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HF 3573

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/17/2022 02:19pm

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

Bill Text Versions

Engrossments
Introduction Posted on 02/17/2022

Current Version - as introduced

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A bill for an act
relating to motor vehicles; increasing motor vehicle registration period to 24
months; amending Minnesota Statutes 2020, sections 168.002, subdivision 33;
168.013, subdivisions 1a, 1b, 1c, 1d, 1e, 1f, 1g, 1h, 1k, 1m, 2, 3, 6, 12, 21, 22;
168.017; 168.018; 168.022, subdivision 2; 168.09, subdivision 5; 168.10,
subdivision 1; 168.127, subdivision 2; 168.187, subdivisions 10, 11, 15, 16; 168.31,
subdivisions 1, 4a; 168.33, subdivision 7; Minnesota Statutes 2021 Supplement,
section 168.31, subdivision 4.

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

Section 1.

Minnesota Statutes 2020, section 168.002, subdivision 33, is amended to read:


Subd. 33.

Tax.

"Tax" means the deleted text beginannualdeleted text endnew text begin biennialnew text end registration tax imposed on vehicles in
lieu of all other taxes, except wheelage taxes which may be imposed by any city, and gross
earnings taxes paid by companies. The deleted text beginannualdeleted text endnew text begin biennialnew text end tax is both a property tax and a
highway use tax and shall be on the basis of the deleted text begincalendar yeardeleted text endnew text begin bienniumnew text end.

Sec. 2.

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 as deleted text begin$10deleted text endnew text begin $20new text end plus:

(1) for a vehicle initially registered in Minnesota prior to November 16, 2020, deleted text begin1.25deleted text endnew text begin 2.5new text end
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

(2) for a vehicle initially registered in Minnesota on or after November 16, 2020, deleted text begin1.285deleted text endnew text begin
2.57
new text end 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), clauses (1) and (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 and each succeeding year, the amount under paragraph (a), clauses (1)
and (2), must be calculated as deleted text begin$25deleted text endnew text begin $50new 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.

Sec. 3.

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


Subd. 1b.

Motorcycle.

On motorcycles the tax is deleted text begin$10deleted text endnew text begin $20new text end, which includes the surtax
provided for in subdivision 14.

Sec. 4.

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


Subd. 1c.

Farm truck.

(a) On farm trucks having a gross weight of not more than 57,000
pounds, the tax shall be based on total gross weight and shall be 45 percent of the Minnesota
base rate prescribed by subdivision 1e during each of the first eight years of vehicle life,
but in no event less than deleted text begin$35deleted text endnew text begin $70new text end, and during the ninth and succeeding years of vehicle life
the tax shall be 27 percent of the Minnesota base rate prescribed by subdivision 1e, but in
no event less than deleted text begin$21deleted text endnew text begin $42new text end.

(b) On farm trucks having a gross weight of more than 57,000 pounds, the tax shall be
60 percent of the Minnesota base rate during each of the first eight years of vehicle life and
36 percent of the Minnesota base rate during the ninth and succeeding years.

Sec. 5.

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


Subd. 1d.

Trailer.

(a) On trailers registered at a gross vehicle weight of greater than
3,000 pounds, the deleted text beginannualdeleted text endnew text begin biennialnew text end tax is based on total gross weight and is 30 percent of the
Minnesota base rate prescribed in subdivision 1e, when the gross weight is 15,000 pounds
or less, and when the gross weight of a trailer is more than 15,000 pounds, the tax for the
first eight years of vehicle life is 100 percent of the tax imposed in the Minnesota base rate
schedule, and during the ninth and succeeding years of vehicle life the tax is 75 percent of
the Minnesota base rate prescribed by subdivision 1e. A trailer registered at a gross vehicle
weight greater than 3,000 pounds but no greater than 7,200 pounds may be taxed either: (1)
deleted text begin annuallydeleted text endnew text begin bienniallynew text end as provided in this paragraph; or (2) once every deleted text beginthreedeleted text endnew text begin sixnew text end years on the
basis of total gross weight and is 90 percent of the Minnesota base rate prescribed in
subdivision 1e, provided that the filing fee under section 168.33, subdivision 7, paragraph
(a), is multiplied by deleted text beginthreedeleted text endnew text begin sixnew text end, with funds collected by the commissioner allocated
proportionally in the same manner as provided in section 168.33, subdivision 7, paragraph
(e).

(b) Farm trailers with a gross weight in excess of 10,000 pounds and as described in
section 168.002, subdivision 8, are taxed as farm trucks as prescribed in subdivision 1c.

(c) deleted text beginEffective on and after July 1, 2001,deleted text end Trailers registered at a gross vehicle weight of
3,000 pounds or less must display a distinctive plate. The registration on the license plate
is valid for the life of the trailer only if it remains registered at the same gross vehicle weight.
The onetime registration tax for trailers registered for the first time in Minnesota is $55.
deleted text begin For trailers registered in Minnesota before July 1, 2001, and for which:
deleted text end

deleted text begin (1) registration is desired for the remaining life of the trailer, the registration tax is $25;
or
deleted text end

deleted text begin (2) permanent registration is not desired, the biennial registration tax is $10 for the first
renewal if registration is renewed between and including July 1, 2001, and June 30, 2003.
These trailers must be issued permanent registration at the first renewal on or after July 1,
2003, and the registration tax is $20.
deleted text end

For trailers registered at a gross weight of 3,000 pounds or less before July 1, 2001, but
not renewed until on or after July 1, 2003, the registration tax is $20 and permanent
registration must be issued.

Sec. 6.

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


Subd. 1e.

Truck; tractor; combination; exceptions.

(a) On trucks and tractors except
those in this chapter defined as farm trucks, on truck-tractor and semitrailer combinations
except those defined as farm combinations, and on commercial zone vehicles, the tax based
on total gross weight shall be graduated according to the Minnesota base rate schedule
prescribed in this subdivision, but in no event less than deleted text begin$120deleted text endnew text begin $240new text end.

