Motor vehicle registration tax modification

This legislation modifies the registration tax for passenger automobiles and hearses in Minnesota by lowering the tax rate based on a vehicle's manufacturer's suggested retail price. The bill reduces the initial tax percentage and adjusts how the tax is applied over the vehicle's life, decreasing annually until reaching a flat fee in the eleventh year. To offset the revenue loss from these reductions, the state commissioner must transfer funds from the general fund to the highway user tax distribution fund starting in fiscal year 2028. These changes apply to vehicle registrations beginning on or after January 1, 2027.