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SF 3464

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

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

Current Version - as introduced

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A bill for an act
relating to transportation; adjusting county state-aid highway fund distribution
formula; modifying registration taxes for passenger automobiles; increasing
motor fuel taxes; authorizing imposition of metropolitan transportation tax
for transit purposes; authorizing issuance of state trunk highway bonds;
appropriating money; amending Minnesota Statutes 2004, sections 161.04, by
adding a subdivision; 162.07, subdivision 1, by adding subdivisions; 168.013,
subdivision 1a; 296A.07, subdivision 3; 296A.08, subdivision 2; proposing
coding for new law in Minnesota Statutes, chapter 297A.

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

Section 1.

Minnesota Statutes 2004, section 161.04, is amended by adding a
subdivision to read:


new text begin Subd. 5. new text end

new text begin Trunk highway spending in metropolitan transportation area. new text end

new text begin (a) In
any year during which taxes authorized in section 297A.992 are imposed, and exclusive of
the expenditure of these revenues, the percentage of total trunk highway fund expenditures
attributable to projects in the metropolitan transportation area may not vary more than
two percentage points from the average of the previous five years of trunk highway fund
expenditures in the metropolitan transportation area.
new text end

new text begin (b) For purposes of this subdivision, "metropolitan transportation area" has the
meaning given under section 297A.992, subdivision 1.
new text end

Sec. 2.

Minnesota Statutes 2004, section 162.07, subdivision 1, is amended to read:


Subdivision 1.

Formula.

new text begin (a)new text end After deducting for administrative costs and for the
disaster account and research account and state park roads as deleted text begin heretoforedeleted text end providednew text begin in
section 162.06, subdivisions 2 through 5
new text end , the remainder of the total sum provided for in
section 162.06, subdivision 1, deleted text begin shall bedeleted text end new text begin isnew text end identified as the apportionment sum and deleted text begin shall be
apportioned by the commissioner to the several counties on the basis of the needs of the
counties as determined in accordance with the following formula:
deleted text end new text begin the excess sum.new text end

deleted text begin (a) An amount equal to ten percent of the apportionment sum shall be apportioned
equally among the 87 counties.
deleted text end

deleted text begin (b) An amount equal to ten percent of the apportionment sum shall be apportioned
among the several counties so that each county shall receive of such amount the
percentage that its motor vehicle registration for the calendar year preceding the one last
past, determined by residence of registrants, bears to the total statewide motor vehicle
registration.
deleted text end

deleted text begin (c) An amount equal to 30 percent of the apportionment sum shall be apportioned
among the several counties so that each county shall receive of such amount the percentage
that its total lane-miles of approved county state-aid highways bears to the total lane-miles
of approved statewide county state-aid highways. In 1997 and subsequent years no county
may receive, as a result of an apportionment under this clause based on lane-miles rather
than miles of approved county state-aid highways, an apportionment that is less than its
apportionment in 1996.
deleted text end

deleted text begin (d) An amount equal to 50 percent of the apportionment sum shall be apportioned
among the several counties so that each county shall receive of such amount the percentage
that its money needs bears to the sum of the money needs of all of the individual counties;
provided, that the percentage of such amount that each county is to receive shall be
adjusted so that each county shall receive in 1958 a total apportionment at least ten
percent greater than its total 1956 apportionments from the state road and bridge fund;
and provided further that those counties whose money needs are thus adjusted shall
never receive a percentage of the apportionment sum less than the percentage that such
county received in 1958.
deleted text end

new text begin For purposes of this section:
new text end

new text begin (1) the "apportionment sum" is the total amount apportioned to the counties from the
county state-aid highway fund less revenue to that fund described in clause (2); and
new text end

new text begin (2) the "excess sum" is the total amount apportioned to the counties from the county
state-aid highway fund from revenues attributable to increases in motor fuel tax rates
above the rates in effect on May 31, 2006.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2007, for apportionments
made on and after that date.
new text end

Sec. 3.

