HF 343

1st Engrossment - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to motor vehicles; allowing sales to other 
  1.3             dealers by limited used vehicle dealers; exempting 
  1.4             donations of vehicles to individuals by a licensed 
  1.5             limited used vehicle dealer from motor vehicle sales 
  1.6             tax; amending Minnesota Statutes 2002, sections 
  1.7             168.27, subdivision 4a; 297B.01, subdivision 7.  
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 2002, section 168.27, 
  1.10  subdivision 4a, is amended to read: 
  1.11     Subd. 4a.  [LIMITED USED VEHICLE LICENSE.] A limited used 
  1.12  vehicle license shall be provided to a nonprofit charitable 
  1.13  organization that qualifies for tax exemption under section 
  1.14  501(c)(3) of the Internal Revenue Code whose primary business in 
  1.15  the transfer of vehicles is to raise funds for the corporation, 
  1.16  who acquires vehicles for sale through donation, and who uses a 
  1.17  licensed motor vehicle auctioneer to sell vehicles to retail 
  1.18  customers individuals, or who sells and reassigns vehicles to a 
  1.19  licensed motor vehicle dealer.  This license does not apply to 
  1.20  educational institutions whose primary purpose is to train 
  1.21  students in the repair, maintenance, and sale of motor 
  1.22  vehicles.  A limited used vehicle license allows the 
  1.23  organization to accept assignment of vehicles without the 
  1.24  requirement to transfer title as provided in section 168A.10 
  1.25  until sold or donated to a retail customer an individual.  
  1.26  Limited used vehicle license holders are not entitled to dealer 
  2.1   plates, and shall report all vehicles held for resale to the 
  2.2   department of public safety in a manner and time prescribed by 
  2.3   the department. 
  2.4      Sec. 2.  Minnesota Statutes 2002, section 297B.01, 
  2.5   subdivision 7, is amended to read: 
  2.6      Subd. 7.  [SALE, SELLS, SELLING, PURCHASE, PURCHASED, OR 
  2.7   ACQUIRED.] (a) "Sale," "sells," "selling," "purchase," 
  2.8   "purchased," or "acquired" means any transfer of title of any 
  2.9   motor vehicle, whether absolutely or conditionally, for a 
  2.10  consideration in money or by exchange or barter for any purpose 
  2.11  other than resale in the regular course of business.  
  2.12     (b) Any motor vehicle utilized by the owner only by leasing 
  2.13  such vehicle to others or by holding it in an effort to so lease 
  2.14  it, and which is put to no other use by the owner other than 
  2.15  resale after such lease or effort to lease, shall be considered 
  2.16  property purchased for resale.  
  2.17     (c) The terms also shall include any transfer of title or 
  2.18  ownership of a motor vehicle by other means, for or without 
  2.19  consideration, except that these terms shall not include: 
  2.20     (1) the acquisition of a motor vehicle by inheritance from 
  2.21  or by bequest of, a decedent who owned it; 
  2.22     (2) the transfer of a motor vehicle which was previously 
  2.23  licensed in the names of two or more joint tenants and 
  2.24  subsequently transferred without monetary consideration to one 
  2.25  or more of the joint tenants; 
  2.26     (3) the transfer of a motor vehicle by way of gift between 
  2.27  individuals, or gift from a limited used vehicle dealer licensed 
  2.28  under section 168.27, subdivision 4a, to an individual, when the 
  2.29  transfer is with no monetary or other consideration or 
  2.30  expectation of consideration and the parties to the transfer 
  2.31  submit an affidavit to that effect at the time the title 
  2.32  transfer is recorded; 
  2.33     (4) the voluntary or involuntary transfer of a motor 
  2.34  vehicle between a husband and wife in a divorce proceeding; or 
  2.35     (5) the transfer of a motor vehicle by way of a gift to an 
  2.36  organization that is exempt from federal income taxation under 
  3.1   section 501(c)(3) of the Internal Revenue Code, as amended 
  3.2   through December 31, 1996, when the motor vehicle will be used 
  3.3   exclusively for religious, charitable, or educational purposes.