SF5185 would require retail petroleum dispensers in Minnesota to display a gas-tax notice on the dispenser and to provide a sales receipt that shows the same tax information for purchases of gasoline and diesel fuel. The required notice would state the current state and federal fuel tax amounts and explain that state fuel-tax revenue may be used only for roads and bridges under the Minnesota Constitution. The bill also directs the commissioner to distribute updated signs if the tax amount changes and bars penalties, fines, or fees for missing or damaged signs. These receipt and sign requirements would take effect January 1, 2027.
The bill also changes Minnesota’s motor fuels tax law by removing the current indexed annual increases tied to the Minnesota Highway Construction Cost Index. For gasoline, the bill sets fixed base excise tax rates for E85, M85, and all other gasoline and eliminates the automatic annual adjustment above those base rates, including the current cap on annual increases. A parallel change is made for special fuels, including propane, liquefied natural gas, compressed natural gas, and other special fuels, so those rates would also no longer rise automatically with the construction cost index. These tax-rate changes would take effect July 1, 2026.
Impact
The bill would amend Minnesota Statutes sections 239.7511, 296A.07, and 296A.08. It would add a new consumer-disclosure requirement for fuel retailers and would alter the state’s motor fuels tax structure by ending indexed increases that currently adjust fuel-tax rates annually. The practical effect would be to slow or stop future automatic fuel-tax growth, which could reduce revenue growth for transportation funding compared with current law, while also imposing new signage and receipt obligations on fuel retailers and administrative duties on the commissioner of transportation.
Sentiment
No committee transcript or vote record is provided, so there is no direct evidence of debate or formal support/opposition in the available materials. Based on the bill text and authorship, the measure appears to reflect a policy preference for greater transparency at the pump and restraint on automatic fuel-tax increases. The caption and structure suggest a generally consumer-facing and tax-limiting approach rather than a revenue-raising one.
Contention
The main point of contention is likely the removal of indexed fuel-tax increases. Supporters would likely argue that drivers should see the full tax burden clearly and that fuel taxes should not rise automatically without legislative action. Opponents would likely argue that eliminating indexation weakens a key mechanism for keeping transportation funding aligned with construction costs and inflation, potentially reducing resources for roads and bridges. A secondary issue is the retailer burden of posting and maintaining signs and ensuring receipts include the required tax language, although the bill attempts to limit enforcement penalties for damaged or missing signs.
Health care guaranteed to be available and affordable for every Minnesotan; Minnesota Health Plan, Minnesota Health Board, Minnesota Health Fund, Office of Health Quality and Planning, ombudsman for patient advocacy, and auditor general for the Minnesota Health Plan established; Affordable Care Act 1332 waiver requested; and money appropriated.
A House resolution expressing the sense of the Minnesota House of Representatives reaffirming its commitment to the strengthening and deepening of the sister ties between the state of Minnesota and Taiwan.