This bill amends Minnesota Statutes 2025 Supplement, section 168.013, subdivision 1a, to modify the motor vehicle registration tax for passenger automobiles and hearses. The registration tax will now be calculated as $10 plus a percentage of the manufacturer's suggested retail price (MSRP) of the vehicle, with specific adjustments made for vehicles registered before and after November 16, 2020. The percentage for vehicles initially registered prior to this date is reduced from 1.54% to 1.25%, while for those registered on or after this date, it is adjusted from 1.575% to 1.285%. Additionally, the tax calculation for subsequent years has been revised, with reductions in the percentages applied for each year of the vehicle's life.

The bill also includes a provision that the total amount due for any vehicle previously registered in Minnesota cannot exceed the smallest total amount previously paid or due on that vehicle. Furthermore, it establishes that the new tax structure will take effect the day after final enactment and will apply to taxes and fees payable for registration periods starting on or after January 1, 2027.