Minnesota Legislature
HF 1080
as introduced - 88th Legislature (2013 - 2014) Posted on 03/04/2013 01:44pm
Current Version - as introduced
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A bill for an act
relating to taxation; sales and use; adding an exemption for vehicles leased by
nonprofit corporations; amending Minnesota Statutes 2012, section 297A.64,
subdivisions 1, 2.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2012, section 297A.64, subdivision 1, is amended to read:
Subdivision 1.
Tax imposed.
new text begin (a) new text end A tax is imposed on the lease or rental in this
state for not more than 28 days of a passenger automobile as defined in section 168.002,
subdivision 24, a van as defined in section 168.002, subdivision 40, or a pickup truck as
defined in section 168.002, subdivision 26. The rate of tax is 6.2 percent of the sales price.
The tax applies whether or not the vehicle is licensed in the state.
new text begin
(b) The provisions of this subdivision do not apply to the vehicles of a nonprofit
corporation or similar entity, consisting of members who pay the organization for the
use of a motor vehicle, if the organization:
new text end
new text begin
(1) owns or leases a fleet of vehicles of the type subject to the tax under paragraph (a)
that are available to its members for use, priced on the basis of intervals of one hour or less;
new text end
new text begin
(2) parks its vehicles at unstaffed, self-service locations that are accessible to its
members at any time; and
new text end
new text begin
(3) maintains its vehicles, insures its vehicles on behalf of its members, and
purchases fuel for its fleet.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after
June 30, 2013.
new text end
Sec. 2.
Minnesota Statutes 2012, section 297A.64, subdivision 2, is amended to read:
Subd. 2.
Fee imposed.
(a) A fee equal to five percent of the sales price is imposed
on leases or rentals of vehicles subject to the tax under subdivision 1new text begin , paragraph (a)new text end . The
lessor on the invoice to the customer may designate the fee as "a fee imposed by the State
of Minnesota for the registration of rental cars."
(b) The provisions of this subdivision do not apply to the vehicles deleted text begin of a nonprofit
corporation or similar entity, consisting of individual or group members who pay the
organization for the use of a motor vehicle, if the organization:
deleted text end
deleted text begin
(1) owns or leases a fleet of vehicles of the type subject to the tax under subdivision 1
that are available to its members for use, priced on the basis of intervals of one hour or less;
deleted text end
deleted text begin
(2) parks its vehicles at unstaffed, self-service locations that are accessible at any
time of the day;
deleted text end
deleted text begin
(3) maintains its vehicles, insures its vehicles on behalf of its members, and
purchases fuel for its fleet; and
deleted text end
deleted text begin (4) does not charge usage rates that decline on a per unit basis, whether specified
based on distance or timedeleted text end new text begin exempt from the tax imposed under subdivision 1, paragraph (b)new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after
June 30, 2013.
new text end