Saint Paul, MN – State representative Jim Joy (R—Hawley) has introduced House File 5, a bill aimed at reducing the financial burden on Minnesotans by modifying and repealing certain taxes, repealing controversial retail delivery fees, and ending the tax on Social Security Income once and for all. “Our seniors and hardworking families shouldn’t have to choose between making ends meet and staying in Minnesota,” said Rep. Jim Joy. “We’re here to provide meaningful tax relief and remove unnecessary burdens, allowing more Minnesotans to thrive. We’re putting people first – not government.” Here’s what the bill does: - Suspension of Gas Tax Indexing: The bill freezes the motor fuels tax rate at 31.8 cents per gallon for gasoline and diesel, eliminating automatic inflation-based increases.
- Retail Delivery Fee Repeal: HF 5 repeals the $0.50 retail delivery fee on transactions over $100, providing financial relief to businesses and consumers. To mitigate the impact, the bill reallocates other state and regional sales tax revenues to maintain support for affected programs.
- Social Security Income Tax Exemption: This provision eliminates state income taxes on Social Security benefits, aligning Minnesota with the majority of states and providing an average tax reduction of $1,845 for retirees.
- Motor Vehicle Registration Tax Analysis: The Department of Public Safety is tasked with conducting a detailed analysis of the motor vehicle registration tax, including comparisons with neighboring states. The report, due by January 15, 2026, will guide future adjustments to ensure fair and competitive tax structures.
What this means for you - Relief for Retirees: Exempting Social Security benefits from state income tax ensures that Minnesota’s retirees can retain more of their hard-earned savings.
- Lower Transportation Costs: By freezing the gas tax and repealing the retail delivery fee, the bill helps reduce the cost of transportation and goods for individuals and families.
- Improved Transparency: Requiring an analysis of the vehicle registration tax promotes accountability and opens the door for future tax reductions based on data-driven insights.
House File 5 is currently under review by the House Taxes Committee. Rep. Joy is optimistic about bipartisan support for the bill, emphasizing its potential to make Minnesota more competitive and affordable ### |