1. Greater Minnesota Transportation Sales And Use Tax
Schedule Public Hearing
June 6, 2017

2. Transportation Sales and Use Tax Background
County Transit Improvement Board (CTIB) enabled by 2008 Metropolitan Area Transportation Tax Legislation (Minn. Stat. 297A.992)
One-quarter percent sales and use tax
Excise tax of $20 per motor vehicle
Anoka, Dakota, Hennepin, Ramsey and Washington Counties
Capital and Operating funds for regional transitways
Cedar Avenue METRO Red Line BRT
I 35W Metro Orange Line BRT

3. Dakota County Withdrawal from CTIB
County voted to withdraw from CTIB in June, 2016
Future rate of return to Dakota County of less than 40%
January 1, 2019 is effective date of withdrawal per CTIB Joint Powers Agreement (JPA)
Recently, CTIB considering voluntary dissolution as of June 30, 2017 through termination of their JPA
Increased cost for program of projects
Allows counties to access the Greater MN Transportation Tax up to one-half percent rather than one-quarter percent
After effective date of withdrawal, or CTIB dissolution, eligible to enact Greater Minnesota Transportation Sales and Use Tax
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4. Greater Minnesota Transportation Sales and Use Tax Background: Local Transportation Sales Tax
32 counties with Transportation
Sales Tax:
16 with Wheelage
4 CTIB
Olmsted is DMC
16 Sales Tax only
1 CTIB
Carver Passed in May

5. Transportation Sales and Use Tax Background
MN Statutes 297A.993 for counties outside the Metropolitan Transportation Area (CTIB):
Up to one-half of one percent sales and use tax
Excise tax of $20 per motor vehicle
$16.6 million at one-quarter percent (2018)
Transportation or Transit projects or improvements:
Transportation project or improvement capital costs
Transit project or improvement capital and operating costs
Safe routes to school program capital costs
Transit operating costs
Enacted by Board resolution following public hearing

6. Rationale for Consideration of a Transportation Sales and Use Tax
Significant unmet County transportation needs with existing revenue sources
Can be used for a wide array of transit, transitway and highway transportation purposes
Not just transitways
Dakota County transit runs on highways
No change in current Dakota County sales tax rate if enacted at one-quarter percent
May allow for offset of other County taxes currently used for transportation purpose
All revenues returned to Dakota County for Transportation purposes

7. Transportation Sales and Use Tax Background
Board Workshop February 14, 2017:
County Highway, Trunk Highway, Transitway and Transit needs
Public Hearing, March 7, 2014
Enacted one-quarter percent Greater Minnesota Sales and Use Tax contingent upon exit from CTIB, March 21, 2017:
Dakota County Transportation Sales and Use Tax Transportation Improvement Program-Eligible Projects
Department of Revenue requirement that CTIB counties hold new hearings and actions to enact Greater Minnesota Sales and Use Tax:
Consistent CTIB dissolution date of September 30, 2017
Assignment of CTIB grant obligations
Metropolitan Council assumption of METRO Red Line Cedar Avenue BRT operating costs

8. Dakota County Transportation Sales and Use Tax Transportation Improvement Program-Eligible Projects
REGIONAL TRANSITWAY CAPITAL AND OPERATION COSTS
METRO Red Line Cedar Avenue Bus Rapid Transit, capital costs
METRO Orange Line I-35 Bus Rapid Transit, capital and operating costs
METRO Orange Line Extension I-35 Bus Rapid Transit, capital and operating costs
Robert Street Transitway Locally Preferred Alternative Study
Agreements assigned by CTIB to, and assumed by, Dakota County
2017 Operating Grant Agreement for METRO Red Line Service
2017 Operating Grant Agreement for Cedar Avenue Express Service
2017 Operating Grant Agreement for the I-35W South Express Service
Through a separate agreement with the Metropolitan Council, 14% of the remaining balance of the 2017 Capital Grant Agreement for I 35W South BRT Project (METRO Orange Line)
TRANSIT SERVICE EXPANSION CAPITAL AND OPERATING COSTS
Up to $1 million annually for non-transitway transit capital and operating costs

9. Dakota County Transportation Sales and Use Tax Transportation Improvement Program-Eligible Projects
REGIONAL COUNTY HIGHWAY PROJECTS
CSAH 70 expansion from I-35 to CSAH 23 in Lakeville
CSAH 46 expansion from TH 3 to TH 52 in Rosemount and Empire Township
CSAH 42 expansion from I-35E east to city border in Burnsville
REGIONAL FEDERAL AID TRAIL PROJECTS
Up to $1 million annually to match federal aid transportation funds received for regional trails
TRUNK HIGHWAY PROJECTS
TH 77 Managed lane/MnPASS expansion in Apple Valley and Eagan
TH 3 expansion from 55th Street to TH 55 in Inver Grove Heights
TH 3 expansion from TH 149 to Rosemount in Eagan, Inver Grove Heights, and Rosemount
TH 55 expansion, CSAH 42 to Hastings in Rosemount and Nininger Township
TH 52 and CSAH 66 interchange in Vermillion Township
I-35 MnPASS extension to CSAH 50 in Burnsville and Lakeville
I-35 and CSAH 50 interchange reconstruction in Lakeville

11. Transportation Sales and Use Tax Next Steps
June 20, 2017 County Board Meeting:
Hold Public Hearing on enactment of the Greater Minnesota Sales and Use Tax
Consider approval of the Resolution for dissolution of CTIB
Consider the Dakota County Transportation Sales and Use Tax Transportation Improvement Program and enactment of the Greater Minnesota Sales and User Tax
Tax collections will begin October 1, 2017
Estimate $16.6 million in 2018

12. Comments or Questions? Resolution:
To schedule a public hearing for 9:00 a.m. on June 20, 2017 to receive comments on a Transportation Sales and Use Tax of 0.25 percent and an Excise Tax of $20 on vehicle purchases in Dakota County
Comments or Questions?