Bill > SF902

This bill modifies how sales tax revenues from various products and services are allocated to the highway user tax distribution fund. Specifically, the bill expands the types of sales that will have a portion of their tax revenue directed to the highway user tax distribution fund, adding categories such as bicycles and electric-assisted bicycles, bicycle repair parts, vehicle services, motor vehicle paint, food sold at food carts and mobile food units, for-hire carriers, direct mail, delivery of aggregate materials, road construction materials, delivery charges, and nonresidential parking services. The bill gradually increases the percentage of sales tax from certain motor vehicle repair parts going to the transportation advancement account, starting at 3.5% in fiscal year 2024 and increasing to 56.5% by fiscal year 2033. The changes are designed to provide additional funding for transportation infrastructure and related services, with the new provisions becoming effective for taxes remitted after July 1, 2025. This approach represents a strategic effort to diversify and increase funding sources for transportation-related expenses by capturing sales tax revenue from a broader range of goods and services.

Transportation and Infrastructure

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF0902&ssn=0&y=2025