HF 2174

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:00am

A bill for an act
relating to transportation; establishing a prorated registration tax credit for
vehicles scrapped or declared a total loss; amending Minnesota Statutes 2008,
section 168.013, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2008, section 168.013, is amended by adding a
subdivision to read:

new text begin Subd. 22. new text end

new text begin Total loss credit. new text end

new text begin (a) For purposes of this subdivision, the following
terms have the meanings given them:
new text end

new text begin (1) "registration period" means 12 consecutive calendar months of registration
for a passenger automobile; and
new text end

new text begin (2) "vehicle loss notification" means an action taken by an insurance company or an
individual to notify the commissioner that a passenger automobile will shortly be or has
recently been (i) scrapped under section 168A.15, subdivision 3, or (ii) declared a total
loss vehicle, as defined in section 325F.6642, subdivision 6.
new text end

new text begin (b) The commissioner shall establish a total loss credit program for applying
a portion of the registration tax paid for a vehicle declared a total loss towards the
registration tax subsequently paid on a replacement vehicle.
new text end

new text begin (c) The credit under this subdivision must be provided to a person:
new text end

new text begin (1) who is the owner of a passenger automobile for which the registration tax under
subdivision 1a has been paid for the registration period;
new text end

new text begin (2) for whom there is a vehicle loss notification for the vehicle under clause (1); and
new text end

new text begin (3) for whom there are at least 31 days between the date of vehicle loss notification
and the last day of the registration period of the vehicle under clause (1).
new text end

new text begin (d) Notwithstanding subdivision 1a, the credit must reduce or cancel the registration
tax due under subdivision 1a on one or more passenger automobiles registered by the
person subsequent to the notification date. The reduction in registration tax may not
exceed the amount of the credit under paragraph (e).
new text end

new text begin (e) The amount of the credit equals (1) one-twelfth of the amount of the total
registration tax paid for the registration period times (2) the number of full calendar months
between the date of the total loss notification and the last day of the registration period.
new text end

new text begin (f) The credit under this subdivision is available for one year after the last day of the
registration period, at which point any unused credit amount may no longer be applied
against a registration tax.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2010.
new text end