1.1 	A bill for an act
1.2 	relating to transportation; proposing a referendum on a 0.25 percent metropolitan 
1.3 	area sales tax for transit; amending Minnesota Statutes 2004, section 297A.94; 
1.4 	proposing coding for new law in Minnesota Statutes, chapter 297A.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2004, section 297A.94, is amended to read:
1.7 	297A.94 DEPOSIT OF REVENUES.
1.8 	(a) Except as provided in this section, the commissioner shall deposit the revenues, 
1.9 	including interest and penalties, derived from the taxes imposed by this chapter in the state 
1.10 	treasury and credit them to the general fund.
1.11 	(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic 
1.12 	account in the special revenue fund if:
1.13 	(1) the taxes are derived from sales and use of property and services purchased for 
1.14 	the construction and operation of an agricultural resource project; and
1.15 	(2) the purchase was made on or after the date on which a conditional commitment 
1.16 	was made for a loan guaranty for the project under section  41A.04, subdivision 3. 
1.17 	The commissioner of finance shall certify to the commissioner the date on which the 
1.18 	project received the conditional commitment. The amount deposited in the loan guaranty 
1.19 	account must be reduced by any refunds and by the costs incurred by the Department of 
1.20 	Revenue to administer and enforce the assessment and collection of the taxes.
1.21 	(c) The commissioner shall deposit the revenues, including interest and penalties, 
1.22 	derived from the taxes imposed on sales and purchases included in section  297A.61, 
1.23 	subdivision 3, paragraph (g), clauses (1) and (4), in the state treasury, and credit them 
1.24 	as follows: 
2.1 	(1) first to the general obligation special tax bond debt service account in each fiscal 
2.2 	year the amount required by section  16A.661, subdivision 3, paragraph (b); and 
2.3 	(2) after the requirements of clause (1) have been met, the balance to the general 
2.4 	fund.
2.5 	(d) The commissioner shall deposit the revenues, including interest and penalties, 
2.6 	collected under section  297A.64, subdivision 5, in the state treasury and credit them to the 
2.7 	general fund. By July 15 of each year the commissioner shall transfer to the highway user 
2.8 	tax distribution fund an amount equal to the excess fees collected under section  297A.64, 
2.9 	subdivision 5, for the previous calendar year. 
2.10 	(e) For fiscal year 2001, 97 percent; for fiscal years 2002 and 2003, 87 percent; and 
2.11 	for fiscal year 2004 and thereafter,  72.43 percent of the revenues, including interest and 
2.12 	penalties, transmitted to the commissioner under section  297A.65, must be deposited by 
2.13 	the commissioner in the state treasury as follows: 
2.14 	(1) 50 percent of the receipts must be deposited in the heritage enhancement account 
2.15 	in the game and fish fund, and may be spent only on activities that improve, enhance, or 
2.16 	protect fish and wildlife resources, including conservation, restoration, and enhancement 
2.17 	of land, water, and other natural resources of the state;
2.18 	(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and 
2.19 	may be spent only for state parks and trails;
2.20 	(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and 
2.21 	may be spent only on metropolitan park and trail grants;
2.22 	(4) three percent of the receipts must be deposited in the natural resources fund, and 
2.23 	may be spent only on local trail grants; and
2.24 	(5) two percent of the receipts must be deposited in the natural resources fund, 
2.25 	and may be spent only for the Minnesota Zoological Garden, the Como Park Zoo and 
2.26 	Conservatory, and the Duluth Zoo.
2.27 	(f) The revenue dedicated under paragraph (e) may not be used as a substitute 
2.28 	for traditional sources of funding for the purposes specified, but the dedicated revenue 
2.29 	shall supplement traditional sources of funding for those purposes. Land acquired with 
2.30 	money deposited in the game and fish fund under paragraph (e) must be open to public 
2.31 	hunting and fishing during the open season, except that in aquatic management areas or 
2.32 	on lands where angling easements have been acquired, fishing may be prohibited during 
2.33 	certain times of the year and hunting may be prohibited. At least 87 percent of the money 
2.34 	deposited in the game and fish fund for improvement, enhancement, or protection of fish 
2.35 	and wildlife resources under paragraph (e) must be allocated for field operations.
3.1 	(g) The revenues, including interest and penalties, collected under section 297A.996 
3.2 	must be deposited by the commissioner as provided for in that section.

3.3 	Sec. 2. [297A.996] REFERENDUM; METROPOLITAN TRANSPORTATION 
3.4 	AREA SALES TAX.
3.5 		Subdivision 1.Definitions. (a) For purposes of this section, the terms defined in this 
3.6 	subdivision have the meanings given to them. 
3.7 	(b) "Metropolitan transportation area" or "area" means the 11-county area consisting 
3.8 	of Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, 
3.9 	Washington, and Wright Counties.
3.10 	(c) "Public transit" has the meaning given it in section 174.22, subdivision 7.
3.11 		Subd. 2.Tax authorized. If approved by a majority of voters in the metropolitan 
3.12 	transportation area at the general election held in November 2006, a general sales tax of 
3.13 	one-quarter of one percent is imposed on sales within the metropolitan transportation area. 
3.14 	This is in addition to the taxes imposed under sections 297A.62 to 297A.64 and any 
3.15 	other local sales taxes imposed in the area.
3.16 		Subd. 3.Tax base. The tax applies to sales taxable under this chapter that occur 
3.17 	within the area.  Taxable goods or services are subject to the tax if they are sourced to the 
3.18 	area pursuant to section 297A.668.
3.19 		Subd. 4.Use tax. A compensating use tax applies, at the same rate as the sales tax, 
3.20 	on the use, storage, distribution, or consumption of tangible personal property or taxable 
3.21 	services.
3.22 		Subd. 5.Application of other laws. (a) Section 297A.99, subdivisions 7, 8, 9, 10, 
3.23 	and 11 apply to taxes authorized under this section.
3.24 	(b) The commissioner has the same powers to assess and collect the taxes as are 
3.25 	given the commissioner in this chapter and chapters 270 and 289A, to assess and collect 
3.26 	sales and use taxes.
3.27 		Subd. 6.Allocation of revenue. The commissioner shall allocate revenue from the 
3.28 	tax imposed under this section as follows:
3.29 	(a) Revenue collected in Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and 
3.30 	Washington Counties must be paid to the Metropolitan Council.  The council may use the 
3.31 	revenue only for operation, capital improvement, or assistance to public transit within the 
3.32 	metropolitan transit area as defined in section 473.121, subdivision 16.
3.33 	(b) Revenue collected in each other county in the area must be paid to the treasurer 
3.34 	of each such county.  Money so paid may be spent by the county only for the operation 
3.35 	of, or assistance to, public transit.