Legislative Update Today I attended the Carver County board meeting to give a legislative update. I met with Commissioners Workman, Lynch, Degler, Fahey, and Udermann (photo at left). Thank you all for having me! New LawsThis past session brought a lot of new mandates and tax increases down on Minnesotans. The list below details many of the most impactful ones that went into effect July 1. There will be another batch of new laws going into effect in August. TRANSPORTATION TAX INCREASES - Vehicle Registration Tax/Tabs: Averages a 36% increase over first 11 years of vehicle. Some years will see an increase of over 50%, applicable for registrations starting on or after January 1, 2024.
- Delivery Fee: $0.50 fee added to all retail deliveries over $100, effective July 1, 2024.
- Drivers License Fee Increase: An increase of $6 per drivers license for applications on or after July 1, 2023.
- Automatic Gas Tax Increases: Annual increase is determined in August based on MN Highway Construction Cost Index and takes effect each January 1. This is effective July 1, 2023, and applies for taxes imposed on or after January 1, 2024.
- Sales Tax Changes: 75% increase in 7 county Metro Sales Tax for Transportation: 83% goes toward Metro Transit funding 17% will be sent to Metro Counties for local road projects. This is effective now for sales and purchases made on or after October 1, 2023, and applies in Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington Counties.
- Increase in Motor Vehicle Sales Tax from 6.5% to 6.875%: This makes MN the 5th highest Vehicle sales tax in US. This is effective for sales and purchases made on or after July 1, 2023.
- New Funding for Greater MN Transit: $40 million is also included in this transportation law for Greater Minnesota transit needs.
FREE SCHOOL LUNCHES Instead of providing free lunches based on need, every Minnesota student will receive a free breakfast and lunch in school each day regardless of their family’s income level. NEW FUNDING FOR SCHOOLS Funding for schools will increase 4% in fiscal year 2024 and 2% in fiscal year 2025. This translates to a formula allowance of $7,138 and $7,281 per pupil, respectively. Beginning fiscal year 2026, the increase will be indexed to inflation, though the law will limit this annual increase to between 2% and 3%. Unfortunately, the more than 65 new mandates the legislative majority imposed on Minnesota’s school districts eat up much of that new increase instead of funding classrooms. LEGALIZED MARIJUANA A new law appropriates $70.3 million in the 2024-25 biennium to establish cannabis regulatory programs. A new Office of Cannabis Management will approve product categories of cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer products for retail sale, and prohibit any product that is packaged in a way to be attractive to children. It will also establish environmental standards in the cannabis industry and set limits on the personal use of cannabis for individuals 21 years of age or older. A 10% tax will be charged on retail cannabis sales. You cannot legally possess marijuana in Minnesota until August 1. LIMITS ON NO-KNOCK WARRANTS FOR POLICE The new law significantly curtails when a judge can issue a no-knock search warrant, only permitting it when a search cannot be executed while the premises is unoccupied and “the occupant or occupants of the dwelling will present an immediate threat of death or injury to the officers executing the warrant if the officers announce their presence or purpose prior to entering the dwelling.” FIRST RESPONDER MENTAL HEALTH As a response to the growing number of post-traumatic stress disorder (PTSD) retirements among first responders, the legislative majority approved a law requiring up to 32 weeks of mental health treatment before a peace officer or firefighter with a psychological condition such as PTSD, or other serious mental health issue, can apply for duty disability benefits from the Minnesota State Retirement System or the Public Employees Retirement Association. Public safety agencies will be required to continue paying the employee’s full salary and employer-provided benefits during the treatment period. |