Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF175 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	25-00624 as introduced11/22/24 REVISOR KRB/AD
23	23	SENATE
24	24	STATE OF MINNESOTA
25	25	S.F. No. 175NINETY-FOURTH SESSION
26	26	(SENATE AUTHORS: JASINSKI, Dibble, Lang, Howe and Kreun)
27	27	OFFICIAL STATUSD-PGDATE
28	28	Introduction and first reading01/16/2025
29	29	Referred to Taxes 2.1 (c) The commissioner shall deposit the revenues, including interest and penalties, derived
30	30	2.2from the taxes imposed on sales and purchases included in section 297A.61, subdivision 3,
31	31	2.3paragraph (g), clauses (1) and (4), in the state treasury, and credit them as follows:
32	32	2.4 (1) first to the general obligation special tax bond debt service account in each fiscal
33	33	2.5year the amount required by section 16A.661, subdivision 3, paragraph (b); and
34	34	2.6 (2) after the requirements of clause (1) have been met, the balance to the general fund.
35	35	2.7 (d) Beginning with sales taxes remitted after July 1, 2017, the commissioner shall deposit
36	36	2.8in the state treasury the revenues collected under section 297A.64, subdivision 1, including
37	37	2.9interest and penalties and minus refunds, and credit them to the highway user tax distribution
38	38	2.10fund.
39	39	2.11 (e) The commissioner shall deposit the revenues, including interest and penalties,
40	40	2.12collected under section 297A.64, subdivision 5, in the state treasury and credit them to the
41	41	2.13general fund. By July 15 of each year the commissioner shall transfer to the highway user
42	42	2.14tax distribution fund an amount equal to the excess fees collected under section 297A.64,
43	43	2.15subdivision 5, for the previous calendar year.
44	44	2.16 (f) Beginning with sales taxes remitted after July 1, 2017, in conjunction with the deposit
45	45	2.17of revenues under paragraph (d), the commissioner shall deposit into the state treasury and
46	46	2.18credit to the highway user tax distribution fund an amount equal to the estimated revenues
47	47	2.19derived from the tax rate imposed under section 297A.62, subdivision 1, on the lease or
48	48	2.20rental for not more than 28 days of rental motor vehicles subject to section 297A.64. The
49	49	2.21commissioner shall estimate the amount of sales tax revenue deposited under this paragraph
50	50	2.22based on the amount of revenue deposited under paragraph (d).
51	51	2.23 (g) The commissioner must deposit the revenues derived from the taxes imposed under
52	52	2.24section 297A.62, subdivision 1, on the sale and purchase of motor vehicle repair and
53	53	2.25replacement parts in the state treasury and credit:
54	54	2.26 (1) 43.5 percent in each fiscal year a percentage to the highway user tax distribution
55	55	2.27fund as follows:
56	56	2.28 (i) 43.5 percent in fiscal year 2024;
57	57	2.29 (ii) 43.5 percent in fiscal year 2025;
58	58	2.30 (iii) 43.5 percent in fiscal year 2026;
59	59	2.31 (iv) 43.6 percent in fiscal year 2027;
60	60	2.32 (v) 43.75 percent in fiscal year 2028;
61	61	2Section 1.
62	62	25-00624 as introduced11/22/24 REVISOR KRB/AD 3.1 (vi) 44 percent in fiscal year 2029;
63	63	3.2 (vii) 71.5 percent in fiscal year 2030;
64	64	3.3 (viii) 63.5 percent in fiscal year 2031;
65	65	3.4 (ix) 55.5 percent in fiscal year 2032; and
66	66	3.5 (x) 43.5 percent in fiscal year 2033 and thereafter;
67	67	3.6 (2) a percentage to the transportation advancement account under section 174.49 as
68	68	3.7follows:
69	69	3.8 (i) 3.5 percent in fiscal year 2024;
70	70	3.9 (ii) 4.5 percent in fiscal year 2025;
71	71	3.10 (iii) 5.5 percent in fiscal year 2026;
72	72	3.11 (iv) 7.5 percent in fiscal year 2027;
73	73	3.12 (v) 14.5 percent in fiscal year 2028;
74	74	3.13 (vi) 21.5 percent in fiscal year 2029;
75	75	3.14 (vii) 28.5 percent in fiscal year 2030;
76	76	3.15 (viii) 36.5 percent in fiscal year 2031;
77	77	3.16 (ix) 44.5 percent in fiscal year 2032; and
78	78	3.17 (x) 56.5 percent in fiscal year 2033 and thereafter; and
79	79	3.18 (3) the remainder in each fiscal year to the general fund.
80	80	3.19For purposes of this paragraph, "motor vehicle" has the meaning given in section 297B.01,
81	81	3.20subdivision 11, and "motor vehicle repair and replacement parts" includes (i) all parts, tires,
82	82	3.21accessories, and equipment incorporated into or affixed to the motor vehicle as part of the
83	83	3.22motor vehicle maintenance and repair, and (ii) paint, oil, and other fluids that remain on or
84	84	3.23in the motor vehicle as part of the motor vehicle maintenance or repair. For purposes of this
85	85	3.24paragraph, "tire" means any tire of the type used on highway vehicles, if wholly or partially
86	86	3.25made of rubber and if marked according to federal regulations for highway use.
