SF902 (Legislative Session 94 (2025-2026))
Revenues from sales tax on various products and services allocation to the highway user tax distribution fund
AI Generated Summary
This legislative bill, S.F. No. 902, proposes modifications to the way sales tax revenues are handled in Minnesota, specifically allocating portions of these taxes to different funds and projects within the state. Key aspects of the bill include:
General Allocation: It amends how taxes collected on sales and purchases are distributed, specifying that certain percentages must go into specific accounts like the highway user tax distribution fund and the general fund.
Specific Uses:
- Taxes from agricultural project-related purchases go into agricultural and economic accounts.
- Revenues from the sales of motor vehicle repair and replacement parts are increasingly allocated to the transportation advancement account over several years, with the remainder going to the highway user tax distribution fund and the general fund.
- Taxes collected from certain activities and items, such as those impacting fish and wildlife, state parks, and local trails, are designated to enhance specific environmental and recreational projects.
Highway User Tax Distribution Fund: New provisions are introduced for the allocation of sales taxes derived from vehicle services, vehicle rentals, and bicycle-related sales and services to this fund.
Environmental and Recreational Enhancements:
- A considerable portion of certain taxes supports the heritage enhancement account for activities improving fish and wildlife resources.
- Other portions support natural resources funds used for parks, trails, and zoos.
Community Inclusion: Further funds are allocated for outdoor recreational opportunities for underserved communities, emphasizing inclusivity in accessing natural and environmental resources.
Emergency Services Funding: Sales of specific items lead to funds for fire safety and volunteer fire assistance.
This bill aims to clearly designate where and how tax revenues should be utilized, enhancing transparency and ensuring funds are used to support specified state needs and projects, from highway maintenance to environmental conservation and community recreation.
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| February 02, 2025 | Senate | Floor | Action | Introduction and first reading | |
| February 02, 2025 | House | Floor | Action | Introduction and first reading | |
| February 02, 2025 | House | Floor | Action | Referred to | Transportation |
| February 02, 2025 | Senate | Floor | Action | Referred to | Transportation |
| February 09, 2025 | House | Floor | Action | Author added | |
| February 09, 2025 | Senate | Floor | Action | Author added | |
| February 09, 2025 | Senate | Floor | Action | Author added |
Citations
[
{
"analysis": {
"added": [
"Specifies the percentage of revenue allocations to different funds, such as the highway user tax distribution fund and others."
],
"removed": [
""
],
"summary": "This bill amends the deposit of revenues from the sales tax under section 297A.94.",
"modified": [
"Adjusts the allocation percentages to various state accounts"
]
},
"citation": "297A.94",
"subdivision": ""
},
{
"analysis": {
"added": [
"Conditional commitment for a loan guaranty is part of allocation conditions."
],
"removed": [
""
],
"summary": "Modification related to sales and use tax allocation for agricultural projects.",
"modified": [
"Adjusts usage specific to construction and operation of agricultural projects."
]
},
"citation": "41A.04",
"subdivision": "subdivision 3"
},
{
"analysis": {
"added": [
""
],
"removed": [
""
],
"summary": "Specifies the allocation of tax revenue for debt service on general obligation special tax bonds.",
"modified": [
"Ensures prioritized allocation to the debt service account as mandated."
]
},
"citation": "16A.661",
"subdivision": "subdivision 3"
},
{
"analysis": {
"added": [
""
],
"removed": [
""
],
"summary": "Defines 'motor vehicle' for the purpose of tax allocations in section 297A.",
"modified": [
"Clarifies the definition scope for fiscal allocations."
]
},
"citation": "297B.01",
"subdivision": "subdivision 11"
},
{
"analysis": {
"added": [
"Addresses uses and proportions of funds allocated to environmental resources."
],
"removed": [
""
],
"summary": "Establishment of a pollinator account receiving a portion of tax revenue.",
"modified": [
""
]
},
"citation": "103B.101",
"subdivision": "subdivision 19"
},
{
"analysis": {
"added": [
"Stipulates funding recommendations from state commissions."
