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Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language


  

                         Laws of Minnesota 1983 

                         CHAPTER 17--H.F.No. 371
           An act relating to transportation; making scheduled 
          increases in taxes on gasoline and special fuel; 
          delaying the effective date of changes in the 
          disposition of the revenue from the motor vehicle 
          excise tax; providing for the improvement of certain 
          trunk highways; authorizing the issuance of trunk 
          highway bonds; eliminating the authority of the 
          metropolitan transit commission to levy a certain tax; 
          creating a town road account in the county state-aid 
          highway fund; providing for the apportionment of five 
          percent of the net highway user tax distribution fund; 
          repealing a limitation on interest rates for trunk 
          highway bonds; creating a study commission; 
          appropriating money; providing a penalty; amending 
          Minnesota Statutes 1982, sections 161.081; 161.082, 
          subdivision 2a; 167.50, subdivision 2; 296.01, 
          subdivision 24; 296.02; 296.14, subdivisions 2 and 4; 
          296.18, by adding a subdivision; 297B.09; and 473.446, 
          subdivision 1; proposing new law coded in Minnesota 
          Statutes, chapters 162 and 169. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1982, section 161.081, is 
amended to read: 
    161.081 [HIGHWAY USER TAX, DISTRIBUTION OF PORTION OF 
PROCEEDS.] 
    Pursuant to article 14, section 5, of the constitution, 
five percent of the net highway user tax distribution fund is 
set aside, and apportioned as follows: 
    (1) 60 51 percent to the trunk highway fund; 
    (2) 31 41 percent to a separate account in the county 
state-aid highway fund to be known as the county turnback 
account, which account in the state treasury is hereby created; 
    (3) 9 8 percent to a separate account in the municipal 
state-aid street fund to be known as the municipal turnback 
account, which account in the state treasury is hereby created.  
    Sec. 2.  Minnesota Statutes 1982, section 161.082, 
subdivision 2a, is amended to read: 
    Subd. 2a.  An amount equal to 32 20 percent of the county 
turnback account shall must be expended, within counties having 
two or more towns, on town road bridge structures that are 10 
feet or more in length and on town road culverts that replace 
existing town road bridges.  The expenditures on such bridge 
structures and culverts may be on a matching basis, and if on a 
matching basis, not more than 90 percent of the cost of any such 
a bridge structure shall or culvert may be paid from the county 
turnback account. 
    An amount equal to 37 percent of the county turnback 
account must be set aside as a town road account and distributed 
as provided in section 3.  
    Sec. 3.  [162.081] [TOWN ROAD ACCOUNT.] 
    Subdivision 1.  [ACCOUNT CREATED.] A town road account is 
created in the county state-aid highway fund, consisting of 37 
percent of the county turnback account as provided in section 
161.082.  
    Subd. 2.  [FORMULA.] Funds in the town road account must be 
apportioned to each county so that each county receives the 
percentage that the total miles of town road in the county bears 
to the total miles of town roads in the state.  
    Subd. 3.  [APPORTIONMENT.] When the commissioner determines 
the amount of money to be apportioned to each county under 
section 162.07, he shall also determine the amounts in the town 
road account to be apportioned under subdivision 2.  The 
apportionment under subdivision 2 must be included in the 
statement sent to the commissioner of finance and the county 
auditor and county engineer of each county under section 162.08, 
subdivision 2.  The amounts so apportioned and allocated to each 
county from the town road account must be paid by the state to 
the treasurer of each county at the same time that payments are 
made under section 162.08, subdivision 2.  
    Subd. 4.  [PURPOSES.] Money apportioned to a county from 
the town road account must be distributed to the treasurer of 
each town within the county, according to a distribution formula 
adopted by the county board.  The formula must take into account 
each town's levy for road and bridge purposes, its population 
and town road mileage, and other factors as the county board 
deems advisable in the interests of achieving equity among the 
towns.  Distribution of town road funds to the treasurer of the 
towns must be made within 30 days of the receipt of the funds by 
the county treasurer.  Distribution of funds to town treasurers 
in a county which has not adopted a distribution formula under 
this subdivision must be made according to a formula prescribed 
by the commissioner by rule.  A formula adopted by a county 
board or by the commissioner must provide that a town, in order 
to be eligible for distribution of funds from the town road 
account in a calendar year, must have levied in the previous 
year for road and bridge purposes at least two mills on the 
dollar of the assessed value of the town.  
