SF 832

1st Engrossment - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; changing the gasoline excise tax 
  1.3             rate; indexing the rate of taxation on gasoline; 
  1.4             removing metropolitan council transit bonding 
  1.5             limitation; allowing metropolitan council to impose a 
  1.6             metropolitan area sales tax; limiting metropolitan 
  1.7             council transit taxing authority; requiring continued 
  1.8             study of road pricing; requiring study of trunk 
  1.9             highway turnback; amending Minnesota Statutes 1994, 
  1.10            sections 296.02, subdivision 1b, and by adding a 
  1.11            subdivision; 473.39, subdivision 1; and 473.446, 
  1.12            subdivisions 1 and 8; proposing coding for new law in 
  1.13            Minnesota Statutes, chapter 473; repealing Minnesota 
  1.14            Statutes 1994, sections 473.39, subdivisions 1a and 
  1.15            1b; and 473.446, subdivisions 1a and 3. 
  1.16  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.17     Section 1.  Minnesota Statutes 1994, section 296.02, 
  1.18  subdivision 1b, is amended to read: 
  1.19     Subd. 1b.  [RATES IMPOSED.] The gasoline excise tax is 
  1.20  imposed at the following rate:  
  1.21     For the period on and after May July 1, 1988 1995, to March 
  1.22  31, 1996, gasoline is taxed at the rate of 20 25 cents per 
  1.23  gallon.  After March 31, 1996, gasoline is taxed at a rate 
  1.24  determined annually under subdivision 1c. 
  1.25     Sec. 2.  Minnesota Statutes 1994, section 296.02, is 
  1.26  amended by adding a subdivision to read: 
  1.27     Subd. 1c.  [ANNUAL GASOLINE TAX RATE ADJUSTMENT.] (a) 
  1.28  Beginning in 1996 and annually thereafter, before April 1 of 
  1.29  each year the commissioner of revenue shall adjust the rate of 
  1.30  the gasoline excise tax.  The new rate per gallon must be 
  2.1   calculated by multiplying the rate in effect at the time of the 
  2.2   calculation by an amount obtained under paragraph (b).  The new 
  2.3   rate must be rounded to the nearest 0.1 cent and is effective on 
  2.4   April 1 of each year. 
  2.5      (b) Divide the annual average United States Consumer Price 
  2.6   Index for all urban consumers, United States city average, as 
  2.7   determined by the United States Department of Labor for the 
  2.8   previous year by that annual average for the year before the 
  2.9   previous year. 
  2.10     Sec. 3.  Minnesota Statutes 1994, section 473.39, 
  2.11  subdivision 1, is amended to read: 
  2.12     Subdivision 1.  [GENERAL AUTHORITY.] The council may issue 
  2.13  general obligation bonds subject to the volume limitations in 
  2.14  this section to provide funds to implement the council's transit 
  2.15  capital improvement program and may issue general obligation 
  2.16  bonds not subject to the limitations for the refunding of 
  2.17  outstanding bonds or certificates of indebtedness of the 
  2.18  council, the former regional transit board or the former 
  2.19  metropolitan transit commission, and judgments against the 
  2.20  former regional transit board or the former metropolitan transit 
  2.21  commission or the council.  The council may not issue 
  2.22  obligations pursuant to this subdivision, other than refunding 
  2.23  bonds, in excess of the amount specifically authorized by law.  
  2.24  Except as otherwise provided in sections 473.371 to 473.449, the 
  2.25  council shall provide for the issuance, sale, and security of 
  2.26  the bonds in the manner provided in chapter 475, and has the 
  2.27  same powers and duties as a municipality issuing bonds under 
  2.28  that law, except that no election is required and the net debt 
  2.29  limitations in chapter 475 do not apply to the bonds.  The 
  2.30  obligations are not a debt of the state or any municipality or 
  2.31  political subdivision within the meaning of any debt limitation 
  2.32  or requirement pertaining to those entities.  Neither the state, 
  2.33  nor any municipality or political subdivision except the 
  2.34  council, nor any member or officer or employee of the council, 
  2.35  is liable on the obligations.  The obligations may be secured by 
  2.36  taxes levied without limitation of rate or amount upon all 
  3.1   taxable property in the transit taxing district and transit area 
  3.2   as provided in section 473.446, subdivision 1, clause (c).  As 
  3.3   part of its levy made under section 473.446, subdivision 1, 
  3.4   clause (c), the council shall levy the amounts necessary to 
  3.5   provide full and timely payment of the obligations and transfer 
  3.6   the proceeds to the appropriate council account for payment of 
  3.7   the obligations.  The taxes must be levied, certified, and 
  3.8   collected in accordance with the terms and conditions of the 
  3.9   indebtedness. 
