HF1740 Summary

• Imposes a 0.25% sales and use tax and $20 motor vehicle excise tax in seven metro counties (Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, Washington) to fund regional transportation improvements, effective July 1, 2013.

• Establishes a joint powers board consisting of county commissioners and the Metropolitan Council chair to oversee grant awards for transit capital, operations, and related projects, with a Grant Evaluation and Ranking System (GEARS) Committee to evaluate and rank applications.

• Allocates net tax proceeds with priority to debt service on bonds issued before January 1, 2011, then distributes remaining funds between the Metropolitan Council ($66.6-78.2 million annually) for transit operations and the joint powers board for capital grants.

• Requires minimum guarantee counties (where sales tax revenue is ≤4% of total) to receive annual grants totaling at least one-third of 55% of net proceeds multiplied by their share of statewide general sales tax revenue.

• Authorizes the joint powers board and Metropolitan Council to issue revenue bonds secured by the transit sales tax revenues to fund transportation capital improvements and debt refinancing.