Minnesota Legislature
HF 122
as introduced - 89th Legislature (2015 - 2016) Posted on 03/04/2015 12:24pm
Bill Text Versions
| Engrossments | ||
|---|---|---|
| Introduction | Posted on 01/12/2015 |
Current Version - as introduced
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4.1 4.2
A bill for an act
relating to taxation; motor vehicle sales; expanding an exemption for certain
motor vehicle purchases by local governments; amending Minnesota Statutes
2014, section 297B.03.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2014, section 297B.03, is amended to read:
297B.03 EXEMPTIONS.
new text begin Subdivision 1. new text end
new text begin Scope. new text end
deleted text begin There isdeleted text end new text begin The purchases or acquisitions of a motor vehicle
listed in this section are new text end specifically exempted from the provisions of this chapter and from
computation of the amount of tax imposed by it deleted text begin the following:deleted text end new text begin .
new text end
new text begin Subd. 2. new text end
new text begin Federal government. new text end
deleted text begin (1)deleted text end new text begin Thenew text end purchase or use, including use under a
lease purchase agreement or installment sales contract made pursuant to section 465.71,
of any motor vehicle by the United States and its agencies and instrumentalities and
by any person described in and subject to the conditions provided in section 297A.67,
subdivision 11deleted text begin ;deleted text end new text begin is exempt.
new text end
new text begin Subd. 3. new text end
new text begin Purchased while a resident of another state. new text end
deleted text begin (2)deleted text end new text begin Thenew text end purchase or use
of any motor vehicle by any person who was a resident of another state or country at the
time of the purchase and who subsequently becomes a resident of Minnesota, provided
the purchase occurred more than 60 days prior to the date such person began residing in
the state of Minnesota and the motor vehicle was registered in the person's name in the
other state or countrydeleted text begin ;deleted text end new text begin is exempt.
new text end
new text begin Subd. 4. new text end
new text begin Interstate motor carriers. new text end
deleted text begin (3)deleted text end new text begin Thenew text end purchase or use of any motor vehicle
by any person making a valid election to be taxed under the provisions of section 297A.90deleted text begin ;deleted text end new text begin
is exempt.
new text end
new text begin Subd. 5. new text end
new text begin Sale of a business. new text end
deleted text begin (4)deleted text end new text begin Thenew text end purchase or use of any motor vehicle previously
registered in the state of Minnesota when such transfer constitutes a transfer within the
meaning of section 118, 331, 332, 336, 337, 338, 351, 355, 368, 721, 731, 1031, 1033, or
1563(a) of the Internal Revenue Codedeleted text begin ;deleted text end new text begin is exempt.
new text end
new text begin Subd. 6. new text end
new text begin Leased vehicles for interstate commerce. new text end
deleted text begin (5)deleted text end new text begin Thenew text end purchase or use of any
vehicle owned by a resident of another state and leased to a Minnesota-based private or
for-hire carrier for regular use in the transportation of persons or property in interstate
commerce provided the vehicle is titled in the state of the owner or secured party, and
that state does not impose a sales tax or sales tax on motor vehicles used in interstate
commercedeleted text begin ;deleted text end new text begin is exempt.
new text end
new text begin Subd. 7. new text end
new text begin Use in automotive training programs. new text end
deleted text begin (6)deleted text end new text begin Thenew text end purchase or use of a motor
vehicle by a private nonprofit or public educational institution for use as an instructional
aid in automotive training programs operated by the institution. "Automotive training
programs" includes motor vehicle body and mechanical repair courses but does not
include driver education programsdeleted text begin ;deleted text end new text begin is exempt.
new text end
new text begin Subd. 8. new text end
new text begin Ambulance and emergency response. new text end
deleted text begin (7)deleted text end new text begin Thenew text end purchase of a motor
vehicle by an ambulance service licensed under section 144E.10 when that vehicle is
equipped and specifically intended for emergency response or for providing ambulance
servicedeleted text begin ;deleted text end new text begin is exempt.
new text end
new text begin Subd. 9. new text end
new text begin Library use. new text end
deleted text begin (8)deleted text end new text begin Thenew text end purchase of a motor vehicle by or for a public
library, as defined in section 134.001, subdivision 2, as a bookmobile or library delivery
vehicledeleted text begin ;deleted text end new text begin is exempt.