Minnesota Statutes 2004, section 162.07, is amended by adding a subdivision
to read:


new text begin Subd. 1a. new text end

new text begin Apportionment sum. new text end

new text begin The commissioner shall apportion the
apportionment sum to the several counties on the basis of the following formula:
new text end

new text begin (1) An amount equal to ten percent of the apportionment sum shall be apportioned
equally among the 87 counties.
new text end

new text begin (2) An amount equal to ten percent of the apportionment sum shall be apportioned
among the several counties so that each county shall receive of such amount the
percentage that its motor vehicle registration for the calendar year preceding the one last
past, determined by residence of registrants, bears to the total statewide motor vehicle
registration.
new text end

new text begin (3) An amount equal to 30 percent of the apportionment sum shall be apportioned
among the several counties so that each county shall receive of such amount the percentage
that its total lane-miles of approved county state-aid highways bears to the total lane-miles
of approved statewide county state-aid highways. In 1997 and subsequent years no county
may receive, as a result of an apportionment under this clause based on lane-miles rather
than miles of approved county state-aid highways, an apportionment that is less than its
apportionment in 1996.
new text end

new text begin (4) An amount equal to 50 percent of the apportionment sum shall be apportioned
among the several counties so that each county shall receive of such amount the percentage
that its money needs bears to the sum of the money needs of all of the individual counties;
provided, that the percentage of such amount that each county is to receive shall be
adjusted so that each county shall receive in 1958 a total apportionment at least ten
percent greater than its total 1956 apportionments from the state road and bridge fund;
and provided further that those counties whose money needs are thus adjusted shall
never receive a percentage of the apportionment sum less than the percentage that such
county received in 1958.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2007, for apportionments
made on and after that date.
new text end

Sec. 4.

Minnesota Statutes 2004, section 162.07, is amended by adding a subdivision
to read:


new text begin Subd. 1b. new text end

new text begin Excess sum. new text end

new text begin The commissioner shall apportion the excess sum to the
counties on the basis of the following formula:
new text end

new text begin (1) An amount equal to 40 percent of the excess sum shall be apportioned among
the several counties so that each county receives of that amount the percentage that its
motor vehicle registration for the calendar year preceding the one last past, determined by
residence of registrants, bears to the total statewide motor vehicle registration.
new text end

new text begin (2) An amount equal to 60 percent of the excess sum shall be apportioned among the
several counties so that each county shall receive of such amount the percentage that its
money needs bears to the sum of the money needs of all of the individual counties.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2007, for apportionments
made on and after that date.
new text end

Sec. 5.

Minnesota Statutes 2004, section 168.013, subdivision 1a, is amended to read:


Subd. 1a.

Passenger automobile; hearse.

(a) On passenger automobiles as defined
in section 168.011, subdivision 7, and hearses, except as otherwise provided, the tax shall
be $10 plus an additional tax equal to 1.25 percent of the base value.

(b) Subject to the classification provisions herein, "base value" means the
manufacturer's suggested retail price of the vehicle including destination charge using
list price information published by the manufacturer or determined by the registrar if no
suggested retail price exists, and shall not include the cost of each accessory or item of
optional equipment separately added to the vehicle and the suggested retail price.

(c) If the manufacturer's list price information contains a single vehicle identification
number followed by various descriptions and suggested retail prices, the registrar shall
select from those listings only the lowest price for determining base value.

(d) If unable to determine the base value because the vehicle is specially constructed,
or for any other reason, the registrar may establish such value upon the cost price to the
purchaser or owner as evidenced by a certificate of cost but not including Minnesota sales
or use tax or any local sales or other local tax.

(e) The registrar shall classify every vehicle in its proper base value class as follows:

FROM
TO
$ 0
$ 199.99
200
399.99

and thereafter a series of classes successively set in brackets having a spread of $200
consisting of such number of classes as will permit classification of all vehicles.

