HF 2444

as introduced - 89th Legislature (2015 - 2016) Posted on 03/16/2016 12:35pm

A bill for an act
relating to disabled veterans; providing certain exemptions from taxes and
fees on motor vehicles and watercraft for eligible veterans with a disability,
including certain registration taxes, license plates and licensing fees, title fees,
driver's license and identification card fees, and general sales taxes and motor
vehicle sales taxes; amending Minnesota Statutes 2014, sections 86B.415, by
adding a subdivision; 86B.870, by adding a subdivision; 163.051, subdivision 1;
168.012, by adding a subdivision; 168A.29, by adding a subdivision; 171.01,
by adding a subdivision; 171.06, by adding a subdivision; 297A.67, by adding a
subdivision; 297B.03.

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

Section 1.

Minnesota Statutes 2014, section 86B.415, is amended by adding a
subdivision to read:

new text begin Subd. 12. new text end

new text begin Exemption from fees; certain veterans. new text end

new text begin The commissioner shall issue
a watercraft license for a watercraft owned by a veteran with a total service-connected
disability without imposing any fee under this section, provided that all other requirements
for issuing the license contained in this chapter are met. For purposes of this subdivision,
"veteran with a total service-connected disability" has the meaning given in section
171.01, subdivision 51.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for a registration period beginning on
or after January 1, 2017.
new text end

Sec. 2.

Minnesota Statutes 2014, section 86B.870, is amended by adding a subdivision
to read:

new text begin Subd. 3a. new text end

new text begin Exemption from fees; certain veterans. new text end

new text begin The commissioner shall issue a
certificate of title for a watercraft to a veteran with a total service-connected disability
without imposing any fee under this section, provided that all other requirements for
issuing the certificate of title contained in this chapter are met. For purposes of this
subdivision, "veteran with a total service-connected disability" has the meaning given in
section 171.01, subdivision 51.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2017.
new text end

Sec. 3.

Minnesota Statutes 2014, section 163.051, subdivision 1, is amended to read:

Subdivision 1.

Tax authorized.

(a) Except as provided in paragraph (c), the board
of commissioners of each county is authorized to levy by resolution a wheelage tax at the
rate specified in paragraph (b), on each motor vehicle that is kept in such county when not
in operation and that is subject to annual registration and taxation under chapter 168. The
board may provide by resolution for collection of the wheelage tax by county officials or it
may request that the tax be collected by the state registrar of motor vehicles. The state
registrar of motor vehicles shall collect such tax on behalf of the county if requested, as
provided in subdivision 2.

(b) The wheelage tax under this section is at the rate of:

(1) from January 1, 2014, through December 31, 2017, $10 per year for each county
that authorizes the tax; and

(2) on and after January 1, 2018, up to $20 per year, in any increment of a whole
dollar, as specified by each county that authorizes the tax.

(c) The following vehicles are exempt from the wheelage tax:

(1) motorcycles, as defined in section 169.011, subdivision 44;

(2) motorized bicycles, as defined in section 169.011, subdivision 45; deleted text begin and
deleted text end

(3) motorized foot scooters, as defined in section 169.011, subdivision 46 new text begin ; and
new text end

new text begin (4) vehicles for which the requirements under section 168.012, subdivision 13, are
met new text end .

(d) For any county that authorized the tax prior to May 24, 2013, the wheelage tax
continues at the rate provided under paragraph (b).

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 January 1, 2017.
new text end

Sec. 4.

Minnesota Statutes 2014, section 168.012, is amended by adding a subdivision
to read:

new text begin Subd. 13. new text end

new text begin Vehicles registered by certain veterans. new text end

new text begin (a) A passenger automobile,
one-ton pickup truck, motorcycle, or recreational vehicle registered by a veteran with a total
service-connected disability, as defined in section 171.01, subdivision 51, is not subject to:
new text end

new text begin (1) registration taxes under this chapter;
new text end

new text begin (2) administrative fees imposed under subdivision 1c;
new text end

new text begin (3) filing fees imposed under section 168.33, subdivision 7; and
new text end

new text begin (4) plate and validation sticker fees imposed under this chapter, including but not
limited to:
new text end

new text begin (i) fees under section 168.12, subdivision 5;
new text end

new text begin (ii) fees identified in any section authorizing special plates; and
new text end