  3.10     Sec. 4.  [473.440] [METROPOLITAN AREA SALES AND USE TAX.] 
  3.11     Subdivision 1.  [IMPOSITION.] Notwithstanding section 
  3.12  477A.016, or any other contrary provision of law, ordinance, or 
  3.13  city charter, the metropolitan council may impose an additional 
  3.14  metropolitan area sales tax at a rate not to exceed one-half of 
  3.15  one percent on all sales taxable under chapter 297A that occur 
  3.16  in the metropolitan area, as defined in section 473.121, and may 
  3.17  impose an additional compensating use tax of up to one-half of 
  3.18  one percent on uses of property within the metropolitan area, 
  3.19  the sale of which would be subject to the additional sales tax 
  3.20  but for the fact such property was sold outside the metropolitan 
  3.21  area.  The metropolitan council may impose the tax on the 
  3.22  purchase or acquisition of motor vehicles and include the tax in 
  3.23  the rate imposed by section 297B.02. 
  3.24     The tax imposed by this section may be adjusted annually by 
  3.25  the metropolitan council such that the rate imposed does not 
  3.26  exceed one-half of one percent. 
  3.27     The tax imposed by this section must not be counted in 
  3.28  calculating the maximum 12 percent specified in Laws 1986, 
  3.29  chapter 396, section 5, subdivision 2, for taxes on lodging in 
  3.30  the city of Minneapolis. 
  3.31     Subd. 2.  [FUTURE IMPOSITION.] In the event of any 
  3.32  amendment to chapter 297A enacted subsequent to the effective 
  3.33  date of this act, the metropolitan council may extend the tax 
  3.34  imposed in this section to any such sales or uses. 
  3.35     Subd. 3.  [ADMINISTRATION AND COLLECTION.] The commissioner 
  3.36  of revenue shall administer and collect the tax imposed under 
  4.1   this section, in the manner provided by chapters 289A and 297B. 
  4.2      The commissioner may enter into appropriate agreements with 
  4.3   the metropolitan council to provide for collection by the state 
  4.4   of the tax imposed pursuant to subdivision 2.  The commissioner 
  4.5   may charge the metropolitan council from the proceeds of any tax 
  4.6   a reasonable fee for its collection. 
  4.7      Subd. 4.  [USE OF REVENUE.] The metropolitan council shall 
  4.8   use the revenue received from the tax imposed in subdivision 2 
  4.9   as follows: 
  4.10     (1) to pay the cost of collecting the tax; 
  4.11     (2) to maintain, coordinate, and improve transit services 
  4.12  in the metropolitan area, except that the tax revenue must not 
  4.13  be used for special transportation service in the metropolitan 
  4.14  area or for elderly and handicapped service, as defined in 
  4.15  section 174.22, subdivision 13; 
  4.16     (3) to provide full and timely payment of certificates of 
  4.17  indebtedness, bonds, including refunding bonds or other 
  4.18  obligations issued or to be issued under section 473.39 or 
  4.19  473.436 and to which the council has specifically pledged tax 
  4.20  levies; 
  4.21     (4) to satisfy judgments entered by any court against the 
  4.22  former regional transit board, the former metropolitan transit 
  4.23  commission, or the metropolitan council in matters relating to 
  4.24  transit in the metropolitan area; 
  4.25     (5) to provide to applicants receiving assistance for a 
  4.26  replacement service program an amount not to exceed the 
  4.27  allowable amount calculated under section 473.388, subdivision 
  4.28  4, for taxes payable in 1995; and 
  4.29     (6) to carry out the powers and duties in sections 473.371 
  4.30  to 473.449 excluding 473.386. 
