HF 1409

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; exempting gifts from motor 
  1.3             vehicle sales tax by modifying terms related to 
  1.4             vehicle transfer; amending Minnesota Statutes 1998, 
  1.5             section 297B.01, subdivision 7. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1998, section 297B.01, 
  1.8   subdivision 7, is amended to read: 
  1.9      Subd. 7.  [SALE, SELLS, SELLING, PURCHASE, PURCHASED, OR 
  1.10  ACQUIRED.] "Sale," "sells," "selling," "purchase," "purchased," 
  1.11  or "acquired" means any transfer of title of any motor vehicle, 
  1.12  whether absolutely or conditionally, for a consideration in 
  1.13  money or by exchange or barter for any purpose other than resale 
  1.14  in the regular course of business.  Any motor vehicle utilized 
  1.15  by the owner only by leasing such vehicle to others or by 
  1.16  holding it in an effort to so lease it, and which is put to no 
  1.17  other use by the owner other than resale after such lease or 
  1.18  effort to lease, shall be considered property purchased for 
  1.19  resale.  The terms also shall include any transfer of title or 
  1.20  ownership of a motor vehicle by way of gift or by any other 
  1.21  manner or by any other means whatsoever, for or without 
  1.22  consideration, except that these terms shall not include: 
  1.23     (a) the acquisition of a motor vehicle by inheritance from 
  1.24  or by bequest of, a decedent who owned it; 
  1.25     (b) the transfer of a motor vehicle which was previously 
  2.1   licensed in the names of two or more joint tenants and 
  2.2   subsequently transferred without monetary consideration to one 
  2.3   or more of the joint tenants; 
  2.4      (c) the transfer of a motor vehicle by way of gift between 
  2.5   a husband and wife or parent and child individuals, when the 
  2.6   transfer is with no monetary or other consideration or in 
  2.7   expectation of consideration and the parties to the transfer 
  2.8   submit an affidavit to this effect at the time the title 
  2.9   transfer is recorded; 
  2.10     (d) the voluntary or involuntary transfer of a motor 
  2.11  vehicle between a husband and wife in a divorce proceeding; or 
  2.12     (e) the transfer of a motor vehicle by way of a gift to an 
  2.13  organization that is exempt from federal income taxation under 
  2.14  section 501(c)(3) of the Internal Revenue Code, as amended 
  2.15  through December 31, 1996, when the motor vehicle will be used 
  2.16  exclusively for religious, charitable, or educational purposes. 
  2.17     Sec. 2.  [EFFECTIVE DATE.] 
  2.18     Section 1 is effective July 1, 1999.