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Bill

Bill

HF 191

Motor fuels taxes abolished, conforming changes made, money transferred, and money appropriated.

2025-2026 Regular Session Introduced by Elliott Engen

HF 191 abolishes Minnesota motor fuels taxes and redirects revenues through alternative mechanisms to fund transportation infrastructure and programs.

Introduction and first reading, referred to Transportation Finance and Policy
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Bill Summary · HF 191

Legislative bill overview

HF 191 proposes to abolish Minnesota's motor fuels taxes entirely and make conforming changes to state law. The bill would redirect existing motor fuel tax revenues through alternative funding mechanisms and appropriate funds to maintain transportation infrastructure and programs previously supported by fuel taxes.

Why is this important

Motor fuel taxes are a primary revenue source for road maintenance, transit systems, and transportation infrastructure in Minnesota. Eliminating this tax would require either identifying replacement revenue sources, reducing transportation spending, or increasing other taxes—each with significant budgetary and policy consequences for how Minnesota funds its transportation system.

Potential points of contention

  • Revenue replacement uncertainty: The bill doesn't clearly specify how the estimated hundreds of millions in annual fuel tax revenue would be replaced, raising questions about funding for roads, bridges, and public transit
  • Regressive tax elimination vs. equity concerns: While fuel taxes are somewhat regressive, eliminating them without replacement could shift the tax burden to other sources (potentially less or more regressive depending on alternatives)
  • Rural vs. urban impact: Rural areas often depend more heavily on fuel tax-funded roads; elimination could disproportionately affect transportation access in less densely populated regions
  • Federal funding complications: State fuel taxes are sometimes matched by federal transportation grants; eliminating state taxes could jeopardize matching funds

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

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