Bill > SF5219

This bill modifies the motor vehicle registration tax for passenger automobiles and hearses in Minnesota by adjusting the percentage of the manufacturer's suggested retail price (MSRP) used to calculate the tax. Specifically, for vehicles initially registered before November 16, 2020, the tax rate will decrease from 1.54% to 1.25% of the MSRP, and for vehicles registered on or after November 16, 2020, the rate will decrease from 1.575% to 1.285% of the MSRP. The bill also revises the depreciation schedule for calculating the tax based on the vehicle's age, with lower percentages applied to the MSRP for years two through ten, meaning the tax will decrease more rapidly in the earlier years of a vehicle's life. For the eleventh year and beyond, the tax will be a flat $20. These changes are set to take effect for registration periods beginning on or after January 1, 2027.