1.1                          A bill for an act
  1.2             relating to taxation; motor vehicle sales tax; 
  1.3             exempting transfers of motor vehicles to foster 
  1.4             children from the motor vehicle sales tax; amending 
  1.5             Minnesota Statutes 1995 Supplement, section 297B.01, 
  1.6             subdivision 8. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1995 Supplement, section 
  1.9   297B.01, subdivision 8, is amended to read: 
  1.10     Subd. 8.  [PURCHASE PRICE.] "Purchase price" means the 
  1.11  total consideration valued in money for a sale, whether paid in 
  1.12  money or otherwise.  The purchase price excludes the amount of a 
  1.13  manufacturer's rebate paid or payable to the purchaser.  If a 
  1.14  motor vehicle is taken in trade as a credit or as part payment 
  1.15  on a motor vehicle taxable under this chapter, the credit or 
  1.16  trade-in value allowed by the person selling the motor vehicle 
  1.17  shall be deducted from the total selling price to establish the 
  1.18  purchase price of the vehicle being sold and the trade-in 
  1.19  allowance allowed by the seller shall constitute the purchase 
  1.20  price of the motor vehicle accepted as a trade-in.  The purchase 
  1.21  price in those instances where the motor vehicle is acquired by 
  1.22  gift or by any other transfer for a nominal or no monetary 
  1.23  consideration shall also include the average value of similar 
  1.24  motor vehicles, established by standards and guides as 
  1.25  determined by the motor vehicle registrar.  The purchase price 
  1.26  in those instances where a motor vehicle is manufactured by a 
  2.1   person who registers it under the laws of this state shall mean 
  2.2   the manufactured cost of such motor vehicle and manufactured 
  2.3   cost shall mean the amount expended for materials, labor and 
  2.4   other properly allocable costs of manufacture, except that in 
  2.5   the absence of actual expenditures for the manufacture of a part 
  2.6   or all of the motor vehicle, manufactured costs shall mean the 
  2.7   reasonable value of the completed motor vehicle.  
  2.8      The term "purchase price" shall not include the portion of 
  2.9   the value of a motor vehicle due solely to modifications 
  2.10  necessary to make the motor vehicle handicapped accessible.  The 
  2.11  term "purchase price" shall not include the transfer of a motor 
  2.12  vehicle by way of gift between a husband and wife or parent and 
  2.13  child, nor shall it include the transfer of a motor vehicle by a 
  2.14  guardian to a ward when there is no monetary consideration and 
  2.15  the title to such vehicle was registered in the name of the 
  2.16  guardian, as guardian, only because the ward was a minor.  There 
  2.17  shall not be included in "purchase price" the amount of any tax 
  2.18  imposed by the United States upon or with respect to retail 
  2.19  sales whether imposed upon the retailer or the consumer.  
  2.20     The term "purchase price" shall not include the transfer of 
  2.21  a motor vehicle as a gift between a foster parent and foster 
  2.22  child.  For purposes of this subdivision, a foster relationship 
  2.23  exists, regardless of the age of the child, if (1) a foster 
  2.24  parent's home is or was licensed as a foster family home under 
  2.25  Minnesota Rules, parts 9545.0010 to 9545.0260, and (2) the 
  2.26  county verifies that the child was a state ward or in permanent 
  2.27  foster care.