Minnesota 2023-2024 Regular Session

Minnesota House Bill HF3111

Introduced
3/23/23  

Caption

Transportation-related taxes and tax allocation modified.

Impact

The modifications proposed in HF3111 are intended to streamline the vehicle registration process and ensure that tax revenues are distributed in a manner that supports transportation infrastructure. By adjusting the registration tax calculation, the bill could lead to more predictable revenue for public works while alleviating some tax burdens for certain vehicle owners. In addition, the bill adjusts how revenues from related taxes are allocated, ensuring they specifically contribute to the highway user tax distribution fund, which is essential for maintaining and enhancing the transportation network statewide.

Summary

House File 3111 (HF3111) aims to modify certain transportation-related taxes and the allocation of tax revenues in Minnesota. The bill specifically revises the current tax structure concerning vehicle registration fees based on the manufacturer's suggested retail price (MSRP). By establishing a tiered registration tax schedule for vehicles according to their age and compensating for prior registrations, HF3111 seeks to make vehicle ownership more equitable and potentially lower the annual financial burden on owners of older vehicles, which may encourage longer vehicle use.

Contention

While HF3111 is positioned as a positive reform to Minnesota’s tax treatment of vehicle registrations, there is potential for contention regarding the adjustments to existing fiscal frameworks. Opponents may argue that changes to the tax structure should include greater consideration for environmental impacts or the fiscal needs of local governments reliant on these revenues for essential services. There may also be concerns about the implications of these tax changes on the overall equity of transportation funding, especially for urban versus rural road maintenance.

Additional_notes

HF3111 is part of a broader legislative effort to ensure that transportation issues remain a priority for state funding. The bill encompasses amendments to existing statutory frameworks as detailed in the Minnesota Statutes, making it crucial for lawmakers to navigate the balancing act between generating adequate revenue and addressing the varying needs of Minnesota's diverse communities.

Companion Bills

No companion bills found.

Previously Filed As

MN HF4858

Transportation-related taxes amended and repealed.

MN SF4903

Certain transportation-related taxed repeal and amendment

MN SF108

Amending and Repealing certain transportation-related taxes

MN SF4603

Vehicle registration size and weight surcharge establishment and technical changes

MN HF2428

Road usage charge imposed, report required, and money appropriated.

MN SF3012

Vehicle registration taxes abolishment

MN HF3006

Vehicle registration taxes abolished, and money transferred.

MN SF1946

Transportation provisions modifications and appropriations

MN SF601

Vehicle registration taxes abolishment provision and transfer of money

MN HF1992

Transportation purposes funding provided, including Department of Transportation, Department of Public Safety, and Metropolitan Council activities; transportation policy changes made; noncompliant driver's license and Minnesota identification card requirements modified; reports required; bonds issued; and money appropriated.

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