Minnesota Base Rate Schedule

Scheduled taxes include five percent

surtax provided for in subdivision 14

TOTAL GROSS WEIGHT IN POUNDS
TAX
A
0
-
1,500
$
deleted text begin 15 deleted text end new text begin 30
new text end
B
1,501
-
3,000
deleted text begin 20 deleted text end new text begin 40
new text end
C
3,001
-
4,500
deleted text begin 25 deleted text end new text begin 50
new text end
D
4,501
-
6,000
deleted text begin 35 deleted text end new text begin 70
new text end
E
6,001
-
10,000
deleted text begin 45 deleted text end new text begin 90
new text end
F
10,001
-
12,000
deleted text begin 70 deleted text end new text begin 140
new text end
G
12,001
-
15,000
deleted text begin 105 deleted text end new text begin 210
new text end
H
15,001
-
18,000
deleted text begin 145 deleted text end new text begin 290
new text end
I
18,001
-
21,000
deleted text begin 190 deleted text end new text begin 380
new text end
J
21,001
-
26,000
deleted text begin 270 deleted text end new text begin 540
new text end
K
26,001
-
33,000
deleted text begin 360 deleted text end new text begin 720
new text end
L
33,001
-
39,000
deleted text begin 475 deleted text end new text begin 950
new text end
M
39,001
-
45,000
deleted text begin 595 deleted text end new text begin
1,190
new text end
N
45,001
-
51,000
deleted text begin 715 deleted text end new text begin
1,430
new text end
O
51,001
-
57,000
deleted text begin 865 deleted text end new text begin
1,730
new text end
P
57,001
-
63,000
deleted text begin 1015 deleted text end new text begin
2,030
new text end
Q
63,001
-
69,000
deleted text begin 1185 deleted text end new text begin
2,370
new text end
R
69,001
-
73,280
deleted text begin 1325 deleted text end new text begin
2,650
new text end
S
73,281
-
78,000
deleted text begin 1595 deleted text end new text begin
3,190
new text end
T
78,001
-
80,000
deleted text begin 1760 deleted text end new text begin
3,520
new text end

(b) For purposes of the Minnesota base rate schedule, for vehicles with six or more axles
in the "S" and "T" categories, the base rates are deleted text begin$1,520 and $1,620deleted text endnew text begin $3,040 and $3,240,new text end
respectively.

(c) For each vehicle with a gross weight in excess of 80,000 pounds an additional tax
of deleted text begin$50deleted text endnew text begin $100new text end is imposed for each ton or fraction thereof in excess of 80,000 pounds, subject
to subdivision 12 or section 169.86, subdivision 5a, as applicable.

(d) For purposes of registration identification, for vehicles registered in the "O" category,
the owner must declare at the time of registration whether the vehicle will carry a weight
of 55,000 pounds or more and therefore be subject to the federal heavy vehicle use tax. For
those owners who declare a weight less than 55,000 pounds, a distinctive weight sticker
must be issued and the owner is restricted to a gross vehicle weight of less than 55,000
pounds.

(e) Truck-tractors except those herein defined as farm and commercial zone vehicles
shall be taxed in accord with the foregoing gross weight tax schedule on the basis of the
combined gross weight of the truck-tractor and any semitrailer or semitrailers which the
applicant proposes to combine with the truck-tractor.

(f) Commercial zone trucks include only trucks, truck-tractors, and semitrailer
combinations which are operated by an interstate carrier registered under section 221.60,
or by a carrier receiving operating authority under chapter 221, and operated solely within
a zone exempt from regulation pursuant to United States Code, title 49, section 13506.

(g) The license plates issued for commercial zone vehicles shall be plainly marked. A
person operating a commercial zone vehicle outside the zone or area in which its operation
is authorized is guilty of a misdemeanor and, in addition to the misdemeanor penalty, the
registrar shall revoke the registration of the vehicle as a commercial zone vehicle and shall
require that the vehicle be registered at 100 percent of the full deleted text beginannualdeleted text endnew text begin biennialnew text end tax prescribed
in the Minnesota base rate schedule, and no part of this tax may be refunded during the
balance of the registration deleted text beginyeardeleted text endnew text begin bienniumnew text end.

(h) On commercial zone trucks the tax shall be based on the total gross weight of the
vehicle and during each of the first eight years of vehicle life is 75 percent of the Minnesota
base rate schedule. During the ninth and succeeding years of vehicle life the tax is 50 percent
of the Minnesota base rate schedule.

(i) On trucks, truck-tractors and semitrailer combinations, except those defined as farm
trucks and farm combinations, and except for those commercial zone vehicles specifically
provided for in this subdivision, the tax for each of the first eight years of vehicle life is 100
percent of the tax imposed in the Minnesota base rate schedule, and during the ninth and
succeeding years of vehicle life, the tax is 75 percent of the Minnesota base rate prescribed
by this subdivision.

(j) For the purpose of registration, trailers coupled with a truck-tractor, semitrailer
combination are semitrailers.

Sec. 7.

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


Subd. 1f.

Bus; commuter van.

(a) On all intercity buses, the tax during each new text beginof new text endthe first
two years of vehicle life shall be based on the gross weight of the vehicle and graduated
according to the following schedule:

Gross Weight of Vehicle
Tax
Under 6,000 lbs. .
deleted text begin $125 deleted text end new text begin
$250
new text end
6,000 to 8,000 lbs., incl. .
deleted text begin 125 deleted text end new text begin
250
new text end
8,001 to 10,000 lbs., incl. .
deleted text begin 125 deleted text end new text begin
250
new text end
10,001 to 12,000 lbs., incl. .
deleted text begin 150 deleted text end new text begin
300
new text end
12,001 to 14,000 lbs., incl. .
deleted text begin 190 deleted text end new text begin
380
new text end
14,001 to 16,000 lbs., incl. .
deleted text begin 210 deleted text end new text begin
420
new text end
16,001 to 18,000 lbs., incl. .
deleted text begin 225 deleted text end new text begin
450
new text end
18,001 to 20,000 lbs., incl. .
deleted text begin 260 deleted text end new text begin
520
new text end
20,001 to 22,000 lbs., incl. .
deleted text begin 300 deleted text end new text begin
600
new text end
22,001 to 24,000 lbs., incl. .
deleted text begin 350 deleted text end new text begin
700
new text end
24,001 to 26,000 lbs., incl. .
deleted text begin 400 deleted text end new text begin
800
new text end
26,001 to 28,000 lbs., incl. .
deleted text begin 450 deleted text end new text begin
900
new text end
28,001 to 30,000 lbs., incl. .
deleted text begin 500 deleted text end new text begin
1,000
new text end
30,001 and over .
deleted text begin 550 deleted text end new text begin
1,100
new text end

(b) During each of the third and fourth years of vehicle life, the tax shall be 75 percent
of the foregoing scheduled tax; during the fifth year of vehicle life, the tax shall be 50 percent
of the foregoing scheduled tax; during the sixth year of vehicle life, the tax shall be 37-1/2
percent of the foregoing scheduled tax; and during the seventh and each succeeding year
of vehicle life, the tax shall be 25 percent of the foregoing scheduled tax; provided that the
deleted text begin annualdeleted text endnew text begin biennialnew text end tax paid in any year of its life for an intercity bus shall be not less than deleted text begin$175deleted text endnew text begin
$350
new text end for a vehicle of over 25-passenger seating capacity and not less than deleted text begin$125deleted text endnew text begin $250new text end for a
vehicle of 25-passenger and less seating capacity.

