Motor vehicle registration tax modification

SF 3923 modifies Minnesota's motor vehicle registration tax for passenger cars and hearses. It lowers the tax rate from 1.54% to 1.145% for vehicles initially registered in Minnesota before November 16, 2020, and from 1.575% to 1.18% for newer vehicles registered on or after that date. The tax calculation uses a tiered system where the percentage of the vehicle's price decreases each year (e.g., 100% in year one, 95% in year two), dropping to a flat $20 annual tax after 10 years of registration. This change applies to taxes payable for registration periods starting January 1, 2027.