(f) The base value for purposes of this section shall be the middle point between
the extremes of its class.

(g) The registrar shall establish the base value, when new, of every passenger
automobile and hearse registered prior to the effective date of Extra Session Laws 1971,
chapter 31, using list price information published by the manufacturer or any nationally
recognized firm or association compiling such data for the automotive industry. If unable
to ascertain the base value of any registered vehicle in the foregoing manner, the registrar
may use any other available source or method. The registrar shall calculate tax using base
value information available to dealers and deputy registrars at the time the application for
registration is submitted. The tax on all previously registered vehicles shall be computed
upon the base value thus determined taking into account the depreciation provisions of
paragraph (h).

(h) The annual additional tax computed upon the base value as provided herein,
during the first deleted text begin and second yearsdeleted text end new text begin yearnew text end of vehicle life shall be computed upon 100 percent
of the base value; new text begin for the second year, 80 percent of base value; new text end for the third deleted text begin and fourth
years
deleted text end new text begin yearnew text end , deleted text begin 90deleted text end new text begin 70new text end percent of deleted text begin suchdeleted text end new text begin base new text end value; new text begin for the fourth year, 60 percent of base value;
new text end for the fifth deleted text begin and sixth yearsdeleted text end new text begin yearnew text end , deleted text begin 75deleted text end new text begin 50new text end percent of deleted text begin suchdeleted text end new text begin basenew text end value; new text begin for the sixth year, 40
percent of base value;
new text end for the seventh year, deleted text begin 60deleted text end new text begin 35new text end percent of deleted text begin suchdeleted text end new text begin basenew text end value; for the eighth
year, deleted text begin 40deleted text end new text begin 30new text end percent of deleted text begin suchdeleted text end new text begin basenew text end value; for the ninth year, deleted text begin 30deleted text end new text begin 20new text end percent of deleted text begin suchdeleted text end new text begin basenew text end
value; for the tenth year, ten percent of deleted text begin suchdeleted text end new text begin basenew text end value; for the 11th and each succeeding
year, the sum of deleted text begin $25deleted text end new text begin $39new text end .

In no event shall the annual additional tax be less than deleted text begin $25deleted text end new text begin $39new text end . new text begin In the third and subsequent
years of vehicle life,
new text end the total tax under this subdivision shall not exceed $189 deleted text begin for the first
renewal period and shall not exceed $99 for subsequent renewal periods
deleted text end . The total tax
under this subdivision on any vehicle filing its initial registration in Minnesota in the
deleted text begin second yeardeleted text end new text begin third and subsequent yearsnew text end of vehicle life shall not exceed $189 deleted text begin and shall not
exceed $99 for subsequent renewal periods
deleted text end . deleted text begin The total tax under this subdivision on any
vehicle filing its initial registration in Minnesota in the third or subsequent year of vehicle
life shall not exceed $99 and shall not exceed $99 in any subsequent renewal period.
deleted text end

(i) As used in this subdivision and section 168.017, the following terms have the
meanings given: "initial registration" means the 12 consecutive months calendar period
from the day of first registration of a vehicle in Minnesota; and "renewal periods" means
the 12 consecutive calendar months periods following the initial registration period.

new text begin (j) The annual additional tax under paragraph (h) in any registration year on a
passenger automobile on which the first annual tax was paid before November 15, 2006,
must not exceed the tax that was paid on that vehicle in the previous registration year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for first registrations on registration
periods in which the tax is first due on November 15, 2006, or later. This section is
effective for renewals of registration on those vehicles assigned registration periods of
December 1, 2006, through November 30, 2007, or later.
new text end

Sec. 6.

Minnesota Statutes 2004, section 296A.07, subdivision 3, is amended to read:


Subd. 3.

Rate of tax.

