The bill SF No. 108 involves changes to the current transportation-related taxes in Minnesota. It primarily amends how the registration tax is calculated for passenger automobiles and hearses. Key points include:

1. Modification of Registration Tax Calculation:

   • For vehicles registered in Minnesota before November 16, 2020, the registration tax is set at 1.25% of the manufacturer's suggested retail price (MSRP) and destination charge.
   • For vehicles registered on or after November 16, 2020, the tax will be 1.285% of the MSRP.

2. Exclusion from the Registration Tax:

   • Costs of any additional accessories or optional equipment added to the vehicle, as well as destination charges (with an exception for vehicles registered before November 16, 2020), are excluded from the tax calculation.

3. Determination of MSRP:

   • The MSRP will be determined using list prices from the manufacturer or other recognized data sources. If these aren't available, the actual sales price can be used.

4. Depreciation Schedule:

   • The bill specifies a depreciation schedule where the tax percentage decreases annually from 100% of the MSRP in the first year to 10% in the tenth year. From the eleventh year onwards, it will be calculated at 20-25%.

5. Cap on Maximum Tax Amount:

   • For previously registered vehicles in Minnesota, regardless of past ownership changes, the tax amount will not exceed the smallest total amount historically paid for that vehicle.

Additionally, the bill includes the repeal of certain statutes but does not specify which ones are being repealed. This legislation aims to simplify and possibly reduce the tax burden on vehicle owners in Minnesota, particularly for those owning vehicles over a longer term.