1.1 	A bill for an act
1.2 	relating to motor vehicles; regulating registration
1.3 	tax refunds; modifying registration procedures; making
1.4 	technical and clarifying changes; amending Minnesota
1.5 	Statutes 2004, sections 168.011, subdivisions 3, 4, 5,
1.6 	5a, 6, 7, by adding subdivisions; 168.15, subdivision
1.7 	1; 168.16; 168.31, subdivision 5; repealing Minnesota
1.8 	Statutes 2004, sections 168.011, subdivision 19;
1.9 	168.15, subdivision 2.
1.10 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.11 	Section 1. Minnesota Statutes 2004, section 168.011, is
1.12 	amended by adding a subdivision to read:
1.13 		Subd. 2a.Commissioner. "Commissioner" means the
1.14 	commissioner of the Minnesota Department of Public Safety.

1.15 	Sec. 2. Minnesota Statutes 2004, section 168.011,
1.16 	subdivision 3, is amended to read:
1.17 		Subd. 3.Highway. A "Highway" is any public thoroughfare
1.18 	for vehicles, including streets in cities has the meaning given
1.19 	in section 169.01, subdivision 29.

1.20 	Sec. 3. Minnesota Statutes 2004, section 168.011,
1.21 	subdivision 4, is amended to read:
1.22 		Subd. 4.Motor vehicle.  (a) "Motor vehicle" means any
1.23 	self-propelled vehicle designed and originally manufactured to
1.24 	operate primarily upon public roads and on highways, and not
1.25 	operated exclusively upon railroad tracks.  It includes any
1.26 	vehicle propelled or drawn by a self-propelled vehicle and
1.27 	includes vehicles known as trackless trolleys that are propelled
2.1 	by electric power obtained from overhead trolley wires but not
2.2 	operated upon rails.  It does not include snowmobiles,
2.3 	manufactured homes, or park trailers.
2.4 	(b) "Motor vehicle" also includes an all-terrain vehicle,
2.5 	as defined in section 84.92, subdivision 8, that only if the
2.6 	all-terrain vehicle (1) has at least four wheels, (2) is owned
2.7 	and operated by a physically disabled person, and (3) displays
2.8 	both physically disabled license plates and a physically
2.9 	disabled certificate issued under section 169.345, subdivision 3.
2.10 	(c) "Motor vehicle" does not include an all-terrain vehicle
2.11 	as defined in section 84.92, subdivision 8;except (1) an
2.12 	all-terrain vehicle described in paragraph (b), or (2) an
2.13 	all-terrain vehicle licensed as a motor vehicle before August 1,
2.14 	1985.  The owner may continue to license an all-terrain vehicle
2.15 	described in clause (2) as a motor vehicle until it is conveyed
2.16 	or otherwise transferred to another owner, is destroyed, or
2.17 	fails to comply with the registration and licensing requirements
2.18 	of this chapter.
2.19 	(d) "Motor vehicle" does not include an electric personal
2.20 	assistive mobility device as defined in section 169.01,
2.21 	subdivision 90.

2.22 	Sec. 4. Minnesota Statutes 2004, section 168.011,
2.23 	subdivision 5, is amended to read:
2.24 		Subd. 5.Owner.  "Owner" means any person, firm,
2.25 	association, or corporation owning or renting leasing a motor 
2.26 	vehicle, or having the exclusive use thereof of the vehicle,
2.27 	under a lease or otherwise, for a period of greater than 30 days.

2.28 	Sec. 5. Minnesota Statutes 2004, section 168.011,
2.29 	subdivision 5a, is amended to read:
2.30 		Subd. 5a.Registered owner.  "Registered owner" means any
2.31 	person, firm, association, or corporation,other than a secured
2.32 	party, having title to a motor vehicle.  If a passenger
2.33 	automobile, as defined in subdivision 7,is under lease for a
2.34 	term of 180 days or more, the lessee is deemed to be the
2.35 	registered owner, for purposes of registration only,;provided
2.36 	that the application for renewal of the registration of a
3.1 	passenger automobile described in this subdivision shall be is 
3.2 	sent to the lessor.

