This bill amends Minnesota Statutes to repeal the indexed increases to the motor fuels tax, specifically affecting the tax rates for E85, M85, and other gasoline types. The current law's provisions that required annual adjustments to these tax rates based on the Minnesota Highway Construction Cost Index have been deleted. The new law establishes fixed tax rates: E85 at 17.75 cents per gallon, M85 at 14.25 cents per gallon, and all other gasoline at 25 cents per gallon, effective July 1, 2025.

Additionally, the bill modifies the tax rates for liquefied petroleum gas, liquefied natural gas, compressed natural gas, and other special fuels, removing the requirement for annual adjustments based on previous calculations. It also introduces a new section that mandates the commissioner of management and budget to assess the revenue reduction from this act and transfer the corresponding amounts from the general fund to the highway user tax distribution fund for fiscal years 2026 and 2027, with the effective date for these provisions also set for July 1, 2025.

Statutes affected:
Introduction: 296A.07, 296A.08