SF 2309

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/11/2025 09:25 a.m.

A bill for an act
relating to transportation; modifying dealer plate provisions to provide for the use
of a vehicle for courtesy purposes; amending Minnesota Statutes 2024, section
168.27, subdivision 16.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 168.27, subdivision 16, is amended to read:

Subd. 16.

Dealer plates: distinguishing number, fee, tax, use.

(a) The registrar shall
issue to every motor vehicle dealer, upon a request from the motor vehicle dealer licensed
as provided in subdivision 2 or 3, one or more plates displaying a general distinguishing
number. This subdivision does not apply to a scrap metal processor, a used vehicle parts
dealer, or a vehicle salvage pool. The fee for each of the first four plates is $75 per registration
year, of which $60 must be paid to the registrar and the remaining $15 is payable as sales
tax on motor vehicles under section 297B.035. For each additional plate, the dealer shall
pay the registrar a fee of $25 and a sales tax on motor vehicles of $15 per registration year.
The registrar shall deposit the tax in the state treasury to be credited as provided in section
297B.09. Replacement plates are subject to the fees in section 168.12. Motor vehicles, new
or used, owned by the motor vehicle dealership and bearing the number plate, except vehicles
leased to the user who is not an employee of the dealer during the term of the lease, held
for hire, or used by the dealer as a tow truck, service truck, or parts vehicle, may be driven
upon the streets and highways of this state:

(1) by the motor vehicle dealer or dealer's spouse, or any full-time employee of the motor
vehicle dealer for either private or business purposes;

(2) by a part-time employee when the use is directly related to a particular business
transaction of the dealer;

new text begin (3) by a person who meets the criteria for the use of a dealer plate by a nonemployee
under paragraph (c);
new text end

deleted text begin (3) deleted text end new text begin (4) new text end for demonstration purposes by any prospective buyer for a period of 48 hours or
in the case of a truck, truck-tractor, or semitrailer, for a period of seven days; or

deleted text begin (4) deleted text end new text begin (5) new text end in a promotional event that lasts no longer than four days in which at least three
motor vehicles are involved.

(b) A new or used motor vehicle sold by the motor vehicle dealer and bearing the motor
vehicle dealer's number plate may be driven upon the public streets and highways for a
period of 72 hours by the buyer for either of the following purposes: (1) removing the vehicle
from this state for registration in another state, or (2) permitting the buyer to use the motor
vehicle before the buyer receives number plates pursuant to registration. Use of a motor
vehicle by the buyer under clause (2) before the buyer receives number plates pursuant to
registration constitutes a use of the public streets or highways for the purpose of the time
requirements for registration of motor vehicles.

new text begin (c) Notwithstanding paragraph (a), a motor vehicle bearing a number plate issued under
this section may be driven by a nonemployee of the motor vehicle dealer if:
new text end

new text begin (1) the courtesy vehicle is held out by the motor vehicle dealer as part of a repair, service,
or maintenance transaction at the motor vehicle dealer and not a standalone transaction to
purchase a vehicle;
new text end

new text begin (2) the motor vehicle is regularly offered by the motor vehicle dealer as a courtesy vehicle
for use by nonemployees;
new text end

new text begin (3) the nonemployee driver of the courtesy vehicle provides a valid driver's license and
proof of insurance;
new text end

new text begin (4) the courtesy vehicle lease agreement clearly identifies the vehicle as a courtesy
vehicle and is not held for sale or resale during the term of the agreement;
new text end

new text begin (5) the courtesy vehicle is conspicuously marked and identified as a courtesy vehicle on
the exterior with the motor vehicle dealer's business name also visible; and
new text end

new text begin (6) the courtesy vehicle lease agreement clearly identifies the nonemployee driver's
responsibilities and liabilities, including the circumstances in which a dealer plate may be
revoked, and may provide that the dealer can recover the cost of registration and sales tax
from the lessee should the plate be revoked by improper use.
new text end

new text begin (d) For purposes of paragraph (c), a "courtesy vehicle" means a passenger automobile
or truck that a motor vehicle dealer temporarily provides at no or minimal cost to customers
for customer service or mobility purposes while the customer's vehicle is serviced, repaired,
or maintained. A courtesy vehicle with a dealer plate meeting the criteria of paragraph (c)
is not:
new text end

new text begin (1) subject to the 72-hour restriction specified in paragraph (b); or
new text end

new text begin (2) subject to the title, registration, and sales tax requirements for a motor vehicle under
this chapter.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025, for dealer license plates
issued on or after that date.
new text end