(c) On all intracity buses operated by an auto transportation company in the business of
transporting persons for compensation as a common carrier and operating within the limits
of cities, the tax during each year of the vehicle life of each such bus shall be deleted text begin$2deleted text endnew text begin $4new text end.

(d) On all other buses and commuter vans, as defined in section 168.126, the tax during
each of the first three years of the vehicle life shall be based on the gross weight of the
vehicle and graduated according to the following schedule: Where the gross weight of the
vehicle is 6,000 pounds or less, deleted text begin$25deleted text endnew text begin $50new text end. Where the gross weight of the vehicle is more than
6,000 pounds, and not more than 8,000 pounds, the tax shall be deleted text begin$25deleted text endnew text begin $50new text end plus an additional
tax of deleted text begin$5deleted text endnew text begin $10new text end per ton for the ton or major portion in excess of 6,000 pounds. Where the
gross weight of the vehicle is more than 8,000 pounds, and not more than 20,000 pounds,
the tax shall be deleted text begin$30deleted text endnew text begin $60new text end plus an additional tax of deleted text begin$10deleted text endnew text begin $20new text end per ton for each ton or major
portion in excess of 8,000 pounds. Where the gross weight of the vehicle is more than 20,000
pounds and not more than 24,000 pounds, the tax shall be deleted text begin$90deleted text endnew text begin $180new text end plus an additional tax
of deleted text begin$15deleted text endnew text begin $30new text end per ton for each ton or major portion in excess of 20,000 pounds. Where the
gross weight of the vehicle is more than 24,000 pounds and not more than 28,000 pounds,
the tax shall be deleted text begin$120deleted text endnew text begin $240new text end plus an additional tax of deleted text begin$25deleted text endnew text begin $50new text end per ton for each ton or major
portion in excess of 24,000 pounds. Where the gross weight of the vehicle is more than
28,000 pounds, the tax shall be deleted text begin$170deleted text endnew text begin $340new text end plus an additional tax of deleted text begin$30deleted text endnew text begin $60new text end per ton for each
ton or major portion in excess of 28,000 pounds.

(e) During the fourth and succeeding years of vehicle life, the tax shall be 80 percent of
the foregoing scheduled tax but in no event less than deleted text begin$20deleted text endnew text begin $40new text end per vehicle.

Sec. 8.

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


Subd. 1g.

Recreational vehicle.

(a) Self-propelled recreational vehicles must be
separately licensed and taxed deleted text beginannuallydeleted text endnew text begin bienniallynew text end on the basis of total gross weight. The tax
must be graduated according to the Minnesota base rate schedule prescribed in subdivision
1e, but in no event less than deleted text begin$20deleted text endnew text begin $40new text end, except as otherwise provided in this subdivision.

(b) For all self-propelled recreational vehicles, the tax for the ninth and succeeding years
of vehicle life is 75 percent of the tax imposed in the Minnesota base rate schedule.

(c) Towed recreational vehicles must be separately licensed and taxed under either one
of the following, as determined by the vehicle owner: (1) deleted text beginannuallydeleted text endnew text begin bienniallynew text end on the basis
of total gross weight at 30 percent of the Minnesota base rate prescribed in subdivision 1e;
or (2) once every three years on the basis of total gross weight at 90 percent of the Minnesota
base rate prescribed in subdivision 1e, provided that the filing fee under section 168.33,
subdivision 7
, paragraph (a), is multiplied by three, with funds collected by the commissioner
allocated proportionally in the same manner as provided in section 168.33, subdivision 7,
paragraph (e). In no event is the tax under this paragraph less than deleted text begin$5deleted text endnew text begin $10new text end.

(d) Notwithstanding any law to the contrary, all trailers and semitrailers taxed pursuant
to this section are exempt from any wheelage tax now or hereafter imposed by any political
subdivision or political subdivisions.

Sec. 9.

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


Subd. 1h.

Motorized bicycle.

On motorized bicycles the tax is deleted text begin$6deleted text endnew text begin $12new text end, which includes
the surtax provided for in subdivision 14.

Sec. 10.

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


Subd. 1k.

Commuter van.

A commuter van, as defined in section 168.126, must be
separately licensed and taxed deleted text beginannuallydeleted text endnew text begin bienniallynew text end on the basis of total gross weight and the
tax must be graduated according to the schedule prescribed in subdivision 1f.

Sec. 11.

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


Subd. 1m.

Electric vehicle.

In addition to the tax under subdivision 1a, a surcharge of
deleted text begin $75deleted text endnew text begin $150new text end is imposed for an all-electric vehicle, as defined in section 169.011, subdivision
1a
. Notwithstanding subdivision 8, revenue from the fee imposed under this subdivision
must be deposited in the highway user tax distribution fund.

Sec. 12.

Minnesota Statutes 2020, section 168.013, subdivision 2, is amended to read:


Subd. 2.

Prorated fees.

When a motor vehicle first becomes subject to taxation during
the registration period for which the tax is paid, or when a vehicle becomes subject to
taxation upon transfer from a motor vehicle dealer, the tax shall be for the remainder of the
period prorated on a monthly basis, deleted text begin1/12deleted text endnew text begin 1/24new text end of the deleted text beginannualdeleted text endnew text begin biennialnew text end tax for each calendar
month or fraction thereof; provided, however, that for a vehicle having deleted text beginan annualdeleted text endnew text begin a biennialnew text end
tax of deleted text begin$10deleted text endnew text begin $20new text end or less there shall be no reduction until on and after September 1 when the
deleted text begin annualdeleted text endnew text begin biennialnew text end tax shall be reduced one-half.

Sec. 13.

Minnesota Statutes 2020, section 168.013, subdivision 3, is amended to read:


Subd. 3.

Application; cancellation; excessive gross weight forbidden.

(a) The applicant
for all licenses based on gross weight shall state the unloaded weight of the motor vehicle,
trailer, or semitrailer and the maximum load the applicant proposes to carry on it, the sum
of which constitutes the gross weight upon which the license tax must be paid. However,
the declared gross weight upon which the tax is paid must not be less than 1-1/4 times the
declared unloaded weight of the motor vehicle, trailer, or semitrailer to be registered, except
recreational vehicles taxed under subdivision 1g, school buses taxed under subdivision 18,
and tow trucks or towing vehicles defined in section 168B.011, subdivision 12a. The gross
weight of a tow truck or towing vehicle is the actual weight of the tow truck or towing
vehicle fully equipped, but does not include the weight of a wrecked or disabled vehicle
towed or drawn by the tow truck or towing vehicle.

