Bill > SF1003

This bill proposes to abolish motor fuel taxes in Minnesota by making several key changes to existing law. The bill removes provisions related to gasoline and special fuel taxes, effectively eliminating tax collection on motor fuels. To offset the revenue loss, the bill mandates significant transfers from the general fund to the highway user tax distribution fund: $911,485,000 in fiscal year 2026, $905,105,000 in fiscal year 2027, with base transfers of $898,769,000 in fiscal year 2028 and $892,478,000 in fiscal year 2029. The legislation repeals numerous sections of Minnesota Statutes related to motor fuel taxation, including definitions, tax rates, reporting requirements, and enforcement mechanisms. Specifically, the bill removes requirements for distributors, dealers, and bulk purchasers to report and pay taxes on gasoline and special fuels, eliminates tax collection and refund processes, and removes criminal and civil penalties associated with tax evasion. The bill also makes conforming changes to other statutes that referenced motor fuel tax provisions, such as those related to recreation and forest road accounts. Essentially, this bill represents a comprehensive overhaul of Minnesota's motor fuel tax system, replacing direct fuel taxation with general fund transfers to maintain transportation funding.

Transportation and Infrastructure

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF1003&ssn=0&y=2025