Display of gas tax on sales receipt required, and indexed increases to motor fuels tax removed.

A bill for an act

relating to transportation; requiring display of gas tax on sales receipt; removing

indexed increases to the motor fuels tax; amending Minnesota Statutes 2024,

sections 239.7511; 296A.07, subdivision 3; 296A.08, subdivision 2.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 239.7511, is amended to read:

239.7511 GAS TAX SIGN ON PETROLEUM DISPENSER
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AND SALES RECEIPT
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.

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Subdivision 1.

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Gas tax sign on petroleum dispenser.

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(a) The director must ensure that

signs having 12-point font or greater are affixed on retail petroleum dispensers as follows:

(1) for regular or premium gasoline, a sign that reads: "The price for each gallon of

gasoline includes the current state gasoline tax of 28.5 cents per gallon and federal gasoline

tax of 18.4 cents per gallon. Revenue from the state fuel tax may be used only for roads and

bridges, according to the Minnesota Constitution."; and

(2) for diesel fuel, a sign that reads: "The price for each gallon of diesel fuel includes

the current state gasoline tax of 28.5 cents per gallon and federal gasoline tax of 24.4 cents

per gallon. Revenue from the state fuel tax may be used only for roads and bridges, according

to the Minnesota Constitution."

(b) The director must distribute the signs under this section to the owner or operator of

retail petroleum dispensers. To the extent possible, the director must coordinate the

distribution of signs with other duties the director may have involving retail petroleum

dispensers.

(c) If the amount of the gasoline tax described in paragraph (a), clauses (1) and (2),

changes, the director must distribute revised signs to reflect the updated gasoline tax amounts

within 12 calendar months of the change.

(d) The director is prohibited from assessing any penalty, fine, or fee on the owner or

operator of a retail petroleum dispenser that has a missing, destroyed, defaced, or otherwise

damaged gas tax sign.

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Subd. 2.

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Gas tax on sales receipt.

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The director must ensure that for any sale of regular

or premium gasoline or diesel fuel from a retail petroleum dispenser, the retailer makes a

sales receipt available to the purchaser that displays, in 11-point font or greater, the text

required under subdivision 1, as modified by paragraph (c).

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EFFECTIVE DATE.

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This section is effective January 1, 2027.

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Sec. 2.

Minnesota Statutes 2024, section 296A.07, subdivision 3, is amended to read:

Subd. 3.

Rate of tax.

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(a) Subject to paragraph (b),
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The gasoline excise tax is imposed

at the following rates:

(1) E85 is taxed at the rate of 17.75 cents per gallon;

(2) M85 is taxed at the rate of 14.25 cents per gallon; and

(3) all other gasoline is taxed at the rate of 25 cents per gallon.

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(b) Annually on August 1, the commissioner must determine the tax rate applicable to

the sale of E85, M85, and all other gasoline subject to tax under this section for the upcoming

12-month period beginning on January 1. The adjusted rate must equal the current rate,

multiplied by one plus the percentage increase, if any, in the Minnesota Highway

Construction Cost Index for the reference year. The tax rate must be rounded to the nearest

tenth of a cent. Each of the tax rates for E85, M85, and all other gasoline must not be lower

than the respective rates specified in paragraph (a). Beginning with the calculation on August

1, 2025, the percentage change in each of the tax rates for E85, M85, and all other gasoline

as a result of the requirements under this paragraph must not exceed three percent.

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(c) For purposes of this subdivision:

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(1) the Minnesota Highway Construction Cost Index is as determined by the

commissioner of transportation; and

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(2) "reference year" means the 12-month period ending on June 30 two years prior to

the year in which the calculation is made.

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EFFECTIVE DATE.

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This section is effective July 1, 2026.

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Sec. 3.

Minnesota Statutes 2024, section 296A.08, subdivision 2, is amended to read:

Subd. 2.

Rate of tax.

(a)
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Subject to paragraph (b),
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The special fuel excise tax is imposed

at the following rates:

(1) liquefied petroleum gas or propane is taxed at the rate of 18.75 cents per gallon;

(2) liquefied natural gas is taxed at the rate of 15 cents per gallon;

(3) compressed natural gas is taxed at the rate of $1.974 per thousand cubic feet or 25

cents per gasoline equivalent; and

(4) all other special fuel is taxed at the same rate as the gasoline excise tax as specified

in section
296A.07, subdivision 2
.

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(b) Annually on August 1, the commissioner must determine the tax rate applicable to

the sale of E85, M85, and all other gasoline subject to tax under this section for the upcoming

12-month period beginning on January 1. The rate must be adjusted as provided in section

296A.07, subdivision 3
, paragraph (b). The tax rate must be rounded to the nearest tenth of

a cent. Each of the tax rates for liquefied natural gas or propane, liquefied natural gas,

compressed natural gas, and all other special fuel must not be lower than the respective

rates specified in paragraph (a).

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(c)
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(b)
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The tax is payable in the form and manner prescribed by the commissioner.

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(d)
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(c)
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For purposes of this subdivision, "gasoline equivalent," as defined by the National

Conference on Weights and Measures, is 5.66 pounds of natural gas or 126.67 cubic feet.

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EFFECTIVE DATE.

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This section is effective July 1, 2026.

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