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 removed. 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, aligning them with the gasoline excise tax rates. It also introduces a requirement for the commissioner of management and budget to assess the revenue reduction from these changes and to transfer necessary funds from the general fund to the highway user tax distribution fund for fiscal years 2026 and 2027. This section is also effective July 1, 2025.

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