Laserfiche WebLink
Short Version <br />Motor Vehicle Lease Sales Tax Allocation to Hennepin County. The city of advocates <br />for eliminating the exemption that prevents Hennepin and Ramsey counties from receiving their portion <br />of the sales tax on leased vehicles through the county state aid formula. This change would provide an <br />estimated $10.7 million in annual funding to Hennepin County to be used for improvements to roads <br />and bridges. <br />Long Version <br />Motor Vehicle Lease Sales Tax Allocation to Hennepin County. In 2015, state legislation was passed to <br />reallocate $32 million of the sales tax collected from leased vehicles from the State's general fund, 50% <br />to Greater Minnesota transit and 50% to metro counties through the County State Aid Highway fund. In <br />an effort to balance funding for transit and roads/bridges, the new law excluded Hennepin and Ramsey <br />counties from receiving their percentage of funding. Instead, the other five metro counties split the <br />proceeds generated in Hennepin and Ramsey counties. With the elimination of the CTIB Board in 2017, <br />all seven metro counties now collect their own local transportation sales tax, spend the proceeds on <br />their own transportation projects and have equal opportunity for funding. The City of <br />advocates for returning to the original intent by eliminating the exemption of Hennepin and Ramsey <br />counties and distributing the sales tax on leased vehicles, per the county state aid formula, to all metro <br />counties. Distributing Hennepin and Ramsey county proceeds to the other five metro counties puts <br />cities in these counties at a disadvantage when it comes to accessing county funds for road and bridge <br />projects. This change would provide an estimated $10.7 million in annual funding to Hennepin County <br />to be used for improvements to roads and bridges. <br />