4.2. SR 12-16-2002 - Laserfiche WebLink

Home Browse Search

More Transit Options Fewer Highway Hassles Metro Transitways Development 2003 Legislative Proposal: Minnesota Rides Board The Metro Transitways Development Board (MTDB) is proposing a comprehensive project priority and financing plan to support roadway improvements, better bus service and new transitways. Called Minnesota Rides, this cost-effective plan identifies the new resources and transportation priorities that are needed if we are going to start making measurable improvements in solving the transportation problems that are affecting people and businesses in Minnesota. Our Minnesota Rides Financing Proposal 1. Referendum on a One-half Percent Metro-Wide Sales Tax The Legislature should authorize a referendum on adding a one-half percent sales tax in a multi-county metro service area for a 10-year period. If voters approve the referendum: ~ Proceeds will fund both major transit capital projects and major highway projects. An additional $217 million will be raised in 2005 (2002 estimate). ~ The state's 6.5 percent motor vehicle sales tax rate will not be affected. The tax will be authorized for 10 years and then it will sunset. 2. Six-Cent Gas Tax Increase The state gas tax should move from 20 cents to 26 cents. ~ The tax will generate $192 million more a year. This will allow for a $113 million increase in the state's highway construction budget and $79 million for counties, cities and townships. A Minnesotan who drives 15,000 miles a year in a car that gets 15 miles to a gallon will pay $60 more a year. 3. Accelerated Highway Bonding Bonds should be issued to accelerate the construction schedule on high priority highway projects and to take advantage of low interest rates. Debt service will be derived from new gas tax revenues. 4. New License Tab Fee Schedule A new schedule for license tab fees should be adopted that will bring more money into the Highway User Tax Distribution Fund. This will allow a greater percentage of motor vehicle excise tax revenues to fund new transit operations. - The goal is to eventually raise more than $100 million a year for transit operations. The amount and timing will depend on a number of decisions, including the details of a new schedule and the phasing of implementation. - This investment will be made without any additional cost to the state's general fund and while maintaining the integrity of the Highway User Tax Distribution Fund. November 2002 - A Joint Powers [3oard of Metropolitan Counties