Bill > HF183

This bill modifies several provisions related to transportation funding and taxation in Minnesota. The bill eliminates the existing retail delivery fee by repealing the entire chapter that established it (sections 168E.01 through 168E.09), and makes several adjustments to how transportation-related tax revenues are allocated. Specifically, the bill changes the distribution of funds in the transportation advancement account, reducing the percentage going to metropolitan counties from 36% to 0% and redistributing percentages to the county state-aid highway fund (from 10% to 28%), larger cities assistance account (from 15% to 23%), small cities assistance account (from 27% to 34%), and town road account (from 11% to 15%). The bill also modifies how certain sales tax revenues from motor vehicle repair parts will be allocated to the transportation advancement account, with an increasing percentage (starting at 3.5% in fiscal year 2024 and rising to 56.5% by fiscal year 2033). Additionally, the bill adjusts the allocation of regional transportation sales tax, reducing the Metropolitan Council's share from 83% to 74% and increasing metropolitan counties' share from 17% to 26%. These changes are set to take effect on July 1, 2025, and aim to restructure how transportation-related revenues are collected and distributed across Minnesota.

Transportation and Infrastructure

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF0183&ssn=0&y=2025