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HF2186 (Legislative Session 94 (2025-2026))

Light rail or passenger rail project proceed use from the general fund transportation sales and use tax prohibited.

Related bill: SF1214

AI Generated Summary

Purpose of the Bill

This bill aims to change how the revenue from the regional transportation sales and use tax in Minnesota can be used. It specifically addresses the Metropolitan Council’s use of these funds, focusing on prohibiting allocations for certain rail projects.

Main Provisions

  • Allocation of Sales Tax Revenue:

    • 5% of the sales tax is designated for active transportation, which typically includes modes like biking and walking.
    • 95% is directed towards transit system purposes, excluding light rail or passenger rail projects.

  • Specific Uses for Tax Revenue: The bill outlines permissible uses for the transit system sales tax revenue, which include:

    • Improvements to regular bus services.
    • Enhancements to transit safety, including increasing transit officials.
    • Maintenance and improvements for bus accessibility at transit stops.
    • Replacement and upgrading of transit shelters.
    • Planning and developing expansions for arterial and highway bus rapid transit (BRT).
    • Operations and maintenance for arterial and highway BRT routes.
    • Transition to zero-emission buses.
    • Support for demand response microtransit services.
    • Financial aid for service vehicle purchases pertinent to microtransit.
    • Active transportation projects benefiting political subdivisions and tax-exempt organizations.
    • Wage adjustments for Metro Transit hourly operations employees.

Significant Changes to Existing Law

  • Prohibition on Rail Projects: The bill introduces a prohibition against using sales tax revenue for light rail, specifically targeting the Southwest Light Rail Transit and the Green Line Extension, as well as any passenger rail projects. This prohibition lasts until the expiration of the Metropolitan Governance Task Force.

Relevant Terms

  • Metropolitan Council
  • Sales tax revenue
  • Light rail transit
  • Passenger rail projects
  • Zero-emission buses
  • Bus rapid transit (BRT)
  • Demand response microtransit
  • Metro Transit

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 11, 2025HouseFloorActionIntroduction and first reading, referred toTransportation Finance and Policy

Citations

 
[
  {
    "analysis": {
      "added": [
        "Incorporates terminology related to 'transit officials' into the funding criteria."
      ],
      "removed": [],
      "summary": "This bill addresses transit safety improvements, explicitly allocating funds for additional transit officials under section 473.4075.",
      "modified": []
    },
    "citation": "473.4075"
  },
  {
    "analysis": {
      "added": [
        "Includes transit shelter improvements as an eligible category for sales tax revenue allocation."
      ],
      "removed": [],
      "summary": "This bill mentions transit shelter replacement and improvements under section 473.41.",
      "modified": []
    },
    "citation": "473.41"
  },
  {
    "analysis": {
      "added": [
        "Authorizes use of funds for capital investments related to microtransit service for providers replacing existing services."
      ],
      "removed": [],
      "summary": "This bill allows financial assistance to replacement service providers under section 473.388 for microtransit service related investments.",
      "modified": []
    },
    "citation": "473.388"
  },
  {
    "analysis": {
      "added": [
        "Aligns zero-emission bus procurement efforts with the existing transition plan requirements."
      ],
      "removed": [],
      "summary": "Zero-emission bus procurement must be in line with the transition plan under section 473.3927.",
      "modified": []
    },
    "citation": "473.3927"
  }
]

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