Legislative Update from Rep. Bernie Perryman

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 5^th?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.

Legislative Update

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