SF 5185

Introduction - 94th Legislature (2025 - 2026)

Posted on 04/22/2026 08:58 a.m.

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 new text begin AND SALES RECEIPT new text end .

new text begin Subdivision 1. new text end

new text begin Gas tax sign on petroleum dispenser. new text end

(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.

new text begin Subd. 2. new text end

new text begin Gas tax on sales receipt. new text end

new text begin 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).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027.
new text end

Sec. 2.

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

Subd. 3.

Rate of tax.

deleted text begin (a) Subject to paragraph (b), deleted text end 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.

deleted text begin (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.
deleted text end

deleted text begin (c) For purposes of this subdivision:
deleted text end

deleted text begin (1) the Minnesota Highway Construction Cost Index is as determined by the
commissioner of transportation; and
deleted text end

deleted text begin (2) "reference year" means the 12-month period ending on June 30 two years prior to
the year in which the calculation is made.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2026.
new text end

Sec. 3.

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

Subd. 2.

Rate of tax.

(a) deleted text begin Subject to paragraph (b), deleted text end 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.

deleted text begin (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).
deleted text end

deleted text begin (c) deleted text end new text begin (b) new text end The tax is payable in the form and manner prescribed by the commissioner.

deleted text begin (d) deleted text end new text begin (c) new text end 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.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2026.
new text end