S.F. No. 4903 Summary

• Reduces vehicle registration tax rates for passenger automobiles by lowering percentages applied to manufacturer's suggested retail price for vehicles registered before and after November 16, 2020, effective January 1, 2025.

• Lowers depreciation schedules for vehicle registration tax calculations over the first ten years of vehicle life, reducing tax liability for vehicles in years 2-9 and increasing the flat fee for years 11+ from $20 to $25.

• Reduces the motor vehicle excise tax rate from 6.875 percent to 6.5 percent effective July 1, 2024, and adjusts revenue allocations to metropolitan area transit (34.3% to 36%) and greater Minnesota transit (5.7% to 4%).

• Repeals the 0.75 percent regional transportation sales tax (sections 297A.9915 and 473.4465) effective October 1, 2024, in the seven-county metropolitan area.

• Requires general fund transfers to offset revenue losses to highway user tax distribution fund and transit accounts for fiscal years 2025-2027 based on revenue impact analysis by July 31, 2024.