HF3849

Purpose

To require standardized, easy-to-read signs on gasoline and diesel pumps that disclose how much of the listed price includes state and federal fuel taxes, how the state tax is adjusted over time, and how tax revenue is used. The bill also sets who provides and updates the signs, and when updates must occur after tax changes.

Main Provisions

• Signage requirement and format

  • The director must ensure signs are affixed to retail petroleum dispensers with a font size of 12 points or larger.
  • Signs must be posted for both regular/premium gasoline and diesel fuel.

• Content for gasoline signs (regular and premium)

  • The price must state that, as of January 1, the price per gallon includes the current state gasoline tax of 28.5 cents and that the tax amount is tied to inflation with automatic increases on January 1 each year.
  • The sign must also note that the federal gasoline tax of 18.4 cents per gallon is included in the price.
  • A note that revenue from the state fuel tax may be used only for roads and bridges, per the Minnesota Constitution.

• Content for diesel signs

  • The price must state that, as of January 1, the price per gallon includes the current state gasoline tax of 28.5 cents and that the tax amount is tied to inflation with automatic increases on January 1 each year.
  • The sign must also note that the federal gasoline tax (for diesel) is included in the price (federal tax amount specified in the bill).
  • A note that revenue from the state fuel tax may be used only for roads and bridges, per the Minnesota Constitution.

• Distribution and coordination

  • The director must distribute the signs to the owner or operator of each retail petroleum dispenser.
  • The director should coordinate sign distribution with other duties related to retail petroleum dispensers, to the extent possible.

• Updates after tax changes

  • If the amount of the gasoline tax changes, the director must distribute revised signs reflecting the current year and updated tax amounts within 12 calendar months of the change.

• Penalties

  • The director may not assess any penalty, fine, or fee on the owner or operator of a dispenser for a missing, destroyed, defaced, or damaged gas tax sign.

Significant Changes to Existing Law

• Revisions to the signage requirements under the state tax and fuels provisions to require clear, large-font signs that:
  • Specify the state tax amount per gallon and its inflation-indexed, automatic annual increase.
  • Explicitly include the federal tax amount in the price.
  • State that revenue is limited to roads and bridges per the Minnesota Constitution.
  • Mandate annual updates within a defined 12-month window after tax changes.
• Establish a non-punitive approach for missing or damaged signs and assign distribution/updates to the state director.

Implementation Notes

• The amendments apply to the Minnesota Statutes in the section governing gas tax signage on petroleum dispensers.
• The changes are focused on consumer transparency about how tax components affect pump prices and on the use of tax revenues.

Plain-Language Takeaway

• Gas and diesel pump prices must clearly show how much tax is part of the price, with a yearly increase tied to inflation, and include the federal tax portion.
• Signs must be easy to read, updated within a year of any tax change, and provided by the state official in charge.
• No penalties are charged to store owners if a sign goes missing or gets damaged.

Relevant Terms gas tax, gasoline tax, diesel fuel, state tax, federal tax, inflation indexing, automatic increases, roads and bridges, Minnesota Constitution, retail petroleum dispenser, signage, director, distribution, updated signs, 12-point font, As of January 1, tax sign, tax amount changes, 296A.07 subdivision 3