Section 1 rededicates the first $32 million of revenues from the sales tax on motor vehicle leases to the highway user tax distribution fund. This amount is currently deposited in the general fund. The remaining revenues will continue to be distributed as under current law: 50% to the greater Minnesota transit account in the transit assistance fund; and 50% to the county state-aid highway fund, to be allocated to the counties of Anoka, Carver, Dakota, Scott and Washington.
This section is effective January 1, 2018.
Section 2 dedicates the total revenues from two rental vehicle taxes to the highway user tax distribution fund:
the rental motor vehicle tax (9.2% tax rate); and
the revenue from the sales tax the lease or rental for not more than 28 days of motor vehicles (6.5% tax rate). The commissioner must estimate the amount of the revenues from this tax based on the amount of revenue collected from the 9.2% rental motor vehicle tax.
The revenue from each tax is currently deposited in the general fund.
This section is effective July 1, 2017.