new text end
new text begin Subd. 10. new text end
new text begin Ready-mix concrete truck. new text end
deleted text begin (9)deleted text end new text begin Thenew text end purchase of a deleted text begin ready-mixeddeleted text end new text begin
ready-mixnew text end concrete truckdeleted text begin ;deleted text end new text begin is exempt.
new text end
new text begin Subd. 11. new text end
new text begin Local government road maintenance. new text end
deleted text begin (10)deleted text end new text begin Thenew text end purchase or use of a
motor vehicle by a deleted text begin towndeleted text end new text begin local governmentnew text end for use exclusively for road maintenance,
including deleted text begin snowplows and dump trucksdeleted text end new text begin a snowplow or dump trucknew text end , but not including
deleted text begin automobiles, vans, or pickup trucks;deleted text end new text begin an automobile, van, or pickup truck is exempt. For
purposes of this subdivision "local government" means:
new text end
new text begin
(1) a home rule charter or statutory city;
new text end
new text begin
(2) a county;
new text end
new text begin
(3) a town; or
new text end
new text begin
(4) an instrumentality of a home rule charter or statutory city, county, or town.
An instrumentality may be a special district under section 6.465, or a special district
organized under a joint powers agreement under section 471.59, if the special district was
established by the county, city, or town, or the majority of the special district's governing
board is made up of:
new text end
new text begin
(i) elected officials of the city, county, or town; or
new text end
new text begin
(ii) the special district's members are appointed by the governing body of the city,
county, or town.
new text end
new text begin Subd. 12. new text end
new text begin Charitable use. new text end
deleted text begin (11)deleted text end new text begin Thenew text end purchase or use of a motor vehicle by a
corporation, society, association, foundation, or institution organized and operated
exclusively for charitable, religious, or educational purposes, except a public school,
university, or librarynew text begin is exemptnew text end , but only if the vehicle is:
deleted text begin (i)deleted text end new text begin (1)new text end a truck, as defined in section 168.002, a bus, as defined in section 168.002, or
a passenger automobile, as defined in section 168.002, if the automobile is designed and
used for carrying more than nine persons including the driver; and
deleted text begin (ii)deleted text end new text begin (2)new text end intended to be used primarily to transport tangible personal property
or individuals, other than employees, to whom the organization provides service in
performing its charitable, religious, or educational purposedeleted text begin ;deleted text end new text begin .
new text end
new text begin Subd. 13. new text end
new text begin Transit use. new text end
deleted text begin (12)deleted text end new text begin Thenew text end purchase of a motor vehicle for use by a transit
provider exclusively to provide transit service is exempt if the transit provider is either (i)
receiving financial assistance or reimbursement under section 174.24 or 473.384, or (ii)
operating under section 174.29, 473.388, or 473.405deleted text begin ;deleted text end new text begin is exempt.
new text end
new text begin Subd. 14. new text end
new text begin Job opportunity building zone. new text end
deleted text begin (13)deleted text end new text begin Thenew text end purchase or use of a motor
vehicle by a qualified business, as defined in section 469.310, located in a job opportunity
building zone, if the motor vehicle is principally garaged in the job opportunity building
zone and is primarily used as part of or in direct support of the person's operations carried
on in the job opportunity building zone. The exemption under this clause applies to sales,
if the purchase was made and delivery received during the duration of the job opportunity
building zone. The exemption under this clause also applies to any local sales and use
taxdeleted text begin ;deleted text end new text begin is exempt.
new text end
new text begin Subd. 15. new text end
new text begin Certain purchases from a nonprofit. new text end
deleted text begin (14)deleted text end new text begin Thenew text end purchase of a leased
vehicle by the lessee who was a participant in a lease-to-own program new text begin is exempt if the
purchase is new text end from a charitable organization that is:
deleted text begin (i)deleted text end new text begin (1)new text end described in section 501(c)(3) of the Internal Revenue Code; and
deleted text begin (ii)deleted text end new text begin (2)new text end licensed as a motor vehicle lessor under section 168.27, subdivision 4deleted text begin ; anddeleted text end new text begin .
new text end
new text begin Subd. 16. new text end
new text begin Mobile medical unit. new text end
deleted text begin (15)deleted text end new text begin Thenew text end purchase of a motor vehicle used
exclusively as a mobile medical unit for the provision of medical or dental services by a
federally qualified health center, as defined under title 19 of the Social Security Act, as
amended by Section 4161 of the Omnibus Budget Reconciliation Act of 1990new text begin is exemptnew 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, 2014.
new text end