Regional Transportation Sales and Use Tax – Metropolitan Counties Portion
A Regional Transportation Sales and Use Tax was enacted in 2023 to provide funding to the Metropolitan Council and the metropolitan counties, consisting of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington County. Minnesota Statute 297A.9915 provides details on the sales tax imposition rate; administration, collection and enforcement; and deposit of the funds.
| Regional Transportation Sales and Use Tax Category | TAA Percentage | Agency Responsible for Payment | Payment Timing | Notes |
|---|---|---|---|---|
| Metropolitan Council | 83% | Metropolitan Council | Determined by the Metropolitan Council. | 95% of funds are directed to Metropolitan Council for uses described in statute. 5% of funds are for active transportation projects, as determined by the Transportation Advisory Board (TAB) |
| Metropolitan Counties | 17% | MnDOT | One time/year, in July. Shown in State Aid Accounting System (SAAS). | Distributed based on 50/50 population and money needs; 41.5% for active transportation and corridor studies, 41.5% for rehabilitation, and 17% for transit/complete streets/greenhouse gas mitigation. |
Metropolitan Council
The sales tax and use revenues are available as follows:
- 95 percent for transit system purposes under Minnesota Statutes 473.371 to 473.452, including but not limited to operations, maintenance, and capital projects; and
- 5 percent for active transportation, as determined by the Transportation Advisory Board under subdivision 3.
Minnesota Statute 473.4465 provides further details on the uses of the funds distributed to the Metropolitan Council.
Metropolitan Counties
A metropolitan county must use revenue from the regional transportation sales and use tax under Minnesota Statute 297A.9915 in conformance with the requirements under Minnesota Statute 174.49, subdivision 6.
- 17% to metropolitan counties in the manner provided under section Minnesota Statute 174.49, subdivision 5. The prescriptive uses of the funds is provided in Subd. 6:
- Subd. 6.Metropolitan counties; use of funds. (a) A metropolitan county must use funds that are received under subdivision 5 as follows:
- 41.5 percent for active transportation and transportation corridor safety studies;
- 41.5 percent for:
- Repair, preservation, and rehabilitation of transportation systems; and
- Roadway replacement to reconstruct, reclaim, or modernize a corridor without adding traffic capacity, except for auxiliary lanes with a length of less than 2,500 feet; and
- 17 percent for any of the following:
- Transit purposes, including but not limited to operations, maintenance, capital maintenance, demand response service, and assistance to replacement service providers under section 473.388;
- Complete streets projects, as provided under section 174.75; and
- Projects, programs, or operations activities that meet the requirements of a mitigation action under section 161.178, subdivision 4.
- Funds under paragraph (a), clause (3), must supplement and not supplant existing sources of revenue.
- Subd. 6.Metropolitan counties; use of funds. (a) A metropolitan county must use funds that are received under subdivision 5 as follows:
Minnesota Statute 473.4465 provides further details on the uses of the funds distributed to the metropolitan counties.
Distribution of funding to the metropolitan counties is the responsibility of the Minnesota Department of Transportation. The revenues provided show the forecast or actual amounts collected within that specific fiscal year. However, the distributions are made in July of the following fiscal year. For example, FY 2024 shows the revenues collected from July 1, 2023 to June 30, 2024, with distributions being made in July of 2024 (FY 2025).
MnDOT State Aid does not have any administrative oversight on the use of these funds. Each metropolitan county is required to follow appropriate accounting practices to clearly show that the funds they received have been used according to the statutory requirements.