The 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 is now calculated as $10 plus a percentage of the manufacturer's suggested retail price (MSRP) of the vehicle. For vehicles initially registered in Minnesota prior to November 16, 2020, the tax rate is adjusted from 1.54% to 1.145%, while for those registered on or after that date, the rate is adjusted 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, and it specifies how the MSRP should be determined.

Additionally, the bill introduces an effective date stating that the new tax rates will apply to taxes payable for registration periods starting on or after January 1, 2027. This change aims to provide a more equitable tax structure for vehicle registration while ensuring that the tax calculation remains consistent and transparent.