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Bill

HF 964

In lieu tax imposed on older passenger automobiles and collector vehicles expanded to motorcycles.

2025-2026 Regular Session Introduced by Steve Gander and 2 co-sponsors

Bill expands Minnesota's in lieu tax option for classic vehicles to include motorcycles, offering alternative flat-fee taxation for collector bike owners.

Author added Gander
0
WeVote Research Nonpartisan
Bill Summary · HF 964

Legislative bill overview

HF 964 expands Minnesota's in lieu tax system to include motorcycles, which were previously excluded from this alternative taxation method. The bill allows owners of older passenger automobiles and collector vehicles to pay an in lieu tax rather than standard property taxes, and this proposal extends that same option to motorcycle owners.

Why is this important

In lieu taxes provide a simplified, often lower tax burden for owners of classic, vintage, or collector vehicles by using a flat fee based on vehicle value rather than standard property tax rates. Expanding this to motorcycles could make classic motorcycle ownership more affordable for collectors and enthusiasts while potentially affecting municipal tax revenues that depend on property tax assessments.

Potential points of contention

  • Municipal revenue impact: Cities and counties may lose tax revenue if motorcycle owners switch to the in lieu tax system, particularly in areas with concentrations of collectors
  • Fairness and equity: Questions about whether motorcycles qualify as true "collector vehicles" in the same way automobiles do, and whether this creates an unequal tax treatment
  • Administration burden: Expanding the program requires definitions of what qualifies as a motorcycle subject to in lieu taxation and new administrative processes for assessment and collection

Compiled from official sources — confirm details with the bill’s official record.

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