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MOTOR VEHICLE LEASE SALES TAX REVENUE <br />Position: <br />Washington County supports the current distribution of the Motor Vehicle Lease Sales Tax Revenue <br />(MVLST) and opposes any change to this distribution. <br />Issue: <br />Current law (MN Statute 297A.815 Subd. 3) distributes revenues from the sales tax on leased vehicles as <br />follows: <br />• 38 percent to the County State Aid Highway Fund <br />• 38 percent to the Greater Minnesota Transit Account <br />• 13 percent to the Minnesota State Transportation Fund, and <br />• 11 percent to the Highway User Tax Distribution Fund <br />Distribution (11 percent) to the Highway User Tax Distribution Fund ensures that all counties in Minnesota <br />receive a portion of this revenue. <br />Distribution (38 percent) to the County State Aid Highway Fund is directed toward the counties in the <br />metropolitan area, excluding Hennepin and Ramsey. The portion of MVLST revenue distributed to the <br />suburban counties helps address transportation infrastructure needs directly related to significant <br />population growth. These needs are well beyond what traditional financial resources such as county state <br />aid can provide. The distribution is based on the population of each county and recognizes the unique and <br />costly transportation needs of these counties. <br />Support and Opposition: <br />Support comes from the Counties of Scott, Dakota, Anoka and Carver. Attempts have been made by <br />metropolitan counties that do not receive funding through the current distribution to change the <br />distribution. <br />Previous Consideration: <br />The current distribution of these revenues was implemented by the legislature in 2017 as part of a <br />balanced package of transportation investments. <br />No Action: <br />We support the current law and oppose efforts to change this distribution. <br />Financial Implications: <br />Washington County receives $7.2 million in revenue from this distribution annually. Any changes to the <br />distribution that would reduce this amount will have a significant detrimental effect on our capital <br />improvement program. <br />Contact Person: <br />Wayne Sandberg, County Engineer, Deputy Director <br />Washington County Public Works <br />651-430-4339 <br />wayne.sandberg@co.washington.mn.us <br />`1 <br />