2 Motor vehicle registration increase State Highway System High: 0.25% increase System County State Aid Highway System yields $115 million Revenue Motor vehicle registration fees are constitutionally Municipal State Aid System with formula dedicated to highway purposes only. This revenue Greater Minnesota Transit distribution source is appropriate for highways and represents a user Metropolitan Area Transit fee. This tax could be increased/modified in a number of ways to raise significant additional revenues for highway purposes. Options include increasing the tax rate, modifying the vehicle depreciation schedule and increasing the base fee. Efficiency and effectiveness of transportation operations 7 Get best value for transportation dollars through State Highway System No new revenue Operations performance management system and high return on County State Aid Highway System Efficiency investment Municipal State Aid System *Conduct a thorough inside and outside evaluation of how Greater Minnesota Transit we do business from the state through all local levels. (See Metropolitan Area Transit letter attached) Passenger Rail Freight, Rail, Ports Airports 1 Improve permitting process to save time and money State Highway System No new revenue Operations County State Aid Highway System Efficiency Municipal State Aid System Passenger Rail Freight, Rail, Ports Airports General Fund reallocation to transportation 0 Larger percent of sales tax collections going to State Highway System Moderate to High: Revenue transportation County State Aid Highway System Revenue potential Redistribution Municipal State Aid System depends upon how Greater Minnesota Transit this option is Metropolitan Area Transit implemented and what Passenger Rail share is directed from Freight, Rail, Ports general fund to Airports transportation
2 Motor vehicle registration increase Motor vehicle registration fees are constitutionally dedicated to highway purposes only. This revenue source is appropriate for highways and represents a user fee. This tax could be increased/modified in a number of ways to raise significant additional revenues for highway purposes. Options include increasing the tax rate, modifying the vehicle depreciation schedule and increasing the base fee. State Highway System County State Aid Highway System Municipal State Aid System Greater Minnesota Transit Metropolitan Area Transit High: 0.25% increase yields $115 million with formula distribution System Revenue Efficiency and effectiveness of transportation operations 7 Get best value for transportation dollars through performance management system and high return on investment *Conduct a thorough inside and outside evaluation of how we do business from the state through all local levels. (See letter attached) State Highway System County State Aid Highway System Municipal State Aid System Greater Minnesota Transit Metropolitan Area Transit Passenger Rail Freight, Rail, Ports Airports No new revenue Operations Efficiency 1 Improve permitting process to save time and money State Highway System County State Aid Highway System Municipal State Aid System Passenger Rail Freight, Rail, Ports Airports No new revenue Operations Efficiency General Fund reallocation to transportation 0 Larger percent of sales tax collections going to transportation State Highway System County State Aid Highway System Municipal State Aid System Greater Minnesota Transit Metropolitan Area Transit Passenger Rail Freight, Rail, Ports Airports Moderate to High: Revenue potential depends upon how this option is implemented and what share is directed from general fund to transportation Revenue Redistribution
FundingOptions.docx