Plain English Breakdown
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SF5056 • 2026
Temporary moratorium establishment on imposition of the motor fuels tax
Temporary moratorium establishment on imposition of the motor fuels tax
Taxes
Passed Legislature
This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.
Bill History
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2026-04-09
House
Introduction and first reading
Official Summary Text
Temporary moratorium establishment on imposition of the motor fuels tax
Current Bill Text
Read the full stored bill text
A bill for an act relating to transportation; taxation; establishing a temporary moratorium on imposition of the motor fuels tax; making transfers; appropriating money. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: Section 1. new text begin MOTOR FUELS TAX MORATORIUM. new text end new text begin (a) No tax is imposed on motor fuels for the period beginning after May 24, 2026, and ending before September 8, 2026, as provided in this section. new text end new text begin (b) For a transaction or activity giving rise to a tax under Minnesota Statutes, section 296A.07 or 296A.08, that occurs during the period specified in paragraph (a): new text end new text begin (1) the tax rate imposed under Minnesota Statutes, section 296A.07, subdivision 3, paragraph (a), clauses (1) to (3), is 0 cents per gallon; new text end new text begin (2) the tax rate imposed under Minnesota Statutes, section 296A.08, subdivision 2, paragraph (a), clauses (1), (2), and (4), is 0 cents per gallon; and new text end new text begin (3) the tax rate imposed under Minnesota Statutes, section 296A.08, subdivision 2, paragraph (a), clause (3), is $0 per thousand cubic feet or 0 cents per gasoline equivalent. new text end new text begin (c) For a transaction or activity giving rise to a tax under Minnesota Statutes, section 296A.08, subdivision 4, that occurs during the period specified in paragraph (a), the rate of tax is 0 cents per gallon. new text end new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end Sec. 2. new text begin MOTOR FUELS TAX MORATORIUM; APPROPRIATION. new text end new text begin The amount necessary to implement the requirements under section 1 in fiscal year 2026 is appropriated from the general fund to the commissioner of revenue for the administrative costs of implementation. This is a onetime appropriation and is available until June 30, 2027. new text end new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end Sec. 3. new text begin MOTOR FUELS TAX MORATORIUM; FISCAL YEAR 2026 TRANSFERS. new text end new text begin Subdivision 1. new text end new text begin Transfers of nonhighway use amounts. new text end new text begin (a) In fiscal year 2026, each of the amounts as provided in paragraph (b) is transferred from the general fund to the commissioner of transportation for deposit in the respective accounts specified in Minnesota Statutes, section 296A.18, subdivisions 2 to 6 and 7, to provide for foregone revenue due to the motor fuels tax moratorium under section 1. new text end new text begin (b) The commissioner must determine each of the amounts to transfer under paragraph (a) based on: new text end new text begin (1) the most recent forecast of total state revenue from the motor fuels tax that is attributable to the period beginning after May 24, 2026, and ending before July 1, 2026, as estimated absent the requirements under section 1; and new text end new text begin (2) a calculation of amounts that are subject to transfer under Minnesota Statutes, section 296A.18, subdivisions 6a and 7, from the revenue estimated under clause (1). new text end new text begin Subd. 2. new text end new text begin Transfer to highway user tax distribution fund. new text end new text begin (a) In fiscal year 2026, an amount as provided in paragraph (b) is transferred from the general fund to the commissioner of transportation for deposit in the highway user tax distribution fund to provide for foregone revenue due to the motor fuels tax moratorium under section 1. new text end new text begin (b) The commissioner must determine the amount to transfer under paragraph (a) based on: new text end new text begin (1) the most recent forecast of total state revenue from the motor fuels tax that is attributable to the period beginning after May 24, 2026, and ending before July 1, 2026, as estimated absent the requirements under section 1; less new text end new text begin (2) the total from the amount determined for transfer under subdivision 1. new text end new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end Sec. 4. new text begin MOTOR FUELS TAX MORATORIUM; FISCAL YEAR 2027 TRANSFERS. new text end new text begin Subdivision 1. new text end new text begin Transfers of nonhighway use amounts. new text end new text begin (a) In fiscal year 2027, each of the amounts as provided in paragraph (b) is transferred from the general fund to the commissioner of transportation for deposit in the respective accounts specified in Minnesota Statutes, section 296A.18, subdivisions 2 to 6 and 7, to provide for foregone revenue due to the motor fuels tax moratorium under section 1. new text end new text begin (b) The commissioner must determine each of the amounts to transfer under paragraph (a) based on: new text end new text begin (1) the most recent forecast of total state revenue from the motor fuels tax that is attributable to the period beginning after June 30, 2026, and ending before September 8, 2026, as estimated absent the requirements under section 1; and new text end new text begin (2) a calculation of amounts that are subject to transfer under Minnesota Statutes, section 296A.18, subdivisions 6a and 7, from the revenue estimated under clause (1). new text end new text begin Subd. 2. new text end new text begin Transfer to highway user tax distribution fund. new text end new text begin (a) In fiscal year 2027, an amount as provided in paragraph (b) is transferred from the general fund to the commissioner of transportation for deposit in the highway user tax distribution fund to provide for foregone revenue due to the motor fuels tax moratorium under section 1. new text end new text begin (b) The commissioner must determine the amount to transfer under paragraph (a) based on: new text end new text begin (1) the most recent forecast of total state revenue from the motor fuels tax that is attributable to the period beginning after June 30, 2026, and ending before September 8, 2026, as estimated absent the requirements under section 1; less new text end new text begin (2) the total from the amount determined for transfer under subdivision 1. new text end new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end