SF 861

1st Engrossment - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to transportation; changing gasoline and 
  1.3             special fuels excise tax rates; indexing rate of 
  1.4             taxation on gasoline and special fuels; reducing rate 
  1.5             of taxation on vehicle registration; allowing 
  1.6             metropolitan council to impose a metropolitan area 
  1.7             sales tax; limiting metropolitan council transit 
  1.8             taxing authority; making technical changes; amending 
  1.9             Minnesota Statutes 1996, sections 162.07, by adding a 
  1.10            subdivision; 168.013, subdivision 1a; 296.02, 
  1.11            subdivision 1b, and by adding a subdivision; 296.025, 
  1.12            subdivision 1b; 473.384, subdivision 6; and 473.446, 
  1.13            subdivisions 1 and 8; proposing coding for new law in 
  1.14            Minnesota Statutes, chapter 473; repealing Minnesota 
  1.15            Statutes 1996, sections 473.39, subdivisions 1a and 
  1.16            1b; and 473.446, subdivisions 1a and 3. 
  1.17  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.18     Section 1.  Minnesota Statutes 1996, section 162.07, is 
  1.19  amended by adding a subdivision to read: 
  1.20     Subd. 5a.  [DUTIES OF SCREENING BOARD.] The screening board 
  1.21  shall continue to evaluate the effect of the apportionment 
  1.22  formula on each county and its findings and recommendations as 
  1.23  to each county's lane mileage and money needs must reflect 
  1.24  equitable treatment for all counties. 
  1.25     Sec. 2.  Minnesota Statutes 1996, section 168.013, 
  1.26  subdivision 1a, is amended to read: 
  1.27     Subd. 1a.  [PASSENGER AUTOMOBILES; HEARSES.] (a) On 
  1.28  passenger automobiles as defined in section 168.011, subdivision 
  1.29  7, and hearses, except as otherwise provided, the tax shall be 
  1.30  $10 plus an additional tax equal to 1.25 percent of the base 
  1.31  value.  
  2.1      (b) Subject to the classification provisions herein, "base 
  2.2   value" means the manufacturer's suggested retail price of the 
  2.3   vehicle including destination charge using list price 
  2.4   information published by the manufacturer or determined by the 
  2.5   registrar if no suggested retail price exists, and shall not 
  2.6   include the cost of each accessory or item of optional equipment 
  2.7   separately added to the vehicle and the suggested retail price. 
  2.8      (c) If the manufacturer's list price information contains a 
  2.9   single vehicle identification number followed by various 
  2.10  descriptions and suggested retail prices, the registrar shall 
  2.11  select from those listings only the lowest price for determining 
  2.12  base value. 
  2.13     (d) If unable to determine the base value because the 
  2.14  vehicle is specially constructed, or for any other reason, the 
  2.15  registrar may establish such value upon the cost price to the 
  2.16  purchaser or owner as evidenced by a certificate of cost but not 
  2.17  including Minnesota sales or use tax or any local sales or other 
  2.18  local tax. 
  2.19     (e) The registrar shall classify every vehicle in its 
  2.20  proper base value class as follows: 
  2.21                        FROM                   TO
  2.22                        $  0                $199.99
  2.23                         200                 399.99
  2.24  and thereafter a series of classes successively set in brackets 
  2.25  having a spread of $200 consisting of such number of classes as 
  2.26  will permit classification of all vehicles. 
  2.27     (f) The base value for purposes of this section shall be 
  2.28  the middle point between the extremes of its class. 
  2.29     (g) The registrar shall establish the base value, when new, 
  2.30  of every passenger automobile and hearse registered prior to the 
  2.31  effective date of Extra Session Laws 1971, chapter 31, using 
  2.32  list price information published by the manufacturer or any 
  2.33  nationally recognized firm or association compiling such data 
  2.34  for the automotive industry.  If unable to ascertain the base 
  2.35  value of any registered vehicle in the foregoing manner, the 
  2.36  registrar may use any other available source or method.  The tax 
  3.1   on all previously registered vehicles shall be computed upon the 
  3.2   base value thus determined taking into account the depreciation 
  3.3   provisions of paragraph (h). 