(b) Except as provided by special permit issued under section 169.86, the gross weight
of a motor vehicle, trailer, or semitrailer must not exceed the gross weight upon which the
license tax has been paid by more than four percent or 1,000 pounds, whichever is greater;
provided that, a vehicle transporting unfinished forest products on a highway, other than a
highway that is part of the system of interstate and defense highways, unless a federal
exemption is granted, in accordance with paragraph (d)(3):

(1) shall not exceed its gross vehicle weight upon which the license tax has been paid,
or gross axle weight on any axle, by more than five percent and, notwithstanding other law
to the contrary, is not subject to any fee, fine, or other assessment or penalty for exceeding
a gross vehicle or axle weight by up to five percent. This clause applies year round to
suppliers of unfinished forest products to mills; and

(2) is not subject to any provision of paragraph (d) or chapter 169 limiting the gross axle
weight of any individual axle unless the entire vehicle also exceeds its gross vehicle weight
plus its weight allowance allowed in clause (1) and plus any weight allowance permitted
under section 169.826 or 169.8261, in which case the vehicle is subject to all applicable
penalties for excess weight violations.

(c) The gross weight of the motor vehicle, trailer, or semitrailer for which the license
tax is paid must be indicated by a distinctive character on the license plate or plates except
as provided in subdivision 12 or section 169.86, subdivision 5a, as applicable, and the plate
or plates must be kept clean and clearly visible at all times.

(d) The owner, driver, or user of a motor vehicle, trailer, or semitrailer, upon conviction
for transporting a gross weight in excess of the gross weight for which it was registered or
for operating a vehicle with an axle weight exceeding the maximum lawful axle load weight,
is guilty of a misdemeanor and subject to increased registration or reregistration according
to the following schedule:

(1) Upon conviction for transporting a gross weight in excess of the gross weight for
which a motor vehicle, trailer, or semitrailer is registered by more than the allowance set
forth in paragraph (b) but less than 25 percent, or for operating or using a motor vehicle,
trailer, or semitrailer with an axle weight exceeding the maximum lawful axle load as
provided in sections 169.822 to 169.829 by more than the allowance set forth in paragraph
(b) but less than 25 percent, the owner, driver, or user of the motor vehicle, trailer, or
semitrailer used to commit the violation, in addition to any penalty imposed for the
misdemeanor, shall apply to the registrar to increase the authorized gross weight to be carried
on the vehicle to a weight equal to or greater than the gross weight the owner, driver, or
user was convicted of carrying. The increase is computed for the balance of the deleted text begincalendar
year
deleted text endnew text begin bienniumnew text end on the basis of deleted text begin1/12deleted text endnew text begin 1/24new text end of the deleted text beginannualdeleted text endnew text begin biennialnew text end tax for each month remaining
in the deleted text begincalendar yeardeleted text endnew text begin bienniumnew text end beginning with the first day of the month in which the violation
occurred. If the additional registration tax computed upon that weight, plus the tax already
paid, amounts to more than the regular tax for the maximum gross weight permitted for the
vehicle under sections 169.822 to 169.829, that additional amount must nevertheless be
paid into the highway fund, but the additional tax thus paid does not authorize or permit
any person to operate the vehicle with a gross weight in excess of the maximum legal weight
as provided by sections 169.822 to 169.829. Unless the owner within 30 days after a
conviction applies to increase the authorized weight and pays the additional tax as provided
in this section, the registrar shall revoke the registration on the vehicle and demand the
return of the registration card and plates issued on that registration.

(2) Upon conviction of an owner, driver, or user of a motor vehicle, trailer, or semitrailer
for transporting a gross weight in excess of the gross weight for which the motor vehicle,
trailer, or semitrailer was registered by 25 percent or more or for operating or using the
vehicle or trailer with an axle weight exceeding the maximum lawful axle load as provided
in sections 169.822 to 169.829 by 25 percent or more, and in addition to any penalty imposed
for the misdemeanor, the registrar shall either (i) cancel the reciprocity privileges on the
vehicle involved if the vehicle is being operated under reciprocity or (ii) if the vehicle is
not being operated under reciprocity, cancel the certificate of registration on the vehicle
operated and demand the return of the registration certificate and registration plates. The
registrar may not cancel the registration or reciprocity privileges for any vehicle found in
violation of seasonal load restrictions imposed under section 169.87 unless the axle weight
exceeds the year-round weight limit for the highway on which the violation occurred. The
registrar may investigate any allegation of gross weight violations and demand that the
operator show cause why all future operating privileges in the state should not be revoked
unless the additional tax assessed is paid.

(3) Clause (1) does not apply to the first haul of unprocessed or raw farm products or
unfinished forest products, when the registered gross weight is not exceeded by more than
ten percent. For purposes of this clause, "first haul" means (i) the first, continuous
transportation of unprocessed or raw farm products from the place of production or on-farm
storage site to any other location within 100 miles of the place of production or on-farm
storage site, or (ii) the continuous or noncontinuous transportation of unfinished forest
products from the place of production to the place of final processing or manufacture located
within 200 miles of the place of production.

(4) When the registration on a motor vehicle, trailer, or semitrailer is revoked by the
registrar according to this section, the vehicle must not be operated on the highways of the
state until it is registered or reregistered, as the case may be, and new plates issued, and the
registration fee is the deleted text beginannualdeleted text endnew text begin biennialnew text end tax for the total gross weight of the vehicle at the time
of violation. The reregistration pursuant to this subdivision of any vehicle operating under
reciprocity agreements pursuant to section 168.181 or 168.187 must be at the full deleted text beginannualdeleted text endnew text begin
biennial
new text end registration fee without regard to the percentage of vehicle miles traveled in this
state.

Sec. 14.

Minnesota Statutes 2020, section 168.013, subdivision 6, is amended to read:


Subd. 6.

Listing by dealers.

The owner of every motor vehicle not exempted by section
168.012 or 168.28, shall, so long as it is subject to taxation within the state, list and register
the same and pay the tax herein provided deleted text beginannuallydeleted text endnew text begin bienniallynew text end; provided, however, that any
dealer in motor vehicles, to whom dealer's plates have been issued as provided in this chapter,
coming into the possession of any such motor vehicle to be held solely for the purpose of
sale or demonstration or both, shall be entitled to withhold the tax becoming due on such
vehicle for the following deleted text beginyeardeleted text endnew text begin bienniumnew text end. When, thereafter, such vehicle is otherwise used
or is sold, leased, or rented to another person, firm, corporation, or association, the tax for
the remainder of the deleted text beginyeardeleted text endnew text begin bienniumnew text end, prorated on a monthly basis, shall become payable
immediately.

