4.3. SR 04-19-1999 - Laserfiche WebLink

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Each 0.1 % increase in the sales tax results in $48 million dollars of revenue. Each 0.5% . increase yields $239 million. The November 1998 Forecast (1998-99 Biennium) General Fund is $24,236 million, 27.5% of which is sales tax revenue. The Projected General Fund Balance as of June 30, 1999 is $953 million. To have a portion of the sales tax dedicated to commuter rail, whether for capital costs or operations and maintenance, an individual or political entity must ask a state representative to introduce a bill authorizing use of a specified percentage amount of the tax for this purpose. Local Sales Tax (Designated Funds) Chapter 297 A.48 Minnesota Statutes A political subdivision of this state may impose a general sales tax if permitted by special law. The tax rate is as specified in the special law authorization and as imposed by the political subdivision. However, the rates tend to be standardized at one-half percent and requests are restricted to bricks and mortar type projects. A commuter rail system would seem to fall within the parameters of this regulation. Before the governing body of a political subdivision requests legisl-ative approval of a special law for a local sales tax, it must adopt a resolution indicating its approval of the tax. The resolution must include information on the proposed tax rate, how the revenues will be used, the total revenue that will be raised before the tax expires, and the estimated length of time that the tax will be in effect. . Once authorization is secured for the special sales tax, municipalities are required to obtain voter approval through referendum. It's possible the legislature will decide this session that voter approval must be obtained before a request is submitted to the legislature. Sales Tax on Motor Vehicles (formerly Motor Vehicle Excise Tax) Chapter 297B Minnesota Statutes The motor vehicle sales tax is imposed when a motor vehicle, required to be registered in Minnesota, is purchased or acquired, either in or outside Minnesota. The 6.5% rate is applied to the purchase price which is defined as the total consideration valued in money, whether paid in money or otherwise. The tax base for the motor vehicle sales tax is the purchase price of a motor vehicle as described in the previous paragraph. Regardless of the number of times a vehicle is sold, each transfer of ownership is in the tax base. The transfer of a motor vehicle to a dealer for resale in the regular course of business is not considered to be within the base. When computing the Minnesota motor vehicle sales tax, any federal taxes imposed on the retail sale of a vehicle are excluded from the purchase price. Other exemptions to the sales price include, but are not limited to, bookmobiles, ambulances, and vehicles acquired by inheritance. . Northstar Commuter Rail Feasibility Study March 23. 1999 9-6 Financial Analysis