2006 Transportation amendment

Amendment language as it appeared on the ballot Nov. 7

"Shall the Minnesota Constitution be amended to dedicate revenue from a tax on the sale of new and used motor vehicles over a five-year period, so that after June 30, 2011, all of the revenue is dedicated at least 40 percent for public transit assistance and not more than 60 percent for highway purposes?"

Motor Vehicle Sales Tax as a Transportation Revenue Source
The Motor Vehicle Sales Tax (MVST) was previously defined as the Motor Vehicle Excise Tax (MVET)

 

 

1981

Established phase-in of MVST as a transportation revenue source (75% Highways, 25% Transit) over three biennium (100% by FY 1990).

1983

Delayed scheduled phase-in two years.

1984

Added one additional year (FY 1985) at the 25% share.

1986

Took away FYs 1986 and 1987 (@25% share); left intact the schedule for FY 1988 and beyond.

1987

Eliminated the phase-in concept. Allowed 5% transfer for FY 1988 and beyond.

1988

Allowed 30% MVST transfer for 1989 and beyond; provided that beginning July 1, 1991 none of the highway share would be distributed to County State Aid Highway (CSAH) and Municipal State Aid System (MSAS) Funds.

1989

Allowed 35% MVST transfer for FY 1990 and beyond. All of the highway share (75%) of the additional 5% is transferred to the Trunk Highway Fund.

1990

Allowed 30% MVST transfer for FY 1991 and beyond. The 5% reduction was taken from the HUTDF share, resulting in 25% for HUTDF/Transit distribution, and 5% credited entirely to the Trunk Highway Fund/Transit.

1991

Eliminated as a transportation revenue source.

2001

HIGHWAYS: In FY 2002, 30.86% of MVST revenues were deposited in the Highway User Tax Distribution Fund. In FY 2003, 32% of MVST revenues were deposited in the Highway User Tax Distribution Fund.

 

TRANSIT: For FY 2003, 20.5% of MVST was dedicated to the Metropolitan Area Transit Fund and 1.25% of MVST was dedicated to the Greater Minnesota Transit Fund, both for property tax relief. An additional 2% of MVST was scheduled to be dedicated to the "metropolitan area transit appropriation account" beginning on July 1, 2003.

2003

For 2004 - 2007 the distribution was changed to the following:

  • HIGHWAYS: 30% of MVST revenues will be deposited to the Highway User Tax Distribution Fund, 0.65% to the County State Aid Highway Fund, and 0.17% to the Municipal State Aid Street Fund.

  • TRANSIT: 21.5% of MVST revenues will be dedicated to the Metropolitan Area Transit Fund and 1.43% to the Greater Minnesota Transit Fund. No money will be deposited to the "metropolitan area transit appropriation account."

After 2007, the distribution will revert to that which was in effect for FY 2003, except there will no longer be a distribution to the "metropolitan area transit appropriation account."

2005

Constitutional amendment was passed, providing that by FY 2012 all revenues would be dedicated to transportation as follows: (1) not more than 60% to be deposited in the Highway User Tax Distribution Fund; and (2) not less than 40% to be dedicated to transit. Currently 46.25% is deposited in the General Fund, and in 2012 none of MVST revenue would be deposited to the General Fund. A five-year phase-in schedule is provided in the amendment.

2006

Voters approved the proposed constitutional amendment in the November 2006 general election. Under terms of this change to the constitution, the distribution of MVST revenues will be as shown below (assuming that 60% is allocated to the Highway User Tax Distribution Fund and 40% is allocated to transit):

Fiscal Year

2008

2009

2010

2011

2012

Allocation to the

Highway User Tax

38.25%

44.25%

50.25%

56.25%

60%

Distribution Fund

Allocation to transit

25.5%

29.5%

33.5%

37.5%

40%

Total To Transportation

63.75%

73.75

83.75%

93.75%

100%

As stated in the amendment, not more that 60% may be deposited in the Highway User Tax Distribution Fund, and not less than 40% must be allocated to transit.  Therefore, the table above shows the maximum percentages that will be allocated to the Highway User Tax Distribution Fund and the minimum percentages that will be allocated to transit.

Transportation Funding