  3.4      (h) Except as provided in paragraph (i), the annual 
  3.5   additional tax computed upon the base value as provided herein, 
  3.6   during the first and second years year of vehicle life shall be 
  3.7   computed upon 100 percent of the base value; for the second 
  3.8   year, 95 percent of such value; for the third and fourth years 
  3.9   year, 90 percent of such value; for the fourth year, 85 percent 
  3.10  of such value; for the fifth and sixth years, 75 year, 70 
  3.11  percent of such value; for the sixth year, 60 percent of such 
  3.12  value; for the seventh year, 60 50 percent of such value; for 
  3.13  the eighth year, 40 35 percent of such value; for the ninth 
  3.14  year, 30 20 percent of such value; for the tenth year, ten 
  3.15  percent of such value; for the 11th and each succeeding year, 
  3.16  the sum of $25.  
  3.17     In no event shall the annual additional tax be less than 
  3.18  $25.  
  3.19     (i) The annual additional tax under paragraph (h) on a 
  3.20  motor vehicle on which the first annual tax was paid before 
  3.21  January 1, 1990, must not exceed the tax that was paid on that 
  3.22  vehicle the year before. 
  3.23     Sec. 3.  Minnesota Statutes 1996, section 296.02, 
  3.24  subdivision 1b, is amended to read: 
  3.25     Subd. 1b.  [RATES IMPOSED.] The gasoline excise tax is 
  3.26  imposed at the following rates: 
  3.27     (a) From June 1, 1997, to March 31, 1998: 
  3.28     (1) E85 is taxed at the rate of 14.2 17.7 cents per gallon; 
  3.29     (2) M85 is taxed at the rate of 11.4 14.3 cents per gallon; 
  3.30  and 
  3.31     (3) all other gasoline is taxed at the rate of 20 25 cents 
  3.32  per gallon.  
  3.33     (b) After March 31, 1998, the gasoline excise tax rate must 
  3.34  be determined under subdivision 1c. 
  3.35     Sec. 4.  Minnesota Statutes 1996, section 296.02, is 
  3.36  amended by adding a subdivision to read: 
  4.1      Subd. 1c.  [ANNUAL GASOLINE TAX RATE ADJUSTMENT.] (a) 
  4.2   Beginning in 1998 and annually thereafter, before April 1 of 
  4.3   each year, the commissioner of revenue shall adjust the rate of 
  4.4   the gasoline excise tax and the rate of the special fuel excise 
  4.5   tax.  The new rate for each type of fuel must be calculated by 
  4.6   multiplying each rate in effect at the time of the calculation 
  4.7   by an amount obtained under paragraph (b).  Each new rate must 
  4.8   be rounded to the nearest 0.1 cent and is effective on April 1 
  4.9   of each year. 
  4.10     (b) Divide the annual average United States Consumer Price 
  4.11  Index for all urban consumers, United States city average, as 
  4.12  determined by the United States Department of Labor for the 
  4.13  previous year by that annual average for the year before the 
  4.14  previous year. 
  4.15     Sec. 5.  Minnesota Statutes 1996, section 296.025, 
  4.16  subdivision 1b, is amended to read: 
  4.17     Subd. 1b.  [TAX RATES.] The special fuel excise tax is 
  4.18  imposed at the following rates: 
  4.19     (a) From June 1, 1997, to March 31, 1998: 
  4.20     (1) Liquefied petroleum gas or propane is taxed at the rate 
  4.21  of 15 18.7 cents per gallon. 
  4.22     (2) Liquefied natural gas is taxed at the rate of 12 15 
  4.23  cents per gallon. 
