4.2. SR 01-18-2000 - Laserfiche WebLink

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Local, Reqional, and State Fundin.q Existing property taxing authority granted by the State to the metropolitan counties should be utilized. This taxing authority authorizes the counties to impose levies on real estate of up to 0.04835% of market valuation. State enactment of a prospective regiona! sales tax should be considered that could generate $332 in annual revenues for each 1% sales tax imposed. A rate of 0.05% would yield the $16 million needed to cover the initial year operating requirements for the First ~er system. Use of State motor vehicle excise tax revenue that currently generates $400 million annually for the State's general fund should also be considered. Another potential funding source would be the existing State sales tax that yielded $3.1 billion in 1998 and that has produced revenue growth of 6.5% over the past three years. Each 0.1% increase in the State sales tax would yield $48 million annually. Federal Grants Federal grant assistance may be able to be obtained from the following sources: Section 5309 New Starts Program - part of FTA's Capital Program that funds new fixed guideway systems (heavy rail, light rail, commuter rail, busways, etc.) and extensions in metropolitan areas. In FY 1999, $896 million was appropriated nationwide. Surface Transportation Program (STP) - a formula program through which funds are allocated to states and metropolitan areas for highways, transit capital, and bus terminals and facilities. Minnesota received $115 million in FY 1999. National Highway System (NHS) - a FHWA formula program that provides funding for improvements to rural and urban roads that are part of the National Highway System (NHS). Under certain circumstances, funds can be used fr, r transit. Minnesota's apportionment in FY 1999 was $89 million. Commuter Rail System Plan 3-2