Minnesota would set covered fuel taxes to zero for summer 2026

Minnesota would set the covered state motor fuel tax rates to zero. The proposal covers specified Minnesota motor fuel taxes; it does not identify every covered fuel by name. The zero rates would apply to transactions or activities covered by the fuel tax provisions listed in section 1. The stated tax-free period includes May 25 and September 7, 2026.

Minnesota would transfer general fund money to accounts that receive motor fuel tax revenue. The money would go to the highway user tax distribution fund and specified accounts for nonhighway fuel uses. The transportation commissioner would calculate the amounts using the latest forecast of fuel tax revenue without the zero rates and the account allocation rules named in the proposal. The highway fund would receive the forecast total minus the transfers to the other covered accounts. Fiscal year 2026 transfers would cover May 25–June 30, 2026; fiscal year 2027 transfers would cover July 1–September 7, 2026. Both transfer sections would take effect the day after becoming law.

Minnesota would set aside the general fund money needed for the revenue commissioner to carry out the zero-tax provision. The revenue commissioner would receive the money to administer section 1. The funding would cover fiscal year 2026 administrative costs. The amount would equal the money needed, rather than a fixed dollar amount. The funding section would take effect the day after becoming law.