HF 304 Minnesota House · 2025-2026 Regular Session

Motor Fuels tax indexed increases repealed.

HF 304 repeals the automatic annual increases to Minnesota's motor fuels excise taxes that were previously tied to the Minnesota Highway Construction Cost Index. The bill removes the requirement that gasoline, E85, M85, and other fuel tax rates adjust each August based on construction cost changes, meaning these taxes will no longer automatically rise each year. This directly affects fuel retailers and consumers by freezing the tax rates at current levels (e.g., 25 cents per gallon for standard gasoline) unless new legislation changes them. The change takes effect July 1, 2025, and applies to all motor fuels subject to the state's excise tax.
Bill status in committee 1 of 4 stages cleared
Introduction
Feb 2025
Committee Review
Floor Vote
Governor
Introduced Feb 10, 2025 Last action Feb 10, 2025
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Feb 10, 2025
Introduced
Introduction and first reading, referred to Transportation Finance and Policy
lower
1 primary · 3 co-sponsors

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