2005 House Bill 2481 (Transportation Spending and Taxes)

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• Introduced by Rep. Jim Abeler, Rep. Ray Cox, Rep. Ron Erhardt, Rep. Alice Hausman, Rep. Frank Hornstein, Rep. Dan Larson, Rep. Bernie Lieder, Rep. Neil W. Peterson, Rep. Char Samuelson and Rep. Kathy Tingelstad on April 26, 2005, to make a variety of transportation changes and tax increases. Among the substantive provisions, this bill: 1) change the county-state aid distribution formula so that ten percent is divided equally among the counties, ten percent is apportioned based on the percentage of vehicle registrations, 30 percent is apportioned based on the percentage of lane miles, and 50 percent is apportioned based on the percentage of its needs compared to the needs of all counties, 2) apportiones the excess sum by granting 40 percent based on the percentage of vehicle registrations, and 60 percent based on the percentage of need, 3) allows any county (not just those in the metropolitan area) to impose a "wheelage tax" ( local license tab fee) of up to $20 annually per motor vehicle registered in the county (except motorcycles). The property tax levy reduction for counties imposing a "wheelage tax" in current law would be repealed, 4) increases the gas tax (E85 from 14.2-17.75 cents per gallon, M85 from 11.4 to 14.25 cents per gallon, other gas from 20 to 25 and then 30 cents per gallon, propane from 16 to 18.75 and then 22.5 cents per gallon, liquified natural gas from 12 to 15 and then 18 cents per gallon, and compressed natural gas from $1.739 to $2.174 and then $2.609 per thousand cubic feet), 5) increases the percentage of the gas tax dedicated to transportation gradually so that after 2011, 100 percent is used for transportation (60 percent for highways, 38 percent for metro transit and 2 percent for greater Minnesota transit), 6) spends 100 million in each year from 2006-2015 for highway debt service, 7) spends $1 billion in state bonds on transportation, and 8) amends the Minnesota Constitution to dedicate (starting in 2007) 63.75 percent of the car tax to transportation, which would be increased by 10 percent until 2011 when 100 percent would be dedicated to transportation. The question would be put to the voters at the 2006 general election to dedicate, after 2011, 40 percent of the car tax to public transit and 60 percent to highways.
  • Referred to the House Transportation Finance Committee on April 26, 2005.
  • Motion by Rep. Michael Beard on May 5, 2005, to remove his name as an author of HF2481. The motion passed in the House by voice vote on May 5, 2005.

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Introduced by Rep. Jim Abeler, Rep. Ray Cox, Rep. Ron Erhardt, Rep. Alice Hausman, Rep. Frank Hornstein, Rep. Dan Larson, Rep. Bernie Lieder, Rep. Neil W. Peterson, Rep. Char Samuelson and Rep. Kathy Tingelstad on April 26, 2005. New Comment