Sec. 15.

Minnesota Statutes 2020, section 168.013, subdivision 12, is amended to read:


Subd. 12.

Additional tax for excessive gross weight.

(a) Whenever an owner has
registered a vehicle and paid the tax as provided in subdivisions 1 to 1g, on the basis of a
selected gross weight of the vehicle and thereafter such owner desires to operate such vehicle
with a greater gross weight than that for which the tax has been paid, such owner shall be
permitted to reregister such vehicle by paying the additional tax due thereon for the remainder
of the deleted text begincalendar yeardeleted text endnew text begin bienniumnew text end for which such vehicle has been reregistered, the additional
tax computed pro rata by the month, deleted text begin1/12deleted text endnew text begin 1/24new text end of the deleted text beginannualdeleted text end new text beginbiennial new text endtax due for each month
deleted text begin of the yeardeleted text end remaining in the deleted text begincalendar yeardeleted text endnew text begin bienniumnew text end, beginning with the first day of the
month in which such owner desires to operate the vehicle with the greater weight. In
computing the additional tax as aforesaid, the owner shall be given credit for the unused
portion of the tax previously paid computed pro rata by the month, deleted text begin1/12deleted text endnew text begin 1/24new text end of the deleted text beginannualdeleted text end
new text begin biennial new text endtax paid for each month deleted text beginof the yeardeleted text end remaining in the deleted text begincalendar yeardeleted text endnew text begin bienniumnew text end
beginning with the first day of the month in which such owner desires to operate the vehicle
with the greater weight. An owner will be permitted one reduction of gross weight or change
of registration per deleted text beginyeardeleted text endnew text begin bienniumnew text end, which will result in a refund. This refund will be prorated
monthly beginning with the first day of the month after such owner applies to amend the
registration. The application for amendment shall be accompanied by a fee of $3, and all
fees shall be deposited in the highway user tax distribution fund. Provided, however, the
owner of a vehicle may reregister the vehicle for a weight of more than 81,000 pounds for
one or more 30-day periods. For each 30-day period, the additional tax shall be equal to
deleted text begin 1/12deleted text endnew text begin 1/24new text end of the difference between the deleted text beginannualdeleted text end new text beginbiennial new text endtax for the weight at which the
vehicle is registered and reregistered.

(b) This subdivision does not apply to the owner of a vehicle who pays the additional
tax for excessive gross weight under section 169.86, subdivision 5a, when buying a permit
to operate with the greater gross weight.

Sec. 16.

Minnesota Statutes 2020, section 168.013, subdivision 21, is amended to read:


Subd. 21.

Technology surcharge.

For every vehicle registration renewal required under
this chapter, the commissioner shall collect a surcharge of deleted text begin$2.25deleted text endnew text begin $4.50new text end. Surcharges collected
under this subdivision must be credited to the driver and vehicle services technology account
under section 299A.705.

Sec. 17.

Minnesota Statutes 2020, section 168.013, subdivision 22, is amended to read:


Subd. 22.

Optional donation for education on anatomical gifts.

As part of procedures
for payment of the vehicle registration tax under this section, the commissioner shall allow
a vehicle owner to add to the tax a deleted text begin$2deleted text endnew text begin $4new text end donation for the purposes of public information
and education on anatomical gifts under section 171.075, for in-person transactions conducted
by a deputy registrar appointed under section 168.33, subdivision 2. This subdivision applies
to deleted text beginannualdeleted text endnew text begin biennialnew text end renewal registrations only, and does not apply to registrations authorized
under sections 168.053 to 168.057, 168.127, 168.187, and 168.27.

Sec. 18.

Minnesota Statutes 2020, section 168.017, is amended to read:


168.017 MONTHLY SERIES REGISTRATION SYSTEM.

Subdivision 1.

Requirement generally.

All passenger automobiles, ambulances, hearses,
and pickup trucks shall be registered by the registrar according to the monthly series system
of registration prescribed by this section.

Subd. 2.

deleted text begin12deleted text endnew text begin 24new text end uniform registration periods.

There are established deleted text begin12deleted text endnew text begin 24new text end registration
periods, each to be designated by a calendar month and to start on the first day of such
month and end on the last day of the deleted text begin12thdeleted text endnew text begin 24thnew text end month from the date of commencing. The
registrar shall register all vehicles subject to registration under the monthly series system
for a minimum period of deleted text begin12deleted text endnew text begin 24new text end consecutive calendar months.

Subd. 3.

Exceptions.

The registrar shall register all vehicles subject to registration under
the monthly series system for a period of deleted text begin12deleted text endnew text begin 24new text end consecutive calendar months, unless:

(1) the application is an original under section 168.127; or

(2) the applicant is a licensed motor vehicle lessor under section 168.27 and the vehicle
is leased or rented for periods of time of not more than 28 days, in which case the applicant
may apply for initial or renewed registration of a vehicle for a period of four or more months,
the month of expiration to be designated by the applicant at the time of registration. To
qualify for this exemption, the applicant must present the application to a designated deputy
registrar office. Subsequent registration periods when the applicant is not a qualified motor
vehicle lessor under this subdivision must be for a period of deleted text begin12deleted text endnew text begin 24new text end months commencing
from the last month for which registration was issued.

Subd. 4.

Proportional registration payment system.

Except as otherwise provided in
this subdivision, the applicant for registration of a vehicle under the monthly series system
shall pay in full the deleted text begincalendar yeardeleted text endnew text begin biennialnew text end registration fee prescribed by law during the deleted text begin12deleted text endnew text begin
24
new text end consecutive calendar months of registration under the monthly series system. If the
registrar registers the vehicle for a period greater or less than a deleted text begincalendar yeardeleted text endnew text begin bienniumnew text end
pursuant to subdivision 3, the deleted text begincalendar yeardeleted text endnew text begin biennialnew text end registration fee shall be apportioned
as follows: During the first period the fee is deleted text begin1/12deleted text endnew text begin 1/24new text end of the first deleted text begincalendar yeardeleted text end new text beginbiennium
new text end fee times the number of months in the period. During the first deleted text begin12deleted text endnew text begin 24new text end consecutive months of
registration under the monthly series system, the fee is the sum of the following: (a) deleted text begin1/12deleted text endnew text begin
1/24
new text end of the first deleted text begincalendar yeardeleted text endnew text begin bienniumnew text end fee times the months remaining after subtracting
the months in the first period of issuance from deleted text begin12deleted text endnew text begin 24new text end months, and (b) deleted text begin1/12deleted text end new text begin1/24 new text endof the second
deleted text begin calendar yeardeleted text end new text beginbiennium new text endfee times the number of months in the first period of issuance. The
registration fee shall be computed in the same manner for second and subsequent periods
of deleted text begin12deleted text endnew text begin 24new text end consecutive months of registration under the monthly series system, subject to
changes provided by law for registration fees under the deleted text begincalendar yeardeleted text endnew text begin biennialnew text end system. If
the registrar registers the vehicle for a part of a deleted text beginyeardeleted text endnew text begin bienniumnew text end pursuant to subdivision 3,
the deleted text begincalendar yeardeleted text endnew text begin biennialnew text end registration fee shall be apportioned as above in the case of an
original registration for part of a deleted text beginyeardeleted text endnew text begin bienniumnew text end except that the computation shall begin with
the second deleted text begincalendar yeardeleted text endnew text begin bienniumnew text end fee.