    Money distributed to a town under this subdivision may be 
expended by the town only for the construction and 
reconstruction of town roads within the town.  
    Sec. 4.  Minnesota Statutes 1982, section 167.50, 
subdivision 2, is amended to read: 
    Subd. 2.  The bonds shall be issued and sold upon sealed 
bids after two weeks' published notice.  They shall mature 
serially over a term not exceeding 20 years from their 
respective dates of issue, and shall not be sold for less than 
par and accrued interest, and shall not bear interest at a 
greater rate than five percent per annum.  Subject to the 
foregoing limitations, and subject to any other limitations 
stated in the acts authorizing the bonds and appropriating the 
proceeds thereof, but not subject to the provisions of sections 
14.02, 14.04 to 14.36, 14.38, 14.44 to 14.45, and 14.57 to 
14.62, the bonds shall be issued and sold in the number of 
series, at times, in the form and denominations, bearing 
interest at the rate or rates, maturing on dates, either without 
option of prior redemption or subject to prepayment upon notice 
and at the times and prices, payable at the bank or banks, 
within or without the state, with provisions for registration, 
conversion, and exchange and for the issuance of notes in 
anticipation of the sale and delivery of definitive bonds, and 
in accordance with such further regulations, as the commissioner 
of finance may determine.  The bonds shall be executed by the 
commissioner of finance and attested by the state treasurer 
under their official seals.  The signature of one of these 
officers on the face of any bond, and their seals, and the 
signatures of both officers on the interest coupons appurtenant 
to any bond, may be printed, lithographed, stamped, or engraved 
thereon. 
    Sec. 5.  [169.833] [ADDITION OF TRUNK HIGHWAYS TO 
DESIGNATED ROUTE SYSTEM.] 
    Subdivision 1.  [IDENTIFICATION OF PROJECTS.] The 
commissioner shall develop a priority list of trunk highway 
routes to be added to the system of routes designated under 
section 169.832.  The commissioner shall consult with 
representatives of the trucking, shipping, and agricultural 
industries and local authorities in developing the list.  A 
route shall be added to the designated route system after 
completion of road improvements that provide road strength 
adequate to carry the permissible weights under section 169.825 
or when the commissioner otherwise determines that designation 
of a route is reasonable.  
    Subd. 2.  [FUNDING OF ADDITIONS TO THE SYSTEM.] On July 1 
of each year the commissioner of finance shall certify to the 
commissioner the estimated increase in revenue to the trunk 
highway fund resulting from the increase in the gasoline and 
special fuel excise tax under section 7.  The commissioner shall 
expend 15 percent of the increase in revenue to the trunk 
highway fund resulting from the increase in the gasoline and 
special fuel excise tax under section 7 and 15 percent of future 
increases in gasoline and special fuel excise tax revenues to 
the trunk highway fund for the purposes of subdivision 1.  In 
the event that actual expenditures during any fiscal year are 
less or greater than 15 percent when compared to actual revenue 
the commissioner shall adjust his expenditures for the purpose 
of subdivision 1 for the following years in order to achieve 
compliance with this subdivision.  
    Sec. 6.  Minnesota Statutes 1982, section 296.01, 
subdivision 24, is amended to read: 
    Subd. 24.  [AGRICULTURAL ALCOHOL GASOLINE.] "Agricultural 
alcohol gasoline" means a gasoline blend at least ten percent of 
which is agricultural agriculturally derived fermentation ethyl 
alcohol of at least 190 proof a purity of at least 99 percent, 
determined without regard to any added denaturants, denatured in 
conformity with one of the approved methods set forth by the 
United States Department of Treasury, Bureau of Alcohol, Tobacco 
and Firearms, and derived from agricultural or forest products 
or other renewable resources, distilled in the United States and 
derived from agricultural products produced in the United States.
