Minnesota 2025-2026 Regular Session

Minnesota House Bill HF1798 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to transportation; modifying distribution of proceeds from the sales tax
3	3	1.3 on vehicle repair and replacement parts; amending Minnesota Statutes 2024, section
4	4	1.4 297A.94.
5	5	1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
6	6	1.6 Section 1. Minnesota Statutes 2024, section 297A.94, is amended to read:
7	7	1.7 297A.94 DEPOSIT OF REVENUES.
8	8	1.8 (a) Except as provided in this section, the commissioner shall deposit the revenues,
9	9	1.9including interest and penalties, derived from the taxes imposed by this chapter in the state
10	10	1.10treasury and credit them to the general fund.
11	11	1.11 (b) The commissioner shall deposit taxes in the Minnesota agricultural and economic
12	12	1.12account in the special revenue fund if:
13	13	1.13 (1) the taxes are derived from sales and use of property and services purchased for the
14	14	1.14construction and operation of an agricultural resource project; and
15	15	1.15 (2) the purchase was made on or after the date on which a conditional commitment was
16	16	1.16made for a loan guaranty for the project under section 41A.04, subdivision 3.
17	17	1.17The commissioner of management and budget shall certify to the commissioner the date on
18	18	1.18which the project received the conditional commitment. The amount deposited in the loan
19	19	1.19guaranty account must be reduced by any refunds and by the costs incurred by the Department
20	20	1.20of Revenue to administer and enforce the assessment and collection of the taxes.
21	21	1Section 1.
22	22	REVISOR KRB/MI 25-0376402/11/25
23	23	State of Minnesota
24	24	This Document can be made available
25	25	in alternative formats upon request
26	26	HOUSE OF REPRESENTATIVES
27	27	H. F. No. 1798
28	28	NINETY-FOURTH SESSION
29	29	Authored by Koegel03/03/2025
30	30	The bill was read for the first time and referred to the Committee on Transportation Finance and Policy 2.1 (c) The commissioner shall deposit the revenues, including interest and penalties, derived
31	31	2.2from the taxes imposed on sales and purchases included in section 297A.61, subdivision 3,
32	32	2.3paragraph (g), clauses (1) and (4), in the state treasury, and credit them as follows:
33	33	2.4 (1) first to the general obligation special tax bond debt service account in each fiscal
34	34	2.5year the amount required by section 16A.661, subdivision 3, paragraph (b); and
35	35	2.6 (2) after the requirements of clause (1) have been met, the balance to the general fund.
36	36	2.7 (d) Beginning with sales taxes remitted after July 1, 2017, the commissioner shall deposit
37	37	2.8in the state treasury the revenues collected under section 297A.64, subdivision 1, including
38	38	2.9interest and penalties and minus refunds, and credit them to the highway user tax distribution
39	39	2.10fund.
40	40	2.11 (e) The commissioner shall deposit the revenues, including interest and penalties,
41	41	2.12collected under section 297A.64, subdivision 5, in the state treasury and credit them to the
42	42	2.13general fund. By July 15 of each year the commissioner shall transfer to the highway user
43	43	2.14tax distribution fund an amount equal to the excess fees collected under section 297A.64,
44	44	2.15subdivision 5, for the previous calendar year.
45	45	2.16 (f) Beginning with sales taxes remitted after July 1, 2017, in conjunction with the deposit
46	46	2.17of revenues under paragraph (d), the commissioner shall deposit into the state treasury and
47	47	2.18credit to the highway user tax distribution fund an amount equal to the estimated revenues
48	48	2.19derived from the tax rate imposed under section 297A.62, subdivision 1, on the lease or
49	49	2.20rental for not more than 28 days of rental motor vehicles subject to section 297A.64. The
50	50	2.21commissioner shall estimate the amount of sales tax revenue deposited under this paragraph
51	51	2.22based on the amount of revenue deposited under paragraph (d).
52	52	2.23 (g) The commissioner must deposit the revenues derived from the taxes imposed under
53	53	2.24section 297A.62, subdivision 1, on the sale and purchase of motor vehicle repair and
54	54	2.25replacement parts in the state treasury and credit:
55	55	2.26 (1) 43.5 percent in each fiscal year to the highway user tax distribution fund;
56	56	2.27 (2) a percentage to the transportation advancement account under section 174.49 as
57	57	2.28follows:
58	58	2.29 (i) 3.5 percent in fiscal year 2024;
59	59	2.30 (ii) 4.5 percent in fiscal year 2025;
60	60	2.31 (iii) 5.5 percent in fiscal year 2026;
61	61	2.32 (iv) 7.5 7.6 percent in fiscal year 2027;
62	62	2Section 1.
63	63	REVISOR KRB/MI 25-0376402/11/25 3.1 (v) 14.5 14.75 percent in fiscal year 2028;
64	64	3.2 (vi) 21.5 22 percent in fiscal year 2029; and
65	65	3.3 (vii) 28.5 56.5 percent in fiscal year 2030 and thereafter; and
66	66	3.4 (viii) 36.5 percent in fiscal year 2031;
67	67	3.5 (ix) 44.5 percent in fiscal year 2032; and
68	68	3.6 (x) 56.5 percent in fiscal year 2033 and thereafter; and
69	69	3.7 (3) the remainder in each fiscal year to the general fund.