Subd. 5.

Registration period extension for leased vehicle.

(a) Notwithstanding
subdivisions 3 and 4, a person leasing for at least deleted text beginone yeardeleted text endnew text begin two yearsnew text end a vehicle registered
under this section may obtain an extension of the motor vehicle's registration period for the
unexpired portion of the lease period, for a period not to exceed deleted text begin11deleted text endnew text begin 23new text end months beyond the
expiration of the registration period.

(b) In order to obtain an extension under this subdivision a lessee must:

(1) apply to the registrar on a form the registrar prescribes;

(2) submit to the registrar a copy of the lease;

(3) pay an administrative fee of deleted text begin$5deleted text endnew text begin $10new text end; and

(4) pay a tax of deleted text begin1/12deleted text endnew text begin 1/24new text end of the tax for the registration period being extended for each
month of the extension.

(c) On an applicant's compliance with paragraph (b) the registrar shall issue the applicant
a license plate tab or sticker designating the new month of expiration of the registration.
The extended registration expires on the tenth day of the month following the month
designated on the tab or sticker.

(d) All fees collected under paragraph (b), clause (3), must be deposited in the vehicle
services operating account under section 299A.705, subdivision 1. Taxes collected under
paragraph (b), clause (4), must be deposited in the highway user tax distribution fund.

Sec. 19.

Minnesota Statutes 2020, section 168.018, is amended to read:


168.018 QUARTERLY REGISTRATION OF FARM TRUCKS.

(a) The owner of (1) any farm truck as defined in section 168.002, subdivision 8, or (2)
a truck owned by a retailer who is engaged in the intrastate transportation of fertilizer or
agricultural chemicals directly to a farm for on-farm use within a radius of 50 miles of the
retailer's business location, may elect to register and license the truck only for one or more
quarters of a registration deleted text beginyeardeleted text endnew text begin bienniumnew text end, at a tax of deleted text beginone-fourthdeleted text endnew text begin one-eighthnew text end of the deleted text beginannualdeleted text endnew text begin
biennial
new text end tax on the vehicle plus $5 for each quarterly registration. The owner may not apply
for quarterly registration or renewal until seven days before the selected quarter or concurrent
quarters. The expiration date of a registration shall be displayed on the license plate in such
a manner as the registrar shall direct. No truck registered on a quarterly basis shall be
operated on the public streets and highways more than ten days beyond the end of the quarter
for which it is registered unless the registration has been renewed for another quarter or for
the remainder of the registration deleted text beginyeardeleted text endnew text begin bienniumnew text end.

(b) For purposes of this section registration quarters shall begin on March 1, June 1,
September 1, and December 1.

Sec. 20.

Minnesota Statutes 2020, section 168.022, subdivision 2, is amended to read:


Subd. 2.

Amount of refund.

The amount of the refund shall be the tax paid by the
purchaser pursuant to this chapter less deleted text begin1/12deleted text endnew text begin 1/24new text end of the deleted text beginannualdeleted text endnew text begin biennialnew text end tax for the vehicle
for each calendar month or fraction of a calendar month between the date of registration
and the date the purchase price is refunded.

Sec. 21.

Minnesota Statutes 2020, section 168.09, subdivision 5, is amended to read:


Subd. 5.

Defenses to failure to renew.

No person may be charged with violating this
section by reason of failure to renew the registration of a previously registered motor vehicle,
except those vehicles registered under section 168.187, if:

(1) the person produces a statement from the registrar to the effect that the person was
not notified by the registrar of the deleted text beginannualdeleted text endnew text begin biennialnew text end renewal for the registration of the vehicle
to which a citation was issued; and

(2) the person renews the registration and pays the motor vehicle tax and fees due within
ten days of being cited for the violation.

Sec. 22.

Minnesota Statutes 2020, section 168.10, subdivision 1, is amended to read:


Subdivision 1.

Application.

(a) Except as provided in subdivisions 1a, 1b, 1c, 1d, 1g,
and 1h, every owner of any motor vehicle in this state, not exempted by section 168.012 or
168.26, shall as soon as registered ownership of a motor vehicle is acquired and deleted text beginannuallydeleted text endnew text begin
biennially
new text end thereafter during the period provided in section 168.31, file with the commissioner
of public safety on a blank provided by the commissioner a listing for taxation and application
for the registration of such vehicle, stating the first, middle and last names, the date of birth,
and the address of the primary residence of each registered owner thereof who is a natural
person or mailing address if the address of the primary residence has been classified as
private data under this chapter, the full name and address of any other registered owner, the
name and address of the person from whom purchased, make of motor vehicle, year and
number of the model, manufacturer's identification number or serial number, type of body,
the weight of the vehicle in pounds, for trailers only, its rated load carrying capacity and
for buses only, its seating capacity, and such other information as the commissioner may
require. Any false statement willfully and knowingly made in regard thereto shall be deemed
perjury and punished accordingly. The listing and application for registration by dealers or
manufacturers' agents within the state, of motor vehicles received for sale or use within the
state shall be accepted as compliance with the requirements of this chapter, imposed upon
the manufacturer.

(b) Registration shall be refused a motor vehicle if the original identification or serial
number has been destroyed, removed, altered, covered, or defaced. However, if the
commissioner is satisfied on the sworn statements of the registered owner or registered
owners or such other persons as the commissioner may deem advisable that the applicant
is the legal owner, a special identification number in the form prescribed by the commissioner
shall be assigned to the motor vehicle. When it has been determined that the number had
been affixed to such vehicle in a manner prescribed by the commissioner, the vehicle may
thereafter be registered in the same manner as other motor vehicles. In the case of a new or
rebuilt motor vehicle manufactured or assembled without an identification or serial number,
the commissioner may assign an identification number to the motor vehicle in the same
manner as prescribed heretofore.

