (1) for the first transit levy year and any subsequent 
  5.23  transit levy year immediately following a year in which the 
  5.24  municipality declines to make the levy, the maximum available 
  5.25  local transit funds for the municipality for taxes payable in 
  5.26  the current year under section 473.446, calculated as if the 
  5.27  percentage of transit tax revenues for the municipality were 88 
  5.28  percent instead of 90 percent, and multiplied by the 
  5.29  municipality's market value adjustment ratio; and 
  5.30     (2) for taxes levied in any year that immediately follows a 
  5.31  year in which the municipality elects to levy under this 
  5.32  subdivision, the maximum transit tax that the municipality may 
  5.33  have levied in the previous year under this subdivision, 
  5.34  multiplied by the municipality's market value adjustment ratio. 
  5.35     The commissioner of revenue shall certify the 
  5.36  municipality's levy limitation under this subdivision to the 
  6.1   municipality by June 1 of the levy year.  The tax must be 
  6.2   accumulated and kept in a separate fund to be known as the 
  6.3   "replacement transit fund." 
  6.4      (c) To enable the municipality to receive revenues 
  6.5   described in clauses (2) and (3) of the definition of "tax 
  6.6   revenues" in subdivision 4, that would otherwise be lost if the 
  6.7   municipality's transit tax levy was not treated as a successor 
  6.8   levy to that made by the council under section 473.446: 
  6.9      (1) in the first transit levy year and any subsequent 
  6.10  transit levy year immediately following a year in which the 
  6.11  municipality declined to make the levy, 88 percent of the 
  6.12  council's nondebt spread levy for the current taxes payable year 
  6.13  shall be treated as levied by the municipality, and not the 
  6.14  council, for purposes of section 473F.08, subdivision 3, for the 
  6.15  purpose of determining its local tax rate for the preceding 
  6.16  year; and 
  6.17     (2) 88 percent of the revenues described in clause (3) of 
  6.18  the definition of "tax revenues" in subdivision 4, payable in 
  6.19  the first transit levy year, or payable in any subsequent 
  6.20  transit levy year following a year in which a municipality 
  6.21  declined to make the levy, shall be permanently transferred from 
  6.22  the council to the municipality.  If a municipality levies a tax 
  6.23  under this subdivision in one year, but declines to levy in a 
  6.24  subsequent year, the aid transferred under this clause shall be 
  6.25  transferred back to the council. 
  6.26     (d) Any transit taxes levied under this subdivision are not 
  6.27  subject to, or counted towards, any limit hereafter imposed by 
  6.28  law on the levy of taxes upon taxable property within any 
  6.29  municipality unless the law specifically includes the transit 
  6.30  tax. 
  6.31     (e) This subdivision is consistent with the transit 
  6.32  redesign plan.  Eligible municipalities opting to levy the 
  6.33  transit tax under this subdivision shall continue to meet the 
  6.34  regional performance standards established by the council. 
  6.35     (f) Within the designated Americans with Disabilities Act 
  6.36  area, metro mobility remains the obligation of the state. 
  7.1      (g) For purposes of this subdivision, "transit levy year" 
  7.2   is any year in which the municipality elects to levy under this 
  7.3   subdivision. 
  7.4      (h) A municipality may not levy taxes under this 
  7.5   subdivision in any year unless it notifies the council and the 
  7.6   commissioner of revenue of its intent to levy before July 1 of 
  7.7   the levy year.  The notification must include the amount of the 
  7.8   municipality's proposed transit tax for the current levy year.  
  7.9   After June 30 in the levy year, a municipality's decision to 
  7.10  levy or not levy taxes under this subdivision is irrevocable for 
  7.11  that levy year. 
  7.12     [EFFECTIVE DATE.] This section is effective for taxes 
  7.13  payable in 2002 and subsequent years. 
