SF 2439

as introduced - 90th Legislature (2017 - 2018) Posted on 10/27/2017 01:56pm

A bill for an act
relating to transportation; governing transportation finance; proposing an
amendment to the Minnesota Constitution, article XIV, section 5, and by adding
sections to article XIV; allocating certain state tax revenue related to motor vehicle
repair or maintenance and rental cars exclusively to fund roads; amending
Minnesota Statutes 2016, section 297A.94.

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

ARTICLE 1

CONSTITUTIONAL AMENDMENT PROPOSED

Section 1. new text begin CONSTITUTIONAL AMENDMENT PROPOSED.
new text end

new text begin An amendment to the Minnesota Constitution is proposed to the people. If the amendment
is adopted, article XIV, section 5, will read:
new text end

Sec. 5.

There is hereby created a highway user tax distribution fund to be used solely
for highway purposes as specified in this article. The fund consists of the proceeds of any
taxes authorized by sections 9 and 10 of this article new text begin , and the revenue specified under sections
14 and 15 of this article new text end . The net proceeds of the taxes shall be apportioned: 62 percent to
the trunk highway fund; 29 percent to the county state-aid highway fund; nine percent to
the municipal state-aid street fund. Five percent of the net proceeds of the highway user tax
distribution fund may be set aside and apportioned by law to one or more of the three
foregoing funds. The balance of the highway user tax distribution fund shall be transferred
to the trunk highway fund, the county state-aid highway fund, and the municipal state-aid
street fund in accordance with the percentages set forth in this section. No change in the
apportionment of the five percent may be made within six years of the last previous change.

new text begin Two sections shall be added to article XIV, to read:
new text end

new text begin Sec. 14. new text end

new text begin Beginning with the fiscal year starting July 1, 2019, 100 percent of the revenue
from a sales and use tax imposed by the state on the repair or maintenance of a motor vehicle,
including on the sale of motor vehicle parts and tires, must be allocated solely to the highway
user tax distribution fund. The revenue under this section does not include the amount
provided under article XI, section 15.
new text end

new text begin Sec. 15. new text end

new text begin Beginning with the fiscal year starting July 1, 2019, 100 percent of the revenue
from a tax imposed by the state on the lease or rental of a motor vehicle must be allocated
solely to the highway user tax distribution fund. Beginning with the fiscal year starting July
1, 2019, 100 percent of the revenue from a sales and use tax imposed by the state on the
lease or rental of a motor vehicle must be allocated solely to the highway user tax distribution
fund.
new text end

Sec. 2. new text begin SUBMISSION TO VOTERS.
new text end

new text begin The proposed amendment under section 1 must be submitted to the people at the 2018
general election. The question submitted must be:
new text end

new text begin "Shall the Minnesota Constitution be amended to dedicate revenue from any state taxes
on the repair or maintenance of motor vehicles and any state taxes on the rental or lease of
motor vehicles exclusively to roads, including state and local streets, highways, and bridges,
effective July 1, 2019?
new text end

	new text begin Yes . new text end
	new text begin No . new text end	new text begin " new text end

Sec. 3. new text begin EFFECTIVE DATE.
new text end

new text begin If the constitutional amendment in this article is adopted, the constitutional provision in
section 1 is effective July 1, 2019.
new text end

ARTICLE 2

CONSTITUTIONAL AMENDMENT IMPLEMENTATION

Section 1.

Minnesota Statutes 2016, section 297A.94, is amended to read:

297A.94 DEPOSIT OF REVENUES.

(a) Except as provided in this section, the commissioner shall deposit the revenues,
including interest and penalties, derived from the taxes imposed by this chapter in the state
treasury and credit them to the general fund.

(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic
account in the special revenue fund if:

(1) the taxes are derived from sales and use of property and services purchased for the
construction and operation of an agricultural resource project; and

(2) the purchase was made on or after the date on which a conditional commitment was
made for a loan guaranty for the project under section 41A.04, subdivision 3.

The commissioner of management and budget shall certify to the commissioner the date on
which the project received the conditional commitment. The amount deposited in the loan
guaranty account must be reduced by any refunds and by the costs incurred by the Department
of Revenue to administer and enforce the assessment and collection of the taxes.

(c) The commissioner shall deposit the revenues, including interest and penalties, derived
from the taxes imposed on sales and purchases included in section 297A.61, subdivision 3,
paragraph (g), clauses (1) and (4), in the state treasury, and credit them as follows:

(1) first to the general obligation special tax bond debt service account in each fiscal
year the amount required by section 16A.661, subdivision 3, paragraph (b); and

(2) after the requirements of clause (1) have been met, the balance to the general fund.

