HF1798 (Legislative Session 94 (2025-2026))
Vehicle repair and replacement parts distribution of sales tax proceeds modified.
Related bill: SF2081
AI Generated Summary
This bill proposes modifications to the distribution of sales tax proceeds from the sale of motor vehicle repair and replacement parts in Minnesota. Specifically, it amends Minnesota Statutes 2024, section 297A.94, to allocate these revenues among the Highway User Tax Distribution Fund, the Transportation Advancement Account, and the General Fund.
Key provisions of the bill include: - A defined percentage of the sales tax revenue from motor vehicle repair and replacement parts will be credited to the Highway User Tax Distribution Fund (43.5% each fiscal year). - A gradually increasing percentage will be allocated to the Transportation Advancement Account, beginning with 3.5% in fiscal year 2024 and reaching 56.5% by fiscal year 2033 and thereafter. - The remaining portion will continue to be credited to the General Fund.
The bill therefore seeks to redirect a greater share of vehicle-related sales tax revenue toward transportation infrastructure funding over time.
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 02, 2025 | House | Floor | Action | Introduction and first reading, referred to | Transportation Finance and Policy |
Citations
[
{
"analysis": {
"added": [
"New revenue distribution percentages for transportation advancement and other funds."
],
"removed": [
"No specific removal of clauses, but updates existing distribution percentages."
],
"summary": "This bill modifies the distribution of proceeds from the sales tax under section 297A.94.",
"modified": [
"Updates the allocation of sales tax proceeds to various state funds, including transportation and natural resources accounts."
]
},
"citation": "297A.94"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Refers to requirements for loan guaranty commitments under section 41A.04, subdivision 3.",
"modified": []
},
"citation": "41A.04, subdivision 3"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References the definition of taxable sales and purchases under section 297A.61, subdivision 3.",
"modified": []
},
"citation": "297A.61, subdivision 3"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Involves prioritization of payments to the general obligation special tax bond debt service account.",
"modified": []
},
"citation": "16A.661, subdivision 3"
},
{
"analysis": {
"added": [
"Specifies revenue distribution to highway user tax fund and general fund updates."
],
"removed": [],
"summary": "Discusses revenue collection related to rental motor vehicles and its distribution.",
"modified": [
"Detailed adjustments to deposit revenues from sales tax on short-term motor vehicle rentals."
]
},
"citation": "297A.64"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Defines 'motor vehicle' as used in the allocation of sales tax to various funds.",
"modified": []
},
"citation": "297B.01, subdivision 11"
},
{
"analysis": {
"added": [
"Specifies deposit percentages for various natural resources and conservation funds."
],
"removed": [],
"summary": "Revenue distribution from taxes on certain items.",
"modified": []
},
"citation": "297A.65"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Allocation for regional parks and trails funding.",
"modified": []
},
"citation": "85.535"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Recommendations for the Greater Minnesota Regional Parks and Trails Commission.",
"modified": []
},
"citation": "85.536"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Regulations for the sale of certain items to individuals 18 years and older.",
"modified": []
},
"citation": "624.20, subdivision 1"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Usage limitations for certain regulated items.",
"modified": []
},
"citation": "624.21"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Allocation to the volunteer fire assistance grant account.",
"modified": []
},
"citation": "88.068"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Allocation to the fire safety account.",
"modified": []
},
"citation": "297I.06, subdivision 3"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Specifies special constitutional provisions for revenue allocation.",
"modified": []
},
"citation": "Minnesota Constitution article XI, section 15"
}
]