6.2. SR 02-11-2008 - Laserfiche WebLink

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THE ~ ~ARANSP iORTATI~N Highwags •Transit •Nail • Waterways • tir ~~~ ~S ~`i\ ~~ HF946 lew This is the transportation finance omnibus bill. It appropriates funds for fiscal years 2008-2009 to the Department of Transportation (MnDOT), Department of Public Safety, and the Metropolitan Council. The primary transportation finance changes include: Appropriating $1.5 billion in trunk highway bonds; - Raising the gas tax by five cents; - Establishing a gas tax surcharge of up to 2.5 cents based on debt service required on trunk highway bonds; - Amending the motor vehicle registration tax to eliminate the caps and accelerate the vehicle depreciation schedule; - Allocating motor vehicle sales tax (MUST) revenue so that in fiscal year 2012, after aphase-in, the allocation will be 60 percent to highways and 40 percent to transit, with the transit portion split 36 percent to the metropolitan area and 4 percent to greater Minnesota; - Allocating motor vehicle lease tax revenue starting in fiscal year 2010, so that in fiscal year 2012, after aphase-in, the. allocation will be 50 percent to highways, 37.5 percent to metropolitan area transit, and 12.5 percent to greater Minnesota transit; - Modifying the wheelage tax to allow imposition of a $5 or $10 tax and remove the property tax offset requirement; Does not extend wheelage tax authority beyond the 7-county metropolitan area currently authorized to levy this tax. - Authorizing a metropolitan sales and use tax. The "Metropolitan Transportation Area" is defined as those metropolitan counties that choose to join a joint powers board and may include Anoka, Carver, Dakota, Hennepin, Ramsey, Scott and Washington, as well as any county that is adjacent to one that has joined. The counties may impose a 0.5 percent sales tax and a $20 excise tax on vehicles sold at retail. Requires that at least 25% of the revenue raised go to public entities for construction and reconstruction of trunk highways and routes of regional significance; at least 50% for transit purposes including capital improvements for transitways, park-and-ride lots, feasibility studies, engineering and construction of transitways and transit operations; 25% is flexible, applying to roads, transit or up to five percent for bicycle and pedestrian programs. - Authorizing counties outside of the metropolitan area to impose a local transportation sales tax of 0.5 percent and a motor vehicle sales excise tax of $20; and - Amending the county state-aid highway fund allocation formula ^ Provides an increase of $692 million/year in NEW REVENUE over the next 10 .years. With trunk highway bonds - $842 million per year. Imposes 2 statewide tax increases: gas tax increase and tab fee increase. Other funding provisions dedicate existing funds or authorize local governments to levy a tax if they choose to do so. The Minnesota Transportation Alliance 525 Park St, Ste. 105 St. Paul, MN 55103 • Phone 651!659-0804 • Fax 651/659-9009 • E-MAIL.: maroaretCa2trans~ortationalliance.com