(d) new text begin Beginning with sales taxes remitted after July 1, 2017, the commissioner shall deposit
into the state treasury the revenues collected under section 297A.64, subdivision 1, and
credit them to the highway user tax distribution fund.
new text end

new text begin (e) new text end The commissioner shall deposit the revenues, including interest and penalties,
collected under section 297A.64, subdivision 5, in the state treasury and credit them to the
general fund. By July 15 of each year the commissioner shall transfer to the highway user
tax distribution fund an amount equal to the excess fees collected under section 297A.64,
subdivision 5, for the previous calendar year.

deleted text begin (e) deleted text end new text begin (f) Starting after July 1, 2017, the commissioner shall deposit an amount of the
remittances monthly into the state treasury and credit them to the highway user tax
distribution fund, as a portion of the estimated amount of taxes collected from the sale and
purchase of motor vehicle repair parts in that month. For the remittances between July 1,
2017, and June 30, 2018, the monthly deposit amount is $12,350,000. For remittances in
each subsequent fiscal year, the monthly deposit amount is 1/12 of the product of (1) 60
percent of the estimated percentage of sales tax attributable to the sale and purchase of
motor vehicle parts calculated under this paragraph, and (2) the total sales tax revenues for
the calendar year ending before the start of that fiscal year. By July 1, 2018, and June 30
of every second year thereafter, the commissioner shall estimate the percent of total sales
tax revenues collected in the previous calendar year that is attributable to sales and purchases
of motor vehicle parts based on federal data and department consumption models. For
purposes of this paragraph, "motor vehicle" has the meaning given in section 297B.01,
subdivision 11, and "motor vehicle repair and replacement parts" includes (1) all parts, tires,
accessories, and equipment incorporated into or affixed to the motor vehicle as part of the
motor vehicle maintenance or repair, and (2) paint, oil, and other fluids that remain on or
in the motor vehicle as part of the motor vehicle maintenance or repair.
new text end

new text begin (g) Starting after July 1, 2017, the commissioner shall deposit an amount of the
remittances monthly into the state treasury and credit them to the highway user tax
distribution fund as a portion of the estimated amount of taxes collected from the sale and
purchase of motor vehicle repair parts in that month. The monthly deposit amount is 1/12
of the product of:
new text end

new text begin (1) ... percent of the estimated percentage of sales tax attributable to the sale and purchase
of motor vehicle parts calculated under this paragraph; and
new text end

new text begin (2) ... percent of the total sales tax revenues for the calendar year ending before the start
of that fiscal year.
new text end

new text begin For purposes of this paragraph, "motor vehicle" has the meaning given in section 297B.01,
subdivision 11, and "motor vehicle repair and replacement parts" includes: (i) all parts, tires,
accessories, and equipment incorporated into or affixed to the motor vehicle as part of the
motor vehicle maintenance and repair; and (ii) paint, oil, and other fluids that remain on or
in the motor vehicle as part of the motor vehicle maintenance or repair.
new text end

new text begin (h) new text end 72.43 percent of the revenues, including interest and penalties, transmitted to the
commissioner under section 297A.65, must be deposited by the commissioner in the state
treasury as follows:

(1) 50 percent of the receipts must be deposited in the heritage enhancement account in
the game and fish fund, and may be spent only on activities that improve, enhance, or protect
fish and wildlife resources, including conservation, restoration, and enhancement of land,
water, and other natural resources of the state;

(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and may
be spent only for state parks and trails;

(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and may
be spent only on metropolitan park and trail grants;

(4) three percent of the receipts must be deposited in the natural resources fund, and
may be spent only on local trail grants; and

(5) two percent of the receipts must be deposited in the natural resources fund, and may
be spent only for the Minnesota Zoological Garden, the Como Park Zoo and Conservatory,
and the Duluth Zoo.

deleted text begin (f) deleted text end new text begin (i) new text end The revenue dedicated under paragraph deleted text begin (e) deleted text end new text begin (h) new text end may not be used as a substitute for
traditional sources of funding for the purposes specified, but the dedicated revenue shall
supplement traditional sources of funding for those purposes. Land acquired with money
deposited in the game and fish fund under paragraph deleted text begin (e) deleted text end new text begin (h) new text end must be open to public hunting
and fishing during the open season, except that in aquatic management areas or on lands
where angling easements have been acquired, fishing may be prohibited during certain times
of the year and hunting may be prohibited. At least 87 percent of the money deposited in
the game and fish fund for improvement, enhancement, or protection of fish and wildlife
resources under paragraph deleted text begin (e) deleted text end new text begin (h) new text end must be allocated for field operations.

deleted text begin (g) deleted text end new text begin (j) new text end The revenues deposited under paragraphs (a) to deleted text begin (f) deleted text end new text begin (i) new text end do not include the revenues,
including interest and penalties, generated by the sales tax imposed under section 297A.62,
subdivision 1a, which must be deposited as provided under the Minnesota Constitution,
article XI, section 15.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end