The gasoline excise tax is imposed at the following rates:

(1) E85 is taxed at the rate of deleted text begin 14.2deleted text end new text begin 17.8new text end cents per gallonnew text begin until May 31, 2008, and
21.3 cents per gallon thereafter
new text end ;

(2) M85 is taxed at the rate of deleted text begin 11.4deleted text end new text begin 14.3new text end cents per gallonnew text begin until May 31, 2008, and
17.1 cents per gallon thereafter
new text end ; and

(3) all other gasoline is taxed at the rate of deleted text begin 20deleted text end new text begin 25new text end cents per gallonnew text begin until May 31,
2008, and 30 cents per gallon thereafter
new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2006.
new text end

Sec. 7.

Minnesota Statutes 2004, section 296A.08, subdivision 2, is amended to read:


Subd. 2.

Rate of tax.

The special fuel excise tax is imposed at the following rates:

(a) Liquefied petroleum gas or propane is taxed at the rate of deleted text begin 15deleted text end new text begin 18.8new text end cents per
gallonnew text begin until May 31, 2008, and 22.5 cents per gallon thereafternew text end .

(b) Liquefied natural gas is taxed at the rate of deleted text begin 12deleted text end new text begin 15new text end cents per gallonnew text begin until May 31,
2008, and 18 cents per gallon thereafter
new text end .

(c) Compressed natural gas is taxed at the rate of deleted text begin $1.739deleted text end new text begin $2.174new text end per thousand cubic
feet; or deleted text begin 20deleted text end new text begin 25new text end cents per gasoline equivalent, as defined by the National Conference on
Weights and Measures, which is 5.66 pounds of natural gasnew text begin until May 31, 2008, and
$2.609 cents per thousand cubic feet, or 30 cents per gasoline equivalent thereafter
new text end .

(d) All other special fuel is taxed at the same rate as the gasoline excise tax as
specified in section 296A.07, subdivision 2. The tax is payable in the form and manner
prescribed by the commissioner.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2006.
new text end

Sec. 8.

new text begin [297A.992] METROPOLITAN TRANSPORTATION AREA SALES AND
EXCISE TAX.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section and section 161.04,
subdivision 5:
new text end

new text begin (a) "Metropolitan transportation area" means the area of all counties designated
on or before September 1, 2006, by resolution of each county board, to be a part of the
metropolitan transportation area, together with counties so designated after September
1, 2006, subject to the concurrence of the joint powers board. Counties eligible for
designation as part of the metropolitan transportation area are Anoka, Carver, Dakota,
Hennepin, Ramsey, Scott, and Washington.
new text end

new text begin (b) "Joint powers board" means the Metropolitan Transportation Area Joint Powers
Board.
new text end

new text begin Subd. 2. new text end

new text begin Authorization; rates. new text end

new text begin Notwithstanding sections 297A.99, subdivisions
1, 2, 3, 5, and 13; 477A.016; or any other law, the joint powers board shall impose a
transportation sales and use tax, at a rate of one-half of one percent on retail sales and
uses taxable under this chapter, and shall impose an excise tax on the sale of new motor
vehicles, at the rate of $20 per vehicle, occurring within the jurisdiction of the taxing
authority, to fund transportation improvements, as provided in this section.
new text end

new text begin Subd. 3. new text end

new text begin Transportation sales tax. new text end

new text begin (a) The joint powers board shall impose the
transportation sales and use tax and motor vehicle excise tax within the metropolitan
transportation area.
new text end

new text begin (b) Before imposing the taxes under paragraph (a), counties in the metropolitan
transportation area shall enter into a joint powers agreement to create the joint powers
board to exercise the powers provided in this section. The joint powers board must consist
of one representative of each county in the metropolitan transportation area. The joint
powers board has the powers and duties provided in this section and in section 471.59,
except that the joint powers board may not issue bonds.
new text end

new text begin Subd. 4. new text end

new text begin Metropolitan transportation area fund; allocation. new text end

new text begin (a) A metropolitan
transportation area fund is created in the state treasury. After the deductions allowed in
section 297A.99, subdivision 11, the commissioner of revenue shall deposit all revenue
from taxes imposed under this section in the fund. Money in the fund is appropriated to
the commissioner of finance. The commissioner of finance shall allocate money in the
fund as directed by resolution of the joint powers board under paragraph (b).
new text end