70	70	3.8For purposes of this paragraph, "motor vehicle" has the meaning given in section 297B.01,
71	71	3.9subdivision 11, and "motor vehicle repair and replacement parts" includes (i) all parts, tires,
72	72	3.10accessories, and equipment incorporated into or affixed to the motor vehicle as part of the
73	73	3.11motor vehicle maintenance and repair, and (ii) paint, oil, and other fluids that remain on or
74	74	3.12in the motor vehicle as part of the motor vehicle maintenance or repair. For purposes of this
75	75	3.13paragraph, "tire" means any tire of the type used on highway vehicles, if wholly or partially
76	76	3.14made of rubber and if marked according to federal regulations for highway use.
77	77	3.15 (h) 81.56 percent of the revenues, including interest and penalties, transmitted to the
78	78	3.16commissioner under section 297A.65, must be deposited by the commissioner in the state
79	79	3.17treasury as follows:
80	80	3.18 (1) 47.5 percent of the receipts must be deposited in the heritage enhancement account
81	81	3.19in the game and fish fund, and may be spent only on activities that improve, enhance, or
82	82	3.20protect fish and wildlife resources, including conservation, restoration, and enhancement
83	83	3.21of land, water, and other natural resources of the state;
84	84	3.22 (2) 22.5 percent of the receipts must be deposited in the natural resources fund, and may
85	85	3.23be spent only for state parks and trails;
86	86	3.24 (3) 22.5 percent of the receipts must be deposited in the natural resources fund, and may
87	87	3.25be spent only on metropolitan park and trail grants;
88	88	3.26 (4) three percent of the receipts must be deposited in the natural resources fund, and
89	89	3.27may be spent only on local trail grants;
90	90	3.28 (5) two percent of the receipts must be deposited in the natural resources fund, and may
91	91	3.29be spent only for the Minnesota Zoological Garden, the Como Park Zoo and Conservatory,
92	92	3.30and the Duluth Zoo; and
93	93	3Section 1.
94	94	REVISOR KRB/MI 25-0376402/11/25 4.1 (6) 2.5 percent of the receipts must be deposited in the pollinator account established in
95	95	4.2section 103B.101, subdivision 19.
96	96	4.3 (i) 1.5 percent of the revenues, including interest and penalties, transmitted to the
97	97	4.4commissioner under section 297A.65 must be deposited in a regional parks and trails account
98	98	4.5in the natural resources fund and may only be spent for parks and trails of regional
99	99	4.6significance outside of the seven-county metropolitan area under section 85.535, based on
100	100	4.7recommendations from the Greater Minnesota Regional Parks and Trails Commission under
101	101	4.8section 85.536.
102	102	4.9 (j) 1.5 percent of the revenues, including interest and penalties, transmitted to the
103	103	4.10commissioner under section 297A.65 must be deposited in an outdoor recreational
104	104	4.11opportunities for underserved communities account in the natural resources fund and may
105	105	4.12only be spent on projects and activities that connect diverse and underserved Minnesotans
106	106	4.13through expanding cultural environmental experiences, exploration of their environment,
107	107	4.14and outdoor recreational activities.
108	108	4.15 (k) The revenue dedicated under paragraph (h) may not be used as a substitute for
109	109	4.16traditional sources of funding for the purposes specified, but the dedicated revenue shall
110	110	4.17supplement traditional sources of funding for those purposes. Land acquired with money
111	111	4.18deposited in the game and fish fund under paragraph (h) must be open to public hunting
112	112	4.19and fishing during the open season, except that in aquatic management areas or on lands
113	113	4.20where angling easements have been acquired, fishing may be prohibited during certain times
114	114	4.21of the year and hunting may be prohibited. At least 87 percent of the money deposited in
115	115	4.22the game and fish fund for improvement, enhancement, or protection of fish and wildlife
116	116	4.23resources under paragraph (h) must be allocated for field operations.
117	117	4.24 (l) The commissioner must deposit the revenues, including interest and penalties minus
118	118	4.25any refunds, derived from the sale of items regulated under section 624.20, subdivision 1,
119	119	4.26that may be sold to persons 18 years old or older and that are not prohibited from use by
120	120	4.27the general public under section 624.21, in the state treasury and credit:
121	121	4.28 (1) 25 percent to the volunteer fire assistance grant account established under section
122	122	4.2988.068;
123	123	4.30 (2) 25 percent to the fire safety account established under section 297I.06, subdivision
124	124	4.313; and
125	125	4.32 (3) the remainder to the general fund.
126	126	4Section 1.
127	127	REVISOR KRB/MI 25-0376402/11/25 5.1 For purposes of this paragraph, the percentage of total sales and use tax revenue derived
128	128	5.2from the sale of items regulated under section 624.20, subdivision 1, that are allowed to be
129	129	5.3sold to persons 18 years old or older and are not prohibited from use by the general public
130	130	5.4under section 624.21, is a set percentage of the total sales and use tax revenues collected in
131	131	5.5the state, with the percentage determined under Laws 2017, First Special Session chapter
132	132	5.61, article 3, section 39.
133	133	5.7 (m) The revenues deposited under paragraphs (a) to (l) do not include the revenues,
134	134	5.8including interest and penalties, generated by the sales tax imposed under section 297A.62,
135	135	5.9subdivision 1a, which must be deposited as provided under the Minnesota Constitution,
136	136	5.10article XI, section 15.
137	137	5Section 1.
138	138	REVISOR KRB/MI 25-0376402/11/25