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HF304 (Legislative Session 94 (2025-2026))

Motor Fuels tax indexed increases repealed.

Related bill: SF1747

AI Generated Summary

This legislative bill concerns changes to the tax rates on motor fuels in Minnesota. Specifically, it seeks to eliminate the automatic yearly adjustments of the fuel tax rates that were previously indexed to the Minnesota Highway Construction Cost Index. The bill sets fixed tax rates for different types of fuel: E85 will be taxed at 17.75 cents per gallon, M85 at 14.25 cents per gallon, and all other types of gasoline at 25 cents per gallon.

Furthermore, the bill outlines that any future changes in tax rates will not automatically follow the previous indexing method. Instead, the tax rates can only be adjusted up to a maximum of three percent per year. This is intended to put a cap on how much the tax can increase annually, providing a more predictable and stable tax environment for fuel pricing.

Bill text versions

Actions

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Citations

 
[
  {
    "analysis": {
      "added": [
        "Introduces limiting the annual percentage change to a maximum of three percent."
      ],
      "removed": [
        "Repeals the indexed increases previously calculated according to the Minnesota Highway Construction Cost Index."
      ],
      "summary": "This bill amends the rate of tax for various types of gasoline under section 296A.07.",
      "modified": [
        "Adjusts the process for determining the annual gasoline tax rates."
      ]
    },
    "citation": "296A.07"
  }
]

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