HF 323 Summary

• Proposes constitutional amendment to dedicate state sales and use tax revenue from motor vehicle repair, maintenance, and parts sales exclusively to the highway user tax distribution fund.

• Amendment allocates dedicated revenue through existing distribution: 62 percent to trunk highway fund, 29 percent to county state-aid highway fund, 9 percent to municipal state-aid street fund, with 5 percent flexible allocation.

• Submission to voters scheduled for 2018 general election with effective date of July 1, 2019, if approved.

• Amends Minnesota Statutes 297A.94 to require the commissioner to deposit motor vehicle repair and replacement parts tax revenue monthly to the highway user tax distribution fund starting July 1, 2019, based on estimated percentage calculations.

• Requires commissioner to estimate biennially the percentage of total sales tax attributable to motor vehicle repair and replacement parts, using federal data and department consumption models.