  4.24     (3) Compressed natural gas is taxed at the rate 
  4.25  of $1.739 $2.174 per thousand cubic feet; or 20 25 cents per 
  4.26  gasoline equivalent, as defined by the National Conference on 
  4.27  Weights and Measures, which is 5.66 pounds of natural gas. 
  4.28     (4) All other special fuel is taxed at the same rate as the 
  4.29  gasoline excise tax. 
  4.30     (b) After March 31, 1998, the special fuel excise tax rate 
  4.31  must be determined under section 296.02, subdivision 1c. 
  4.32     Sec. 6.  Minnesota Statutes 1996, section 473.384, 
  4.33  subdivision 6, is amended to read: 
  4.34     Subd. 6.  [FINANCIAL ASSISTANCE FOR CERTAIN PROVIDERS.] The 
  4.35  council shall provide financial assistance to recipients who 
  4.36  were receiving assistance by contract with the commissioner of 
  5.1   transportation under Minnesota Statutes 1982, section 174.24, 
  5.2   subdivision 3 on July 1, 1984, so that the percentage of total 
  5.3   operating cost, as defined by the council, paid by the recipient 
  5.4   from all local sources of revenue, including operating revenue, 
  5.5   does not exceed the percentage for the recipient's 
  5.6   classification as determined by the commissioner of 
  5.7   transportation under the commissioner's final contract with the 
  5.8   recipient.  The council may include funds received under section 
  5.9   473.446, subdivision 1a, as a local source of revenue.  The 
  5.10  remainder of the total operating cost will be paid by the 
  5.11  council less all assistance received by the recipient for that 
  5.12  purpose from any federal source.  
  5.13     If a recipient informs the council in writing prior to the 
  5.14  distribution of financial assistance for any year that paying 
  5.15  its designated percentage of total operating cost from local 
  5.16  sources will cause undue hardship, the council may adjust the 
  5.17  percentage as it deems equitable.  If for any year the funds 
  5.18  available to the council are insufficient to allow the council 
  5.19  to pay its share of total operating cost for those recipients, 
  5.20  the council shall reduce its share in each classification to the 
  5.21  extent necessary. 
  5.22     Sec. 7.  [473.440] [METROPOLITAN AREA SALES AND USE TAX.] 
  5.23     Subdivision 1.  [IMPOSITION.] Notwithstanding section 
  5.24  477A.016, or any other contrary provision of law, ordinance, or 
  5.25  city charter, the metropolitan council may impose an additional 
  5.26  metropolitan area sales tax at a rate not to exceed one-half of 
  5.27  one percent on all sales taxable under chapter 297A that occur 
  5.28  in the metropolitan area, as defined in section 473.121, and may 
  5.29  impose an additional compensating use tax of up to one-half of 
  5.30  one percent on uses of property within the metropolitan area, 
  5.31  the sale of which would be subject to the additional sales tax 
  5.32  but for the fact the property was sold outside the metropolitan 
  5.33  area.  The metropolitan council may not impose the tax on the 
  5.34  purchase or acquisition of motor vehicles. 
  5.35     The tax imposed by this section may be adjusted annually by 
  5.36  the metropolitan council such that the rate imposed does not 
  6.1   exceed one-half of one percent. 
  6.2      The tax imposed by this section must not be counted in 
  6.3   calculating the maximum 12 percent specified in Laws 1986, 
  6.4   chapter 396, section 5, subdivision 2, for taxes on lodging in 
  6.5   the city of Minneapolis. 
  6.6      Subd. 2.  [FUTURE IMPOSITION.] In the event of any 
  6.7   amendment to chapter 297A enacted subsequent to the date of 
  6.8   final enactment of this section, the metropolitan council may 
  6.9   extend the tax imposed in this section to any such sales or uses.
  6.10     Subd. 3.  [ADMINISTRATION AND COLLECTION.] The commissioner 
  6.11  of revenue shall administer and collect the tax imposed under 
  6.12  this section, in the manner provided by chapters 289A and 297A. 
