Minnesota funds public projects and temporarily lowers some vehicle taxes

The law provides money for public construction and repair projects and authorizes state bond sales. The money goes to state agencies and named local governments and public organizations for projects around Minnesota. Each appropriation is limited to its stated project and purpose. Grants to local governments may require enough committed money to finish the project. The appropriations are available until each project is completed or abandoned, subject to state rules. Article 1 takes effect the day after final enactment.

The human services commissioner awards grants for emergency shelter projects. Cities, counties, and housing authorities may apply for projects serving people and families experiencing homelessness. The commissioner uses a statewide competitive process. At least 40 percent of the money must go to greater Minnesota if there are enough eligible requests there. Projects must meet state and local building codes when complete. The shelter account’s money is available until committed or spent, subject to state rules.

The law sets lower rates for calculating certain vehicle registration taxes and transfers money to the highway fund. The lower rates apply to vehicle owners whose registration tax is calculated under the specified rule. The lower rates apply only to taxes calculated under the specified vehicle registration tax rule. The commissioner must show the rate reduction and the difference in tax on the invoice. The lower rates apply to registration periods starting on or after January 1, 2027, and on or before December 31, 2027. The one-time transfer is for fiscal year 2027.

The law states requirements for capital project requests and rules for several grant programs. These provisions concern local governments requesting capital aid, public library construction grants, and applicants to water grant programs. Some bond-funded lead service line grants are limited to political subdivisions and to replacing publicly owned portions of lines. Emerging contaminant grants require an eligible project and committed financing. The capital request requirement takes effect January 1, 2027. The library match rule applies to grants awarded after June 30, 2026. The debt limit provision takes effect the day after final enactment.