HF1798

HF1798 (Legislative Session 94 (2025-2026))

Vehicle repair and replacement parts distribution of sales tax proceeds modified.

Related bill: SF2081

AI Generated Summary

This bill proposes changes to the way Minnesota distributes sales tax revenue from the sale of motor vehicle repair and replacement parts. Currently, these funds contribute to the general fund and various transportation-related accounts.

Key changes outlined in the bill include: - A structured allocation of these revenues, with increasing percentages directed to the Transportation Advancement Account from 2024 to 2033. - In Fiscal Year (FY) 2024, 3.5% of the proceeds will go to the Transportation Advancement Account, increasing incrementally each year to 56.5% by FY 2033 and beyond. - 43.5% of the revenues will consistently go to the Highway User Tax Distribution Fund. - Any remaining funds each year will be credited to the General Fund.

Additionally, the bill outlines other sales tax revenue distributions, including allocations to environmental, recreational, and emergency service funds, but its primary focus is on reallocating existing vehicle-part sales tax revenue to improve Minnesota's transportation infrastructure.

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
March 02, 2025	House	Floor	Action	Introduction and first reading, referred to	Transportation Finance and Policy
March 02, 2025	House	Floor	Action	Introduction and first reading, referred to	Transportation Finance and Policy

Citations

[
  {
    "analysis": {
      "added": [
        "New allocations for transportation advancement account and adjustments to various funds."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill modifies the distribution of sales tax revenues, particularly from vehicle repair and replacement parts under section 297A.94.",
      "modified": [
        "Changes the percentage distribution of sales tax revenues to various funds and accounts."
      ]
    },
    "citation": "297A.94",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Section referenced regarding loan guarantees for agricultural projects.",
      "modified": [
        ""
      ]
    },
    "citation": "41A.04",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Relates to the definition and inclusion of various sales and purchases subject to tax.",
      "modified": [
        ""
      ]
    },
    "citation": "297A.61",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Relates to the general obligation special tax bond debt service account requirements.",
      "modified": [
        ""
      ]
    },
    "citation": "16A.661",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "References the deposit of revenues collected under section 297A.64 subdivision 1.",
      "modified": [
        ""
      ]
    },
    "citation": "297A.64",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "References the deposit of revenues collected under section 297A.64 subdivision 5.",
      "modified": [
        ""
      ]
    },
    "citation": "297A.64",
    "subdivision": "subdivision 5"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Defines 'motor vehicle' for the purposes of the distribution of sales tax revenues.",
      "modified": [
        ""
      ]
    },
    "citation": "297B.01",
    "subdivision": "subdivision 11"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Establishes the pollinator account under natural resources fund.",
      "modified": [
        ""
      ]
    },
    "citation": "103B.101",
    "subdivision": "subdivision 19"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "References the parks and trails funding distribution outside the sevencounty metropolitan area.",
      "modified": [
        ""
      ]
    },
    "citation": "85.535",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Mentions recommendations from the Greater Minnesota Regional Parks and Trails Commission.",
      "modified": [
        ""
      ]
    },
    "citation": "85.536",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Relates to the regulation and sale of certain items to persons 18 years old or older.",
      "modified": [
        ""
      ]
    },
    "citation": "624.20",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Mentioned in relation to prohibited items to the general public.",
      "modified": [
        ""
      ]
    },
    "citation": "624.21",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "References the volunteer fire assistance grant account.",
      "modified": [
        ""
      ]
    },
    "citation": "88.068",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "References the fire safety account.",
      "modified": [
        ""
      ]
    },
    "citation": "297I.06",
    "subdivision": "subdivision 3"
  }
]