1.1 	A bill for an act
1.2 	relating to taxation; imposing 0.25 percent sales tax
1.3 	in the metropolitan area for infrastructure debt
1.4 	service and transit operations; proposing coding for
1.5 	new law as Minnesota Statutes, chapter 473J.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. [473J.01] METROPOLITAN INFRASTRUCTURE SALES
1.8 	TAX AREA.
1.9 	The metropolitan infrastructure sales tax area is the area
1.10 	within the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,
1.11 	Scott, and Washington.

1.12 	Sec. 2. [473J.02] SALES TAX.
1.13 	A sales and use tax of 0.25 percent is imposed on retail
1.14 	sales and uses taxable under chapter 297A that occur in the
1.15 	metropolitan infrastructure sales tax area.  This tax is in
1.16 	addition to the taxes imposed by sections 297A.62, subdivision
1.17 	1, and 297A.63, subdivision 1, and any local taxes imposed
1.18 	pursuant to a special law.

1.19 	EFFECTIVE DATE. This section is effective for sales and
1.20 	purchases made after July 31, 2005.

1.21 	Sec. 3. [473J.03] TAX COLLECTION.
1.22 	The tax imposed by section 473J.02 must be reported and
1.23 	paid to the commissioner of revenue with the taxes imposed by
1.24 	chapter 297A and in accordance with an agreement between the
1.25 	counties in the metropolitan infrastructure sales tax area and
2.1 	the commissioner of revenue.  The taxes are subject to the same
2.2 	interest, penalty, and other provisions provided for sales and
2.3 	use taxes under chapters 289A and 297A.  The commissioner has
2.4 	the same powers to assess and collect the tax as are given the
2.5 	commissioner in chapters 270, 289A, and 297A to assess and
2.6 	collect sales and use taxes.  The commissioner shall deposit the
2.7 	revenues, including interest and penalties, derived from the tax
2.8 	in the state treasury and credit them to the general fund.

2.9 	EFFECTIVE DATE. This section is effective for sales and
2.10 	purchases made after July 31, 2005.

2.11 	Sec. 4. [473J.04] METROPOLITAN INFRASTRUCTURE SALES TAX
2.12 	ACCOUNT.
2.13 		Subdivision 1.Transfer to fund. (a) The revenue
2.14 	collected under section 473J.03, less the cost of collection, is
2.15 	appropriated from the general fund to the commissioner of
2.16 	finance for transfer to a special account within the general
2.17 	fund in the state treasury, to be called the metropolitan
2.18 	infrastructure sales tax account.
2.19 	(b) The cost of collection equals the direct and indirect
2.20 	costs of the Department of Revenue to administer, audit, and
2.21 	collect the revenue, plus the metropolitan infrastructure sales
2.22 	tax area's proportionate share of the indirect cost of
2.23 	administering all local sales and use taxes under section
2.24 	297A.99.
2.25 		Subd. 2.Use of fund. Money in the metropolitan
2.26 	infrastructure sales tax account is appropriated as follows:
2.27 	(1) 60 percent to the Metropolitan Council for annual
2.28 	distribution among the counties in the metropolitan
2.29 	infrastructure sales tax area, so that each county receives 60
2.30 	percent of the revenues under section 473J.02 derived from sales
2.31 	and uses in that county in the previous year, to be used by each
2.32 	county for debt service relating to major infrastructure
2.33 	improvements as identified by each county, or for costs of
2.34 	operating transit, or for both purposes; and 
2.35 	(2) 40 percent to the Metro Transitways Development Board
2.36 	for transit purposes in the metropolitan infrastructure sales
3.1 	tax area.
3.2 	
EFFECTIVE DATE. This section is effective for sales and
3.3 	purchases made after July 31, 2005.

3.4 	Sec. 5. APPLICATION.
 3.5 	Sections 1 to 4 apply in the counties of Anoka, Carver,
3.6 	Dakota, Hennepin, Ramsey, Scott, and Washington.