Bill > HF3397

This bill modifies the motor vehicle registration tax for passenger automobiles and hearses by reducing the percentage used to calculate the tax based on the manufacturer's suggested retail price (MSRP). Specifically, for vehicles initially registered in Minnesota before November 16, 2020, the tax rate will decrease from 1.54 percent to 1.145 percent of the MSRP, and for vehicles initially registered on or after November 16, 2020, the rate will decrease from 1.575 percent to 1.18 percent of the MSRP. The bill also clarifies that the registration tax calculation will not include the cost of optional accessories or equipment, and it will not include a destination charge for vehicles registered after November 16, 2020. The changes are set to take effect on January 1, 2027, and will apply to registration periods starting on or after that date.