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Minnesota Legislature

Office of the Revisor of Statutes

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

  

                         Laws of Minnesota 1989 

                        CHAPTER 268-H.F.No. 1764 
           An act relating to transportation; changing 
          distribution of highway user taxes; authorizing use of 
          state park road account to improve and maintain city 
          streets and town roads that provide immediate access 
          to state parks and campgrounds; increasing motor 
          vehicle license tax on older vehicles; appropriating 
          money; amending Minnesota Statutes 1988, sections 
          161.081; 161.082, subdivision 2a; 162.06, subdivision 
          5; 162.081, subdivision 1; 168.013, subdivision 1a; 
          and 297B.09, subdivision 1. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
     Section 1.  Minnesota Statutes 1988, 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) 51 28 percent to the trunk highway fund; 
    (2) 41 64 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) 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 1988, section 161.082, 
subdivision 2a, is amended to read: 
    Subd. 2a.  An amount equal to 20 25 percent of the county 
turnback account 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.  In addition, if the present bridge structure 
is less than ten feet in length but a hydrological survey 
indicates that the replacement bridge structure or culvert must 
be ten feet or more in length, then the bridge or culvert is 
eligible for replacement funds.  The expenditures on 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 a bridge 
structure or culvert may be paid from the county turnback 
account. 
    An amount equal to 37 47.5 percent of the county turnback 
account must be set aside as a town road account and distributed 
as provided in section 162.081.  
    Sec. 3.  Minnesota Statutes 1988, section 162.06, 
subdivision 5, is amended to read: 
    Subd. 5.  [STATE PARK ROAD ACCOUNT.] After deducting for 
administrative costs and for the disaster account and research 
account as heretofore provided from the remainder of the total 
sum provided for in subdivision 1, there shall be deducted a sum 
equal to the three-quarters of one percent of the remainder.  
The sum so deducted shall be set aside in a separate account and 
shall be used for (1) the establishment, location, relocation, 
construction, reconstruction, and improvement of those roads 
included in the county state-aid highway system under Minnesota 
Statutes 1961, section 162.02, subdivision 6, which border and 
provide substantial access to an outdoor recreation unit as 
defined in section 86A.04 or which provide access to the 
headquarters of or the principal parking lot located within such 
a unit, and (2) the reconstruction, improvement, repair, and 
maintenance of county roads, city streets, and town roads that 
provide immediate access to public lakes, rivers, state parks, 
and state campgrounds.  Roads described in clause (2) are not 
required to meet county state-aid highway standards.  At the 
request of the commissioner of natural resources the counties 
wherein such roads are located shall do such work as requested 
in the same manner as on any county state-aid highway and shall 
be reimbursed for such construction, reconstruction, or 
improvements from the amount set aside by this subdivision.  
Before requesting a county to do work on a county state-aid 
highway as provided in this subdivision, the commissioner of 
natural resources must obtain approval for the project from the 
county state-aid screening board.  The screening board, before 
giving its approval, must obtain a written comment on the 
project from the county engineer of the county requested to 
undertake the project.  Before requesting a county to do work on 
a county road, city street, or a town road that provides 
immediate access to a public lake, a river, a state park, or a 
state campground, the commissioner of natural resources shall 
obtain a written comment on the project from the county engineer 
of the county requested to undertake the project.  Any sums paid 
to counties or cities in accordance with this subdivision shall 
reduce the money needs of said counties or cities in the amounts 
necessary to equalize their status with those counties or cities 
not receiving such payments.  Any balance of the amount so set 
aside, at the end of each year shall be transferred to the 
county state-aid highway fund. 
    Sec. 4.  Minnesota Statutes 1988, section 162.081, 
subdivision 1, is amended to read: 
    Subdivision 1.  [ACCOUNT CREATED.] A town road account is 
created in the county state-aid highway fund, consisting of 37 
percent of the amounts transferred from the county turnback 
