Bill > SF54

This bill expands Minnesota's existing in-lieu tax system for motor vehicles to include motorcycles, effectively creating a modified tax structure for older and collector motorcycles. Currently, the state imposes a reduced tax of $10 on older passenger automobiles that are in their tenth or subsequent year of life and have a low resale value, and a $150 tax on collector vehicles. The bill now extends these same tax provisions to motorcycles, meaning that motorcycles ten or more years old with a resale value under $3,000 will be subject to a $10 tax, while motorcycles registered as collector vehicles will be taxed at $150. The modifications also include updating relevant statutory definitions and cross-references to incorporate motorcycles into the existing motor vehicle tax framework. The changes will take effect for sales and purchases made after June 30, 2025, giving businesses and motorcycle owners time to prepare for the new tax structure. The bill aims to create a consistent tax approach for older and collector vehicles that now includes both automobiles and motorcycles.