  6.13     The commissioner may enter into appropriate agreements with 
  6.14  the metropolitan council to provide for collection by the state 
  6.15  of the tax imposed pursuant to subdivision 2.  The commissioner 
  6.16  may charge the metropolitan council from the proceeds of any tax 
  6.17  a reasonable fee for its collection. 
  6.18     Subd. 4.  [USE OF REVENUE.] The metropolitan council shall 
  6.19  use the revenue received from the tax imposed in subdivision 2 
  6.20  as follows: 
  6.21     (1) to pay the cost of collecting the tax; 
  6.22     (2) to maintain, coordinate, and improve transit services 
  6.23  in the metropolitan area, except that the tax revenue must not 
  6.24  be used for special transportation service in the metropolitan 
  6.25  area or for elderly and handicapped service, as defined in 
  6.26  section 174.22, subdivision 13; 
  6.27     (3) to provide full and timely payment of certificates of 
  6.28  indebtedness, bonds, including refunding bonds, or other 
  6.29  obligations issued or to be issued under section 473.39 or 
  6.30  473.436, and to which the council has specifically pledged tax 
  6.31  levies; 
  6.32     (4) to satisfy judgments entered by any court against the 
  6.33  former regional transit board, the former metropolitan transit 
  6.34  commission, or the metropolitan council in matters relating to 
  6.35  transit in the metropolitan area; 
  6.36     (5) to provide to applicants receiving assistance for a 
  7.1   replacement service program an amount not to exceed the 
  7.2   allowable amount calculated under section 473.388, subdivision 
  7.3   4, for taxes payable in 1995; and 
  7.4      (6) to carry out the powers and duties in sections 473.371 
  7.5   to 473.449, excluding section 473.386. 
  7.6      Sec. 8.  Minnesota Statutes 1996, section 473.446, 
  7.7   subdivision 1, is amended to read: 
  7.8      Subdivision 1.  [TAXATION WITHIN TRANSIT TAXING DISTRICT.] 
  7.9   For the purposes of sections 473.405 to 473.449 and the 
  7.10  metropolitan transit system, except as otherwise provided in 
  7.11  this subdivision and subdivision 1b, the council shall may levy 
  7.12  each year upon all taxable property within the metropolitan 
  7.13  transit taxing district, defined in subdivision 2, a transit tax 
  7.14  consisting of: 
  7.15     (a) an amount which shall be used for payment of the 
  7.16  expenses of operating transit and paratransit service and to 
  7.17  provide for payment of obligations issued by the council under 
  7.18  section 473.436, subdivision 6; 
  7.19     (b) an additional amount, if any, the council determines to 
  7.20  be necessary to provide for the full and timely payment of its 
  7.21  certificates of indebtedness and other obligations outstanding 
  7.22  on July 1, 1985, to which property taxes under this section have 
  7.23  been pledged; and 
  7.24     (c) an additional amount necessary to provide full and 
  7.25  timely payment of certificates of indebtedness, bonds, including 
  7.26  refunding bonds or other obligations issued or to be issued 
  7.27  under section 473.39 by the council for purposes of acquisition 
  7.28  and betterment of property and other improvements of a capital 
  7.29  nature and to which the council has specifically pledged tax 
  7.30  levies under this clause. 
