Bill > HF5102

This bill modifies the motor vehicle registration tax in Minnesota by reducing the percentage of the manufacturer's suggested retail price (MSRP) used to calculate the tax for passenger automobiles and hearses. 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 initially registered on or after that date, the rate will decrease from 1.575% to 1.285% of the MSRP. The bill also adjusts the depreciation schedule used to determine the taxable value of the vehicle over its lifespan, with lower percentages applied to the MSRP in the second through tenth years of the 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.