account as provided in section 161.082.  
    Sec. 5.  Minnesota Statutes 1988, section 168.013, 
subdivision 1a, is amended to read: 
    Subd. 1a.  [PASSENGER AUTOMOBILES; AMBULANCES; HEARSES.] 
(a) On passenger automobiles as defined in section 168.011, 
subdivision 7, ambulances, and hearses, except as otherwise 
provided, the tax shall be $10 plus an additional tax equal to 
1.25 percent of the base value, except that on pickup trucks the 
tax shall be:  
    (a) for the 1982 registration year, $10 plus an additional 
tax equal to .75 percent of base value; 
    (b) for the 1983 registration year and each succeeding 
year, $10 plus an additional tax equal to 1.25 percent of base 
value. 
    (b) Subject to the classification provisions herein, "base 
value" means the manufacturer's suggested retail price of the 
vehicle including destination charge as reflected on the price 
listing affixed to the vehicle in conformity with United States 
Code, title 15, sections 1231 to 1233 (Public Law Number 85-506) 
or otherwise suggested by the manufacturer or determined by the 
registrar if no suggested retail price exists, and shall not 
include the cost of each accessory or item of optional equipment 
separately added to the vehicle and the suggested retail price. 
    (c) If unable to determine the base value because the 
vehicle is specially constructed, or for any other reason, the 
registrar may establish such value upon the cost price to the 
purchaser or owner as evidenced by a certificate of cost but not 
including Minnesota sales or use tax or any local sales or other 
local tax. 
    (d) The registrar shall classify every vehicle in its 
proper base value class as follows: 
                       FROM                   TO
                      $  0                $199.99
                       200                 399.99
    and thereafter a series of classes successively set in 
brackets having a spread of $200 consisting of such number of 
classes as will permit classification of all vehicles. 
    (e) The base value for purposes of this section shall be 
the middle point between the extremes of its class. 
    (f) The registrar shall establish the base value, when new, 
of every passenger automobile, ambulance and hearse registered 
prior to the effective date of Extra Session Laws 1971, chapter 
31, using list price information published by the manufacturer 
or any nationally recognized firm or association compiling such 
data for the automotive industry.  If unable to ascertain the 
base value of any registered vehicle in the foregoing manner, 
the registrar may use any other available source or method.  The 
tax on all previously registered vehicles shall be computed upon 
the base value thus determined taking into account the 
depreciation provisions of Extra Session Laws 1971, chapter 31. 
    (g) Except as provided in paragraph (h), the annual 
additional tax computed upon the base value as provided herein, 
during the first year and second years of vehicle life shall be 
computed upon 100 percent of the base value; for the second year 
third and fourth years, 90 percent of such value; for the third 
year fifth and sixth years, 75 percent of such value; for 
the fourth year seventh year, 60 percent of such value; for the 
fifth year, 45 percent of such value; for the sixth year, 35 
percent of such value; for the seventh year, 30 percent of such 
value; for the eighth year, 20 40 percent of such value; for the 
ninth year, 15 30 percent of such value; for the tenth year, ten 
percent of such value; for the 11th and each succeeding year, 
the sum of $13; provided that for registrations renewed on or 
after January 1, 1982, the annual additional tax for the 11th 
and each succeeding year of vehicle life shall be $13, for 
registrations renewed on or after January 1, 1983, the annual 
additional tax shall be $18, for registrations renewed on or 
after January 1, 1984, the annual additional tax shall be $22, 
and for registrations renewed on or after January 1, 1985, the 
annual additional tax shall be $25.  
    In no event shall the annual additional tax be less than 
$13 for any registration renewed after January 1, 1982, nor less 
than $18 for any registration renewed after January 1, 1983, $22 
for any registration renewed after January 1, 1984, and $25 for 
any registration renewed after January 1, 1985.  
    (h) The annual additional tax under paragraph (g) on a 
motor vehicle on which the first annual tax was paid before the 
effective date of this section must not exceed the tax that was 
paid on that vehicle the year before. 
    Sec. 6.  Minnesota Statutes 1988, section 297B.09, 
subdivision 1, is amended to read:  
    Subdivision 1.  [GENERAL FUND SHARE.] (a) Money collected 
and received under this chapter must be deposited in the state 
