Minnesota New Major Law Changes Effective July 1, 2025: Driving, Traffic, and Tax Hikes Explained


Minnesota Rolls Out Major Law Changes in July 2025: Here’s What You Need to Know

Starting July 1, 2025, several significant new laws will go into effect in the state of Minnesota, impacting boaters, motorcyclists, and cannabis users. From requiring young boaters to get a permit to legalizing lane splitting for motorcycles and increasing cannabis taxes, these changes are poised to reshape how Minnesotans travel and shop.

Let’s break down each new law and what it means for you.


New Boating Permit Required for Young Operators

Who Needs a Permit?

Beginning July 1, anyone aged 21 and under will be required to have a watercraft operator’s permit to legally drive a boat or personal watercraft (PWC) in Minnesota. This is the first phase of a broader law that will eventually apply to all ages by 2028.

How to Get the Permit

To obtain the permit, boaters must:

  • Visit the Minnesota Department of Natural Resources (DNR) website
  • Pay a $34.95 one-time fee
  • Complete an online safety course (3 to 4 hours)
  • Pass a final exam

Once the exam is passed, individuals can immediately print a temporary certificate and expect their official permit in the mail within three weeks.

The DNR says its current focus is on educating the public, not issuing fines. However, enforcement is expected to increase as the law becomes more widely implemented.

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What is Lane Splitting and Lane Filtering?

Motorcyclists will now legally be allowed to pass between vehicles in certain traffic conditions—commonly known as lane splitting and lane filtering.

Here’s what’s allowed under the new law:

  • Lane Splitting: Motorcyclists may pass another vehicle in the same direction and traffic lane, but only:
    • At speeds under 25 mph
    • No more than 15 mph faster than surrounding traffic
  • Lane Filtering: When traffic is at a standstill (such as at a light or in gridlock), motorcyclists can maneuver between cars at no more than 15 mph above the speed of stopped traffic

This legislation aims to reduce motorcycle congestion and enhance rider safety, although safety advocates and law enforcement caution that it must be practiced responsibly to avoid accidents.


Cannabis Tax Hike: What It Means for Consumers

Higher Prices on Cannabis and Hemp Products

As part of a state budget overhaul, Minnesota is increasing its cannabis tax rate from 10% to 15%—a substantial 50% jump. The change affects:

  • Recreational marijuana
  • CBD products
  • Hemp-derived cannabinoids

Pending expected approval from Governor Tim Walz, this tax increase goes into effect on July 1 and could generate more than $200 million in additional revenue for the state.

Minnesota will now have one of the highest cannabis tax rates in the nation, which could impact consumer prices and potentially the state’s competitive edge in the growing cannabis market.

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What Minnesotans Should Expect Starting July 1

These new laws signal a shift in public policy aimed at safety, health, and revenue generation. Whether you’re a boater, a motorcyclist, or a cannabis consumer, understanding these updates is crucial to staying compliant and informed.

Stay tuned for further implementation details and potential guidance from state agencies as July 1 approaches.

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