This bill proposes significant changes to government finance in Minnesota, particularly in the areas of taxes and transportation funding. Key provisions include the repeal of the retail delivery fee, the introduction of an unlimited Social Security subtraction, and an increase in the electric vehicle registration tax from $75 to $150. Additionally, the bill establishes a transportation advancement account for the allocation of funds from specific taxes and mandates analyses of the motor vehicle registration tax and transportation funding impacts. Various sections of the bill are set to take effect on July 1, 2025, or retroactively from August 1, 2024, depending on the provision.

Moreover, the bill amends several sections of the Minnesota Statutes, including changes to fund distribution in the transportation advancement account and the allocation of proceeds from the regional transportation sales tax. It also modifies appropriations for transit system operations and general fund transfers to support highway projects. The bill requires affected entities to provide information to the commissioner regarding changes in assistance or revenue and specifies that the transportation funding impacts analysis will exclude changes related to chapter 290 of the Minnesota Statutes. A report on this analysis is due by January 15, 2026, and the bill includes provisions for appropriations from the transportation advancement account and outlines specific transfers for fiscal years 2026 and 2027, with a repeal of certain sections of Minnesota Statutes 2024 related to transportation funding effective July 1, 2025.

Statutes affected:
1st Engrossment: 174.49, 270C.15, 290.0132, 296A.07, 296A.08, 297A.94, 297A.9915
2nd Engrossment: 168.013, 168.1287, 174.49, 270C.15, 290.0132, 296A.07, 296A.08, 297A.9915