treasury and credited to the general fund.  The amounts 
collected and received shall be credited as provided in this 
subdivision, and transferred from the general fund on July 15 
and January 15 of each fiscal year.  The commissioner of finance 
must make each transfer based upon the actual receipts of the 
preceding six calendar months and include the interest earned 
during that six-month period.  The commissioner of finance may 
establish a quarterly or other schedule providing for more 
frequent payments to the transit assistance fund if the 
commissioner determines it is necessary or desirable to provide 
for the cash flow needs of the recipients of money from the 
transit assistance fund.  
    (b) Thirty percent of the money collected and received 
under this chapter after June 30, 1988, and before July 1, 1991, 
must be deposited in transferred to the highway user tax 
distribution fund and the transit assistance fund for 
apportionment as follows:  75 percent must be credited 
transferred to the highway user tax distribution fund for 
apportionment in the same manner and for the same purposes as 
other money in that fund, and the remaining 25 percent of the 
money must be credited transferred to the transit assistance 
fund to be appropriated to the commissioner of transportation 
for transit assistance within the state and to the regional 
transit board. 
    (c) Thirty Five percent of the money collected and received 
under this chapter after June 30, 1989 and before July 1, 1991, 
must be transferred as follows:  75 percent must be transferred 
to the trunk highway fund and 25 percent must be transferred to 
the transit assistance fund. 
    (d) Thirty-five percent of the money collected and received 
under this chapter after June 30, 1991, must be deposited in the 
trunk highway fund and the transit assistance fund for 
apportionment transferred as follows:  75 percent must be 
credited transferred to the trunk highway fund and the remaining 
25 percent must be credited transferred to the transit 
assistance fund. 
    (d) (e) The distributions under this subdivision to the 
highway user tax distribution fund until June 30, 1991, and to 
the trunk highway fund thereafter, must be reduced by the amount 
necessary to fund the appropriation under section 41A.09, 
subdivision 1.  For the fiscal years ending June 30, 1988, and 
June 30, 1989, the commissioner of finance, before making the 
transfers required on July 15 and January 15 of each year, shall 
estimate the amount required to fund the appropriation under 
section 41A.09, subdivision 1, for the six-month period for 
which the transfer is being made.  The commissioner shall then 
reduce the amount transferred to the highway user tax 
distribution fund by the amount of that estimate.  The 
commissioner shall reduce the estimate for any six-month period 
by the amount by which the estimate for the previous six-month 
period exceeded the amount needed to fund the appropriation 
under section 41A.09, subdivision 1, for that previous six-month 
period.  If at any time during a six-month period in those 
fiscal years the amount of reduction in the transfer to the 
highway user tax distribution fund is insufficient to fund the 
appropriation under section 41A.09, subdivision 1 for that 
period, the commissioner shall transfer to the general fund from 
the highway user tax distribution fund an additional amount 
sufficient to fund the appropriation for that period, but the 
additional amount so transferred to the general fund in a 
six-month period may not exceed the amount transferred to the 
highway user tax distribution fund for that six-month period. 
    Sec. 7.  [APPROPRIATIONS.] 
    Subdivision 1.  [HIGHWAY DEVELOPMENT.] $60,900,000 is 
appropriated from the funds indicated to the commissioner of 
transportation for highway development, to be available for the 
fiscal year ending June 30 in the years indicated, as follows: 
                          1990                1991
(a) Trunk highways         $ 5,800,000       $17,600,000
This appropriation
is from the trunk
highway fund and is for highway
development.
(b) Trunk highways         $ 1,000,000       $ 3,100,000
This appropriation is from the trunk 
highway fund and is for program 
delivery. 
(c) County state aid       $11,500,000       $18,100,000 
This appropriation is from the county 
state-aid highway fund and is available 
until spent. 
(d) Municipal state aids   $   900,000       $ 2,900,000 
This appropriation 
is from the municipal state-aid street 
fund and is available until spent. 
    Sec. 8.  [EFFECTIVE DATE.] 
    Sections 1 to 4, 6, and 7 are effective July 1, 1989.  
Section 5 is effective January 1, 1990, for registration year 
1990 and subsequent years. 
    Presented to the governor May 23, 1989 
    Signed by the governor May 25, 1989, 6:23 p.m.