1.1 	A bill for an act
1.2 	relating to taxation; exempting car sharing organizations from rental car fee in 
1.3 	lieu of registration tax; amending Minnesota Statutes 2008, section 297A.64, 
1.4 	subdivision 2.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2008, section 297A.64, subdivision 2, is amended to 
1.7 	read:
1.8 		Subd. 2. Fee imposed. (a) A fee equal to five percent of the sales price is imposed 
1.9 	on leases or rentals of vehicles subject to the tax under subdivision 1. The lessor on the 
1.10 	invoice to the customer may designate the fee as "a fee imposed by the State of Minnesota 
1.11 	for the registration of rental cars." 
1.12 	(b) The provisions of this subdivision do not apply to the vehicles of a nonprofit 
1.13 	corporation or similar entity, consisting of individual or group members who pay the 
1.14 	organization for the use of a motor vehicle, if the organization:
1.15 	(1) owns or leases a fleet of vehicles of the type subject to the tax under subdivision 1 
1.16 	that are available to its members for use, priced on the basis of intervals of one hour or less;
1.17 	(2) parks its vehicles at unstaffed, self-service locations that are accessible at any 
1.18 	time of the day;
1.19 	(3) maintains its vehicles, insures its vehicles on behalf of its members, and 
1.20 	purchases fuel for its fleet; and
1.21 	(4) does not charge usage rates that decline on a per unit basis, whether specified 
1.22 	based on distance or time.

1.23 	EFFECTIVE DATE. This section is effective July 1, 2009, and applies to 
1.24 	registrations made or renewed on or after that date.