Motor vehicle registration tax modification

This bill modifies how Minnesota calculates the registration tax for passenger automobiles and hearses, directly affecting vehicle owners and the Department of Public Safety. It lowers the tax rate from 1.54% to 1.25% for cars registered before November 16, 2020, and from 1.575% to 1.285% for newer vehicles, while also adjusting the percentage of the vehicle's value charged each year of its life. The law clarifies that the tax calculation should generally exclude the cost of optional accessories and destination charges, and it sets a cap ensuring the total tax paid on a used vehicle does not exceed the lowest amount previously paid for that specific car. These changes will take effect for registration periods beginning on or after January 1, 2027.