SF5056

Purpose

This bill aims to temporarily pause Minnesota’s motor fuels tax. It creates a short window during which no motor fuels tax is imposed and current tax rates are set to zero for different tax categories.

Main Provisions

• No motor fuels tax during the designated period (from after May 24, 2026 to before September 8, 2026).
• During that period, the following tax rates are set to 0:
  • For taxes under Minnesota Statutes section 296A.07 subdivision 3, paragraph a, clauses 1–3: 0 cents per gallon.
  • For taxes under Minnesota Statutes section 296A.08 subdivision 2, paragraph a, clauses 1, 2, and 4: 0 cents per gallon.
  • For taxes under Minnesota Statutes section 296A.08 subdivision 2, paragraph a, clause 3: 0 per thousand cubic feet or 0 cents per gasoline equivalent.
  • For taxes under Minnesota Statutes section 296A.08 subdivision 4: 0 cents per gallon.
• The bill’s broader title indicates it also involves transportation funding transfers and appropriations, but the excerpt focuses on the motor fuels tax moratorium.

Timeline / Effective Period

• Period of moratorium: beginning after May 24, 2026 and ending before September 8, 2026.

Significance and Impact

• Creates a temporary suspension of the motor fuels tax in Minnesota for the specified period.
• Changes apply to specific tax provisions and definitions outlined in the cited statute sections; it effectively eliminates revenue from motor fuels taxes during the window.

Relationship to Existing Law

• Replaces normal tax rates in several parts of Chapters 296A.07 and 296A.08 with 0 during the specified period, altering how motor fuels are taxed for that time frame.

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 - subdivision 3, subdivision 2, paragraph a, clauses 1–3, 4 - period after May 24, 2026 - period before September 8, 2026

Relevant Terms (plain list) - motor fuels tax - moratorium - 0 cents per gallon - 0 per thousand cubic feet - gasoline equivalent - Minnesota Statutes 296A.07 - Minnesota Statutes 296A.08 - period dates (May 24, 2026; Sep 8, 2026)