Automobile theft prevention surcharge and dedication of certain revenues modification

A bill for an act

relating to taxation; insurance; modifying the automobile theft prevention surcharge

and dedication of certain revenues; amending Minnesota Statutes 2024, section

297I.11, subdivision 1; Minnesota Statutes 2025 Supplement, section 297I.11,

subdivision 2.

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

Section 1.

Minnesota Statutes 2024, section 297I.11, subdivision 1, is amended to read:

Subdivision 1.

Surcharge.

Each insurer engaged in the writing of policies of automobile

insurance shall collect a surcharge, at the rate of
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50
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60
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cents per vehicle for every six months

of coverage, on each policy of automobile insurance providing comprehensive insurance

coverage issued or renewed in this state. The surcharge may not be considered premium

for any purpose, including the computation of premium tax or agents' commissions. The

amount of the surcharge must be separately stated on either a billing or policy declaration

sent to an insured. Insurers shall remit the revenue derived from this surcharge to the

commissioner of revenue for purposes of the automobile theft prevention program described

in section
65B.84
. For purposes of this subdivision, "policy of automobile insurance" has

the meaning given it in section
65B.14
, covering only the following types of vehicles as

defined in section
168.002
:

(1) a passenger automobile;

(2) a pickup truck;

(3) a van but not commuter vans as defined in section
168.126
; or

(4) a motorcycle,

except that no vehicle with a gross vehicle weight in excess of 10,000 pounds is included

within this definition.

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EFFECTIVE DATE.

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This section is effective July 1, 2026.

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Sec. 2.

Minnesota Statutes 2025 Supplement, section 297I.11, subdivision 2, is amended

to read:

Subd. 2.

Automobile theft prevention account.

A special revenue account in the state

treasury shall be credited with the proceeds of the surcharge imposed under subdivision 1.

Of the revenue in the account, $1,300,000 each year must be transferred to the insurance

fraud prevention account under section
299C.061, subdivision 9
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, and $900,000 each year

must be transferred to the Minnesota victims of crime account under section 299A.708
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.

Revenues in excess of
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$1,300,000
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$2,200,000
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each year may be used only for the automobile

theft prevention program described in section
65B.84
.

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EFFECTIVE DATE.

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This section is effective July 1, 2026.

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