1.1                          A bill for an act 
  1.2             relating to motor vehicles; establishing procedure for 
  1.3             lessor to transfer license plates between rental 
  1.4             vehicles; amending Minnesota Statutes 1994, section 
  1.5             168.15; Minnesota Statutes 1995 Supplement, section 
  1.6             168.16. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1994, section 168.15, is 
  1.9   amended to read: 
  1.10     168.15 [RIGHTS AS TO REGISTRATION CERTIFICATES AND NUMBER 
  1.11  PLATES.] 
  1.12     Subdivision 1.  [TRANSFER OF OWNERSHIP.] Except as provided 
  1.13  in subdivision 3, upon the transfer of ownership, destruction, 
  1.14  theft, dismantling as such, or the permanent removal by the 
  1.15  owner thereof from this state of any motor vehicle registered in 
  1.16  accordance with the provisions of this chapter, the right of the 
  1.17  owner of such vehicle to use the registration certificate and 
  1.18  number plates assigned such vehicle shall expire, and such 
  1.19  certificate and any existing plates shall be, by such owner, 
  1.20  forthwith returned, with transportation prepaid, to the 
  1.21  registrar with a signed notice of the date and manner of 
  1.22  termination of ownership, giving the name and post office 
  1.23  address, with street and number, if in a city, of the person to 
  1.24  whom transferred.  No fee may be charged for a return of plates 
  1.25  under this section.  When the ownership of a motor vehicle shall 
  1.26  be transferred to another who shall forthwith register the same 
  2.1   in the other's name, the registrar may permit the manual 
  2.2   delivery of such plates to the new owner of such vehicle.  When 
  2.3   seeking to become the owner by gift, trade, or purchase of any 
  2.4   vehicle for which a registration certificate has been 
  2.5   theretofore issued under the provisions of this chapter, a 
  2.6   person shall join with the registered owner in transmitting with 
  2.7   the application the registration certificate, with the 
  2.8   assignment and notice of sale duly executed upon the reverse 
  2.9   side thereof, or, in case of loss of such certificate, with such 
  2.10  proof of loss by sworn statement, in writing, as shall be 
  2.11  satisfactory to the registrar.  Upon the transfer of any motor 
  2.12  vehicle by a manufacturer or dealer, for use within the state, 
  2.13  whether by sale, lease, or otherwise, such manufacturer or 
  2.14  dealer shall, within seven days after such transfer, file with 
  2.15  the registrar a notice or report containing the date of such 
  2.16  transfer, a description of such motor vehicles, and the name, 
  2.17  street and number of residence, if in a city, and the post 
  2.18  office address of the transferee, and shall transmit therewith 
  2.19  the transferee's application for registration thereof. 
  2.20     Subd. 2.  [TRANSFER OF ENGINE.] Upon the transfer of any 
  2.21  automobile engine or motor, except a new engine or motor, 
  2.22  transferred with intent that the same be installed in a new 
  2.23  automobile, and whether such transfer be made by a manufacturer 
  2.24  or dealer, or otherwise, and whether by sale, lease or 
  2.25  otherwise, the transferor shall, within two days after such 
  2.26  transfer, file with the registrar a notice or report containing 
  2.27  the date of such transfer and a description, together with the 
  2.28  maker's number of the engine or motor, and the name and post 
  2.29  office address of the purchaser, lessee, or other transferee.  
  2.30     Subd. 3.  [VEHICLES OF LESSORS; TRANSFERS.] Notwithstanding 
  2.31  subdivision 1, a motor vehicle lessor licensed under section 
  2.32  168.27, subdivision 2, 3, or 4 may transfer license plates 
  2.33  issued to one rental motor vehicle owned by the lessor to 
  2.34  another rental motor vehicle owned by the lessor, if within ten 
  2.35  days of the transfer the lessor registers the vehicle to which 
  2.36  the license plates were transferred.  Upon such registration the 
  3.1   lessor must pay all taxes and fees due on the registration of 
  3.2   the vehicle to which the license plates were transferred, plus a 
  3.3   transfer fee of $5.  The fee must be deposited in the highway 
  3.4   user tax distribution fund.  For purposes of this subdivision 
  3.5   "rental motor vehicle" means a vehicle used for rentals or 
  3.6   leases of 30 days or less. 
  3.7      Sec. 2.  Minnesota Statutes 1995 Supplement, section 
  3.8   168.16, is amended to read: 
  3.9      168.16 [REFUNDS; APPROPRIATION.] 
  3.10     After the tax upon any motor vehicle shall have been paid 
  3.11  for any year, refund shall be made for errors made in computing 
  3.12  the tax or fees and for the error on the part of an owner who 
  3.13  may in error have registered a motor vehicle that was not 
  3.14  before, nor at the time of registration, nor at any time 
  3.15  thereafter during the current past year, subject to tax in this 
  3.16  state as provided by section 168.012.  Unless otherwise provided 
  3.17  in this chapter, a claim for a refund of an overpayment of 
  3.18  registration tax must be filed within 3-1/2 years from the date 
  3.19  of payment.  The refundment shall be made from any fund in 
  3.20  possession of the registrar and shall be deducted from the 
  3.21  registrar's monthly report to the commissioner of finance.  A 
  3.22  detailed report of the refundment shall accompany the report.  
  3.23  The former owner of a transferred vehicle by an assignment in 
  3.24  writing endorsed upon the registration certificate and delivered 
  3.25  to the registrar within the time provided herein may sell and 
  3.26  assign to the new owner thereof the right to have the tax paid 
  3.27  by the former owner accredited to the owner who duly registers 
  3.28  the vehicle.  Any owner at the time of such occurrence, whose 
  3.29  vehicle shall be is permanently destroyed, or sold to the 
  3.30  federal government, the state, or political subdivision thereof, 
  3.31  and any owner who sells a rental motor vehicle and transfers the 
  3.32  license plates issued to that motor vehicle under section 
  3.33  168.15, subdivision 3, shall upon filing a verified claim be 
  3.34  entitled to a refund of the unused portion of the tax paid upon 
  3.35  the vehicle, computed as follows: 
  3.36     (1) if the vehicle is registered under the calendar year 
  4.1   system of registration, the refund is computed pro rata by the 
  4.2   month, 1/12 of the annual tax paid for each month of the year 
  4.3   remaining after the month in which the plates and certificate 
  4.4   were returned to the registrar; 
  4.5      (2) in the case of a vehicle registered under the monthly 
  4.6   series system of registration, the amount of the refund is equal 
  4.7   to the sum of the amounts of the license fee attributable to 
  4.8   those months remaining in the licensing period after the month 
  4.9   in which the plates and certificate were returned to the 
  4.10  registrar. 
  4.11     There is hereby appropriated to the persons entitled to a 
  4.12  refund, from the fund or account in the state treasury to which 
  4.13  the money was credited, an amount sufficient to make the refund 
  4.14  and payment.  Refunds under this section to licensed motor 
  4.15  vehicle lessors must be made annually in a manner the registrar 
  4.16  determines.