  7.31     The property tax levied by the council for general purposes 
  7.32  under paragraph (a) must not exceed the following amount for the 
  7.33  years specified: 
  7.34     (1) for taxes payable in 1995, the council's property tax 
  7.35  levy limitation for general transit purposes is equal to the 
  7.36  former regional transit board's property tax levy limitation for 
  8.1   general transit purposes under this subdivision, for taxes 
  8.2   payable in 1994, multiplied by an index for market valuation 
  8.3   changes equal to the total market valuation of all taxable 
  8.4   property located within the metropolitan transit taxing district 
  8.5   for the current taxes payable year divided by the total market 
  8.6   valuation of all taxable property located within the 
  8.7   metropolitan transit taxing district for the previous taxes 
  8.8   payable year; and 
  8.9      (2) for taxes payable in 1996 and subsequent years, the 
  8.10  product of (i) the council's property tax levy limitation for 
  8.11  general transit purposes for the previous year determined under 
  8.12  this subdivision before reduction by the amount levied by any 
  8.13  municipality in the previous year under section 473.388, 
  8.14  subdivision 7, multiplied by (ii) an index for market valuation 
  8.15  changes equal to the total market valuation of all taxable 
  8.16  property located within the metropolitan transit taxing district 
  8.17  for the current taxes payable year divided by the total market 
  8.18  valuation of all taxable property located within the 
  8.19  metropolitan transit taxing district for the previous taxes 
  8.20  payable year, minus the amount levied by any municipality in the 
  8.21  current levy year under section 473.388, subdivision 7. 
  8.22     The portion of the property tax levy for transit district 
  8.23  operating purposes attributable to a municipality that has 
  8.24  exercised a local levy option under section 473.388, subdivision 
  8.25  7, is the amount as determined under subdivision 1b.  The 
  8.26  portion of the property tax levy for transit district operating 
  8.27  purposes attributable to the remaining municipalities within the 
  8.28  transit district is found by subtracting the portions 
  8.29  attributable to the municipalities that have exercised a local 
  8.30  levy option under section 473.388, subdivision 7. 
  8.31     For the taxes payable year 1995, the index for market 
  8.32  valuation changes shall be multiplied by an amount equal to the 
  8.33  sum of the regional transit board's property tax levy limitation 
  8.34  for the taxes payable year 1994 and $160,665.  The $160,665 
  8.35  increase shall be a permanent adjustment to the levy limit base 
  8.36  used in determining the regional transit board's property tax 
  9.1   levy limitation for general purposes for subsequent taxes 
  9.2   payable years. 
  9.3      For the purpose of determining the council's property tax 
  9.4   levy limitation for general transit purposes under this 
  9.5   subdivision, "total market valuation" means the total market 
  9.6   valuation of all taxable property within the metropolitan 
  9.7   transit taxing district without valuation adjustments for fiscal 
  9.8   disparities (chapter 473F), tax increment financing (sections 
  9.9   469.174 to 469.179), and high voltage transmission lines 
  9.10  (section 273.425). 
  9.11     The county auditor shall reduce the tax levied pursuant to 
  9.12  this section and section 473.388 on all property within 
  9.13  statutory and home rule charter cities and towns that receive 
  9.14  full-peak service and limited off-peak service by an amount 
  9.15  equal to the tax levy that would be produced by applying a rate 
  9.16  of 0.510 percent of net tax capacity on the property.  The 
  9.17  county auditor shall reduce the tax levied pursuant to this 
  9.18  section and section 473.388 on all property within statutory and 
  9.19  home rule charter cities and towns that receive limited peak 
  9.20  service by an amount equal to the tax levy that would be 
  9.21  produced by applying a rate of 0.765 percent of net tax capacity 
  9.22  on the property.  The amounts so computed by the county auditor 
  9.23  shall be submitted to the commissioner of revenue as part of the 
  9.24  abstracts of tax lists required to be filed with the 
  9.25  commissioner under section 275.29.  Any prior year adjustments 
  9.26  shall also be certified in the abstracts of tax lists.  The 
  9.27  commissioner shall review the certifications to determine their 
  9.28  accuracy and may make changes in the certification as necessary 
  9.29  or return a certification to the county auditor for 
  9.30  corrections.  The commissioner shall pay to the council and to 
  9.31  the municipalities levying under section 473.388, subdivision 7, 
  9.32  the amounts certified by the county auditors on the dates 
  9.33  provided in section 273.1398, apportioned between the council 
  9.34  and the municipality in the same proportion as the total transit 
  9.35  levy is apportioned within the municipality.  There is annually 
  9.36  appropriated from the general fund in the state treasury to the 
 10.1   department of revenue the amounts necessary to make these 
 10.2   payments.  