    Sec. 7.  Minnesota Statutes 1982, section 296.02, is 
amended to read: 
    296.02 [GASOLINE, EXCISE TAX.] 
    Subdivision 1.  [TAX IMPOSED FOR MOTOR VEHICLE USE.] There 
is hereby imposed an excise tax of 13 cents per gallon on all 
gasoline used in producing and generating power for propelling 
motor vehicles used on the public highways of this state.  This 
tax shall be is payable at the times, in the manner, and by 
persons specified in this chapter.  The tax is payable at the 
rate specified in subdivision 1b.  
    (a) Notwithstanding any other provision of law to the 
contrary, the tax imposed on special fuel sold by a qualified 
service station shall may not exceed, or the tax on gasoline 
delivered to a qualified service station shall must be reduced 
to, a rate not more than 3 three cents per gallon above the 
state tax rate imposed on such products sold by a service 
station in a contiguous state located within the distance 
indicated in clause (b).  
    (b) A "qualifying service station" means a service station 
located within 7.5 miles, measured by the shortest route by 
public road, from a service station selling like product in the 
contiguous state.  
    (c) A qualified service station shall be allowed a credit 
by the supplier or distributor, or both, for the amount of 
reduction computed in accordance with clause (a).  
    A qualified service station, before receiving the credit, 
shall be registered with the commissioner of revenue.  
    Subd. 1a.  [EXCEPTION.] The provisions of subdivision 1 do 
not apply to gasoline purchased by a transit system owned by one 
or more statutory or home rule charter cities or towns. 
    Subd. 1b.  [RATES IMPOSED.] The gasoline excise tax is 
imposed at the following rates:  
    (a) For the period beginning on the first day of the month 
following the month of final enactment of this act, or on the 
first day of the second month following the month of final 
enactment of this act if the date of final enactment of this act 
is within 15 days of the end of the month, and ending December 
31, 1983, gasoline is taxed at the rate of 16 cents per gallon.  
    (b) For the period on and after January 1, 1984, gasoline 
is taxed at the rate of 17 cents per gallon.  
    Subd. 2.  [GASOLINE TAX IMPOSED FOR AVIATION USE.] Subject 
to the provisions of section 296.18, subdivision 4, there is 
hereby imposed an excise tax, at the same rate per gallon as the 
gasoline excise tax, on all aviation gasoline received, sold, 
stored, or withdrawn from storage in this state.  This tax shall 
be is payable at the times, in the manner, and by persons 
specified in sections 296.01 to 296.27. 
    Subd. 3.  [EXCEPTION.] The provisions of subdivision 2 do 
not apply to aviation gasoline purchased and placed in the fuel 
tanks of an aircraft outside this state, even though such the 
gasoline may be consumed within this state. 
    Subd. 4.  [TAX NOT ON CONSUMPTION.] The tax imposed by 
subdivision 2 is expressly declared not to be a tax upon 
consumption of aviation gasoline by an aircraft. 
    Subd. 6.  [TAX IMPOSED FOR MARINE USE.] Subject to the 
provisions of section 296.18, subdivision 1, there is hereby 
imposed an excise tax, at the same rate per gallon as the 
gasoline excise tax, on all marine gasoline received, sold, 
stored, or withdrawn from storage in this state.  This tax shall 
be is payable at the times, in the manner, and by persons 
specified in sections 296.01 to 296.27. 
