HF4437 Summary

• Proposes a constitutional amendment to dedicate state sales tax revenue from motor vehicle repair and replacement parts sales exclusively to roads and bridges beginning July 1, 2024, with no changes to the apportionment allowed within six years of the previous change.

• Establishes a new construction account in the trunk highway fund to receive 95.5% of dedicated revenue, while allocating 4.5% to the small cities assistance account under section 162.145.

• Authorizes submission of the constitutional amendment to voters at the 2018 general election with the ballot question: "Shall the Minnesota Constitution be amended to increase funding for roads and bridges by dedicating existing sales tax revenue from the sale of motor vehicle parts?"

• Implements a phased-in approach from July 1, 2020, through June 30, 2024, starting at 60% of full dedication and incrementally increasing to 90% by fiscal year 2023-2024.

• Requires the Commissioner of Revenue to estimate the percentage of total sales tax revenue attributable to motor vehicle repair and replacement parts biennially beginning February 28, 2021, and report findings to legislative committees with jurisdiction over taxes and transportation.