This bill proposes significant changes to government finance in Minnesota, particularly concerning tax imposition and allocation. It repeals the retail delivery fee and introduces an unlimited subtraction for Social Security benefits. The bill also modifies the distribution percentages of funds from the transportation advancement account, reducing the share for metropolitan counties from 36% to 28%, while adjusting allocations for other entities. Additionally, it establishes new effective dates for various provisions, including retroactive tax rates starting August 1, 2024, and a new effective date for the Social Security subtraction for taxable years beginning after December 31, 2024. Revenues from certain taxes will now be directed into the transportation advancement account to bolster funding for transportation projects.

Moreover, the bill mandates comprehensive analyses of the impacts of these tax modifications on transportation funding and motor vehicle registration taxes. It requires the commissioner of public safety to evaluate the motor vehicle registration tax's effects on vehicle owners and provide a report by January 15, 2026. The commissioner of transportation is also tasked with analyzing the fiscal impacts of the changes and identifying delayed projects, with funding for this analysis allocated from the transportation advancement account for fiscal year 2026. Several sections of existing law will be repealed effective July 1, 2025, and the tax-related changes will take effect on June 30, 2025.

Statutes affected:
1st Engrossment: 174.49, 270C.15, 290.0132, 296A.07, 296A.08, 297A.94, 297A.9915