This bill introduces significant changes to government finance in Minnesota, particularly regarding tax imposition and allocation. It repeals the retail delivery fee and introduces an unlimited subtraction for Social Security benefits, aiming to simplify the tax structure for residents. The bill also mandates a report on tax analysis and amends various sections of the Minnesota Statutes, including adjustments to the distribution of funds in the transportation advancement account and the revenue department service and recovery special revenue fund. Many provisions are set to take effect on July 1, 2025, with some retroactively effective from August 1, 2024.

Additionally, the bill modifies the allocation percentages for tax revenues from motor vehicle repair and replacement parts, and adjusts gasoline and special fuel excise tax rates. It changes the distribution of proceeds from the regional transportation sales tax, reducing one section from 83% to 74% and increasing another from 17% to 26%, effective for taxes remitted after June 30, 2025. The bill also mandates an analysis of the motor vehicle registration tax by the commissioner of public safety, with findings due to legislative committees by January 15, 2026. Overall, these changes aim to enhance funding mechanisms for transportation and state services while streamlining the tax framework.

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