Bill > SF2081

This bill modifies how sales tax revenues from vehicle repair and replacement parts are distributed across different state funds. Specifically, the bill adjusts the percentage of these tax revenues allocated to the transportation advancement account over several fiscal years. The percentages would gradually increase from 3.5% in fiscal year 2024 to 56.5% in fiscal year 2030 and thereafter, which represents a significant change from the previous version of the law. The bill removes proposed future percentage increases for fiscal years 2031-2033. For context, these tax revenues are currently split between the highway user tax distribution fund (43.5%), the transportation advancement account (with increasing percentages), and the general fund (the remainder). The term "motor vehicle repair and replacement parts" is broadly defined to include parts, tires, accessories, equipment, paint, oil, and other fluids used in vehicle maintenance and repair. These changes aim to provide more dedicated funding for transportation-related initiatives by progressively increasing the portion of sales tax directed to the transportation advancement account.

Transportation and Infrastructure

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF2081&ssn=0&y=2025