SF479 (Legislative Session 94 (2025-2026))
Distribution modification of proceeds from the sales tax on vehicle repair and replacement parts
AI Generated Summary
The legislative bill SF No. 479 focuses on adjusting how the sales tax revenue from vehicle repair and replacement parts is managed in Minnesota. Specifically, it amends Section 297A.94 of the Minnesota Statutes.
Key points of the bill include:
Redistribution of tax revenue: A specified portion of the sales tax collected from vehicle repair and parts will be allocated differently. Initially, it increases the contribution to the highway user tax distribution fund over several years until it stabilizes at a certain percentage. Additional funds will be sent to the transportation advancement account with increasing percentages over time.
Remaining proceeds: After the specified allocations, any remaining proceeds will continue to be credited to the general fund.
Definitions and specifics: The bill defines what constitutes a motor vehicle and motor vehicle repair and replacement parts, which include parts, tires, accessories, and maintenance items like paint and oil.
Background allocations: The bill also outlines how other related tax revenues should be allocated to various natural resources, recreational, and conservation funds.
Overall, the bill intends to modify the funding mechanism from sales taxes on vehicle repairs and parts, ensuring a portion of it is earmarked specifically for transportation infrastructure and other state financial needs.
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| January 20, 2025 | House | Floor | Action | Introduction and first reading | |
| January 20, 2025 | Senate | Floor | Action | Introduction and first reading | |
| January 20, 2025 | House | Floor | Action | Referred to | Transportation |
| January 20, 2025 | Senate | Floor | Action | Referred to | Transportation |
Citations
[
{
"analysis": {
"added": [
"New allocations for various funds and accounts from the revenues derived from the sales tax."
],
"removed": [
""
],
"summary": "This section of the bill modifies the distribution of proceeds from the sales tax on vehicle repair and replacement parts under section 297A.94.",
"modified": [
"Amends existing distribution percentages and introduces new ones for future fiscal years."
]
},
"citation": "297A.94",
"subdivision": ""
},
{
"analysis": {
"added": [
""
],
"removed": [
""
],
"summary": "This refers to conditions under which sales tax proceeds related to agricultural projects are handled under section 41A.04.",
"modified": [
"Clarifies the handling of sales tax proceeds related to conditional loan guarantees."
]
},
"citation": "41A.04",
"subdivision": "subdivision 3"
},
{
"analysis": {
"added": [
""
],
"removed": [
""
],
"summary": "Modification of sales tax application on certain sales and purchases outlined in section 297A.61.",
"modified": [
"Specifies clauses for particular transactions included in tax calculations."
]
},
"citation": "297A.61",
"subdivision": "subdivision 3"
},
{
"analysis": {
"added": [
""
],
"removed": [
""
],
"summary": "Allocation of funds to the general obligation special tax bond debt service account under section 16A.661.",
"modified": [
"Details the priority of deposits to meet fiscal requirements for debt services."
]
},
"citation": "16A.661",
"subdivision": "subdivision 3"
},
{
"analysis": {
"added": [
""
],
"removed": [
""
],
"summary": "Deals with the collection of taxes for highway user funds under section 297A.64.",
"modified": [
"Updates on how revenues collected will be credited to support infrastructure."
]
},
"citation": "297A.64",
"subdivision": "subdivision 1"
},
{
"analysis": {
"added": [
""
],
"removed": [
""
],
"summary": "Refers to collection and crediting of excess fees under section 297A.64 subdivision 5.",
"modified": [
"Specifies the timing and allocation of excess collections to the highway user fund."
]
},
"citation": "297A.64",
"subdivision": "subdivision 5"
},
{
"analysis": {
"added": [
""
],
"removed": [
""
],
"summary": "Application of a tax rate on rental vehicles for highway fund contributions under section 297A.62.",
"modified": [
"Determines how tag sales revenue from short-term vehicle rentals is allocated."
]
},
"citation": "297A.62",
"subdivision": "subdivision 1"
},
{
"analysis": {
"added": [
""
],
"removed": [
""
],
"summary": "Provisions for a pollinator account under section 103B.101.",
"modified": [
"Mentions the establishment of funds dedicated to pollinator protection."
]
},
"citation": "103B.101",
"subdivision": "subdivision 19"
},
{
"analysis": {
"added": [
""
],
"removed": [
""
],
"summary": "Defines 'motor vehicle' as per section 297B.01.",
"modified": [
"Clarifies language surrounding what constitutes a motor vehicle within tax code."
]
},
"citation": "297B.01",
"subdivision": "subdivision 11"
},
{
"analysis": {
"added": [
""
],
"removed": [
""
],
"summary": "Allocation to fire safety account under section 297I.06.",
"modified": [
"Specifies that a portion of revenues supports fire safety initiatives."
]
},
"citation": "297I.06",
"subdivision": "subdivision 3"
},
{
"analysis": {
"added": [
""
],
"removed": [
""
],
"summary": "Inclusion of item regulation in tax revenue distribution under section 624.20.",
"modified": [
"Links sale and regulation of certain items to tax revenue allocations."
]
},
"citation": "624.20",
"subdivision": "subdivision 1"
},
{
"analysis": {
"added": [
""
],
"removed": [
""
],
"summary": "Handles prohibitions regarding public use of certain items under section 624.21.",
"modified": [
"Discusses exclusions from sales tax revenue distribution due to public prohibitions."
]
},
"citation": "624.21",
"subdivision": ""
},
{
"analysis": {
"added": [
""
],
"removed": [
""
],
"summary": "Grants to volunteer fire assistance specified under section 880.68.",
"modified": [
"Indicates the percentage of sales tax allocations granted to volunteer fire assistance."
]
},
"citation": "880.68",
"subdivision": ""
},
{
"analysis": {
"added": [
""
],
"removed": [
""
],
"summary": "References regional parks and trails significant under section 85.535.",
"modified": [
"Provides for funding to support regional parks outside metropolitan areas."
]
},
"citation": "85.535",
"subdivision": ""
},
{
"analysis": {
"added": [
""
],
"removed": [
""
],
"summary": "Recommendations by the Greater Minnesota Regional Parks and Trails Commission under section 85.536.",
"modified": [
"Describes the role and influence of the commission over regional funding decisions."
]
},
"citation": "85.536",
"subdivision": ""
}
]