  7.14     Sec. 6.  Minnesota Statutes 2000, section 473.446, 
  7.15  subdivision 1, is amended to read: 
  7.16     Subdivision 1.  [WITHIN TRANSIT TAXING DISTRICT.] For the 
  7.17  purposes of sections 473.405 to 473.449 and the metropolitan 
  7.18  transit system, except as otherwise provided in this subdivision 
  7.19  and subdivision 1b, the council shall levy each year upon all 
  7.20  taxable property within the metropolitan transit taxing 
  7.21  district, defined in subdivision 2, a transit tax consisting of: 
  7.22     (a) an amount which shall be used for payment of the 
  7.23  expenses of operating transit and paratransit service and to 
  7.24  provide for payment of obligations issued by the council under 
  7.25  section 473.436, subdivision 6; 
  7.26     (b) an additional amount, if any, the council determines to 
  7.27  be necessary to provide for the full and timely payment of its 
  7.28  certificates of indebtedness and other obligations outstanding 
  7.29  on July 1, 1985, to which property taxes under this section have 
  7.30  been pledged; and 
  7.31     (c) (b) an additional amount necessary to provide full and 
  7.32  timely payment of certificates of indebtedness, bonds, including 
  7.33  refunding bonds or other obligations issued or to be issued 
  7.34  under section 473.39 by the council for purposes of acquisition 
  7.35  and betterment of property and other improvements of a capital 
  7.36  nature and to which the council has specifically pledged tax 
  8.1   levies under this clause. 
  8.2      The property tax levied by the council for general purposes 
  8.3   under paragraph (a) must not exceed the following amount for the 
  8.4   years specified: 
  8.5      (1) for taxes payable in 1995, the council's property tax 
  8.6   levy limitation for general transit purposes is equal to the 
  8.7   former regional transit board's property tax levy limitation for 
  8.8   general transit purposes under this subdivision, for taxes 
  8.9   payable in 1994, multiplied by an index for market valuation 
  8.10  changes equal to the total market valuation of all taxable 
  8.11  property located within the metropolitan transit taxing district 
  8.12  for the current taxes payable year divided by the total market 
  8.13  valuation of all taxable property located within the 
  8.14  metropolitan transit taxing district for the previous taxes 
  8.15  payable year; and 
  8.16     (2) for taxes payable in 1996 and subsequent years, the 
  8.17  product of (i) the council's property tax levy limitation for 
  8.18  general transit purposes for the previous year determined under 
  8.19  this subdivision before reduction by the amount levied by any 
  8.20  municipality in the previous year under section 473.388, 
  8.21  subdivision 7, multiplied by (ii) an index for market valuation 
  8.22  changes equal to the total market valuation of all taxable 
  8.23  property located within the metropolitan transit taxing district 
  8.24  for the current taxes payable year divided by the total market 
  8.25  valuation of all taxable property located within the 
  8.26  metropolitan transit taxing district for the previous taxes 
  8.27  payable year, minus the amount levied by any municipality in the 
  8.28  current levy year under section 473.388, subdivision 7. 
  8.29     The portion of the property tax levy for transit district 
  8.30  operating purposes attributable to a municipality that has 
  8.31  exercised a local levy option under section 473.388, subdivision 
  8.32  7, is the amount as determined under subdivision 1b.  The 
  8.33  portion of the property tax levy for transit district operating 
  8.34  purposes attributable to the remaining municipalities within the 
  8.35  transit district is found by subtracting the portions 
  8.36  attributable to the municipalities that have exercised a local 
  9.1   levy option under section 473.388, subdivision 7. 
  9.2      For the taxes payable year 1995, the index for market 
  9.3   valuation changes shall be multiplied by an amount equal to the 
  9.4   sum of the regional transit board's property tax levy limitation 
  9.5   for the taxes payable year 1994 and $160,665.  The $160,665 
  9.6   increase shall be a permanent adjustment to the levy limit base 
  9.7   used in determining the regional transit board's property tax 
  9.8   levy limitation for general purposes for subsequent taxes 
  9.9   payable years. 
  9.10     For the purpose of determining the council's property tax 
  9.11  levy limitation for general transit purposes under this 
  9.12  subdivision, "total market valuation" means the total market 
  9.13  valuation of all taxable property within the metropolitan 
  9.14  transit taxing district without valuation adjustments for fiscal 
  9.15  disparities (chapter 473F), tax increment financing (sections 
  9.16  469.174 to 469.179), and high voltage transmission lines 
  9.17  (section 273.425). 
