Minnesota Legislature
SF 3629
as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am
Current Version - as introduced
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A bill for an act
relating to transportation; providing for transportation financing; modifying
vehicle registration tax; increasing and indexing gasoline and special fuels tax
rates; authorizing metropolitan area half-cent sales tax for transit contingent on
voter approval; prohibiting certain expenditures of federal transportation funds;
amending Minnesota Statutes 2004, sections 161.04, by adding a subdivision;
168.013, subdivision 1a; 296A.07, subdivision 3, by adding a subdivision;
296A.08, subdivision 2, by adding a subdivision; proposing coding for new law
in Minnesota Statutes, chapter 297A.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
STATE TRANSPORTATION FINANCE
Section 1.
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, 90deleted text end new text begin year, 70new text end percent of deleted text begin suchdeleted text end new text begin basenew 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 years, 75deleted text end new text begin year, 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 $25.
In no event shall the annual additional tax be less than $25. deleted text begin The total tax under this
subdivision shall not exceed $189 for the first renewal period and shall not exceed $99
for subsequent renewal periods. The total tax under this subdivision on any vehicle filing
its initial registration in Minnesota in the second year of vehicle life shall not exceed
$189 and shall not exceed $99 for subsequent renewal periods. 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) deleted text begin 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 perioddeleted text end new text begin The
annual additional tax under paragraph (h) must not exceed the annual additional tax that
was previously paid or due on that vehiclenew text end .
Sec. 2.
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 gallon;
(2) M85 is taxed at the rate of deleted text begin 11.4deleted text end new text begin 14.3new text end cents per gallon; 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 gallon.
Sec. 3.
Minnesota Statutes 2004, section 296A.07, is amended by adding a subdivision
to read:
new text begin Subd. 5. new text end
new text begin Annual gasoline tax rate adjustment. new text end
new text begin
(a) Before April 1 of each year, the
commissioner of revenue shall recompute and publish the rate of the gasoline excise tax.
The new rate per gallon must be calculated by multiplying the rate in effect at the time of
the calculation by an amount obtained under paragraph (b). The new rate must be rounded
to the nearest 0.1 cent and is effective on April 1 of each year.
new text end
new text begin
(b) Divide the annual average United States Consumer Price Index for all urban
consumers, United States city average, as determined by the United States Department of
Labor for the previous year, by that annual average for the year before the previous year.
new text end
Sec. 4.
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 gallon.
(b) Liquefied natural gas is taxed at the rate of deleted text begin 12deleted text end new text begin 15new text end cents per gallon.
(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 gas.
(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.
Sec. 5.
Minnesota Statutes 2004, section 296A.08, is amended by adding a subdivision
to read:
new text begin Subd. 7. new text end
new text begin Annual special fuel tax rate adjustment. new text end
new text begin
(a) Before June 1 of each year,
the commissioner of revenue shall recompute and publish the rate of the special fuel
tax. The new rate must be calculated by multiplying the rate in effect at the time of the
calculation by an amount obtained under paragraph (b). The new rate must be rounded to
the nearest 0.1 cent and is effective on June 1 of each year.
new text end
new text begin
(b) Divide the annual average United States Consumer Price Index for all urban
consumers, United States city average, as determined by the United States Department of
Labor for the previous year, by that annual average for the year before the previous year.
new text end
Sec. 6. new text begin EFFECTIVE DATE.
new text end
new text begin
Section 1 is effective for first registration periods in which the tax is first due on or
after July 1, 2006, and for renewals of registrations on those vehicles assigned registration
periods of July 1, 2006, through June 30, 2007, or later. Sections 2 and 4 are effective
July 1, 2006. Sections 2 and 4 apply to all gasoline, undyed diesel fuel, and special fuel in
distributor storage on July 1, 2006.
new text end
ARTICLE 2
LOCAL SALES TAX
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 Highway spending in metropolitan transportation area. new text end
new text begin
In any year
during which taxes authorized in section 297A.992, subdivision 3, 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, within the
meaning of section 297A.992, subdivision 1, may not vary more than two percentage
points from the average of the previous five years of trunk highway fund metropolitan
transportation area expenditures.
new text end
Sec. 2.
new text begin
[297A.992] LOCAL TRANSPORTATION SALES AND EXCISE TAX.
new text end
new text begin new text end
new text begin Subdivision 1. new text end
new text begin Definition. new text end
new text begin
For purposes of this section and section 161.04,
subdivision 5, "metropolitan transportation area" means the counties of Anoka, Carver,
Dakota, Hennepin, Ramsey, Scott, and Washington.
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 Metropolitan Council may impose a
transportation sales and use tax, at a rate of up to one-half of one percent on retail sales and
uses taxable under chapter 297A, and may impose an excise tax on the sale of new motor
vehicles, at the rate of $20 per vehicle, occurring within the metropolitan transportation
area, to fund transportation improvements, as provided in this section.
new text end
new text begin Subd. 3. new text end
new text begin Metropolitan transportation area sales tax; fund; appropriation. new text end
new text begin
(a)
On and after the effective date of this section, the Metropolitan Council may impose the
transportation sales and use tax and motor vehicle excise tax within the metropolitan
transportation area.
new text end
new text begin
(b) 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 Metropolitan Council for expenditure as provided in paragraph (c).
new text end
new text begin
(c) By May 1 of each year, the Metropolitan Council shall, by resolution, allocate
revenue in the metropolitan transportation area fund for the next fiscal year. The resolution
must specify the allocation of funds for the following purposes:
new text end
new text begin
(1) for implementation of the public transit components of the council's 2030
transportation policy plan, and for other public transit operations and capital improvements
provided or assisted by the council in counties in the metropolitan transportation area; and
new text end
new text begin
(2) for operation of and capital assistance to county and city public transit systems
within the metropolitan transportation area.
new text end
new text begin Subd. 4. 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
Sec. 3. new text begin REPORT.
new text end
new text begin
In each year during the period of imposition of the taxes authorized in Minnesota
Statutes, section 297A.992, subdivision 2, the Metropolitan Council shall report by
February 1 to the house of representatives and senate committees having jurisdiction over
transportation policy and finance concerning the revenues received from the metropolitan
transportation area sales tax and the expenditures of that money.
new text end
Sec. 4. new text begin EFFECTIVE DATE.
new text end
new text begin
Sections 1, 2, and 3 are effective upon approval of the sales tax by the metropolitan
transportation area voters in the 2006 election, and the taxes authorized in section 2,
subdivisions 2 and 3, are effective as to sales made on and after July 1, 2007.
new text end
ARTICLE 3
ALLOCATION OF FEDERAL FUNDS
Section 1. new text begin ALLOCATION OF FEDERAL TRANSPORTATION FUNDS.
new text end
new text begin
The commissioner of transportation shall not allocate available federal transportation
funds to a central state fund for major projects. Available federal transportation funds
must be allocated to the area transportation partnerships, after appropriate deductions are
made for planning and research activities, and for repayment of advance construction.
new text end