HF1449 Summary

• Authorizes sale and issuance of $800,800,000 in trunk highway bonds, with $800,000,000 appropriated to the Department of Transportation ($400,000,000 for Corridor Investment Management Strategy Program and $400,000,000 for Transportation Economic Development Program, $100,000,000 per fiscal year from 2014-2017).

• Increases motor vehicle registration tax from $10 to $20 base fee plus 1.375% (increased from 1.25%) of base value, effective July 1, 2013, and imposes 5% late payment penalty for taxes unpaid within 30 days.

• Increases fuel excise tax rates effective October 1, 2013: E85 from 17.75 to 21.3 cents per gallon, M85 from 14.25 to 17.1 cents per gallon, and standard gasoline from 25 to 30.0 cents per gallon, with corresponding increases for special fuels.

• Expands sales tax to include motor vehicle repair and maintenance services and automotive warranties/service contracts, effective January 1, 2014, while exempting warranty and manufacturer recall-covered repairs.

• Increases local transportation tax options: county wheelage tax rates now set by resolution (formerly $5 fixed), and metropolitan area sales tax increased from 0.25% to 0.75% with 2/3 for transit and 1/3 for county highways; authorizes greater Minnesota counties to impose up to 0.5% transportation sales tax by resolution without voter approval.

• Establishes municipal street improvement districts allowing cities to levy fees on parcels for street improvements and maintenance over 5-20 year periods.