Coversheet

Board Action Request
17-0203

Item Description:
Establish a public hearing on June 6, 2017 at 1:30 p.m. at the Public Works Committee to receive public comments on the imposition of a new sales and use transportation and transit sales tax and the potential uses of that revenue

WHEREAS, Hennepin County’s transportation system contributes to a high quality of life and strong economy by providing an integrated network of roads, bridges, bikeways, sidewalks, and transitways that includes 2,200 lane miles of roadways, 651 miles of bikeways, 379 miles of sidewalks, and 147 bridges; and

WHEREAS, Hennepin County supports a comprehensive regional system of transitways that includes existing Blue Line Light Rail Transit (LRT), Green Line LRT, Red Line Bus Rapid Transit (BRT), and Northstar Commuter Rail; planned Green Line Extension LRT, Blue Line Extension LRT, and Orange Line BRT; and proposed Riverview Corridor transit; and

WHEREAS, Hennepin County recognizes that adequate and predictable revenue is needed to continue advancing a comprehensive local and regional system of transitways, in particular, to replace funds anticipated to be provided by the State of Minnesota that the State is likely not to provide; and

WHEREAS, Hennepin County currently levies a sales tax of one-quarter cent for transit purposes along with four other counties for the Counties Transit Improvement Board (CTIB), but in light of the lack of anticipated state funding for priority projects, the CTIB counties are considering withdrawing from or terminating CTIB; and

WHEREAS, the Minnesota State Legislature authorized counties not participating in the CTIB to adopt a local option sales and excise tax for transportation and transit by resolution after holding a public hearing (Minnesota Statutes, section 297A.993, subdivision 1); and

WHEREAS, if counties withdraw from CTIB or CTIB is dissolved, funds for priority projects will also be needed to replace capital and operating funds that CTIB had committed; and

WHEREAS, the Hennepin County Board of Commissioners desires to consider a local option sales and excise tax for transit and/or transportation investments serving the county in the event the CTIB dissolves or Hennepin County withdraws from CTIB such that the current one-quarter cent sales tax would no longer be levied; and

WHEREAS, consistent with the requirements of Minnesota Statutes, section 297A.993, Hennepin County has prepared a Sales and Use Transportation Tax Implementation Plan identifying transit and/or transportation investments serving Hennepin County, and the Hennepin County Board of Commissioners desires to solicit public comment as required for imposition of a new sales tax; and

WHEREAS, Hennepin County previously held two such public hearings prior to laying the matter over to the call of the chair; and

WHEREAS, the Hennepin County Board of Commissioners may wish to bring the matter back before the Board at the June 13, 2017 board meeting.

Resolution:

BE IT RESOLVED, that a public hearing to obtain public comment on the imposition of a new transportation/transit sales tax and the potential uses of that revenue, be held before the Public Works Committee on Tuesday, June 6, 2017, at 1:30 p.m., or as soon thereafter as practicable, in the Board Room (A-2400) of the Hennepin County Government Center, 300 South Sixth Street, Minneapolis, Minnesota; and that the County Administrator take such actions as are appropriate to provide notice of the hearing.


Background: History: The members of the Counties Transit Improvement Board (CTIB) are exploring the voluntary dissolution of the joint powers board for the purpose of securing needed additional funding for priority transit and transportation projects. Under current law, counties participating in CTIB (i.e., Anoka, Dakota, Hennepin, Ramsey, and Washington) are required to impose a one-quarter of one percent sales tax and excise tax of $20 per motor vehicle for transit. Under a different statute, Minnesota counties not participating in CTIB may impose a higher tax (a sales tax of up to one-half of one percent and an excise tax of $20 per motor vehicle) for transportation projects and improvements. Twenty-six counties use some or all of this sales tax authority available to counties not participating in CTIB. If CTIB dissolves, the five participating counties now participating in CTIB would then have the same authority as the 82 nonparticipating counties to impose up to one-half of one percent sales tax, as well as the flexibility to prioritize projects based on local need. Before the new tax becomes effective, the original one-quarter of one percent CTIB tax would terminate. In preparation for the possible dissolution of CTIB, and consistent with the requirements of Minnesota Statutes, section 297A.993, Hennepin County has prepared a Sales and Use Transportation Tax Implementation Plan identifying transit and transportation investments serving Hennepin County. A public hearing is required before imposition of the new taxes to fund projects identified in the plan. Current Request: Establish a public hearing to receive public comments on the imposition of a new transportation and transit tax and the potential uses of that revenue, before the Public Works Committee on June 6, 2017 at 1:30 p.m., or as soon thereafter as practicable, in the Board Room (A-2400) of the Hennepin County Government Center. Impacts/Outcomes: The public will be given the opportunity to express their views with respect to the imposition of a new sales and use transportation and transit tax. Implementation of the tax will provide a reliable source of locally generated funds to strategically implement investments that achieve the county’s transportation and transit vision.


Recommendation from County Administrator: Recommend Approval