1.1 	A bill for an act
1.2 	relating to metropolitan transit; allowing
1.3 	municipalities to contract with the Metropolitan
1.4 	Council to join the metropolitan transit district;
1.5 	authorizing a property tax levy; amending Minnesota
1.6 	Statutes 2004, sections 473.446, subdivision 3;
1.7 	473.4461.
1.8 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.9 	Section 1. Minnesota Statutes 2004, section 473.446,
1.10 	subdivision 3, is amended to read:
1.11 		Subd. 3.Certification and collection.  Each county
1.12 	treasurer shall collect and make settlement of the taxes levied
1.13 	under subdivisions 1 and 1a and section 473.4461, subdivision 3,
1.14 	with the treasurer of the council.  The levy of transit taxes
1.15 	pursuant to this section shall not affect the amount or rate of
1.16 	taxes which may be levied by any county or municipality or by
1.17 	the council for other purposes authorized by law and shall be in
1.18 	addition to any other property tax authorized by law.
1.19 	
EFFECTIVE DATE. This section is effective for taxes
1.20 	payable in 2006 and thereafter.

1.21 	Sec. 2. Minnesota Statutes 2004, section 473.4461, is
1.22 	amended to read:
1.23 	473.4461 ADDITIONS TO TRANSIT TAXING DISTRICT.
1.24 		Subdivision 1.Service expansion plan required.
 1.25 	Notwithstanding any provision of section 473.446 or any other
1.26 	law, the Metropolitan Council may not levy a tax under section
2.1 	473.446, subdivision 1, in any city or town not included in the
2.2 	transit taxing district as it existed on January 1, 2001, unless
2.3 	the council and the governing body of that city or town have
2.4 	agreed on a service expansion plan.
2.5 		Subd. 2.Contractual agreement to join transit district.
 2.6 	Notwithstanding section 473.446, subdivision 2, the Metropolitan
2.7 	Council may enter into an agreement with a city or a town to
2.8 	join the transit taxing district.  The agreement shall describe
2.9 	the types and levels of transit services to be provided within
2.10 	the area comprising the city or town.  The agreement may provide
2.11 	for a period of time, not to exceed 8 years, during which the
2.12 	area comprising the city or town will not be subject to the levy
2.13 	under section 473.446, subdivision 1.  The agreement must
2.14 	provide that after a period of time, not to exceed 8 years, the
2.15 	area comprising the city or town shall be subject to the levy
2.16 	under section 473.446, subdivision 1.
2.17 		Subd. 3.Property tax levy; municipality joining transit
2.18 	district. An agreement described in subdivision 2 may provide
2.19 	for a transit tax to be levied within the area comprising the
2.20 	city or town by the Metropolitan Council.  The rate of tax may
2.21 	not exceed the rate that the area comprising the city or town
2.22 	would be subject to if it were a part of the transit district
2.23 	under section 473.446, subdivision 2.  A tax levied under this
2.24 	subdivision may be used to fund transit operations or to pay the
2.25 	costs of principal and interest for transit-related bonded
2.26 	debt.  The agreement may provide that the rate of tax levied
2.27 	under this subdivision may vary within the area comprising the
2.28 	city or town, as long as the rate in any portion of the area
2.29 	does not exceed the rate that would be in effect under section
2.30 	473.446, subdivision 1.  If an agreement to join the transit
2.31 	taxing district authorizes a levy under this subdivision, a copy
2.32 	of that portion of the agreement must be filed with the auditor
2.33 	or auditors of the county or counties containing the city or
2.34 	town.
2.35 	
EFFECTIVE DATE. This section is effective the day
2.36 	following final enactment, for taxes payable in 2006 and
3.1 	thereafter.