3.3 	Sec. 6. Minnesota Statutes 2004, section 168.011,
3.4 	subdivision 6, is amended to read:
3.5 		Subd. 6.Tax, fee.  "Tax" or "fee" means the annual
3.6 	registration tax imposed on motor vehicles in lieu of all other
3.7 	taxes thereon, except wheelage taxes, so-called,which may be
3.8 	imposed by any city,and except gross earnings taxes paid by
3.9 	companies subject or made subject thereto. Such The annual tax
3.10 	shall be deemed is both a property tax and a highway use tax and
3.11 	shall be on the basis of the calendar year.

3.12 	Sec. 7. Minnesota Statutes 2004, section 168.011,
3.13 	subdivision 7, is amended to read:
3.14 		Subd. 7.Passenger automobile. (a) "Passenger automobile"
3.15 	means any motor vehicle designed and used for carrying not more
3.16 	than 15 persons individuals including the driver.
3.17 	(b) "Passenger automobile" does not include motorcycles,
3.18 	motor scooters, and buses described in subdivision 9, paragraph
3.19 	(a), clause (2) buses, or school buses.
3.20 	(c) For purposes of taxation only, " Passenger automobile " 
3.21 	includes pickup trucks and vans, including those vans designed
3.22 	to carry passengers,with a manufacturer's nominal rated
3.23 	carrying capacity of one ton, but does not include commuter vans
3.24 	as defined in section 168.126.

3.25 	Sec. 8. Minnesota Statutes 2004, section 168.011, is
3.26 	amended by adding a subdivision to read:
3.27 		Subd. 37.All-terrain vehicle. "All-terrain vehicle" has
3.28 	the meaning given in section 84.92, subdivision 8.

3.29 	Sec. 9. Minnesota Statutes 2004, section 168.011, is
3.30 	amended by adding a subdivision to read:
3.31 		Subd. 38.Person. "Person" has the meaning given in
3.32 	section 168A.01, subdivision 14.

3.33 	Sec. 10. Minnesota Statutes 2004, section 168.011, is
3.34 	amended by adding a subdivision to read:
3.35 		Subd. 39.Vehicle. "Vehicle" has the meaning given in
3.36 	section 168A.01, subdivision 24.

4.1 	Sec. 11. Minnesota Statutes 2004, section 168.15,
4.2 	subdivision 1, is amended to read:
4.3 		Subdivision 1.Transfer of ownership.  (a) Upon the
4.4 	transfer of ownership, destruction, theft, dismantling, or
4.5 	permanent removal by the owner from this state of any motor 
4.6 	vehicle registered in accordance with this chapter, the right of
4.7 	the owner of the vehicle to use the registration certificate and
4.8 	number plates assigned to the vehicle expires.
4.9 	(b) When the ownership of a motor vehicle is transferred to
4.10 	another resident of person required to register the vehicle in 
4.11 	this state, the transferor shall surrender the registration
4.12 	plates, unless otherwise provided for in this chapter, and 
4.13 	assign the registration tax paid to the credit of the transferee
4.14 	unless the registration stickers are surrendered to the
4.15 	commissioner before the first day of the new registration period.
4.16 	(c) When seeking to become the owner by gift, trade, or
4.17 	purchase of any vehicle for which a registration certificate has
4.18 	been issued under this chapter, a person shall join with the
4.19 	registered owner in transmitting with the application for
4.20 	transfer of ownership,the registration certificate, with the
4.21 	assignment and notice of sale duly executed upon the reverse
4.22 	side, or,.
4.23 	(d) In case of loss of the title or certificate of
4.24 	registration of a vehicle not subject to section 325E.15, the
4.25 	person shall make application to the commissioner with proof of
4.26 	loss by sworn statement, in writing, and satisfactory to the
4.27 	registrar of the title as specified in section 168A.09 and
4.28 	assign a notice of sale of the vehicle on the application for
4.29 	title as specified in section 168A.04.
4.30 	(e) Upon the transfer of any motor vehicle by a
4.31 	manufacturer or dealer, for use within the state, whether by
4.32 	sale, lease, or otherwise, the manufacturer or dealer transferor 
4.33 	shall, within ten days after the transfer, file with the
4.34 	registrar commissioner (1) a notice or report containing the
4.35 	date of transfer, a description of the motor vehicle, and the
4.36 	transferee's name, street and number of residence, if in a city,
5.1 	and post office residence address in the state or if not a
5.2 	natural person then the transferee's business and mailing
5.3 	address, and shall also transmit with it (2) the transferee's
5.4 	application for registration.

