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0:25% 5-County Metro Axes Transit Sales: and Vs e Taxi <br />($000s) <br />September 2008 to December 2008 $28,800 <br />Ianuary 2009 to Time 2009 : $41,700 <br />Estimates <br />Effective. date is Zuiy I., 200a, <br />Note:. The estimates reflect when: revenues would be received by the Transit Improvenieut Board:, <br />The estiixiates do not include' the separate $20 per vehicle. motor vehicle excise tax, <br />Laws 2008;, Chapter 152, provides: for a 0.25% local sales: and use tax for the seven metro counties.. Five: <br />counties: - t :ao1ca,, Dakota,: Hennepin, Ramsey, and. Washington - are" paxticipatah8,. The 0.25%.5"-county <br />metro -area sales axed: use tax is to be imposed on the same base. as -t e. state 6,5%i a sales; and use tax,. The <br />tax is to` be used for tran sit sad. will be remitted to the Transit, Improvement Board'„ <br />Thar taX win be effective July 1,, 2008,. It expected that the: tax on, Silly sates which" is rerouted to the <br />state in August will be remitted: to the Transit I ipr'o:verment. Bo:axd (CTIB) 5 days after they cast day of <br />August::with a reconciliation pa a ent 40 days. after the last day o.f August, T lea s p attern will continue <br />fax subsequent mouths. <br />The estimate is based on two primary sources 1) calendar year 2006 sales and use tax statistics <br />produced by the Department. of Revenue,. and 2112 Months of actual colIections for the 0.15°! <br />Hennepin County sales tax. (April.. 2007 to March 200S) <br />A total of $23.16: million of'sales and . use' tax. collections were' reported for the current Hennepin <br />County loco- tax - April 2'00 i to March 2008 <br />This $23.16 million. for Hennepin. County TS.: converted from the a.15% tax rate to the 0.25% tax rate. <br />The:calculated ardount for the same period, of time (April:2007 to March 2008) at Me. 125% rate. Is <br />S46.9 rnyllaon.; <br />Based on the 2006 soles: tax statistics, it is assumed that the counties of txa.olwa,. Dalcata,: Ramsey,; and <br />Washing combined are 816 of the. Hennepin County amounts. <br />Ai a verage annual: grad - factor* Of 2% is applied to determine 2008 and 2009 eat:Mates. Tlse average <br />annual #cowtla: factor: is loaeed on information frog Gtobal° Insight (April 2008 publication:).. <br />A ustments we included to account for implementation issues and to net out, achiziatrative <br />ci arges, <br />0:25°l MetroTtr nsitSTI rrx= <br />!tire nesata'. Deputraent of Revell <br />Tax Research Division <br />May 30, 2.008' <br />„l'relimina <br />-213- <br />