1.1                          A bill for an act 
  1.2             relating to taxation; decreasing rate of motor vehicle 
  1.3             registration tax; making technical changes; 
  1.4             appropriating money; amending Minnesota Statutes 1998, 
  1.5             sections 161.081, by adding a subdivision; and 
  1.6             168.013, subdivision 1a. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1998, section 161.081, is 
  1.9   amended by adding a subdivision to read: 
  1.10     Subd. 3.  [TRANSFER TO FUND.] The commissioner of finance 
  1.11  shall include a minimum transfer of $80,000,000 in each fiscal 
  1.12  year from the general fund to the highway user tax distribution 
  1.13  fund in the biennial budget for fiscal years 2001 and 2002 and 
  1.14  in each biennial budget thereafter, in order to compensate the 
  1.15  fund for the reduction in revenues by reason of section 2. 
  1.16     Sec. 2.  Minnesota Statutes 1998, section 168.013, 
  1.17  subdivision 1a, is amended to read: 
  1.18     Subd. 1a.  [PASSENGER AUTOMOBILES; HEARSES.] (a) On 
  1.19  passenger automobiles as defined in section 168.011, subdivision 
  1.20  7, and hearses, except as otherwise provided, the tax shall be 
  1.21  $10 plus an additional tax equal to 1.25 .95 percent of the base 
  1.22  value.  
  1.23     (b) Subject to the classification provisions herein, "base 
  1.24  value" means the manufacturer's suggested retail price of the 
  1.25  vehicle including destination charge using list price 
  1.26  information published by the manufacturer or determined by the 
  2.1   registrar if no suggested retail price exists, and shall not 
  2.2   include the cost of each accessory or item of optional equipment 
  2.3   separately added to the vehicle and the suggested retail price. 
  2.4      (c) If the manufacturer's list price information contains a 
  2.5   single vehicle identification number followed by various 
  2.6   descriptions and suggested retail prices, the registrar shall 
  2.7   select from those listings only the lowest price for determining 
  2.8   base value. 
  2.9      (d) If unable to determine the base value because the 
  2.10  vehicle is specially constructed, or for any other reason, the 
  2.11  registrar may establish such value upon the cost price to the 
  2.12  purchaser or owner as evidenced by a certificate of cost but not 
  2.13  including Minnesota sales or use tax or any local sales or other 
  2.14  local tax. 
  2.15     (e) The registrar shall classify every vehicle in its 
  2.16  proper base value class as follows: 
  2.17                        FROM                   TO
  2.18                        $  0                $199.99
  2.19                         200                 399.99
  2.20  and thereafter a series of classes successively set in brackets 
  2.21  having a spread of $200 consisting of such number of classes as 
  2.22  will permit classification of all vehicles. 
  2.23     (f) The base value for purposes of this section shall be 
  2.24  the middle point between the extremes of its class. 
  2.25     (g) The registrar shall establish the base value, when new, 
  2.26  of every passenger automobile and hearse registered prior to the 
  2.27  effective date of Extra Session Laws 1971, chapter 31, using 
  2.28  list price information published by the manufacturer or any 
  2.29  nationally recognized firm or association compiling such data 
  2.30  for the automotive industry.  If unable to ascertain the base 
  2.31  value of any registered vehicle in the foregoing manner, the 
  2.32  registrar may use any other available source or method.  The tax 
  2.33  on all previously registered vehicles shall be computed upon the 
  2.34  base value thus determined taking into account the depreciation 
  2.35  provisions of paragraph (h). 
  2.36     (h) Except as provided in paragraph (i), The annual 
  3.1   additional tax computed upon the base value as provided herein, 
  3.2   during the first and second years of vehicle life shall be 
  3.3   computed upon 100 percent of the base value; for the third and 
  3.4   fourth years, 90 percent of such value; for the fifth and sixth 
  3.5   years, 75 percent of such value; for the seventh year, 60 
  3.6   percent of such value; for the eighth year, 40 percent of such 
  3.7   value; for the ninth year, 30 percent of such value; for the 
  3.8   tenth year, ten percent of such value; for the 11th and each 
  3.9   succeeding year, the sum of $25.  
  3.10     In no event shall the annual additional tax be less than 
  3.11  $25.  
  3.12     (i) The annual additional tax under paragraph (h) on a 
  3.13  motor vehicle on which the first annual tax was paid before 
  3.14  January 1, 1990, must not exceed the tax that was paid on that 
  3.15  vehicle the year before. 
  3.16     Sec. 3.  [APPROPRIATION.] 
  3.17     $40,000,000 is appropriated from the general fund to the 
  3.18  commissioner of finance for transfer to the highway user tax 
  3.19  distribution fund. 
  3.20     Sec. 4.  [EFFECTIVE DATE.] 
  3.21     Section 2 is effective January 1, 2000.