  9.18     The county auditor shall reduce the tax levied pursuant to 
  9.19  this section and section 473.388 on all property within 
  9.20  statutory and home rule charter cities and towns that receive 
  9.21  full-peak service and limited off-peak service by an amount 
  9.22  equal to the tax levy that would be produced by applying a rate 
  9.23  of 0.510 percent of net tax capacity on the property.  The 
  9.24  county auditor shall reduce the tax levied pursuant to this 
  9.25  section and section 473.388 on all property within statutory and 
  9.26  home rule charter cities and towns that receive limited peak 
  9.27  service by an amount equal to the tax levy that would be 
  9.28  produced by applying a rate of 0.765 percent of net tax capacity 
  9.29  on the property.  The amounts so computed by the county auditor 
  9.30  shall be submitted to the commissioner of revenue as part of the 
  9.31  abstracts of tax lists required to be filed with the 
  9.32  commissioner under section 275.29.  Any prior year adjustments 
  9.33  shall also be certified in the abstracts of tax lists.  The 
  9.34  commissioner shall review the certifications to determine their 
  9.35  accuracy and may make changes in the certification as necessary 
  9.36  or return a certification to the county auditor for 
 10.1   corrections.  The commissioner shall pay to the council and to 
 10.2   the municipalities levying under section 473.388, subdivision 7, 
 10.3   the amounts certified by the county auditors on the dates 
 10.4   provided in section 273.1398, apportioned between the council 
 10.5   and the municipality in the same proportion as the total transit 
 10.6   levy is apportioned within the municipality.  There is annually 
 10.7   appropriated from the general fund in the state treasury to the 
 10.8   department of revenue the amounts necessary to make these 
 10.9   payments.  
 10.10     For the purposes of this subdivision, "full-peak and 
 10.11  limited off-peak service" means peak period regular route 
 10.12  service, plus weekday midday regular route service at intervals 
 10.13  longer than 60 minutes on the route with the greatest frequency; 
 10.14  and "limited peak period service" means peak period regular 
 10.15  route service only.  
 10.16     For the purposes of property taxes payable in the following 
 10.17  year, the council shall annually determine which cities and 
 10.18  towns qualify for the 0.510 percent or 0.765 percent tax 
 10.19  capacity rate reduction and shall certify this list to the 
 10.20  county auditor of the county wherein such cities and towns are 
 10.21  located on or before September 15.  No changes may be made to 
 10.22  the annual list after September 15. 
 10.23     [EFFECTIVE DATE.] This section is effective for taxes 
 10.24  payable in 2002 and subsequent years. 
 10.25     Sec. 7.  Minnesota Statutes 2000, section 473.446, is 
 10.26  amended by adding a subdivision to read: 
 10.27     Subd. 1c.  [TRANSIT LEVY AFTER 2001.] Notwithstanding any 
 10.28  other provision of this section, beginning with taxes payable in 
 10.29  2002, the council may levy the transit tax authorized under 
 10.30  subdivision 1 only for the purpose of providing for the full and 
 10.31  timely payment of bonds, certificates of indebtedness, and other 
 10.32  obligations issued by the council, to which property taxes have 
 10.33  been pledged. 
 10.34     [EFFECTIVE DATE.] This section is effective for taxes 
 10.35  payable in 2002 and subsequent years.  
 10.36     Sec. 8.  [HOMESTEAD AND AGRICULTURAL CREDIT AID 
 11.1   ADJUSTMENTS.] 
 11.2      (a) Homestead and agricultural credit aid payments to the 
 11.3   metropolitan council are permanently reduced for 2002 and 
 11.4   subsequent years by the homestead and agricultural credit aid 
 11.5   attributable to nondebt transit levies for aids payable in 2001. 
 11.6      (b) Homestead and agricultural credit aid payments to 
 11.7   opt-out municipalities levying under Minnesota Statutes, section 
 11.8   473.388, subdivision 7, are permanently reduced for 2002 and 
 11.9   subsequent years by the amount of the homestead and agricultural 
 11.10  credit aid attributable to the opt-out transit levy for aids 
 11.11  payable in 2001.  
 11.12     [EFFECTIVE DATE.] This section is effective for taxes 
 11.13  payable in 2002 and subsequent years. 
 11.14     Sec. 9.  [APPROPRIATION.] 
 11.15     $6,000,000 is appropriated from the transit funding account 
 11.16  to the commissioner of transportation to finance nonmetropolitan 
 11.17  transit systems under Minnesota Statutes, section 174.24, for 
 11.18  fiscal year 2002.  $110,000,000 is appropriated from the transit 
 11.19  funding account to the metropolitan council to provide transit 
 11.20  services for fiscal year 2002. 
 11.21     [EFFECTIVE DATE.] This section is effective July 1, 2001.