5.5 	Sec. 12. Minnesota Statutes 2004, section 168.16, is
5.6 	amended to read:
5.7 	168.16  REGISTRATION TAX REFUND; APPROPRIATION.
5.8 	(a) After the registration tax upon any motor vehicle has
5.9 	been paid for any year registration period, refund must be made
5.10 	for errors made in computing the registration tax or fees and
5.11 	for the error on the part of an owner who may in error have
5.12 	registered a motor vehicle that was not before, nor at the time
5.13 	of registration, nor at any time thereafter during the current
5.14 	past year preceding registration period, subject to registration 
5.15 	tax in this state as provided by section 168.012.
5.16 	(b) Unless otherwise provided in this chapter, a claim for
5.17 	a refund of an overpayment of registration tax must be filed
5.18 	within 3-1/2 years from the date of payment.
5.19 	The refund must be made from any fund in possession of the
5.20 	registrar and deducted from the registrar's monthly report to
5.21 	the commissioner of finance.  A detailed report of the refund
5.22 	must accompany the report.
5.23 	(c) The former registered owner of a transferred vehicle,
5.24 	by an assignment in writing endorsed upon the registration
5.25 	certificate and delivered to the registrar commissioner within
5.26 	the time provided in this subdivision, shall assign, except for
5.27 	vehicles registered under section 168.187, to the new owner the
5.28 	right to have the tax paid by the former registered owner
5.29 	accredited to the new owner who duly registers the vehicle
5.30 	unless the registration stickers are surrendered to the
5.31 	commissioner before the first day of the new registration period.
5.32 	(d) Any owner at is entitled to a refund of the unused
5.33 	portion of the registration tax paid on the owner's vehicle upon
5.34 	filing a claim, verified by the commissioner, if the time of
5.35 	such occurrence, whose vehicle is:
5.36 	(1) declared by an insurance company to be a total loss due
6.1 	to flood or tornado damage,permanently destroyed,due to
6.2 	accident, fire, or an Act of God as defined in section 115B.02;
6.3 	or
6.4 	(2) sold to the federal government, the state, or a
6.5 	political subdivision of the state, shall upon filing a verified
6.6 	claim be entitled to a refund of the unused portion of the tax
6.7 	paid upon the vehicle, computed as follows:.
6.8 	(1) if the vehicle is registered under the calendar year
6.9 	system of registration, the refund is computed pro rata by the
6.10 	month, 1/12 of the annual tax paid for each month of the year
6.11 	remaining after the month in which the plates and certificate
6.12 	were returned to the registrar;
6.13 	(2) if the vehicle is registered under the monthly series
6.14 	system of registration, the amount of 
6.15 	(e) The refund is must be equal to the sum of the amounts
6.16 	of the license fee remaining registration tax attributable to
6.17 	those months remaining in for the licensing registration period
6.18 	after the month in which the plates and certificate of
6.19 	registration or title were returned to the registrar 
6.20 	commissioner.
6.21 	(b) (f) There is hereby appropriated to the persons
6.22 	entitled to a refund, from the fund or account in the state
6.23 	treasury to which the money was credited, an amount sufficient
6.24 	to make the refund and payment.

6.25 	Sec. 13. Minnesota Statutes 2004, section 168.31,
6.26 	subdivision 5, is amended to read:
6.27 		Subd. 5.Refund.  For the annual registration tax paid on
6.28 	any vehicle before the calendar year registration period for
6.29 	which that tax was assessed, the owner of the vehicle who paid
6.30 	the tax shall be is entitled to full refund if such vehicle is
6.31 	permanently destroyed or removed from the state before the
6.32 	calendar year for which the tax was paid or if it is not used at
6.33 	all during the calendar year for which the tax was paid, and the
6.34 	owner makes affidavit concerning the nonuse as provided by
6.35 	section 168.012the registration stickers are surrendered before
6.36 	the first day of the new registration period.

7.1 	Sec. 14. REPEALER.
 7.2 	Minnesota Statutes 2004, sections 168.011, subdivision 19;
7.3 	and 168.15, subdivision 2, are repealed.