SF5185

Purpose

This bill aims to improve transparency about motor fuel taxes by requiring clear tax disclosures at gas stations and on fuel receipts. It also removes automatic, indexed increases to the motor fuels tax and makes related updates to state law.

Key Provisions

• Gas tax sign on gas pumps

  • Every retail petroleum dispenser must display, in 12-point font or larger, a sign showing:
  • For regular or premium gasoline: “The price for each gallon of gasoline includes the current state gasoline tax of 28.5 cents per gallon and federal gasoline tax of 18.4 cents per gallon. Revenue from the state fuel tax may be used only for roads and bridges according to the Minnesota Constitution.”
  • For diesel: “The price for each gallon of diesel fuel includes the current state gasoline tax of 28.5 cents per gallon and federal gasoline tax of 24.4 cents per gallon. Revenue from the state fuel tax may be used only for roads and bridges according to the Minnesota Constitution.”
  • The director must provide these signs to gas station owners/operators and update them within 12 months if the tax amounts change.
  • Station owners/operators cannot be fined or penalized for a missing, damaged, or destroyed sign.

• Gas tax on sales receipts

  • For every sale of regular or premium gasoline or diesel, retailers must provide a sales receipt displaying, in 11-point font or larger, the same tax text shown on the pump sign (as updated if the tax amounts change).

• Administration and deployment

  • The director is responsible for distributing signs and must coordinate with other duties related to retail fuel dispensers.
  • If the gasoline tax amounts change, the director must issue revised signs within 12 calendar months of the change.

Changes to Existing Law

• Amends Minnesota Statutes 2024 sections 239.7511, 296A.07 subdivision 3, and 296A.08 subdivision 2.
• Adds a requirement to display gas tax information at the pump and on receipts, increasing consumer visibility of tax components.
• Removes or limits indexed (automatic) increases to the motor fuels tax, effectively halting automatic inflation-based tax increases.
• Codifies a constitutional restriction that state fuel tax revenue be used only for roads and bridges.

Compliance and Penalties

• No penalties, fines, or fees may be imposed on the owner or operator of a retail petroleum dispenser for a missing, destroyed, defaced, or damaged gas tax sign.

Relevant Terms - gas tax sign on petroleum dispenser - 12-point font - 28.5 cents per gallon (state gasoline tax) - 18.4 cents per gallon (federal gasoline tax) - 24.4 cents per gallon (federal diesel tax) - 28.5 cents per gallon (state diesel tax) - The price includes taxes - revenue from the state fuel tax may be used only for roads and bridges - Minnesota Constitution - retail petroleum dispenser / gas pump - director (sign distribution and updates) - sales receipt display - 11-point font - indexed increases to the motor fuels tax (removed)