MN SF108

Reduces vehicle registration tax rates from 1.54%/1.575% to 1.25%/1.285% of MSRP and accelerates depreciation schedules, effective for registration periods starting January 1, 2026

Eliminates the automatic annual adjustment of gasoline and special fuel excise taxes based on the Minnesota Highway Construction Cost Index, locking rates at 25 cents per gallon for gasoline, effective October 1, 2025

Lowers the motor vehicle sales tax from 6.875% to 6.5% and adjusts revenue distribution to increase the metropolitan area transit account share from 34.3% to 36% while reducing the greater Minnesota transit account from 5.7% to 4%, effective July 1, 2025

Repeals the 0.75% regional transportation sales tax in the seven-county Twin Cities metropolitan area (section 297A.9915) and eliminates the Metropolitan Council's dedicated transit funding source (section 473.4465), effective October 1, 2025

Requires the commissioner of management and budget to transfer general fund money to offset revenue losses to the highway user tax distribution fund and transit accounts for fiscal years 2026-2028