This bill introduces significant modifications to government finance in Minnesota, particularly concerning tax imposition and allocation. It repeals the retail delivery fee and establishes an unlimited subtraction for Social Security benefits. Additionally, the bill mandates a comprehensive analysis of the motor vehicle registration tax by the commissioner of public safety, requiring a report on the current tax structure and recommendations for adjustments to be submitted to legislative committees by January 15, 2026. The bill also amends the distribution percentages for funds from the regional transportation sales tax, changing allocations from 83% to 74% and from 17% to 26% for specific funds, with these changes taking effect for taxes remitted after June 30, 2025.

Moreover, the bill modifies the allocation of funds from the transportation advancement account, reducing allocations to metropolitan counties and adjusting percentages for other categories. It also revises the tax rates for gasoline and special fuels to be adjusted annually based on the Minnesota Highway Construction Cost Index. The effective dates for these changes vary, with many provisions set to take effect on July 1, 2025, and others retroactively from August 1, 2024. Overall, the bill aims to streamline tax processes and enhance funding for transportation and related services in Minnesota.

Statutes affected:
Introduction: 174.49, 270C.15, 290.0132, 296A.07, 296A.08, 297A.94, 297A.9915