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S.F. No. 990 - Dedication of Motor Vehicle Parts Sales Tax Revenue to Highway User Tax Distribution Fund
Author: Senator Michelle L. Fischbach
Prepared By: Krista Boyd, Senate Fiscal Analyst (651/296-7681)
Date: March 1, 2017


This bill requires an annual transfer from the general fund to the highway user tax distribution fund of the estimated amount of sales tax revenue collected on the sale and purchase of motor vehicle repair and replacement parts. “Motor vehicle repair and replacement parts” is defined to include all parts, tires, accessories, and fluids that stay with the vehicle as part of the maintenance or repair.  

In fiscal year 2018, the transfer will be $150 million. In subsequent years, the annual transfer will be the estimated sales tax revenues, as calculated by the Department of Revenue. Every four years, the department shall estimate the percentage of the total sales tax revenue attributable to the sale of motor vehicle repair and replacement parts in the previous calendar year. The annual transfer of these revenues to the highway user tax distribution fund shall be equal to this percentage multiplied by the total sales tax revenues of the previous calendar year.

The bill is effective July 1, 2017.

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