This bill amends Minnesota Statutes 2025 Supplement, section 168.013, subdivision 1a, to modify the motor vehicle registration tax structure. The registration tax for passenger automobiles and hearses will now be calculated as $10 plus a percentage of the manufacturer's suggested retail price (MSRP), with specific rates for vehicles registered before and after November 16, 2020. The bill introduces a new tax devaluation schedule that replaces the previous percentage-based depreciation for vehicles over ten years old. Additionally, it establishes that the total registration tax due cannot exceed the smallest total amount previously paid on the vehicle.

Furthermore, the bill introduces a registration tax rebate program for qualifying vehicle owners. A "qualified registration instance" is defined based on the owner's taxable net income and the timing of the vehicle's registration tax payment. The rebate, which is capped at $150 or 20% of the total registration tax paid, will be issued by the commissioner of employment and economic development by October 15, 2026. The bill also includes provisions for the appropriation of funds necessary to implement the rebate program and requires reporting on the expenditures related to the rebates. The effective date for the registration tax changes is set for January 1, 2027, while the rebate provisions take effect immediately following final enactment.