new text begin (b) By May 1 of each year, the joint powers board shall, by resolution, direct the
commissioner of finance to allocate revenue in the metropolitan transportation area fund
for the next fiscal year. The resolution must direct the commissioner to allocate funds to
the following recipients for the following purposes:
new text end

new text begin (1) 50 percent of the funds must be allocated to the Metropolitan Council for public
transit operations and capital improvements provided or assisted by the council, for use in
counties in the metropolitan transportation area;
new text end

new text begin (2) the remainder of the funds must be allocated:
new text end

new text begin (i) to the commissioner of transportation for highway projects within the metropolitan
transportation area included in the commissioner's current ten-year highway work plan;
new text end

new text begin (ii) to counties in the metropolitan transportation area for construction, maintenance,
and improvement of local roads; or
new text end

new text begin (iii) to counties in the metropolitan transportation area for operation of and capital
assistance to public transit systems that the county, or one or more cities in the county,
owns, operates, or contracts for.
new text end

new text begin Subd. 5. new text end

new text begin Reverse referendum. new text end

new text begin The taxes imposed under this section take effect
only upon obtaining the approval of a majority of the voters voting on the question of
imposing the tax, if a petition requesting a vote on the tax is signed by registered voters
equal to five percent of the total votes cast in the metropolitan transportation area in the
2004 general election and is filed with the secretary of state by September 15, 2006. The
question must be submitted to the voters in the metropolitan transportation area at the
general election in November 2006. The commissioner of revenue shall prepare the form
of the question to be presented at the election. The Metropolitan Council shall reimburse
counties for the additional cost of conducting any vote required under this subdivision.
new text end

new text begin Subd. 6. new text end

new text begin Administration; collection; enforcement. new text end

new text begin The administration, collection,
and enforcement provisions in section 297A.99, subdivisions 4 and 6 to 12, apply to all
taxes imposed under this section.
new text end

new text begin Subd. 7. new text end

new text begin Reporting requirements. new text end

new text begin In each year during the period of imposition
of the taxes authorized under this section, the commissioner of transportation and the
Metropolitan Council shall report by February 1 to the house of representatives and senate
committees having jurisdiction over transportation policy and finance, concerning:
new text end

new text begin (1) the revenues received from any transportation sales and use tax and motor
vehicle excise tax in the metropolitan transportation area; and
new text end

new text begin (2) the expenditures of that money.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin The taxes imposed under subdivision 2 are effective for
sales made after December 31, 2006, and the remainder of the section is effective the
day following final enactment.
new text end

Sec. 9. new text begin APPROPRIATIONS; DEBT SERVICE.
new text end

new text begin (a) $100,000,000 is appropriated on the first day of fiscal years 2007 through 2016
from the bond proceeds account in the trunk highway fund. These appropriations are in
addition to any other appropriations for this purpose.
new text end

new text begin (b) $10,660,000 in fiscal year 2007 is appropriated from the trunk highway fund
to the commissioner of transportation for highway debt service. This appropriation is in
addition to any other appropriations for this purpose.
new text end

Sec. 10. new text begin BOND SALE AUTHORIZATIONS.
new text end

new text begin To provide the money appropriated in section 9, paragraph (a), from the bond
proceeds account in the trunk highway fund, the commissioner of finance shall sell and
issue bonds of the state in an amount up to $1,000,000,000 in the manner, upon the terms,
and with the effect prescribed by Minnesota Statutes, sections 167.50 to 167.52, and
by the Minnesota Constitution, article XIV, section 11, at the times and in the amounts
requested by the commissioner of transportation. The proceeds of the bonds, except
accrued interest and any premium received on the sale of the bonds, must be credited to
the bond proceeds account in the trunk highway fund.
new text end