HF 894 Summary

• Transportation and Public Safety Appropriations: Appropriates $7.537 billion over biennium (fiscal years 2018-2019) across multiple funds including trunk highway ($4.364 billion), county state-aid highways ($1.996 billion), and general fund ($226 million).

• Motor Fuels Gross Receipts Tax: Imposes new 6.5% gross receipts tax on average wholesale price of motor fuels, effective October 1, 2017, with minimum price floor of $2.50 per gallon; applies proportionally lower rates to alternative fuels (E85, M85, LPG, LNG, CNG).

• Metropolitan Area Transit Sales Tax: Authorizes half-percent sales and use tax in seven-county metro area (Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, Washington) for transit operations, capital improvements, and bike/pedestrian projects, with revenue prioritized for debt service and existing bus service preservation.

• Transportation Bonds: Authorizes $2.002 billion in state bonds ($2 billion for Department of Transportation corridors of commerce and highway construction; $2 million for bond sale expenses), available over eight fiscal years (2018-2025).

• Fee and Tax Modifications: Increases vehicle registration fees, motor vehicle transfer fees, and various permit fees; modifies flexible highway account distribution; establishes new rail safety inspection program and crude oil/hazardous materials rail safety assessments.