SF2081

SF2081 (Legislative Session 94 (2025-2026))

Distribution proceeds from the sales tax on vehicle repair and replacement parts modification

Related bill: HF1798

AI Generated Summary

This Minnesota Senate bill (S.F. No. 2081) proposes modifications to how sales tax revenues from motor vehicle repair and replacement parts are distributed. The key changes include:

Reallocating Sales Tax Revenues: The bill modifies the distribution of sales tax revenues collected from motor vehicle repair and replacement parts, directing portions of the revenue to specific transportation-related funds.
Highway User Tax Distribution Fund: A set percentage of these revenues will be deposited annually into the Highway User Tax Distribution Fund, starting at 43.5%.
Transportation Advancement Account: An increasing percentage of the revenue will be allocated to the Transportation Advancement Account from 3.5% in FY 2024 to 56.5% in FY 2033 and beyond.
General Fund Allocation: The remainder of revenues from vehicle repair and replacement parts sales tax will go to the general fund.
Definitions and Scope: The bill defines "motor vehicle repair and replacement parts" broadly to include all equipment, tires, fluids (like oil and paint), and accessories that remain in or on the vehicle after maintenance or repair.
Additional Fund Allocations: Other sales tax revenues are distributed to various funds, such as those supporting fire safety, outdoor recreation, natural resources, and regional parks.

In summary, the bill shifts a significant portion of the sales tax revenue from vehicle repairs towards transportation infrastructure funding, particularly for highways and transportation improvements, over a phased timeline leading up to 2033.

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
March 02, 2025	Senate	Floor	Action	Introduction and first reading
March 02, 2025	Senate	Floor	Action	Referred to	Transportation

Citations

[
  {
    "analysis": {
      "added": [
        "Specifies new percentages for allocation of sales tax revenues to various funds, including highway user tax distribution fund and transportation advancement account."
      ],
      "removed": [],
      "summary": "This bill modifies the deposit of revenues from sales tax on vehicle repair and replacement parts under section 297A.94.",
      "modified": [
        "Adjusts the distribution percentages over multiple fiscal years starting from 2024."
      ]
    },
    "citation": "297A.94"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References the fiscal requirements for depositing revenues into the general obligation special tax bond debt service account.",
      "modified": []
    },
    "citation": "16A.661"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Describes conditions for depositing taxes into the Minnesota agricultural and economic account in the special revenue fund, related to agricultural resource projects.",
      "modified": []
    },
    "citation": "41A.04"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Provides the definition of a motor vehicle as used in revenue allocation under amended section 297A.94.",
      "modified": []
    },
    "citation": "297B.01"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Regulates sales of certain items related to revenues deposited and allocated under section 297A.94.",
      "modified": []
    },
    "citation": "624.20"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Prohibits the use of certain items as it pertains to the allocation of sales tax revenues.",
      "modified": []
    },
    "citation": "624.21"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Defines the fire safety account for revenue allocation under section 297A.94.",
      "modified": []
    },
    "citation": "297I.06"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Establishes the volunteer fire assistance grant account for revenue allocation under section 297A.94.",
      "modified": []
    },
    "citation": "88.068"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Describes the use of funds for regional parks and trails outside the metropolitan area under section 297A.94.",
      "modified": []
    },
    "citation": "85.535"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Details the role of the Greater Minnesota Regional Parks and Trails Commission in fund allocation.",
      "modified": []
    },
    "citation": "85.536"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Defines tax rates related to sales and purchases referenced in section 297A.94.",
      "modified": []
    },
    "citation": "297A.62"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Defines taxable items and transactions as referenced for tax revenue allocation.",
      "modified": []
    },
    "citation": "297A.61"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Establishes the pollinator account under revenue allocation rules.",
      "modified": []
    },
    "citation": "103B.101"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Talks about tax revenue allocation related to motor vehicle rentals under section 297A.94.",
      "modified": []
    },
    "citation": "297A.64"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Defines revenue allocation rules including interest and penalties related to transmitted revenues.",
      "modified": []
    },
    "citation": "297A.65"
  }
]