HF4993

Purpose

• The bill would require clear, visible display of gas taxes at the point of sale and on receipts, and it would remove automatic increases tied to the motor fuels tax (indexed increases). It amends Minnesota Statutes to address how the gas tax is shown near dispensers and on sales receipts, and it references how tax revenue can be used.

Main provisions

• Gas tax sign on petroleum dispenser

  • The director must ensure 12-point font or larger signs are placed on retail petroleum dispensers.
  • For gasoline (regular or premium): the sign must state that the price per gallon includes the state gasoline tax of 28.5 cents and the federal gasoline tax of 18.4 cents per gallon, and note that state tax revenue may be used only for roads and bridges per the Minnesota Constitution.
  • For diesel fuel: the sign must state that the price per gallon includes the state gasoline tax of 28.5 cents and the federal gasoline tax of 24.4 cents per gallon, with the same note about using state tax revenue for roads and bridges.
  • The director distributes these signs to the owner or operator of retail dispensers and should coordinate distribution with other duties where possible.

• Updating signs when tax amounts change

  • If the gasoline tax amount changes, the director must distribute revised signs reflecting the updated tax amounts within 12 calendar months of the change.

• Penalties for signage

  • The director may not impose any penalty, fine, or fee on the owner or operator of a retail petroleum dispenser due to a missing, destroyed, defaced, or damaged gas tax sign.

• Gas tax on sales receipts

  • For any sale of regular or premium gasoline or diesel fuel, the retailer must provide a sales receipt that displays, in 11-point font or larger, the tax information required on the dispenser sign (as updated if tax amounts change).

Significant changes to existing law

• Adds a mandatory, public-facing requirement to display gas tax information on pump signs and on receipts, with specific font sizes and language.
• Creates a formal process to update signs within a year after tax rate changes.
• Prohibits penalties on retailers for damaged or missing signs.
• Codifies that tax information shown to consumers on signs and receipts must reflect current tax amounts.
• Includes the removal of indexed (automatic) increases to the motor fuels tax.

Implementation and enforcement notes

• The Minnesota Department (the director) would handle production, distribution, and updating of signs.
• Retailers would be responsible for displaying the required information on signs and on receipts.
• The changes aim to improve transparency about how much tax is included in fuel prices and how tax revenue is used.

Public-facing implications

• Consumers would see on signs and receipts the exact state and federal taxes included in gasoline and diesel prices.
• The requirement to update signs within 12 months of tax changes helps ensure information stays current.
• The prohibition on penalties for damaged signs reduces potential financial risk for retailers due to signage issues.

Relevant terms - gas tax sign on petroleum dispenser - gas tax on sales receipt - regular gasoline - premium gasoline - diesel fuel - state gasoline tax (28.5 cents per gallon) - federal gasoline tax (18.4 cents per gallon for gasoline; 24.4 cents per gallon for diesel) - 12-point font - 11-point font - retail petroleum dispenser - owner or operator - director - roads and bridges - Minnesota Constitution - penalties, fines, or fees - revised signs - tax rate changes - Minnesota Statutes 2024 sections 239.7511, 296A.07 subdivision 3, 296A.08 subdivision 2