SF 5353

as introduced - 93rd Legislature (2023 - 2024) Posted on 04/09/2024 09:22am

A bill for an act
relating to transportation; taxation; modifying county requirements related to the
county transportation sales and use tax; allowing for deduction to sales tax proceeds;
amending Minnesota Statutes 2022, sections 297A.99, subdivision 11; 297A.993,
subdivision 3; Minnesota Statutes 2023 Supplement, section 297A.993, subdivision
2a.

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

Section 1.

Minnesota Statutes 2022, section 297A.99, subdivision 11, is amended to read:

Subd. 11.

Revenues; cost of collection.

The commissioner shall remit the proceeds of
the tax, less refunds and a proportionate share of the cost of collection, at least quarterly,
to the political subdivision. The commissioner shall deduct from the proceeds remitted an
amount that equals

(1) the direct and indirect costs of the department to administer, audit, and collect the
political subdivision's tax, plus

(2) the political subdivision's proportionate share of the indirect cost of administering
all taxes under this section, plus

(3) the cost of constructing and maintaining a zip code or geo-code database necessary
for local sales tax collections under the Streamlined Sales and Use Tax Agreement in section
297A.995 new text begin , plus
new text end

new text begin (4) the deduction required under section 297A.993, subdivision 3, if any new text end .

The initial cost of constructing a database under clause (3) shall be distributed among
the cities with a local sales tax based on each city's population. The commissioner shall
develop a method for distributing the cost of maintaining the database among the cities with
a local sales tax based on the number of boundary changes for each city.

Sec. 2.

Minnesota Statutes 2023 Supplement, section 297A.993, subdivision 2a, is amended
to read:

Subd. 2a.

Uses reporting.

By February 15 of each even-numbered year, a metropolitan
county, as defined in section 473.121, subdivision 4, that imposes the taxes under this section
must submit a report to the legislative committees with jurisdiction over transportation
policy and finance new text begin , including partisan and nonpartisan committee staff new text end . At a minimum, the
report must include:

(1) actual transportation sales tax collections by the county over the previous five calendar
years;

(2) an estimation of the total sales tax revenue that is estimated to be collected by the
county in the current year and for the next ten calendar years; and

(3) for each of the previous five calendar years, the current calendar year, and for the
next ten calendar years:

(i) the amount of sales tax revenue expended or proposed to be expended for each of
the following:

(A) planning, construction, operation, or maintenance of guideways, as defined in section
473.4485, subdivision 1, paragraph (d);

(B) nonguideway transit and active transportation uses;

(C) highway uses; and

(D) uses not otherwise specified in subitems (A) to (C); deleted text begin and
deleted text end

(ii) new text begin completed, current, planned, and eligible projects for each category under item (i);
and
new text end

new text begin (iii) new text end an estimated balance of unspent or undesignated county sales tax revenue.

Sec. 3.

Minnesota Statutes 2022, section 297A.993, subdivision 3, is amended to read:

Subd. 3.

Administration, collection, enforcement.

new text begin (a) new text end 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 begin (b) If the report under subdivision 2a is not submitted by a county to the legislature as
required by February 15 in an even-numbered year, the commissioner must deduct $10,000
from the next quarterly proceeds remittance to the county immediately following that date
and must deduct $10,000 from each subsequent quarterly proceeds remittance until the
report is submitted.
new text end