SF479 (Legislative Session 94 (2025-2026))
Distribution modification of proceeds from the sales tax on vehicle repair and replacement parts
AI Generated Summary
The legislative bill SF No. 479 focuses on adjusting how the sales tax revenue from vehicle repair and replacement parts is managed in Minnesota. Specifically, it amends Section 297A.94 of the Minnesota Statutes.
Key points of the bill include:
Redistribution of tax revenue: A specified portion of the sales tax collected from vehicle repair and parts will be allocated differently. Initially, it increases the contribution to the highway user tax distribution fund over several years until it stabilizes at a certain percentage. Additional funds will be sent to the transportation advancement account with increasing percentages over time.
Remaining proceeds: After the specified allocations, any remaining proceeds will continue to be credited to the general fund.
Definitions and specifics: The bill defines what constitutes a motor vehicle and motor vehicle repair and replacement parts, which include parts, tires, accessories, and maintenance items like paint and oil.
Background allocations: The bill also outlines how other related tax revenues should be allocated to various natural resources, recreational, and conservation funds.
Overall, the bill intends to modify the funding mechanism from sales taxes on vehicle repairs and parts, ensuring a portion of it is earmarked specifically for transportation infrastructure and other state financial needs.
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| January 20, 2025 | Senate | Floor | Action | Introduction and first reading | |
| January 20, 2025 | Senate | Floor | Action | Referred to | Transportation |
Citations
[
{
"analysis": {
"added": [
"A new subsection specifying the allocation percentages to various funds over the fiscal years."
],
"removed": [
"Previous generic allocation method not specified by fiscal year percentages."
],
"summary": "Distribution of proceeds from the sales tax on vehicle repair and replacement parts under section 297A.94 is modified.",
"modified": [
"Adjusts allocations to the highway user tax distribution fund and other specific accounts over a set period."
]
},
"citation": "297A.94"
},
{
"analysis": {
"added": [
"Clarified eligibility for agricultural resource projects."
],
"removed": [
"Not applicable."
],
"summary": "References conditions under which taxes are deposited for agricultural projects in section 41A.04.",
"modified": [
"Conditional commitment requirements for tax deposit eligibility."
]
},
"citation": "41A.04"
},
{
"analysis": {
"added": [
"Introduction of prioritization of allocations to debt service."
],
"removed": [
"Not applicable."
],
"summary": "Addressing tax deposits to support general obligation special tax bond debt service account under section 16A.661.",
"modified": [
"Clarified order of fund allocation to support debt service before other distributions."
]
},
"citation": "16A.661"
},
{
"analysis": {
"added": [
"Specific percentages for allocation from sales tax on motor vehicle repairs and rentals."
],
"removed": [
"Not applicable."
],
"summary": "Sales tax rate references for motor vehicle repairs and leases under section 297A.62.",
"modified": [
"Specific taxes on rentals and repair parts to different funds."
]
},
"citation": "297A.62"
},
{
"analysis": {
"added": [
"Defined components of motor vehicle repairs in the context of sales tax."
],
"removed": [
"Not applicable."
],
"summary": "Clarifies the definition of 'motor vehicle' as per section 297B.01.",
"modified": [
"Clarified applicability of definitions in taxation context."
]
},
"citation": "297B.01"
},
{
"analysis": {
"added": [
"Specified fund allocations such as heritage enhancement and natural resources fund."
],
"removed": [
"Old percentages without detailed breakdown per fund."
],
"summary": "Distribution percentages for revenues transmitted under section 297A.65.",
"modified": [
"Adjusted distribution of transmitted revenues to enhance focus on parks and conservation."
]
},
"citation": "297A.65"
},
{
"analysis": {
"added": [
"Allocations to conservation initiatives and account establishment."
],
"removed": [
"Previous unspecified allocations to natural resources."
],
"summary": "Pollinator account funding in section 103B.101.",
"modified": [
"Specified account allocations for environmental and pollinator activities."
]
},
"citation": "103B.101"
},
{
"analysis": {
"added": [
"Detailed allocation from sales of regulated items to specific funds."
],
"removed": [
"General allocations without specific fund targeting."
],
"summary": "Fire safety account management under section 297I.06.",
"modified": [
"Refining fund allocation for fire safety and related grants."
]
},
"citation": "297I.06"
},
{
"analysis": {
"added": [
"Clarification on items subject to sales regulations and derived tax management."
],
"removed": [
"General mention without specific regulatory focus."
],
"summary": "Regulation of item sales and related tax management under section 624.20.",
"modified": [
"Defined scope of items impacting fund allocations from sales revenues."
]
},
"citation": "624.20"
},
{
"analysis": {
"added": [
"Enforcement of regulation for the public-sold items."
],
"removed": [
"Non-specific prior eliminations."
],
"summary": "Prohibition constraints on item sales for tax purposes under section 624.21.",
"modified": [
"Ensured revenue generation is within legal constraints on item usage."
]
},
"citation": "624.21"
},
{
"analysis": {
"added": [
"Investment focus on parks and trails of regional significance."
],
"removed": [
"Generalized parks and trail funding."
],
"summary": "Enhancements for regional significance parks under section 855.35.",
"modified": [
"Ensured fund use promotes regional park developments."
]
},
"citation": "855.35"
},
{
"analysis": {
"added": [
"Role of Greater Minnesota Regional Parks and Trails Commission."
],
"removed": [
"Previous unspecified geographic fund allocation."
],
"summary": "Allocation effectiveness and recommendations under section 855.36.",
"modified": [
"Assured targeted investment strategies for impactful developments."
]
},
"citation": "855.36"
}
]