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*June 15, 2023*






Legislative Update

Dear Neighbors,

As many people know, this legislative session was an extremely difficult one for Minnesota family budgets. I wanted to let you all know about some of the transportation-related taxes and fees that will be increasing soon because of the Transportation Omnibus Bill that passed on a party-line vote in the House at the end of May.


* *_Vehicle Registration Tax/Tabs:_*?Averages a 36% increase over first 11 years of vehicle. Some years will see an over 50% increase. This applies to taxes payable for a registration period starting on or after January 1, 2024.
* *_Delivery Fee_:* $0.50 fee added to all retail deliveries over $100. This is effective July 1, 2024.
* *_Drivers License Fee Increase:_*?An increase of $6 per drivers license. This applies to applications made on or afterJuly 1, 2023.
* *_Automatic?*_Gas Tax _*Increases_*: Based on MN Highway Construction Cost Index annually ? rate is determined in August and takes effect each January 1. This is effective July 1, 2023, and applies for taxes imposed on or after January 1, 2024.
* *_Auto Parts Sales Tax Changes_:*?0.75% increase in 7 county Metro Sales Tax for Transportation: 83% goes toward Metro Transit funding 17% will be sent to Metro Counties for local road projects. This is effective now for sales and purchases made on or after October 1, 2023, and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
* *_Increase in Motor Vehicle Sales Tax from 6.5% to 6.875%:_*?This makes MN the 5th?highest Vehicle sales tax in US. This is effective for sales and purchases made on or after July 1, 2023.

Additionally, there was a change made to current law that will ban noncompete agreements for all employees, including independent contractors, beginning July 1, 2023. Because of this new ban, there has been speculation that the courts may be unwilling to enforce noncompete agreements made before the effective date, however that remains to be seen.

If you have questions or comments on issues related to state government, please don't hesitate to reach out.






Please Contact Me

It?s an honor and privilege to work for you at the Capitol. Don?t hesitate to contact my office at any time this session to share your thoughts, concerns or ideas. I am here to serve you!

Bernie

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321 State Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
Saint Paul, MN 55155
651.296.6316







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