87	87	3.26 (h) 81.56 percent of the revenues, including interest and penalties, transmitted to the
88	88	3.27commissioner under section 297A.65, must be deposited by the commissioner in the state
89	89	3.28treasury as follows:
90	90	3.29 (1) 47.5 percent of the receipts must be deposited in the heritage enhancement account
91	91	3.30in the game and fish fund, and may be spent only on activities that improve, enhance, or
92	92	3Section 1.
93	93	25-00624 as introduced11/22/24 REVISOR KRB/AD 4.1protect fish and wildlife resources, including conservation, restoration, and enhancement
94	94	4.2of land, water, and other natural resources of the state;
95	95	4.3 (2) 22.5 percent of the receipts must be deposited in the natural resources fund, and may
96	96	4.4be spent only for state parks and trails;
97	97	4.5 (3) 22.5 percent of the receipts must be deposited in the natural resources fund, and may
98	98	4.6be spent only on metropolitan park and trail grants;
99	99	4.7 (4) three percent of the receipts must be deposited in the natural resources fund, and
100	100	4.8may be spent only on local trail grants;
101	101	4.9 (5) two percent of the receipts must be deposited in the natural resources fund, and may
102	102	4.10be spent only for the Minnesota Zoological Garden, the Como Park Zoo and Conservatory,
103	103	4.11and the Duluth Zoo; and
104	104	4.12 (6) 2.5 percent of the receipts must be deposited in the pollinator account established in
105	105	4.13section 103B.101, subdivision 19.
106	106	4.14 (i) 1.5 percent of the revenues, including interest and penalties, transmitted to the
107	107	4.15commissioner under section 297A.65 must be deposited in a regional parks and trails account
108	108	4.16in the natural resources fund and may only be spent for parks and trails of regional
109	109	4.17significance outside of the seven-county metropolitan area under section 85.535, based on
110	110	4.18recommendations from the Greater Minnesota Regional Parks and Trails Commission under
111	111	4.19section 85.536.
112	112	4.20 (j) 1.5 percent of the revenues, including interest and penalties, transmitted to the
113	113	4.21commissioner under section 297A.65 must be deposited in an outdoor recreational
114	114	4.22opportunities for underserved communities account in the natural resources fund and may
115	115	4.23only be spent on projects and activities that connect diverse and underserved Minnesotans
116	116	4.24through expanding cultural environmental experiences, exploration of their environment,
117	117	4.25and outdoor recreational activities.
118	118	4.26 (k) The revenue dedicated under paragraph (h) may not be used as a substitute for
119	119	4.27traditional sources of funding for the purposes specified, but the dedicated revenue shall
120	120	4.28supplement traditional sources of funding for those purposes. Land acquired with money
121	121	4.29deposited in the game and fish fund under paragraph (h) must be open to public hunting
122	122	4.30and fishing during the open season, except that in aquatic management areas or on lands
123	123	4.31where angling easements have been acquired, fishing may be prohibited during certain times
124	124	4.32of the year and hunting may be prohibited. At least 87 percent of the money deposited in
125	125	4Section 1.
126	126	25-00624 as introduced11/22/24 REVISOR KRB/AD 5.1the game and fish fund for improvement, enhancement, or protection of fish and wildlife
127	127	5.2resources under paragraph (h) must be allocated for field operations.
128	128	5.3 (l) The commissioner must deposit the revenues, including interest and penalties minus
129	129	5.4any refunds, derived from the sale of items regulated under section 624.20, subdivision 1,
130	130	5.5that may be sold to persons 18 years old or older and that are not prohibited from use by
131	131	5.6the general public under section 624.21, in the state treasury and credit:
132	132	5.7 (1) 25 percent to the volunteer fire assistance grant account established under section
133	133	5.888.068;
134	134	5.9 (2) 25 percent to the fire safety account established under section 297I.06, subdivision
135	135	5.103; and
136	136	5.11 (3) the remainder to the general fund.
137	137	5.12 For purposes of this paragraph, the percentage of total sales and use tax revenue derived
138	138	5.13from the sale of items regulated under section 624.20, subdivision 1, that are allowed to be
139	139	5.14sold to persons 18 years old or older and are not prohibited from use by the general public
140	140	5.15under section 624.21, is a set percentage of the total sales and use tax revenues collected in
141	141	5.16the state, with the percentage determined under Laws 2017, First Special Session chapter
142	142	5.171, article 3, section 39.
143	143	5.18 (m) The revenues deposited under paragraphs (a) to (l) do not include the revenues,
144	144	5.19including interest and penalties, generated by the sales tax imposed under section 297A.62,
145	145	5.20subdivision 1a, which must be deposited as provided under the Minnesota Constitution,
146	146	5.21article XI, section 15.
147	147	5Section 1.
148	148	25-00624 as introduced11/22/24 REVISOR KRB/AD