1 Increase General Obligation bonds for local roads and bridges County State Aid Highway System Municipal State Aid System Greater Minnesota Transit Metropolitan Area Transit Passenger Rail Freight, Rail, Ports Airports No new revenue Borrowing 3 Creation of a separate bonding authority State Highway System County State Aid Highway System Municipal State Aid System Greater Minnesota Transit Metropolitan Area Transit Passenger Rail Freight, Rail, Ports Airports No new revenue Borrowing New taxes 0 Increasing all “visitor” taxes: rental car, hotel tax, hospitality tax, etc. State Highway System County State Aid Highway System Municipal State Aid System Greater Minnesota Transit Metropolitan Area Transit Passenger Rail Freight, Rail, Ports Airports Low: Revenue potential depends upon how this option is implemented and what share is directed from general fund to transportation System Revenue / Governance 2 State tire excise tax State Highway System County State Aid Highway System Municipal State Aid System Greater Minnesota Transit Metropolitan Area Transit Freight, Rail, Ports Moderate: estimated to be $25 million with a $6.50 per-tire tax System Revenue 1 Transportation payroll tax. (Portland Example) Greater Minnesota Transit Metropolitan Area Transit Low: Amount generated will be dependent upon rate System Revenue
3 Nationwide Amazon/Internet sales tax with money going to states State Highway System County State Aid Highway System Municipal State Aid System Greater Minnesota Transit Metropolitan Area Transit Passenger Rail Freight, Rail, Ports Airports Low: Dept. of Revenue estimates $394 million was uncollected from catalog sales and remote sellers in 2011. Potential depends upon how this option is implemented and what share is directed from general fund to transportation Governance / Enforcement Property tax 2 Restore transit spending to property tax; operations and capital spending – Increase transit spending on the property tax for metropolitan area transit capital spending Currently the Metropolitan Council has the authority to levy a property tax within a designated taxing area to pay for the debt service on bonds used for transit capital purposes. This source provides the funding needed to preserve and maintain the base bus system – i.e. replace fleet and maintain facilities. This funding source should continue and needs to grow to allow for continued preservation of the transit system. The designated taxing area should also be expanded to include the entire 7 county area which benefits from the capital expenditures. In addition, current law requires the Legislature to authorize the total amount of bonds that can be sold. This authorization has become political and difficult to obtain and annually puts the system at risk of not having the basic funding to preserve the existing system. Greater Minnesota Transit Metropolitan Area Transit Moderate: amount generated will be dependent upon rate Governance / Redistribution
2 Motor vehicle registration increase Motor vehicle registration fees are constitutionally dedicated to highway purposes only. This revenue source is appropriate for highways and represents a user fee. This tax could be increased/modified in a number of ways to raise significant additional revenues for highway purposes. Options include increasing the tax rate, modifying the vehicle depreciation schedule and increasing the base fee. State Highway System County State Aid Highway System Municipal State Aid System Greater Minnesota Transit Metropolitan Area Transit High: 0.25% increase yields $115 million with formula distribution System Revenue Efficiency and effectiveness of transportation operations 7 Get best value for transportation dollars through performance management system and high return on investment *Conduct a thorough inside and outside evaluation of how we do business from the state through all local levels. (See letter attached) State Highway System County State Aid Highway System Municipal State Aid System Greater Minnesota Transit Metropolitan Area Transit Passenger Rail Freight, Rail, Ports Airports No new revenue Operations Efficiency 1 Improve permitting process to save time and money State Highway System County State Aid Highway System Municipal State Aid System Passenger Rail Freight, Rail, Ports Airports No new revenue Operations Efficiency General Fund reallocation to transportation 0 Larger percent of sales tax collections going to transportation State Highway System County State Aid Highway System Municipal State Aid System Greater Minnesota Transit Metropolitan Area Transit Passenger Rail Freight, Rail, Ports Airports Moderate to High: Revenue potential depends upon how this option is implemented and what share is directed from general fund to transportation Revenue Redistribution