Sec. 23.

Minnesota Statutes 2020, section 168.127, subdivision 2, is amended to read:


Subd. 2.

deleted text beginAnnualdeleted text endnew text begin Biennialnew text end registration period.

The deleted text beginannualdeleted text endnew text begin biennialnew text end registration period
for vehicles in the fleet will be determined by the commissioner. The applicant must provide
all information necessary to qualify as a fleet registrant including a list of all vehicles in the
fleet. On initial registration, all taxes and fees for vehicles in the fleet must be reassessed
based on the expiration date.

Sec. 24.

Minnesota Statutes 2020, section 168.187, subdivision 10, is amended to read:


Subd. 10.

Fees for proportional registration.

(1) "Total fleet miles" means the total
number of miles operated in all states during the preceding year by the motor vehicles in a
fleet during such year.

(2) "In-state miles" means the total number of miles operated in this state during the
preceding year by the motor vehicles in a fleet during such year.

(3) The registration fees for proratable vehicles of a fleet based in another state shall be
determined as follows:

(A) Divide in-state miles by total fleet miles.

(B) Determine the total amount which would be required under the laws of this state for
full registration of each and every vehicle in the fleet, at the regular deleted text beginannualdeleted text endnew text begin biennialnew text end or
applicable fees, for the unexpired portion of the registration deleted text beginyeardeleted text endnew text begin bienniumnew text end.

(C) Multiply the sum obtained under clause (3)(B) by the quotient obtained under clause
(3)(A).

(4) The registration fees for proratable vehicles of a fleet based in this state shall be
determined as follows:

(A) Divide in-state miles plus all other fleet miles not subjected to charges in other states
nor declared for other prorate agreement states by total fleet miles.

(B) Determine the total amount which would be required under the laws of this state for
full registration of each and every vehicle in the fleet, at the regular deleted text beginannualdeleted text endnew text begin biennialnew text end or
applicable fees for the unexpired portion of the registration deleted text beginyeardeleted text endnew text begin bienniumnew text end.

(C) Multiply the sum obtained under clause (4)(B) by the quotient under clause (4)(A).

(5) The provisions of this section shall constitute complete authority for the registration
of the proratable vehicles of a fleet upon a proportional registration basis without reference
to or application of any other statutes of this state except as in this section expressly provided.

Sec. 25.

Minnesota Statutes 2020, section 168.187, subdivision 11, is amended to read:


Subd. 11.

Application for proportional registration.

(1) Any owner of one or more
fleets may file an application for proportional registration of the vehicles of one or more of
such fleets with the commissioner of public safety, in lieu of registration of such vehicles
under other sections of this chapter. The application shall be in such form and shall contain
such information as the commissioner shall require.

(2) Applications for proportional registration shall be filed deleted text beginannuallydeleted text endnew text begin bienniallynew text end at such
time or times as the commissioner establishes by rule. Every application for proportional
registration shall at the time and in the manner required by the commissioner be supported
by the payment of the registration fees in the amount determined in the manner provided
in subdivision 10.

Sec. 26.

Minnesota Statutes 2020, section 168.187, subdivision 15, is amended to read:


Subd. 15.

Withdrawal of fleet vehicle; credits, accounting.

If any vehicle is withdrawn
from a proportionally registered fleet during the period for which it is registered, the owner
of such fleet shall so notify the commissioner of public safety. The commissioner of public
safety may require the owner to surrender cab cards and such other identification devices
with respect to such vehicle. If a vehicle is permanently withdrawn from a proportionally
registered fleet because it has been destroyed, sold or otherwise completely removed from
the service of the owner, the unused portion of the fees paid with respect to such vehicle
shall be applied against liability of such owner for subsequent additions to such fleet during
such registration deleted text beginyeardeleted text endnew text begin bienniumnew text end or for additional fees upon audit. If at the end of such
registration deleted text beginyeardeleted text endnew text begin bienniumnew text end there remains an unused portion of fees paid with respect to such
permanently withdrawn vehicles, such unused fees shall be applied against registration fees
for the registration deleted text beginyeardeleted text endnew text begin bienniumnew text end immediately following the year during which such vehicles
were permanently withdrawn. The unused portion of fees of a vehicle permanently withdrawn
from a fleet shall be a sum equal to the amount paid with respect to such vehicle when it
was first proportionally registered in such registration deleted text beginyeardeleted text endnew text begin bienniumnew text end, reduced by deleted text begin1/12deleted text endnew text begin 1/24new text end
of the total deleted text beginannualdeleted text endnew text begin biennialnew text end proportional registration fee applicable to such vehicle for each
calendar month of the registration deleted text beginyeardeleted text endnew text begin bienniumnew text end including the month the notice of
withdrawal is received by the commissioner of public safety, except that no unused portion
of fees of less than $5 shall be considered or applied. If an unused portion of fees cannot
be applied against registration fees for the registration deleted text beginyeardeleted text endnew text begin bienniumnew text end immediately following,
an application for refund of the unused portion may be made to the commissioner, who
shall make such rules as may be required for payment of such refund.

Sec. 27.

Minnesota Statutes 2020, section 168.187, subdivision 16, is amended to read:


Subd. 16.

New fleets.

The initial application for proportional registration of a fleet shall
state the mileage data with respect to such fleet for the preceding deleted text beginyeardeleted text endnew text begin bienniumnew text end in this and
other states. If no operations were conducted with such fleet during the preceding deleted text beginyeardeleted text endnew text begin
biennium
new text end, the application shall contain a full statement of the proposed method of operation
and estimates of deleted text beginannualdeleted text endnew text begin biennialnew text end mileage in this and other states. The commissioner of public
safety shall determine the in-state and total fleet miles to be used in computing the
proportional registration fee for the fleet. The commissioner of public safety may adjust the
estimate in the application if the commissioner is not satisfied with its correctness.

Sec. 28.

Minnesota Statutes 2020, section 168.31, subdivision 1, is amended to read:


Subdivision 1.

When due and payable.

The tax required under this chapter to be paid
upon a motor vehicle for each deleted text begincalendar yeardeleted text endnew text begin bienniumnew text end becomes due when the vehicle first
uses the public streets or highways in the state, and upon new text beginthe first new text endJanuary 1 each deleted text beginyeardeleted text endnew text begin
biennium
new text end thereafter, except those vehicles which are taxed under section 168.017 and
vehicles registered under 168.09, subdivision 3. Taxes due upon new text beginthe first new text endJanuary 1 become
payable upon November 15 preceding the deleted text begincalendar yeardeleted text endnew text begin bienniumnew text end for which they are assessed.
The tax required to register vehicles for the registration deleted text beginyeardeleted text endnew text begin bienniumnew text end March 1 to the last
day of February is due on new text beginthe first new text endMarch 1 and payable January 1 preceding. The tax required
to register vehicles under the provisions of section 168.017 is due the first day of the month
commencing the deleted text begin12-monthdeleted text end new text begin24-month new text endregistration period and payable during the 45 days
preceding the due date. Nothing in this section shall preclude prepayment.

