SF 2500

as introduced - 89th Legislature (2015 - 2016) Posted on 03/11/2016 09:04am

A bill for an act
relating to transportation; governing transportation finance; proposing a
constitutional amendment to the Minnesota Constitution, article XIV, to allocate
state tax revenue related to motor vehicle repair or maintenance exclusively to
fund roads; amending Minnesota Statutes 2014, section 297A.94.

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

ARTICLE 1

CONSTITUTIONAL AMENDMENT

Section 1. new text begin CONSTITUTIONAL AMENDMENT PROPOSED.
new text end

new text begin An amendment to the Minnesota Constitution is proposed to the people. If the
amendment is adopted, article XIV, section 5, will read:
new text end

Sec. 5.

There is hereby created a highway user tax distribution fund to be used solely
for highway purposes as specified in this article. The fund consists of the proceeds of any
taxes authorized by sections 9 and 10 of this article new text begin , and the revenue as specified in section
14 of this article new text end . The net proceeds of the taxes shall be apportioned: 62 percent to the
trunk highway fund; 29 percent to the county state-aid highway fund; nine percent to the
municipal state-aid street fund. Five percent of the net proceeds of the highway user tax
distribution fund may be set aside and apportioned by law to one or more of the three
foregoing funds. The balance of the highway user tax distribution fund shall be transferred
to the trunk highway fund, the county state-aid highway fund, and the municipal state-aid
street fund in accordance with the percentages set forth in this section. No change in the
apportionment of the five percent may be made within six years of the last previous change.

new text begin a section shall be added to article XIV, to read:
new text end

new text begin Sec. 14. new text end

new text begin As provided by law, the revenue from a sales and use tax imposed by the state
on the repair or maintenance of a motor vehicle, including on the sale of motor vehicle parts
and tires, must be allocated solely to the highway user tax distribution fund. The revenue
under this section does not include the amount provided under article XI, section 15.
new text end

Sec. 2. new text begin SUBMISSION TO VOTERS.
new text end

new text begin The proposed amendment under section 1 must be submitted to the people at the
2016 general election. The question submitted must be:
new text end

new text begin "Shall the Minnesota Constitution be amended to dedicate revenue from any state
taxes on repair or maintenance of motor vehicles exclusively to roads, including state as
well as local streets, highways, and bridges, effective July 1, 2017?
new text end

	new text begin Yes . new text end
	new text begin No . new text end	new text begin " new text end

Sec. 3. new text begin EFFECTIVE DATE.
new text end

new text begin If the constitutional amendment in this article is adopted, the constitutional provision
in section 1 is effective July 1, 2017.
new text end

ARTICLE 2

CONSTITUTIONAL AMENDMENT IMPLEMENTATION

Section 1.

Minnesota Statutes 2014, section 297A.94, is amended to read:

297A.94 DEPOSIT OF REVENUES.

(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) 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.

(e) new text begin Starting after July 1, 2017, the commissioner shall deposit an amount of the
remittances monthly into the state treasury and credit them to the highway user tax
distribution fund, as a portion of the estimated amount of taxes collected from the sales
and purchase of motor vehicle repair parts in that month. The monthly deposit amount is
1/12 of the product of (1) the estimated percentage of sales tax attributable to the sale and
purchase of motor vehicle parts calculated under this paragraph, and (2) the total sales tax
revenues for the calendar year ending before the start of that fiscal year. By June 30, 2017,
and June 30 of every second year thereafter, the commissioner shall estimate the percentage
of total sales tax revenues collected in the previous calendar year that is attributable to sales
and purchases of motor vehicle parts based on federal data and department consumption
models. 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 (1) all
parts, tires, accessories, and equipment incorporated into or affixed to the motor vehicle as
part of the motor vehicle maintenance or repair, and (2) paint, oil, and other fluids that
remain on or in the motor vehicle as part of the motor vehicle maintenance or repair.
new text end

new text begin (f) new text end 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.

deleted text begin (f) deleted text end new text begin (g) new text end The revenue dedicated under paragraph deleted text begin (e) deleted text end new text begin (f) new text end 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 deleted text begin (e) deleted text end new text begin (f) new text end 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 deleted text begin (e) deleted text end new text begin (f) new text end must be allocated for field operations.

deleted text begin (g) deleted text end new text begin (h) new text end The revenues deposited under paragraphs (a) to deleted text begin (f) deleted text end new text begin (g) new text end 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 (i) The estimation and deposit of funds under paragraph (e) must conform with the
Minnesota Constitution, article XIV, section 14.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 30, 2017, if the constitutional
amendment in article 1 is adopted.
new text end