Minneslate Logo

SF4943

Motor vehicle registration tax holiday authorization for one year
Legislative Session 94 (2025-2026)

AI Generated Summary

Purpose

Explain and provide a temporary exemption from the motor vehicle registration tax for a one-year period, aimed at encouraging vehicle purchases and renewals in Minnesota during 2027.

Main Provisions

  • Subdivision 1 — New purchases

    • For all new and used vehicles purchased and registered in Minnesota between January 1, 2027 and December 31, 2027, the motor vehicle registration tax (as defined in Minnesota Statutes section 168.013) is waived.

  • Subdivision 2 — Registration renewals

    • For all motor vehicle registration renewals due between January 1, 2027 and December 31, 2027:
    • The registration is automatically extended for 12 additional months.
    • The motor vehicle registration tax is waived.
    • No new license plate tabs are issued for these automatically extended registrations.
    • The existing license plate tabs remain valid for 12 months after the extension.

  • Subdivision 3 — Electric vehicle surcharges

    • The waivers and extensions do not apply to electric vehicle surcharges payable under Minnesota Statutes section 168.013 subdivision 1m.
    • The waivers and extensions do not apply to plug-in hybrid electric vehicle surcharges payable under Minnesota Statutes section 168.013 subdivision 1n.

Effects and Changes to Law

  • Creates a one-year tax holiday in 2027 for the motor vehicle registration tax.
  • Applies to both new vehicle purchases and existing registrations being renewed during 2027.
  • Implements a 12-month automatic extension for renewals, with the caveat that no new license plate tabs are issued and existing tabs remain valid for the extended period.
  • Excludes electric vehicle and plug-in hybrid surcharges from the tax waiver and renewal extension.

Timeline / Effective Dates

  • January 1, 2027 through December 31, 2027.

Significance

  • Temporary reduction in state revenue from the registration tax during 2027.
  • Potential impact on consumer buying and renewal behavior, and on administrative handling of license plates for extended renewals.
  • EV-related charges continue to apply, not covered by the waiver.

Relevant Terms

motor vehicle registration tax, waiver, new purchases, registration renewals, automatic extension, license plate tabs, electric vehicle surcharges, plug-in hybrid electric vehicle surcharges, Minnesota Statutes section 168.013, subdivision 1m, subdivision 1n.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
April 07, 2026SenateActionIntroduction and first reading
April 07, 2026SenateActionReferred toTransportation

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill waives the motor vehicle registration tax under Minnesota Statutes section 168.013 for new purchases and for renewals during 2027.",
      "modified": []
    },
    "citation": "168.013",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill references Minnesota Statutes section 168.013 subdivision 1m, noting that the exemptions in subdivisions 1 and 2 do not apply to electric vehicle surcharges described in that subdivision.",
      "modified": []
    },
    "citation": "168.013",
    "subdivision": "subd. 1m"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill references Minnesota Statutes section 168.013 subdivision 1n, noting that the exemptions in subdivisions 1 and 2 do not apply to plug-in hybrid electric vehicle surcharges described in that subdivision.",
      "modified": []
    },
    "citation": "168.013",
    "subdivision": "subd. 1n"
  }
]

Progress through the legislative process

17%
In Committee

Sponsors

    Loading…