SF 721

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 10/25/2023 10:35am

A bill for an act
relating to motor vehicles; increasing maximum documentary fees charged by
dealers on motor vehicle sales and leases; amending Minnesota Statutes 2022,
section 168.27, subdivision 31.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2022, section 168.27, subdivision 31, is amended to read:

Subd. 31.

Documentary fee.

(a) A motor vehicle dealer may not charge a documentary
fee or document administration fee in excess of the amounts provided under paragraph (b)
for services actually rendered to, for, or on behalf of the retail buyer or lessee to prepare,
handle, and process documents for the closing of a motor vehicle retail sale or lease of a
vehicle being registered in the state of Minnesota. The fee must be separately stated on the
sales agreement maintained under Minnesota Rules, part 7400.5200, and may be excluded
from the dealer's advertised price.

(b) For motor vehicle sales or leases made on or after July 1, 2017 2023, through June
30, 2020 2024, the maximum fee is $100 the lesser of $200 or an amount equal to ten percent
of the value of the sale or lease. For motor vehicle sales or leases made on or after July 1,
2020 2024, through June 30, 2025, the maximum fee is $125 the lesser of $275 or an amount
equal to ten percent of the value of the sale or lease. For motor vehicle sales or leases made
on or after July 1, 2025, the maximum fee is the lesser of $350 or an amount equal to ten
percent of the value of the sale or lease.

(c) "Documentary fee" and "document administration fee" do not include an optional
electronic transfer fee as defined under section 53C.01, subdivision 14.

EFFECTIVE DATE.

This section is effective for motor vehicle sales and leases made
on or after July 1, 2023.