  4.31     Sec. 5.  Minnesota Statutes 1994, section 473.446, 
  4.32  subdivision 1, is amended to read: 
  4.33     Subdivision 1.  [TAXATION WITHIN TRANSIT TAXING DISTRICT.] 
  4.34  For the purposes of sections 473.404 to 473.449 and the 
  4.35  metropolitan transit system, except as otherwise provided in 
  4.36  this subdivision, the council shall may levy each year upon all 
  5.1   taxable property within the metropolitan transit taxing 
  5.2   district, defined in subdivision 2, a transit tax consisting of: 
  5.3      (a) an amount which shall be used for payment of the 
  5.4   expenses of operating transit and paratransit service and to 
  5.5   provide for payment of obligations issued by the council under 
  5.6   section 473.436, subdivision 6; 
  5.7      (b) an additional amount, if any, the council determines to 
  5.8   be necessary to provide for the full and timely payment of its 
  5.9   certificates of indebtedness and other obligations outstanding 
  5.10  on July 1, 1985, to which property taxes under this section have 
  5.11  been pledged; and 
  5.12     (c) an additional amount necessary to provide full and 
  5.13  timely payment of certificates of indebtedness, bonds, including 
  5.14  refunding bonds or other obligations issued or to be issued 
  5.15  under section 473.39 by the council for purposes of acquisition 
  5.16  and betterment of property and other improvements of a capital 
  5.17  nature and to which the council has specifically pledged tax 
  5.18  levies under this clause. 
  5.19     The property tax levied by the council for general purposes 
  5.20  under clause (a) must not exceed the following amount for the 
  5.21  years specified: 
  5.22     (1) for taxes payable in 1995, the council's property tax 
  5.23  levy limitation for general transit purposes is equal to the 
  5.24  former regional transit board's property tax levy limitation for 
  5.25  general transit purposes under this subdivision, for taxes 
  5.26  payable in 1994, multiplied by an index for market valuation 
  5.27  changes equal to the total market valuation of all taxable 
  5.28  property located within the metropolitan transit taxing district 
  5.29  for the current assessment year divided by the total market 
  5.30  valuation of all taxable property located within the 
  5.31  metropolitan transit taxing district for the previous assessment 
  5.32  year; and 
  5.33     (2) for taxes payable in 1996 and subsequent years, the 
  5.34  product of (i) the council's property tax levy limitation for 
  5.35  general transit purposes for the previous year determined under 
  5.36  this subdivision multiplied by (ii) an index for market 
  6.1   valuation changes equal to the total market valuation of all 
  6.2   taxable property located within the metropolitan transit taxing 
  6.3   district for the current taxes payable year divided by the total 
  6.4   market valuation of all taxable property located within the 
  6.5   metropolitan transit taxing district for the previous taxes 
  6.6   payable year.  For the taxes payable year 1995, the index for 
  6.7   market valuation changes shall be multiplied by an amount equal 
  6.8   to the sum of the regional transit board's property tax levy 
  6.9   limitation for the taxes payable year 1994 and $160,665.  The 
  6.10  $160,665 increase shall be a permanent adjustment to the levy 
  6.11  limit base used in determining the regional transit board's 
  6.12  property tax levy limitation for general purposes for subsequent 
  6.13  taxes payable years. 
  6.14     For the purpose of determining the council's property tax 
  6.15  levy limitation for general transit purposes under this 
  6.16  subdivision, "total market valuation" means the total market 
  6.17  valuation of all taxable property within the metropolitan 
  6.18  transit taxing district without valuation adjustments for fiscal 
  6.19  disparities (chapter 473F), tax increment financing (sections 
  6.20  469.174 to 469.179), and high voltage transmission lines 
  6.21  (section 273.425). 
  6.22     The county auditor shall reduce the tax levied pursuant to 
  6.23  this subdivision on all property within statutory and home rule 
  6.24  charter cities and towns that receive full-peak service and 
  6.25  limited off-peak service by an amount equal to the tax levy that 
  6.26  would be produced by applying a rate of 0.510 percent of net tax 
  6.27  capacity on the property.  The county auditor shall reduce the 
  6.28  tax levied pursuant to this subdivision on all property within 
  6.29  statutory and home rule charter cities and towns that receive 
  6.30  limited peak service by an amount equal to the tax levy that 
  6.31  would be produced by applying a rate of 0.765 percent of net tax 
  6.32  capacity on the property.  The amounts so computed by the county 
  6.33  auditor shall be submitted to the commissioner of revenue as 
  6.34  part of the abstracts of tax lists required to be filed with the 
  6.35  commissioner under section 275.29.  Any prior year adjustments 
  6.36  shall also be certified in the abstracts of tax lists.  The 
  7.1   commissioner shall review the certifications to determine their 
  7.2   accuracy and may make changes in the certification as necessary 
  7.3   or return a certification to the county auditor for 
  7.4   corrections.  The commissioner shall pay to the council the 
  7.5   amounts certified by the county auditors on the dates provided 
  7.6   in section 273.1398.  There is annually appropriated from the 
  7.7   general fund in the state treasury to the department of revenue 
  7.8   the amounts necessary to make these payments.  
