MN SF1003

Summary of SF 1003: Motor Fuel Taxes Abolishment

• Abolishes Minnesota's gasoline excise tax (currently 25 cents per gallon) and special fuel excise taxes on motor fuels used for highway purposes

• Requires the Commissioner of Management and Budget to transfer $911,485,000 in FY2026 and $905,105,000 in FY2027 from the general fund to the highway user tax distribution fund to replace lost motor fuel tax revenue

• Repeals numerous statutory provisions related to motor fuel tax collection, refunds, credits, and penalties, including the aviation fuel tax, the debt service surcharge, and the apportionment of fuel tax revenue to various state accounts

• Eliminates the transfer of unrefunded gasoline tax revenue to accounts for off-highway motorcycles, off-road vehicles, snowmobiles, all-terrain vehicles, watercraft recreation, and state/county forest roads

• Retains reporting requirements and the petroleum tank release cleanup fee ($20 per 1,000 gallons) while converting tax return requirements to general reporting requirements for petroleum product distributors and dealers