SF175

SF175 (Legislative Session 94 (2025-2026))

Sales tax on vehicle repair and replacement parts distribution proceeds modification

AI Generated Summary

The bill SF No 175 proposes changes to how revenues from the sales tax on motor vehicle repair and replacement parts are distributed in Minnesota. Specifically, it outlines a detailed plan for the allocation of these tax revenues over several fiscal years, with a particular focus on funding transportation projects and other state needs.

Key points include: 1. A specific percentage of the revenues will be directed to the highway user tax distribution fund over the years, with percentages slightly adjusting each fiscal year. 2. Another portion will go to the transportation advancement account, with increasing percentages allocated from fiscal year 2024 to 2033. 3. Remaining tax revenue, after the specific allocations, will revert to the general fund.

Additionally, the bill specifies how other collected taxes should be used, including supporting fish and wildlife resources, state parks and trails, various zoos, and creating opportunities for outdoor recreation for underserved communities. The proposal ensures that these funds enhance current funding rather than replace it.

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
January 15, 2025	Senate	Floor	Action	Introduction and first reading
January 15, 2025	Senate	Floor	Action	Referred to	Transportation

Citations

[
  {
    "analysis": {
      "added": [
        "New allocation percentages for various fiscal years."
      ],
      "removed": [],
      "summary": "Modifies the deposit of revenues from sales taxes, affecting various funds allocated to state resources, infrastructure, and services.",
      "modified": [
        "Adjusts the percentages of revenue allocation to different funds and programs from 2024 to 2033."
      ]
    },
    "citation": "297A.94"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Refers to the conditional commitments for loan guarantees used in the agricultural resource project.",
      "modified": [
        "Specifies the financial management related to conditional commitment dates for loan guarantees."
      ]
    },
    "citation": "41A.04"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Details items included in the sales and purchases clause for taxation.",
      "modified": [
        "Clarifies the items subjected to sales taxes under specified paragraphs and clauses."
      ]
    },
    "citation": "297A.61"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Pertains to the allocation for the general obligation special tax bond debt service account.",
      "modified": [
        "Defines the fiscal year requirements for bond debt service allocations."
      ]
    },
    "citation": "16A.661"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Concerns the revenue from sales tax on rental motor vehicles and their allocation.",
      "modified": [
        "Describes the estimated allocation of revenue to the highway user tax distribution fund based on tax rate specifics."
      ]
    },
    "citation": "297A.64"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Defines 'motor vehicle' for taxation and revenue allocation purposes.",
      "modified": [
        "Provides a definition of motor vehicles in the context of the bill's implementation."
      ]
    },
    "citation": "297B.01"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Establishes the pollinator account for natural resource revenue allocation.",
      "modified": [
        "Creates directives for depositing tax revenue into the pollinator account."
      ]
    },
    "citation": "103B.101"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References the management of regional parks and trails significance.",
      "modified": [
        "Addresses the spending and allocation criteria for parks and trails funding."
      ]
    },
    "citation": "85.535"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Coordinates recommendations for regional parks and trails funding.",
      "modified": [
        "Involves the process of making recommendations for the use of allocated funds."
      ]
    },
    "citation": "85.536"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Includes controls over the sale of certain regulated items.",
      "modified": [
        "Governance of sales, particularly regarding age limitations and sale permissions."
      ]
    },
    "citation": "624.20"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Details items that are prohibited from public use.",
      "modified": [
        "Clarifies the restrictions on public use of specific items in the regulatory context."
      ]
    },
    "citation": "624.21"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Concerns the volunteer fire assistance grant account.",
      "modified": [
        "Specifies the allocation of sales tax revenue to fund volunteer fire assistance grants."
      ]
    },
    "citation": "88.068"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Addresses the fire safety account for tax revenue allocation.",
      "modified": [
        "Established guidelines for the revenue flow into fire safety funding."
      ]
    },
    "citation": "297I.06"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Guides the deposit of specific sales tax revenues as per constitutional requirements.",
      "modified": [
        "Mentions constitutional directives for tax revenue deposition."
      ]
    },
    "citation": "Minnesota Constitution, Article XI, Section 15"
  }
]