Dedicated Transit Taxes

Counties Transit Improvement Board - Minnesota Legislature, Revisor of Statutes

Summary: The Counties Transit Improvement Board (CTIB) is the result of a joint powers agreement permitted through Minnesota Legislature’s H.F. 2800 and S.F. 2521. These bills proposed a .5% sales tax increase for the seven metropolitan area counties, as well as a new $20 tax to be added on the purchase of any motor vehicle. Originally, this collected tax was to be divided equally among the counties to fund transit and highway projects. The final version of the bill reduced the sales tax increase to .25%, and the portion allocating funds to be used for highway funding was removed. CTIB exists to “provide a dedicated source of transit way funding” with the money collected through these taxes by issuing grants and bonds. The final bill was passed on February 21, 2008. Governor Tim Pawlenty vetoed the bill, a move the Legislature ultimately overrode on February 25, 2008.

Overview of Counties Transit Improvement Board Joint Powers Agreement - Hennepin County

Summary: CTIB will consist of two appointed county commissioners, and one or more alternates from each member county. The Chair of Metropolitan Council will also serve on the Board. There will be a total of 100 votes on the Board: 5 will be allotted to the Chair of Metropolitan Council, and the remaining 95 votes will be split up between the counties based on population and sales tax revenue. One member from each county is allowed to cast all of the county’s votes. With five counties making up the Board, the votes will be allocated as follows: Anoka 10 votes, Dakota 13 votes, Hennepin 47 votes, Ramsey 18 votes and Washington 7 votes. Breaking it down further, Anoka makes up 12.6% of the population represented by the Board, Dakota 15%, Hennepin 44.1%, Ramsey 19.7% and Washington 8.7%. Anoka is projected to bring in 8.4% of the totals sales tax revenue, Dakota 12.8%, Hennepin 55%, Ramsey 18.2% and Washington 5.5%. The Board is expected to generate $100 million a year (after administrative costs).