The bill amends Minnesota Statutes 2025 Supplement, section 168.013, subdivision 1a, to modify the motor vehicle registration tax for passenger automobiles and hearses. Specifically, it changes the tax calculation for vehicles initially registered in Minnesota prior to November 16, 2020, from 1.54% to 1.145% of the manufacturer's suggested retail price (MSRP) and for vehicles registered on or after that date from 1.575% to 1.18%. The bill also clarifies that the registration tax calculation will not include the cost of accessories or optional equipment, nor a destination charge for vehicles registered prior to the specified date.

Additionally, the bill introduces an effective date stating that the changes will take effect the day following final enactment and will apply to taxes payable for registration periods starting on or after January 1, 2027. This ensures that the new tax rates and calculations will be implemented in future registration periods, providing a clearer framework for vehicle registration tax assessments in Minnesota.