SF2081 (Legislative Session 94 (2025-2026))
Distribution proceeds from the sales tax on vehicle repair and replacement parts modification
Related bill: HF1798
AI Generated Summary
This bill (S.F. No. 2081) proposes changes to the distribution of sales tax revenue collected from the sale of motor vehicle repair and replacement parts in Minnesota. The key amendments to Minnesota Statutes 2024, section 297A.94, include:
Revenue Allocation Adjustments – A portion of the sales tax revenue from motor vehicle repair and replacement parts will be distributed as follows:
- 43.5% to the Highway User Tax Distribution Fund.
- A progressively increasing percentage to the Transportation Advancement Account, starting at 3.5% in fiscal year 2024 and reaching 56.5% by fiscal year 2033 and beyond.
General Fund Adjustments – The remaining revenue not allocated to the above funds will be credited to the state's General Fund.
Other Fund Allocations – The bill maintains existing provisions related to the deposit of sales tax revenue into various other funds, including those supporting natural resources, regional parks, fire safety, and other state priorities.
Overall, the bill aims to direct more state sales tax revenue from vehicle-related purchases toward transportation infrastructure and improvements over time.
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 02, 2025 | House | Floor | Action | Introduction and first reading | |
| March 02, 2025 | Senate | Floor | Action | Introduction and first reading | |
| March 02, 2025 | House | Floor | Action | Referred to | Transportation |
| March 02, 2025 | Senate | Floor | Action | Referred to | Transportation |
Citations
[
{
"analysis": {
"added": [
"Clarifies the allocation of tax revenues to various state funds including the general fund and the highway user tax distribution fund."
],
"removed": [
""
],
"summary": "This bill modifies the distribution of proceeds from the sales tax on vehicle repair and replacement parts under section 297A.94.",
"modified": [
"Adjusts the percentages allocated to different funds over several fiscal years."
]
},
"citation": "297A.94",
"subdivision": ""
},
{
"analysis": {
"added": [
""
],
"removed": [
""
],
"summary": "This bill references conditional commitments related to loan guaranties for agricultural resource projects under section 41A.04.",
"modified": [
"Updates cross-references to align with changes in funding allocation."
]
},
"citation": "41A.04",
"subdivision": "subdivision 3"
},
{
"analysis": {
"added": [
""
],
"removed": [
""
],
"summary": "This bill references sales and purchases taxable under section 297A.61.",
"modified": [
"Specifies additional details for taxable items related to sales tax."
]
},
"citation": "297A.61",
"subdivision": "subdivision 3"
},
{
"analysis": {
"added": [
""
],
"removed": [
""
],
"summary": "This bill mentions the allocation requirements for the general obligation special tax bond debt service account under section 16A.661.",
"modified": [
"Clarifies funding priorities through fiscal allocations."
]
},
"citation": "16A.661",
"subdivision": "subdivision 3"
},
{
"analysis": {
"added": [
""
],
"removed": [
""
],
"summary": "This bill references the definition of 'motor vehicle' as provided in section 297B.01.",
"modified": [
"Uses the definition for taxation purposes related to vehicle repair parts."
]
},
"citation": "297B.01",
"subdivision": "subdivision 11"
},
{
"analysis": {
"added": [
""
],
"removed": [
""
],
"summary": "This bill references the pollinator account established under section 103B.101.",
"modified": [
"Designates specific tax revenues for environmental purposes."
]
},
"citation": "103B.101",
"subdivision": "subdivision 19"
},
{
"analysis": {
"added": [
""
],
"removed": [
""
],
"summary": "The bill states how revenues for regional parks and trails should be used under section 85.535.",
"modified": [
"Allocated tax revenue to support parks and trails of regional significance."
]
},
"citation": "85.535",
"subdivision": ""
},
{
"analysis": {
"added": [
""
],
"removed": [
""
],
"summary": "This bill directs use of funds for parks and trails based on recommendations under section 85.536.",
"modified": [
"Emphasizes community input in funding allocation for parks and trails."
]
},
"citation": "85.536",
"subdivision": ""
},
{
"analysis": {
"added": [
""
],
"removed": [
""
],
"summary": "References regulations on the sale of certain items allowed to adults under section 624.20.",
"modified": [
"Specifies items eligible for certain tax revenue allocations."
]
},
"citation": "624.20",
"subdivision": "subdivision 1"
},
{
"analysis": {
"added": [
""
],
"removed": [
""
],
"summary": "This bill references prohibited items from general public use under section 624.21.",
"modified": [
"Clarifies legally permissible sales regarding regulated goods."
]
},
"citation": "624.21",
"subdivision": ""
},
{
"analysis": {
"added": [
""
],
"removed": [
""
],
"summary": "Refers to the volunteer fire assistance grant account under section 88.068.",
"modified": [
"Allocates certain sales tax revenue to volunteer fire services."
]
},
"citation": "88.068",
"subdivision": ""
},
{
"analysis": {
"added": [
""
],
"removed": [
""
],
"summary": "This bill references funds directed to the fire safety account under section 297I.06.",
"modified": [
"Specifies funding sources for fire safety initiatives."
]
},
"citation": "297I.06",
"subdivision": "subdivision 3"
}
]