Bill > SF175

This bill modifies the distribution of sales tax proceeds from motor vehicle repair and replacement parts, changing how the revenues are allocated across different state funds over a ten-year period. Specifically, the bill adjusts the percentage of sales tax revenues from vehicle repair parts that are deposited into the highway user tax distribution fund and the transportation advancement account. The percentages shift each fiscal year, starting with 43.5% going to the highway user tax distribution fund in fiscal year 2024, and gradually increasing to 71.5% in fiscal year 2030, before eventually returning to 43.5% in fiscal year 2033 and beyond. Simultaneously, the percentage directed to the transportation advancement account increases from 3.5% in fiscal year 2024 to 56.5% in fiscal year 2033 and thereafter. The bill defines motor vehicle repair and replacement parts broadly, including parts, tires, accessories, equipment, paint, oil, and other fluids used in vehicle maintenance and repair. The purpose appears to be providing a gradual, predictable shift in how sales tax revenues from vehicle repairs are allocated, potentially to support transportation infrastructure and maintenance.

Transportation and Infrastructure

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF0175&ssn=0&y=2025