  7.9      For the purposes of this subdivision, "full-peak and 
  7.10  limited off-peak service" means peak period regular route 
  7.11  service, plus weekday midday regular route service at intervals 
  7.12  longer than 60 minutes on the route with the greatest frequency; 
  7.13  and "limited peak period service" means peak period regular 
  7.14  route service only.  
  7.15     The council may levy the tax without limitation to pay the 
  7.16  principal and interest due on bonds, certificates of 
  7.17  indebtedness, or other obligations issued by the council before 
  7.18  January 1, 1996, under section 473.39 or 473.436.  After January 
  7.19  1, 1996, the council may levy the tax only if the metropolitan 
  7.20  area sales tax under section 473.440 is levied at a rate of 
  7.21  one-half of one percent and if anticipated revenues from the 
  7.22  metropolitan area sales tax are not sufficient to pay the 
  7.23  principal and interest due on any bonds, certificates of 
  7.24  indebtedness, or other obligations issued by the council after 
  7.25  January 1, 1996, under section 473.39 or 473.436.  After January 
  7.26  1, 1996, the tax levy must not exceed the annual principal and 
  7.27  interest due on obligations issued under section 473.39 or 
  7.28  473.436.  The taxes under this subdivision must be levied and 
  7.29  collected in the manner specified in section 473.13, subdivision 
  7.30  2. 
  7.31     Sec. 6.  Minnesota Statutes 1994, section 473.446, 
  7.32  subdivision 8, is amended to read: 
  7.33     Subd. 8.  [STATE REVIEW.] The council must certify its 
  7.34  property tax levy to the commissioner of revenue by August 1 of 
  7.35  the levy year.  The commissioner of revenue shall annually 
  7.36  determine whether the property tax for general transit purposes 
  8.1   certified by the council for levy following the adoption of its 
  8.2   budget is within the levy limitation imposed by subdivision 1.  
  8.3   The commissioner shall also annually determine whether the 
  8.4   transit tax imposed on all taxable property within the 
  8.5   metropolitan transit area but outside of the metropolitan 
  8.6   transit taxing district is within the levy limitation imposed by 
  8.7   subdivision 1a.  The determination must be completed prior to 
  8.8   September 10 of each year.  If current information regarding 
  8.9   market valuation in any county is not transmitted to the 
  8.10  commissioner in a timely manner, the commissioner may estimate 
  8.11  the current market valuation within that county for purposes of 
  8.12  making the calculations. 
  8.13     Sec. 7.  [ROAD PRICING.] 
  8.14     The commissioner of transportation and the metropolitan 
  8.15  council shall continue to study road pricing options in order to 
  8.16  implement a system of road pricing in the state and the 
  8.17  metropolitan area by the year 2000 to finance major 
  8.18  transportation projects. 
  8.19     Sec. 8.  [TURNBACK STUDY.] 
  8.20     The commissioner of transportation shall conduct a study of 
  8.21  the trunk highway system in order to make specific 
  8.22  recommendations to the legislature regarding trunk highway 
  8.23  mileage to be turned back to local jurisdictions.  The study 
  8.24  must include: 
  8.25     (1) the number and identity of miles to be turned back; 
  8.26     (2) overall costs or cost savings resulting from the 
  8.27  turnbacks; 
  8.28     (3) recommendations concerning improvements before 
  8.29  turnback; and 
  8.30     (4) recommendations concerning an appropriate procedure for 
  8.31  handling future turnbacks. 
  8.32     The commissioner shall report the results of this study to 
  8.33  the legislature no later than January 15, 1997. 
  8.34     Sec. 9.  [REPEALER.] 
  8.35     Minnesota Statutes 1994, sections 473.39, subdivisions 1a 
  8.36  and 1b; and 473.446, subdivisions 1a and 3, are repealed. 
  9.1      Sec. 10.  [EFFECTIVE DATE.] 
  9.2      Sections 1 and 3 are effective July 1, 1995.  Section 4 is 
  9.3   effective with respect to sales on and after January 1, 1996.  
  9.4   Sections 5 and 6 are effective January 1, 1996.  Sections 3, 4, 
  9.5   5, and 6 apply to the counties of Anoka, Carver, Dakota, 
  9.6   Hennepin, Ramsey, Scott, and Washington.