Sec. 29.

Minnesota Statutes 2021 Supplement, section 168.31, subdivision 4, is amended
to read:


Subd. 4.

Installments; registration generally.

(a) If the tax for a vehicle assessed under
section 168.013, subdivision 1c, 1d, 1e, or 1g, amounts to more than $400, the owner may
pay the tax by installments.

(b) The owner shall tender with the application for registration one-third of the deleted text beginannualdeleted text endnew text begin
biennial
new text end tax due or $400, whichever is greater, plus any penalties or arrears, plus a fee of
$10. Instead of this fee, the applicant may furnish a bond, bank letter of credit, or certificate
of deposit approved by the registrar of motor vehicles, for the total of the tax still due. The
amount of the bond, letter of credit, or certificate of deposit may include any penalties
assessed. The bond, letter of credit, or certificate of deposit must be for the benefit of the
state for monetary loss caused by failure of the vehicle owner to pay delinquent license fees
and penalties.

(c) The remainder of the tax due must be paid in two equal installments. The due date
of the first installment is July 1, and the second installment is due November 1.

(d) When the applicant elects to pay the administrative fee, the registrar shall issue to
the applicant validation stickers indicating the expiration date of a registration. When the
applicant elects to furnish a bond, bank letter, or letter of deposit, the registrar shall issue
regular validation stickers for the registration deleted text beginyeardeleted text endnew text begin bienniumnew text end.

(e) If an owner of a vehicle fails to pay an installment on or before its due date, the
vehicle must not be used on the public streets or highways in this state until the installment
or installments of the tax remaining due on the vehicle have been paid in full for the licensed
deleted text begin yeardeleted text endnew text begin bienniumnew text end together with a penalty at the rate of $1 per day for the remainder of the
month in which the balance of the tax becomes due and $4 a month for each succeeding
month or fraction of a month during which the balance of the tax remains unpaid. Upon the
payment of the balance of the tax and the penalties, the registrar shall issue a registration
certificate to the owner of the vehicle in the manner provided by law. The registrar shall
deny installment payment privileges provided in this subdivision in the subsequent deleted text beginyeardeleted text endnew text begin
biennium
new text end to any owner on any or all vehicles of the owner who during the current deleted text beginyeardeleted text endnew text begin
biennium
new text end fails to pay any installment due within one month after the due date.

Sec. 30.

Minnesota Statutes 2020, section 168.31, subdivision 4a, is amended to read:


Subd. 4a.

Installments; interstate registration and reciprocity.

new text begin(a) new text endIf the tax for a
vehicle assessed under section 168.187 amounts to more than $400, the owner may pay the
tax by installments.

new text begin (b)new text end The owner shall submit with the application for registration, no later than January
1, one-third of the Minnesota deleted text beginannualdeleted text endnew text begin biennialnew text end tax due or $400, whichever is greater. The
applicant shall furnish a bond, bank letter of credit, or certificate of deposit approved by
the registrar of motor vehicles, for the total of the tax still due. The amount of the bond,
letter of credit, or certificate of deposit may include any penalties assessed. The bond, letter
of credit, or certificate of deposit must be for the benefit of the state for monetary loss caused
by failure of the vehicle owner to pay delinquent license fees and penalties.

new text begin (c) new text endThe remainder of the tax due must be paid in two equal installmentsdeleted text begin;deleted text endnew text begin.new text end The due date
of the first installment is May 1new text begin,new text end and the second installment is due on September 1.

new text begin (d)new text end If an owner of a vehicle fails to pay an installment on or before the due date, the
vehicle must not be used on the public streets or highways in this state until the installment
or installments of the tax remaining due on the vehicle has been paid in full for the licensed
deleted text begin yeardeleted text endnew text begin bienniumnew text end, together with a penalty at the rate of $1 per day for the remainder of the
month in which the balance of the tax becomes due and $4 a month for each succeeding
month or fraction of it during which the balance of the tax remains unpaid. The registrar
shall deny installment payment privileges provided in this subdivision in the subsequent
deleted text begin yeardeleted text endnew text begin bienniumnew text end to any owner on any or all vehicles of an owner who during the current deleted text beginyeardeleted text endnew text begin
biennium
new text end fails to pay any installment and penalties due within one month after the due date.

Sec. 31.

Minnesota Statutes 2020, section 168.33, subdivision 7, is amended to read:


Subd. 7.

Filing fees; allocations.

(a) In addition to all other statutory fees and taxes, a
filing fee of:

(1) deleted text begin$7deleted text endnew text begin $14new text end is imposed on every vehicle registration renewal, excluding pro rate
transactions; and

(2) $11 is imposed on every other type of vehicle transaction, including motor carrier
fuel licenses under sections 168D.05 and 168D.06, and pro rate transactions.

(b) Notwithstanding paragraph (a):

(1) a filing fee may not be charged for a document returned for a refund or for a correction
of an error made by the Department of Public Safety, a dealer, or a deputy registrar; and

(2) no filing fee or other fee may be charged for the permanent surrender of a title for a
vehicle.

(c) The filing fee must be shown as a separate item on all registration renewal notices
sent out by the commissioner.

(d) The statutory fees and taxes, and the filing fees imposed under paragraph (a) may
be paid by credit card or debit card. The deputy registrar may collect a surcharge on the
statutory fees, taxes, and filing fee not greater than the cost of processing a credit card or
debit card transaction, in accordance with emergency rules established by the commissioner
of public safety. The surcharge must be used to pay the cost of processing credit and debit
card transactions.

(e) The fees collected under this subdivision by the department must be allocated as
follows:

(1) of the fees collected under paragraph (a), clause (1):

(i) deleted text begin$5.50deleted text endnew text begin $11new text end must be deposited in the vehicle services operating account; and

(ii) deleted text begin$1.50deleted text endnew text begin $3new text end must be deposited in the driver and vehicle services technology account;
and

(2) of the fees collected under paragraph (a), clause (2):

(i) $3.50 must be deposited in the general fund;

(ii) $6.00 must be deposited in the vehicle services operating account; and

(iii) $1.50 must be deposited in the driver and vehicle services technology account.