new text begin (iii) transfer fees.
new text end

new text begin (b) The fees identified under paragraph (a), clause (4), do not include:
new text end

new text begin (1) a fee for personalized plates under section 168.12, subdivision 2a; or
new text end

new text begin (2) a required contribution or donation for a special plate, including but not limited
to a contribution under sections 168.1255, subdivision 1, clause (6); 168.129, subdivision
1, clause (5); 168.1295, subdivision 1, paragraph (a), clause (5); 168.1296, subdivision 1,
paragraph (a), clause (5); and 168.1299, subdivision 1, clause (3).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to taxes and fees payable for a registration period starting on or after January
1, 2017.
new text end

Sec. 5.

Minnesota Statutes 2014, section 168A.29, is amended by adding a subdivision
to read:

new text begin Subd. 4. new text end

new text begin Exemption; vehicles for certain veterans. new text end

new text begin The department shall not
impose any fee under subdivision 1 if the certificate of title is being issued to a person and
for a vehicle in which the requirements under section 168.012, subdivision 13, are met.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2017.
new text end

Sec. 6.

Minnesota Statutes 2014, section 171.01, is amended by adding a subdivision
to read:

new text begin Subd. 51. new text end

new text begin Veteran with a total service-connected disability. new text end

new text begin "Veteran with a total
service-connected disability" means a veteran, as defined in section 197.447, who provides
satisfactory evidence to the commissioner demonstrating that the veteran has received
a 100 percent total and permanent service-connected disability rating as adjudicated by
the United States Veterans Administration or the retirement board of one of the several
branches of the armed forces.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 7.

Minnesota Statutes 2014, section 171.06, is amended by adding a subdivision
to read:

new text begin Subd. 2c. new text end

new text begin Exemption; certain veterans. new text end

new text begin For an applicant who is a veteran with a
total service-connected disability, the commissioner shall not impose:
new text end

new text begin (1) a license or endorsement fee, including fees and surcharges specified under:
new text end

new text begin (i) subdivisions 2 and 2a; and
new text end

new text begin (ii) section 171.02, subdivision 3;
new text end

new text begin (2) a filing fee under section 171.06, subdivision 2, or 171.061, subdivision 4; or
new text end

new text begin (3) a fee for an identification card under section 171.07, subdivision 3 or 3a.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2017.
new text end

Sec. 8.

Minnesota Statutes 2014, section 297A.67, is amended by adding a subdivision
to read:

new text begin Subd. 34. new text end

new text begin Watercraft purchased by certain veterans. new text end

new text begin A watercraft purchased
by a veteran with a total service-connected disability is exempt. For purposes of this
subdivision, "veteran with a total service-connected disability" has the meaning given in
section 171.01, subdivision 51. For purposes of this subdivision, "watercraft" means
watercraft and waterfowl boats as defined in section 86B.005, subdivisions 18 and 18a.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
January 1, 2017.
new text end

Sec. 9.

Minnesota Statutes 2014, section 297B.03, is amended to read:

297B.03 EXEMPTIONS.

There is specifically exempted from the provisions of this chapter and from
computation of the amount of tax imposed by it the following:

(1) 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 11;

(2) 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 country;

(3) purchase or use of any motor vehicle by any person making a valid election to be
taxed under the provisions of section 297A.90;

(4) 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 Code;

(5) 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 commerce;

(6) 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 programs;

(7) 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 service;

(8) 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 vehicle;

(9) purchase of a ready-mixed concrete truck;

(10) purchase or use of a motor vehicle by a town for use exclusively for road
maintenance, including snowplows and dump trucks, but not including automobiles,
vans, or pickup trucks;

(11) 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 library, but only if the vehicle is:

(i) 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

(ii) 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 purpose;

(12) 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 473.405;

(13) 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 tax;

(14) purchase of a leased vehicle by the lessee who was a participant in a
lease-to-own program from a charitable organization that is:

(i) described in section 501(c)(3) of the Internal Revenue Code; and

(ii) licensed as a motor vehicle lessor under section 168.27, subdivision 4; deleted text begin and
deleted text end

(15) 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 1990 new text begin ; and
new text end

new text begin (16) purchase of a motor vehicle by a veteran having a total service-connected
disability, as defined in section 171.01, subdivision 51 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
January 1, 2017.
new text end