    Subd. 7.  [TAX REDUCTION FOR AGRICULTURAL ALCOHOL 
GASOLINE.] The tax on gasoline imposed by subdivision 1 shall be 
reduced by four cents per gallon for gasoline which is 
agricultural alcohol gasoline as defined in section 296.01, 
subdivision 24, which is blended by a distributor with alcohol 
distilled in this state from agricultural products produced in 
this state, and which is used in producing and generating power 
for propelling motor vehicles used on the public highways of 
this state.  The tax imposed by this subdivision shall be 
payable at the same time, and collected in the same manner, as 
the tax imposed by subdivision 1.  The reduction in gasoline 
taxes imposed by this subdivision shall expire on December 31, 
1984.  The tax on gasoline imposed by subdivision 1 shall be 
reduced by two cents per gallon beginning July 1, 1983, and 
continuing through June 30, 1985, and four cents per gallon 
beginning July 1, 1985, and continuing through June 30, 1992, 
for gasoline which is agricultural alcohol gasoline as defined 
in section 296.01, subdivision 24, which is blended by a 
distributor with alcohol distilled in the United States from 
agricultural products produced in the United States, and which 
is used on the public highways of this state.  The tax imposed 
by this subdivision shall be payable at the same time, and 
collected in the same manner, as the tax imposed by subdivision 
1.  
    Subd. 8.  [TAX REDUCTION FOR AGRICULTURAL ALCOHOL GASOLINE 
SOLD IN BULK TO GOVERNMENT OR FOR SCHOOL TRANSPORTATION.] The 
tax on gasoline imposed by subdivision 1 shall be reduced by 
eight cents per gallon beginning January 1, 1984, and continuing 
through June 30, 1992, for gasoline which is agricultural 
alcohol gasoline as defined in section 296.01, subdivision 24, 
meets the criteria established in subdivision 7, and is sold in 
bulk to the state, local units of government, or for use in the 
transportation of pupils to and from school or school-related 
events in school buses.  This reduction is in lieu of the 
reductions provided in subdivision 7.  
    Sec. 8.  Minnesota Statutes 1982, section 296.14, 
subdivision 2, is amended to read: 
    Subd. 2.  [CREDIT OR REFUND OF TAX PAID.] The commissioner 
shall allow the distributor credit or refund of the tax paid on 
gasoline and special fuel: 
    (1) Exported or sold for export from the state, other than 
in the supply tank of a motor vehicle or of an aircraft; 
    (2) Sold to the United States government or to any "cost 
plus a fixed fee" contractor employed by the United States 
government on any national defense project; 
    (3) Sold to another licensed distributor; 
    (4) Destroyed by accident while in the possession of the 
distributor; 
    (5) In error; 
    (6) Sold for storage in an on-farm bulk storage tank, if 
the tax was not collected on the sale;  
    (7) In such other cases as the commissioner may permit, not 
inconsistent with the provisions of this chapter and other laws 
relating to the gasoline and special fuel excise taxes.  
    Sec. 9.  Minnesota Statutes 1982, section 296.18, is 
amended by adding a subdivision to read: 
    Subd. 3a.  [PENALTY FOR ILLEGAL USE OF TAX-EXEMPT 
GASOLINE.] A person who uses gasoline, delivered into an on-farm 
bulk storage tank and on which no tax has been collected, for 
propelling a motor vehicle on the public highways of this state 
is guilty of a misdemeanor.  
    Sec. 10.  Minnesota Statutes 1982, section 296.14, 
subdivision 4, is amended to read: 
    Subd. 4.  [PAYMENT AND TRANSFER OF TAX ON GASOLINE SOLD FOR 
STORAGE IN ON-FARM BULK STORAGE AND ETHYL ALCOHOL FOR PERSONAL 
USE.] Notwithstanding the provisions of this section, the 
producer of ethyl alcohol which is produced for personal use and 
not for sale in the usual course of business and a farmer who 
uses gasoline on which a tax has not been paid shall report and 
pay the tax on all ethyl alcohol or gasoline delivered into the 
supply tank of a licensed motor vehicle during the preceding 
calendar year.  The tax shall be reported and paid together with 
the income tax return of the taxpayer.  The commissioner of 
revenue shall transfer the amount collected in each calendar 
year to the highway user tax distribution fund by March 30 of 
the following taxable year.  Any producer, qualifying under this 
subdivision, shall be exempt from the licensing requirements 
contained in section 296.01, subdivision 1. 
    Sec. 11.  Minnesota Statutes 1982, section 297B.09, is 
amended to read: 
    297B.09 [ALLOCATION OF REVENUE.] 
