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 percentages adjusted for vehicles registered before and after November 16, 2020. For vehicles registered prior to this date, the tax rate is reduced from 1.54% to 1.25%, while for those registered on or after this date, the rate is adjusted from 1.575% to 1.285%. Additionally, the percentages applied to the MSRP for subsequent years of the vehicle's life have been decreased, with the first-year tax remaining at 100% of the MSRP and subsequent years seeing reductions from 95% to 90%, down to 20% by the ninth year.

The bill also establishes that for the 11th year and beyond, the registration tax will be a flat fee of $20. Furthermore, it ensures 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. The effective date of these changes will be the day following final enactment, applying to taxes and fees payable for registration periods starting on or after January 1, 2027.