Distribution proceeds from the sales tax on vehicle repair and replacement parts modification

This bill changes how sales tax revenue from vehicle repair and replacement parts is distributed in Minnesota. Specifically, it allocates 43.5% of these tax proceeds annually to the highway user tax distribution fund, a gradually increasing percentage (from 3.5% to 56.5%) to the transportation advancement account over time, and the remainder to the general fund. The bill defines "motor vehicle repair and replacement parts" to include parts, tires, and fluids used in vehicle maintenance. This directly affects how tax revenue from auto repair shops and parts retailers is funded into state transportation and environmental programs. The changes apply to sales taxes collected on these items, beginning with taxes remitted after July 1, 2017.