MN SF2869

Exempts the Department of Transportation from sales tax effective July 1, 2014, and requires the commissioner to include estimated sales tax payments to contractors in biennial budget submissions for trunk highway construction and maintenance projects.

Establishes a sales tax exemption for the Department of Transportation purchases while maintaining existing exemptions for construction materials purchased by contractors under lump-sum or guaranteed maximum price contracts.

Revises motor vehicle lease sales tax revenue distribution by allocating $32,000,000 to the county state-aid highway fund, 50 percent of remaining revenues to county state-aid highways (distributed to metropolitan area counties by population), and remaining revenues to the greater Minnesota transit account.

Amends the replacement service operation cost formula by increasing the ratio percentage from 3.74 percent to 4.5 percent of state revenues generated from vehicle taxes under chapter 297B for the current fiscal year.

All changes effective July 1, 2014, for sales and purchases on or after that date.