MDE Exclusive: Transportation bill mess-up

MDE EXCLUSIVE: DFLERS MAY HAVE MADE A CRITICAL MISTAKE IN THEIR BIG, HONKING TRANSPORTATION TAX BILL

DFL legislative leaders were so excited to ram through their massive transportation/transit bill, which contained $6.6 billion in tax increases, that it looks like they make a critical mistake they are now trying to correct regarding a key provision in that bill on license tab fees.

A component of the DFL transit plan (in addition to a gas tax hike, a new excise tax, a metro sales tax increase and a car rental tax increase) was an increase in the fees on license tabs:

“The legislation also will license tab fees on vehicles, particularly luxury cars; hire 40 state troopers, and help repair the Minnesota Department of Transportation’s headquarters in St. Paul. The tab fee increase will not affect vehicles previously registered in Minnesota.” Source: Star Tribune, February 26, 2008

An informational flyer from the Republican Party of Minnesota about the DFL transportation tax increase bill stated that “[t]ax increase for tabs is estimated at $1.979 BILLON over ten years.”

Sounds like the usual DFL plan, right? But DFLers were sloppy when they wrote the bill, and unclear language within it suggests that the increased license tab fees might only be collected for one year:

“EFFECTIVE DATE. This section is effective the day following final enactment, and applies to any annual additional tax for a registration period that starts on or after September 1, 2008, through August 31, 2009.” Source: HF 2800, 4th Engrossment, 15.19 - 15.21

DFLers have apparently said they meant those dates to apply to the registration period for license tabs, not to the dates when the increased tab fees would be collected. It’s uncertain if the matter went to a court whether they would side with DFLers who say the legislative intent was to permanently increase tab fees or if a strict interpretation would limit their tab fee increase to the period in the statute.

The ambiguity has caused DFLers to insert language into the 2008 Transportation Policy Bill to try to clear up the confusion.

Language buried in HF 3800, would correct the DFL’s embarrassing mistake. HF 3800 says:

“Sec. 6. Laws 2008, chapter 152, article 3, section 1, the effective date, is amended to read

EFFECTIVE DATE. This section is effective the day following final enactment, and applies to any annual additional tax for a registration period that starts on or after September 1, 2008, through August 31, 2009.” Source: HF 3800, 1st Engrossment, 58.33 - 59.3

Please note that the language changes proposed in HF 3800, would remove August 31, 2009 as the end date mentioned in the override transportation bill.

Please stay tuned to Minnesota Democrats Exposed for any further developments regarding the DFL’s mistake on tab fees.