Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

HF 2559

as introduced - 92nd Legislature (2021 - 2022) Posted on 04/21/2021 10:58am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

Line numbers 1.1 1.2 1.3 1.4
1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32 2.33
3.1 3.2

A bill for an act
relating to transportation; amending the motor vehicle registration tax; amending
Minnesota Statutes 2020, section 168.013, subdivision 1a.

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

Section 1.

Minnesota Statutes 2020, section 168.013, subdivision 1a, is amended to read:


Subd. 1a.

Passenger automobile; hearse.

(a) On passenger automobiles as defined in
section 168.002, subdivision 24, and hearses, except as otherwise provided, the registration
tax is calculated asnew text begin :
new text end

new text begin (1) for a vehicle in its first through 11th year of vehicle life,new text end $10new text begin ;new text end plusdeleted text begin :
deleted text end

new text begin (2) an amount determined as follows:
new text end

deleted text begin (1)deleted text end new text begin (i)new text end for a vehicle initially registered in Minnesota prior to November 16, 2020, 1.25
percent of the manufacturer's suggested retail price of the vehicle and the destination charge,
subject to the adjustments in paragraphs (f) and (g); or

deleted text begin (2)deleted text end new text begin (ii)new text end for a vehicle initially registered in Minnesota on or after November 16, 2020,
1.285 percent of the manufacturer's suggested retail price of the vehicle, subject to the
adjustments in paragraphs (f) and (g).

(b) The registration tax calculation must not include the cost of each accessory or item
of optional equipment separately added to the vehicle and the manufacturer's suggested
retail price. The registration tax calculation must not include a destination charge, except
for a vehicle previously registered in Minnesota prior to November 16, 2020.

(c) In the case of the first registration of a new vehicle sold or leased by a licensed dealer,
the dealer may elect to individually determine the registration tax on the vehicle using
manufacturer's suggested retail price information provided by the manufacturer. The registrar
must use the manufacturer's suggested retail price determined by the dealer as provided in
paragraph (d). A dealer that elects to make the determination must retain a copy of the
manufacturer's suggested retail price label or other supporting documentation with the
vehicle transaction records maintained under Minnesota Rules, part 7400.5200.

(d) The registrar must determine the manufacturer's suggested retail price:

(1) using list price information published by the manufacturer or any nationally
recognized firm or association compiling such data for the automotive industry;

(2) if the list price information is unavailable, using the amount determined by a licensed
dealer under paragraph (c);

(3) if a dealer does not determine the amount, using the retail price label as provided by
the manufacturer under United States Code, title 15, section 1232; or

(4) if the retail price label is not available, using the actual sales price of the vehicle.

If the registrar is unable to ascertain the manufacturer's suggested retail price of any registered
vehicle in the foregoing manner, the registrar may use any other available source or method.

(e) The registrar must calculate the registration tax using information available to dealers
and deputy registrars at the time the initial application for registration is submitted.

(f) The amount under paragraph (a), deleted text begin clauses (1) anddeleted text end new text begin clausenew text end (2), must be calculated based
on a percentage of the manufacturer's suggested retail price, as follows: during the first year
of vehicle life, upon 100 percent of the price; for the second year, 90 percent of the price;
for the third year, 80 percent of the price; for the fourth year, 70 percent of the price; for
the fifth year, 60 percent of the price; for the sixth year, 50 percent of the price; for the
seventh year, 40 percent of the price; for the eighth year, 30 percent of the price; for the
ninth year, 20 percent of the price; and for the tenth year, ten percent of the price.

(g) For the 11th deleted text begin and each succeedingdeleted text end year, the amount under paragraph (a), deleted text begin clauses (1)
and
deleted text end new text begin clausenew text end (2), must be calculated as $25.new text begin For the 12th and each succeeding year, the amount
under paragraph (a), clause (2), must be calculated as $0.
new text end

(h) Except as provided in subdivision 23, for any vehicle previously registered in
Minnesota and regardless of prior ownership, the total amount due under this subdivision
and subdivision 1m must not exceed the smallest total amount previously paid or due on
the vehicle.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to taxes payable for a registration period starting on or after October 1, 2021.
new text end