    Subdivision 1.  [GENERAL FUND SHARE.] All moneys Money 
collected and received under this chapter shall must be 
deposited in the state treasury and credited as follows:  
    (a) All of the proceeds collected before June 30, 1983 July 
1, 1985, shall must be credited to the general fund;.  
    (b) Three-fourths of the proceeds collected after June 30, 
1983 1985, and before July 1, 1985 1987, shall must be 
credited to the general fund;.  
    (c) One-half of the proceeds collected after June 30, 1985 
1987, and before July 1, 1987 1989, shall must be credited to 
the general fund;.  
    (d) One-fourth of the proceeds collected after June 30, 
1987 1989, and before July 1, 1989 1991, shall must be 
credited to the general fund;.  
    (e) After June 30, 1989 1991, none of the proceeds 
collected shall may be credited to the general fund.  
    Subd. 2.  [HIGHWAY USER TAX DISTRIBUTION FUND AND TRANSIT 
ASSISTANCE FUND SHARE.] The proceeds collected under this 
chapter and not credited to the general fund shall must be 
deposited in the highway user tax distribution fund and the 
transit assistance fund for apportionment in the following 
manner:  
    (a) None of the proceeds collected before June 30, 1983 
July 1, 1985, shall may be credited to either fund.  
    (b) 18.75 percent of the proceeds collected after June 30, 
1983 1985, and before July 1, 1985 1987, shall must be 
credited to the highway user tax distribution fund for 
apportionment in the same manner and for the same purposes as 
other money in that fund.  The remaining 6.25 percent of the 
proceeds shall must be credited to the transit assistance fund 
account to be appropriated to the commissioner of transportation 
for transit assistance within the state.  
    (c) 37.5 percent of the proceeds collected after June 30, 
1985 1987, and before July 1, 1987 1989, shall must be 
credited to the highway user tax distribution fund for 
apportionment in the same manner and for the same purposes as 
other money in that fund.  The remaining 12.5 percent of the 
proceeds shall must be credited to the transit assistance fund 
account to be appropriated to the commissioner of transportation 
for transit assistance within the state.  
    (d) 56.25 percent of the proceeds collected after June 30, 
1987 1989, and before July 1, 1989 1991, shall must be 
credited to the highway user tax distribution fund for 
apportionment in the same manner and for the same purposes as 
other money in that fund.  The remaining 18.75 percent of the 
proceeds shall must be credited to the transit assistance fund 
account to be appropriated to the commissioner of transportation 
for transit assistance within the state.  
    (e) 75 percent of the proceeds collected after June 30, 
1989 1991, shall must be credited to the highway user tax 
distribution fund for apportionment in the same manner and for 
the same purposes as other money in that fund.  The remaining 25 
percent of the proceeds shall must be credited to the transit 
assistance fund account to be appropriated to the commissioner 
of transportation for transit assistance within the state. 
    Sec. 12.  [TRUNK HIGHWAY BONDS.] 
    The commissioner of finance is authorized and directed, on 
request of the commissioner of transportation, to issue and sell 
Minnesota trunk highway bonds under the provisions of Minnesota 
Statutes, sections 167.50 to 167.52 and of the Minnesota 
Constitution, article XI, sections 4 to 6, and article XIV, 
section 11, at the time and in the amounts requested by the 
commissioner of transportation.  Bonds issued under this section 
are authorized in an aggregate principal amount of $56,000,000.  
    Sec. 13.  Minnesota Statutes 1982, section 473.446, 
subdivision 1, is amended to read: 
    Subdivision 1.  [TAXATION WITHIN TRANSIT TAXING DISTRICT.] 
For the purposes of sections 473.401 to 473.451 and the 
metropolitan transit system, except as otherwise provided in 
this subdivision the metropolitan transit commission shall levy 
each year upon all taxable property within the metropolitan 
transit taxing district, defined in subdivision 2, a transit tax 
consisting of: 
    (a) An amount equal to two mills times the assessed value 
of all such property, the proceeds of which shall be used for 
payment of the expenses of operating transit and paratransit 
service; 
    (b) An additional amount, if any, as the commission 
determines to be necessary to provide for the full and timely 
payment of its certificates of indebtedness and other 
obligations outstanding on July 1, 1977, to which property taxes 
under this section have been pledged; and 
    (c) An additional amount necessary to provide full and 
timely payment of certificates of indebtedness, bonds, or other 
obligations issued pursuant to section 473.436 for purposes of 
acquisition and betterment of property and other improvements of 
a capital nature and to which the commission has specifically 
pledged tax levies under this clause. 