 10.3      For the purposes of this subdivision, "full-peak and 
 10.4   limited off-peak service" means peak period regular route 
 10.5   service, plus weekday midday regular route service at intervals 
 10.6   longer than 60 minutes on the route with the greatest frequency; 
 10.7   and "limited peak period service" means peak period regular 
 10.8   route service only.  
 10.9      For the purposes of property taxes payable in the following 
 10.10  year, the council shall annually determine which cities and 
 10.11  towns qualify for the 0.510 percent or 0.765 percent tax 
 10.12  capacity rate reduction and shall certify this list to the 
 10.13  county auditor of the county wherein such cities and towns are 
 10.14  located on or before September 15.  No changes may be made to 
 10.15  the annual list after September 15. 
 10.16     The council may levy the tax without limitation to pay the 
 10.17  principal and interest due on bonds, certificates of 
 10.18  indebtedness, or other obligations issued by the council before 
 10.19  January 1, 1998, under section 473.39 or 473.436.  After January 
 10.20  1, 1998, the council may levy the tax only if the metropolitan 
 10.21  area sales tax under section 473.440 is levied at a rate of 
 10.22  one-half of one percent and if anticipated revenues from the 
 10.23  metropolitan area sales tax are not sufficient to pay the 
 10.24  principal and interest due on any bonds, certificates of 
 10.25  indebtedness, or other obligations issued by the council after 
 10.26  January 1, 1998, under section 473.39 or 473.436.  After January 
 10.27  1, 1998, the tax levy must not exceed the annual principal and 
 10.28  interest due on obligations issued under section 473.39 or 
 10.29  473.436.  The taxes under this subdivision must be levied and 
 10.30  collected in the manner specified in section 473.13, subdivision 
 10.31  2. 
 10.32     Sec. 9.  Minnesota Statutes 1996, section 473.446, 
 10.33  subdivision 8, is amended to read: 
 10.34     Subd. 8.  [STATE REVIEW.] The commissioner of revenue shall 
 10.35  certify the council's levy limitation under this section to the 
 10.36  council by August 1 of the levy year.  The council must certify 
 11.1   its proposed property tax levy under this section to the 
 11.2   commissioner of revenue by September 1 of the levy year.  The 
 11.3   commissioner of revenue shall annually determine whether the 
 11.4   property tax for transit purposes certified by the council for 
 11.5   levy following the adoption of its proposed budget is within the 
 11.6   levy limitation imposed by subdivisions 1 and 1b.  The 
 11.7   commissioner shall also annually determine whether the transit 
 11.8   tax imposed on all taxable property within the metropolitan 
 11.9   transit area but outside of the metropolitan transit taxing 
 11.10  district is within the levy limitation imposed by subdivision 
 11.11  1a.  The determination must be completed prior to September 10 
 11.12  of each year.  If current information regarding market valuation 
 11.13  in any county is not transmitted to the commissioner in a timely 
 11.14  manner, the commissioner may estimate the current market 
 11.15  valuation within that county for purposes of making the 
 11.16  calculations. 
 11.17     Sec. 10.  [REPEALER.] 
 11.18     Minnesota Statutes 1996, sections 473.39, subdivisions 1a 
 11.19  and 1b; and 473.446, subdivisions 1a and 3, are repealed. 
 11.20     Sec. 11.  [EFFECTIVE DATE.] 
 11.21     Section 2 is effective July 1, 1997.  Sections 3 and 5 are 
 11.22  effective June 1, 1997, and apply to all gasoline in distributor 
 11.23  storage on that date.  Sections 6 to 9 and 10 are effective 
 11.24  January 1, 1998. 
 11.25     Sections 6 to 8 apply to the counties of Anoka, Carver, 
 11.26  Dakota, Hennepin, Ramsey, Scott, and Washington.