HF5134

Purpose

• The bill would establish a temporary moratorium on the Minnesota motor fuels tax, pausing tax collection for a defined period in 2026.

Key provisions

• Moratorium window
  • The tax is not imposed for the period beginning after May 24, 2026 and ending before September 8, 2026.
• Tax rate changes during the moratorium
  • For transactions under Minnesota Statutes section 296A.07, subdivision 3, paragraph a, clauses 1 to 3: 0 cents per gallon.
  • For transactions under Minnesota Statutes section 296A.08, subdivision 2, paragraph a, clauses 1, 2, and 4: 0 cents per gallon.
  • For Minnesota Statutes section 296A.08, subdivision 2, paragraph a, clause 3: 0 per thousand cubic feet or 0 cents per gasoline equivalent.
  • For Minnesota Statutes section 296A.08, subdivision 4: 0 cents per gallon.
• Scope
  • Applies to the types of motor fuel transactions described in the cited statutes during the specified period.

Effects and significance

• The moratorium would effectively suspend motor fuels tax collections for the duration, reducing or eliminating state tax revenue from motor fuels during the window.

Relationship to existing law

• Temporarily changes how motor fuels taxes are applied under the referenced statutes (296A.07 and 296A.08) only for the specified dates; outside the window, normal tax rules would resume.

Additional context

• The bill’s title also references transfers and appropriations, but the excerpt provided focuses on the motor fuels tax moratorium portion.

Relevant Terms - motor fuels tax - moratorium - 0 cents per gallon - 0 per thousand cubic feet - gasoline equivalent - Minnesota Statutes 296A.07 - Minnesota Statutes 296A.08 - period beginning after May 24, 2026 - period ending before September 8, 2026