S.F. No. 3524 - Transportation Budget Bill Summary

• Increases transportation appropriations to $2.91 billion for FY 2017 and establishes $2.002 billion in trunk highway bond authority spread across fiscal years 2017-2024 for highway construction and corridors of commerce program.

• Creates new 6.5% motor fuels gross receipts tax on wholesale gasoline prices (with $2.50 minimum) effective October 1, 2016, applying to all motor fuel types with graduated rates for alternative fuels like E85, M85, LPG, LNG, and CNG.

• Imposes 0.5% metropolitan area transit sales and use tax in seven-county metro area (Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, Washington) effective October 1, 2016, with revenues dedicated to transit operations, capital improvements, and bicycle/pedestrian projects.

• Increases vehicle registration taxes, driver's license fees, and title fees; extends technology surcharge through 2019; establishes commercial operator permits and registration requirements for unmanned aircraft systems.

• Enhances rail safety programs by expanding state rail safety inspector positions to up to 9, establishes crude oil/hazardous materials rail safety assessment program capped at $32.5 million annually, and increases State Patrol Patrol Academy funding.