The bill amends Minnesota Statutes regarding transportation-related taxes, specifically focusing on the registration tax for passenger automobiles and hearses. The registration tax for vehicles initially registered in Minnesota prior to November 16, 2020, is reduced from 1.25% to 0.93% of the manufacturer's suggested retail price, while for vehicles registered on or after that date, the rate is adjusted from 1.285% to 0.965%. Additionally, the bill establishes that the total amount due for any vehicle previously registered in Minnesota cannot exceed the smallest total amount previously paid or due on that vehicle. The effective date for these changes is set for January 1, 2024.

Furthermore, the bill modifies the allocation of revenues derived from taxes on the sale and purchase of motor vehicle repair and replacement parts. Instead of a fixed monthly deposit amount, the commissioner is now required to deposit the revenues from these taxes directly into the highway user tax distribution fund. This change aims to streamline the revenue allocation process. The effective date for this section is July 1, 2023.

Statutes affected:
Introduction: 168.013, 297A.94