Vehicle registration taxes would use age and price; some owners could get rebates

The registration tax would be calculated using a schedule based on the vehicle’s age and original price. The schedule covers passenger cars and hearses. It uses the vehicle’s year of life and manufacturer’s suggested retail price, with bands under $50,000, from $50,000 to $75,000, and over $75,000. The tax calculation includes $10 for passenger cars and hearses. For a vehicle previously registered in Minnesota, the total due cannot exceed the smallest amount previously paid or due for that vehicle. If enacted, this section would apply to taxes and fees for registration periods starting on or after January 1, 2027, and take effect the day after final enactment.

The commissioner of employment and economic development would send a rebate to the vehicle owner for each qualifying registration tax payment. The rebate would cover owners who meet the income limit and registration requirements, for each qualifying vehicle tax payment. The owner’s taxable net income for the most recent tax year ending before January 1, 2025, must be below the specified income tax threshold for the owner’s filing status. The vehicle must have been taxed using the first-year calculation, with tax payable for a registration period starting on or after July 1, 2025, and on or before June 30, 2026. The rebate would be the lesser of $150 or 20 percent of the total registration tax paid. If enacted, the commissioner must issue the payments by October 15, 2026. This section would take effect the day after final enactment.