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 is now calculated as $10 plus a percentage of the manufacturer's suggested retail price (MSRP) of the vehicle, with specific percentages adjusted for vehicles registered before and after November 16, 2020. For vehicles registered prior to this date, the tax is set at 1.25% of the MSRP, while for those registered on or after this date, it is 1.285%. Additionally, the percentages applied to the MSRP for subsequent years of the vehicle's life have been reduced, with the first-year tax remaining at 100% of the MSRP and decreasing to 90% for the second year, 80% for the third year, and so on, down to 20% for the ninth year, and 10% for the tenth year.

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 changes will take effect the day following final enactment and will apply to taxes and fees payable for registration periods starting on or after January 1, 2027.