Metro Regional Sales and Use Tax Account - Policies

Metropolitan Regional Sales and Use Tax Account

MnDOT Policy #FM029
Effective: July 23, 2026

Please go to the MnDOT Org Chart to find specific contact information: Org Chart.

Responsible Senior Officer: Deputy Commissioner/Chief Administrative Officer
Policy Owner: Financial Controller and Director, Office of Financial Management
Policy Contact: Budget Director, Office of Financial Management

Policy statement

As required by Minn. Stat. § 297A.9915, the Minnesota Department of Revenue (MDOR) must allocate 17% of the proceeds from the regional transportation sales tax to the Minnesota Department of Transportation (MnDOT) for distribution to metropolitan counties.

Funds will be distributed once per fiscal year. During the soft close period, once all funds have been deposited, MnDOT must distribute the funds in the metropolitan regional transportation sales and use tax account to each metropolitan county according to Minn. Stat. § 174.49, subd. 5.

Reason for policy

Minnesota Statutes § 297A.9915 establishes the regional transportation sales and use tax and specifies the percentage of the fund that must be distributed to the specified counties but does not specify when payments must be made. This policy establishes when and how funds will be distributed.

MnDOT does not have any administrative oversight into the use of these funds. Each metropolitan county is required to follow appropriate accounting practices to clearly show that the funds they receive are used according to the statutory requirements.

Applicability

All MnDOT employees must comply with this policy.

Key stakeholders with responsibilities under this policy include:

Commissioner
Chief Financial Officer
Financial Controller and Director, Office of Financial Management
Office of State Aid

Definitions

Metropolitan counties

The counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

Regional transportation sales tax

The regional transportation sales and use tax imposed by Minn. Stat. § 297A.9915.

Soft close period

July 1 through mid-August following the end of the fiscal year.

Responsibilities

Commissioner

Distribute or transfer funds in the regional transportation sales and use tax account according to Minnesota Statutes § 174.49, subd. 5.

Chief Financial Officer

Collaborate with recipients and the Office of State Aid regarding distribution and transfer of funds.

Financial Controller and Director, Office of Financial Management

Review the policy every two years, or sooner as necessary, to ensure the policy remains up to date.
Ensure documents associated with the policy remain current.
Monitor state, federal, enterprise, agency, or other requirements that apply to the policy or procedures.
Consult with the Office of Chief Counsel to ensure the policy and procedures remain compliant with all state, federal, enterprise, agency, or other requirements.
Ensure that necessary approvals by state or federal agencies are obtained before changes to the policy or procedures are implemented.
Work with the Policy Coordinator to revise the policy and/or confirm its accuracy.
Communicate policy revisions, reviews, and retirements to stakeholders.

MnDOT Policies