SF 3750

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

A bill for an act
relating to transportation; imposing a sales tax within the metropolitan area with
the proceeds dedicated to metropolitan transportation and transit improvements
and services; proposing coding for new law as Minnesota Statutes, chapter 473J.

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

Section 1.

new text begin [473J.01] METROPOLITAN TRANSPORTATION AREA.
new text end

new text begin The metropolitan transportation area is the area within the counties of Anoka,
Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
new text end

Sec. 2.

new text begin [473J.02] SALES TAX.
new text end

new text begin A sales tax and a use tax of 0.50 percent is imposed on retail sales and uses taxable
under chapter 297A that occur in the metropolitan transportation area. These taxes
are in addition to the taxes imposed by sections 297A.62, subdivision 1, and 297A.63,
subdivision 1, and any local taxes imposed pursuant to a special law.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2006.
new text end

Sec. 3.

new text begin [473J.03] TAX COLLECTION.
new text end

new text begin The taxes imposed by section 473J.02 must be reported and paid to the commissioner
of revenue with the taxes imposed by chapter 297A and in accordance with an agreement
between the counties in the metropolitan transportation area and the commissioner of
revenue. The taxes are subject to the same interest, penalty, and other provisions provided
for sales and use taxes under chapters 289A and 297A. The commissioner has the same
powers to assess and collect the taxes as are given the commissioner in chapters 270C,
289A, and 297A to assess and collect sales and use taxes. The commissioner shall deposit
the revenues, including interest and penalties, derived from the taxes in the state treasury
and credit them to the general fund.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2006.
new text end

Sec. 4.

new text begin [473J.04] METROPOLITAN TRANSPORTATION SALES TAX
ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Transfer to fund. new text end

new text begin (a) The revenue collected under section 473J.03,
less the cost of collection, is appropriated from the general fund to the commissioner of
finance for transfer to a special account within the metropolitan area transit fund in the
state treasury, to be called the metropolitan transportation sales tax account.
new text end

new text begin (b) The cost of collection equals the direct and indirect costs of the Department of
Revenue to administer, audit, and collect the revenue, plus the metropolitan transportation
area's proportionate share of the indirect cost of administering all local sales and use taxes
under section 297A.99.
new text end

new text begin Subd. 2. new text end

new text begin Use of fund. new text end

new text begin Money in the metropolitan transportation sales tax account is
appropriated as follows:
new text end

new text begin (1) 85 percent to the Metropolitan Council:
new text end

new text begin (i) for capital and operating costs of bus, rail, and paratransit service within the
metropolitan transportation area, including special transportation service under section
473.386 and replacement transit service under section 473.388; and
new text end

new text begin (ii) to provide for implementation by 2020 of the transit portion of the Metropolitan
Council's "2030 Transportation Policy Plan"; and
new text end

new text begin (2) 15 percent to the Metropolitan Council for annual distribution based on
population to counties in the metropolitan transportation area that are eligible for
distribution under section 473J.05, subdivision 2, with a minimum annual distribution to
each qualifying county of $1,500,000. For purposes of this subdivision, "population"
has the meaning given in section 477A.011, subdivision 3. This money must be used
as provided in section 473J.05 by counties, home rule charter and statutory cities, and
towns to plan, design, build, maintain, promote, and operate public transit, bicycle,
and pedestrian projects, and to plan, design, and provide transportation infrastructure
associated with transit-oriented development.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2006.
new text end

Sec. 5.

new text begin [473J.05] COUNTY USE OF DISTRIBUTION.
new text end

new text begin Subdivision 1. new text end

new text begin Purposes. new text end

new text begin A county receiving money distributed by the Metropolitan
Council under section 473J.04 must distribute 50 percent of the funds to home rule
charter and statutory cities and towns within the county. To receive a distribution from
the county, a city or town shall apply for a grant from the county under this section by
the time required by the county. The application must contain information specifying
the project, amount of funds requested, and how the funds will be expended to further
the implementation of the project. Funds may be used by the county, or distributed to a
city for use by the city, only to:
new text end

new text begin (1) plan, design, build, maintain, promote, and operate public transit;
new text end

new text begin (2) plan, design, build, maintain, promote, and operate bicycle programs and
pathways including, but not limited to, bicycle racks, bicycle lockers, off-road bicycle
paths, on-street bicycle striping, signage, lighting, and other projects with a primary focus
on bicycle transportation;
new text end

new text begin (3) plan, design, build, maintain, promote, and operate pedestrian programs within
the county including, but not limited to, sidewalks, paths, signage, lighting, and pedestrian
crossings with an emphasis on pedestrian transportation;
new text end

new text begin (4) plan, design, and provide transportation infrastructure associated with
transit-oriented development; and
new text end

new text begin (5) provide the local match for federal transportation grants for projects that
encourage transit use, bicycling, and walking under the federal Transportation
Enhancement, Congestion Mitigation and Air Quality, or Surface Transportation programs.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility to receive money. new text end

new text begin (a) To be eligible to receive money
distributed by the Metropolitan Council under section 473J.04, a county shall by January
1, 2007:
new text end

new text begin (1) create a separate account in its general fund to credit the money; and
new text end

new text begin (2) set up accounting procedures to ensure that money in the separate account is
spent only for the purposes in this section.
new text end

new text begin (b) In each following year, each county shall also submit a report by April 1 of each
year to the chair of the Metropolitan Council detailing for the previous calendar year:
new text end

new text begin (1) how the money was spent including, but not limited to, specific information on
the planning completed, the programs implemented, the staff resources required, and a full
accounting of how the revenues were spent and distributed to local communities; and
new text end

new text begin (2) the resulting increase in transit, bicycle, and pedestrian travel; the improvement
in transit, bicycle, and pedestrian safety; the impact on roadway congestion; and the
need for vehicle parking.
new text end

new text begin (c) The chair of the Metropolitan Council shall withhold all or part of the funds to be
distributed to a county under this section if the county fails to comply with this section.
Funds withheld under this paragraph may be distributed to the county in the following
year if the requirements of this section have been met. If a county has not met these
requirements by the date of the following year's distribution, the withheld funds and the
funds for distribution to the county in the current year must be included in the amount for
distribution to qualifying counties.
new text end

new text begin Subd. 3. new text end

new text begin Report. new text end

new text begin By July 1 of each odd-numbered year, the Metropolitan Council
shall report on how the money was spent and the resulting improvements within the
metropolitan area in transit, bicycle travel, pedestrian travel, and safety to the committees
of the house of representatives and senate with jurisdiction over transportation and
transportation finance.
new text end

Sec. 6. new text begin APPLICATION.
new text end

new text begin Sections 1 to 5 apply in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,
Scott, and Washington.
new text end