],
"removed": [
""
],
"summary": "Guides spending on parks and trails of regional significance based on tax revenue allocations.",
"modified": [
""
]
},
"citation": "85.535",
"subdivision": ""
},
{
"analysis": {
"added": [
"Mandates specific allocation usage from increased tax revenues."
],
"removed": [
""
],
"summary": "Involves greater Minnesota parks and trails commission for fund recommendations.",
"modified": [
""
]
},
"citation": "85.536",
"subdivision": ""
},
{
"analysis": {
"added": [
"Guidelines for distribution of funds to safety and fire-related accounts."
],
"removed": [
""
],
"summary": "Regulations on tax revenue from certain sales items permitted for public use.",
"modified": [
"Clarifies which items contribute to the tax revenue pool."
]
},
"citation": "624.20",
"subdivision": "subdivision 1"
},
{
"analysis": {
"added": [
"Specifies allocation of funds raised from certain item sales."
],
"removed": [
""
],
"summary": "References to the fire safety account which receives certain sales tax allocations.",
"modified": [
"Aligns with adjusted revenue source allocations for public safety."
]
},
"citation": "297I.06",
"subdivision": "subdivision 3"
},
{
"analysis": {
"added": [
"Addresses new allocations based on bicycle sale revenues."
],
"removed": [
""
],
"summary": "Definition adjustment for bicycles in relation to tax allocation.",
"modified": [
"Clarifies definitions impacting taxation allocation policies."
]
},
"citation": "169.011",
"subdivision": "subdivision 4"
},
{
"analysis": {
"added": [
"Specifies sales definitions for fiscal distribution."
],
"removed": [
""
],
"summary": "Definition adjustment for electric-assisted bicycles in tax allocations.",
"modified": [
"Clarifies definitions impacting taxation allocation policies."
]
},
"citation": "169.011",
"subdivision": "subdivision 27"
},
{
"analysis": {
"added": [
"Defines terms impacting fiscal adjustments on sales."
],
"removed": [
""
],
"summary": "References vehicle services definitions impacting tax allocations.",
"modified": [
"Clarifies services subject to redistribution of tax revenue."
]
},
"citation": "297A.61",
"subdivision": "subdivision 3"
},
{
"analysis": {
"added": [
"Adjustments to include or exclude specific services in fiscal pool."
],
"removed": [
""
],
"summary": "Definitions related to for-hire carriers in tax allocations.",
"modified": [
"Clarifies which services affect tax revenue allocations."
]
},
"citation": "297A.61",
"subdivision": "subdivision 19"
},
{
"analysis": {
"added": [
"New definitions for fiscal redirection in transport-linked services."
],
"removed": [
""
],
"summary": "Financial impact considerations for direct mail as defined for tax purposes.",
"modified": [
"Clarifies mailing services scope within taxation layout."
]
},
"citation": "297A.61",
"subdivision": "subdivision 35"
},
{
"analysis": {
"added": [
"Measures affecting fiscal direction in service establishments."
],
"removed": [
""
],
"summary": "References financial implications for food service industry definition.",
"modified": [
"Expanded scope of definitions for fiscal adjustments."
]
},
"citation": "157.15",
"subdivision": "subdivision 5"
},
{
"analysis": {
"added": [
"Captures adjustments in fiscal disposition for food services."
],
"removed": [
""
],
"summary": "References financial implications for food carts within tax allocation.",
"modified": [
"Expanded scope of definitions for fiscal adjustments."
]
},
"citation": "157.15",
"subdivision": "subdivision 6"
},
{
"analysis": {
"added": [
"Fiscal redirection adjustments for defined unit types."
],
"removed": [
""
],
"summary": "References financial implications for mobile food units in business taxation.",
"modified": [
"Expanded scope of definitions for fiscal adjustments."
]
},
"citation": "157.15",
"subdivision": "subdivision 9"
}
]