This bill, introduced by Representative Harder and referred to the Committee on Taxes, proposes an expansion of the current motor vehicle sales tax in Minnesota. Specifically, it aims to extend the "in lieu" tax, which is an alternative tax currently applied to older passenger automobiles and collector vehicles, to include motorcycles as well.

The "in lieu" tax is a flat rate of $10 on the purchase price of eligible vehicles, providing a simpler, potentially lower-cost tax option for buyers of older vehicles and motorcycles. The bill seeks to amend Section 297B.02, subdivisions 2 and 3, as well as Section 297B.025 of the Minnesota Statutes 2024 to implement these changes.

In essence, this legislative change would mean that anyone purchasing an older motorcycle would have the option to pay this flat-rate tax instead of the standard sales tax.