    In any statutory or home rule charter city or town in the 
metropolitan transit taxing district which is receiving 
financial assistance under section 174.265, the commission shall 
levy a tax equal to ten percent of the sum of levies provided 
for in clauses (a) to (c), plus a levy sufficient to yield the 
amounts of available local transit funds transferred pursuant to 
section 174.265 from the state assistance available to the 
commission, less any amount paid to the commission by the city 
or town under a contract for service entered into pursuant to 
subdivision 2.  
    Sec. 14.  [HIGHWAY STUDY COMMISSION.] 
    Subdivision 1.  [MEMBERSHIP.] A highway study commission is 
created to consist of five members of the house of 
representatives appointed by the speaker of the house, five 
members of the senate appointed by the senate committee on 
committees, and eight members appointed by the governor.  Of the 
members appointed by the governor two must be county 
commissioners, two must be township supervisors, two must be 
mayors of cities over 5,000 population, two must be mayors of 
cities under 5,000 population and not more than one member may 
reside in any one congressional district.  The commission shall 
select from its membership a chairman and other officers it 
deems necessary.  
    Subd. 2.  [DUTIES OF COMMISSION.] The commission shall 
study:  
    (1) A functional classification of all roads in the state 
of Minnesota, using criteria established by the United States 
Department of Transportation and such other criteria as are 
deemed necessary by the commission.  In classifying roads the 
commission shall make use of work already done by regional 
development commission and the metropolitan council.  
    (2) The existing jurisdiction of all roads in the state and 
their appropriate jurisdiction based on functional 
classification.  
    (3) The attitudes of local units of government toward 
changes in highway jurisdiction.  
    (4) Potential obstacles to transfers of highway 
jurisdiction, including transfers of support facilities and 
maintenance personnel.  
    (5) Changes in the constitutional distribution of highway 
user funds which may be required as a part of any transfer of 
jurisdiction.  
    (6) Existing and potential government structures to 
accomplish jurisdictional transfers on a continuing basis.  
    (7) Timetables for implementing any jurisdictional 
transfers.  
    Subd. 3.  [REPORT.] The commission shall not later than 
January 15, 1985, submit a report to the legislature and the 
governor on the issues assigned to it for study, and shall cease 
to function after that date.  
    Subd. 4.  [STAFF.] The commission shall utilize existing 
legislative staff and facilities.  The department of 
transportation shall also provide staff and technical assistance 
to the commission.  
    Subd. 5.  [EXPENSES.] The compensation of nonlegislator 
members, their removal from office, and the filling of vacancies 
is as provided in section 15.059, subdivisions 3 and 4.  Members 
who are legislators shall be compensated in the same manner as 
other legislative meetings.  
    Subd. 6.  [APPROPRIATION.] There is appropriated from the 
general fund the sum of $7,000 or so much thereof as is 
necessary to the legislative coordinating commission to pay 
compensation of nonlegislator members of the commission.  This 
appropriation is available until January 15, 1985.  
    Sec. 15.  [EFFECTIVE DATE.] 
    Sections 4, 12, and 13 are effective the day following 
final enactment.  Sections 6 and 7 are effective on the first 
day of the month following the month of final enactment or on 
the first day of the second month following the month of final 
enactment if the date of final enactment is within 15 days of 
the end of the month, and applies to all gasoline in distributor 
storage on that effective date, except that the tax rate which 
becomes effective on January 1, 1984, applies to all gasoline in 
distributor storage on that date.  Sections 5 and 11 are 
effective July 1, 1983.  Sections 1 to 3 are effective on the 
effective date provided for sections 6 and 7 for apportionments 
made after that date. 
    Approved April 6, 1983