HF 403

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to motor vehicles; providing for credits 
  1.3             against the license tax on passenger automobiles; 
  1.4             providing for transfers of tax credit amounts from the 
  1.5             general fund to the highway user tax distribution 
  1.6             fund; amending Minnesota Statutes 2000, section 
  1.7             168.013, subdivision 1a, and by adding a subdivision.  
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 2000, section 168.013, 
  1.10  subdivision 1a, is amended to read: 
  1.11     Subd. 1a.  [PASSENGER AUTOMOBILE; HEARSE.] (a) On passenger 
  1.12  automobiles as defined in section 168.011, subdivision 7, and 
  1.13  hearses, except as otherwise provided, the tax shall be $10 plus 
  1.14  an additional tax equal to 1.25 percent of the base value.  
  1.15     (b) Subject to the classification provisions herein, "base 
  1.16  value" means the manufacturer's suggested retail price of the 
  1.17  vehicle including destination charge using list price 
  1.18  information published by the manufacturer or determined by the 
  1.19  registrar if no suggested retail price exists, and shall not 
  1.20  include the cost of each accessory or item of optional equipment 
  1.21  separately added to the vehicle and the suggested retail price. 
  1.22     (c) If the manufacturer's list price information contains a 
  1.23  single vehicle identification number followed by various 
  1.24  descriptions and suggested retail prices, the registrar shall 
  1.25  select from those listings only the lowest price for determining 
  1.26  base value. 
  2.1      (d) If unable to determine the base value because the 
  2.2   vehicle is specially constructed, or for any other reason, the 
  2.3   registrar may establish such value upon the cost price to the 
  2.4   purchaser or owner as evidenced by a certificate of cost but not 
  2.5   including Minnesota sales or use tax or any local sales or other 
  2.6   local tax. 
  2.7      (e) The registrar shall classify every vehicle in its 
  2.8   proper base value class as follows: 
  2.9                         FROM                   TO
  2.10                        $  0                $199.99
  2.11                         200                 399.99
  2.12  and thereafter a series of classes successively set in brackets 
  2.13  having a spread of $200 consisting of such number of classes as 
  2.14  will permit classification of all vehicles. 
  2.15     (f) The base value for purposes of this section shall be 
  2.16  the middle point between the extremes of its class. 
  2.17     (g) The registrar shall establish the base value, when new, 
  2.18  of every passenger automobile and hearse registered prior to the 
  2.19  effective date of Extra Session Laws 1971, chapter 31, using 
  2.20  list price information published by the manufacturer or any 
  2.21  nationally recognized firm or association compiling such data 
  2.22  for the automotive industry.  If unable to ascertain the base 
  2.23  value of any registered vehicle in the foregoing manner, the 
  2.24  registrar may use any other available source or method.  The tax 
  2.25  on all previously registered vehicles shall be computed upon the 
  2.26  base value thus determined taking into account the depreciation 
  2.27  provisions of paragraph (h). 
  2.28     (h) Except as provided in paragraph (i), the annual 
  2.29  additional tax computed upon the base value as provided herein, 
  2.30  during the first and second years of vehicle life shall be 
  2.31  computed upon 100 percent of the base value; for the third and 
  2.32  fourth years, 90 percent of such value; for the fifth and sixth 
  2.33  years, 75 percent of such value; for the seventh year, 60 
  2.34  percent of such value; for the eighth year, 40 percent of such 
  2.35  value; for the ninth year, 30 percent of such value; for the 
  2.36  tenth year, ten percent of such value; for the 11th and each 
  3.1   succeeding year, the sum of $25.  
  3.2   In no event shall the annual additional tax be less than $25.  
  3.3   The total tax under this subdivision shall not exceed $189 for 
  3.4   the first renewal period and shall not exceed $99 for subsequent 
  3.5   renewal periods.  The total tax under this subdivision on any 
  3.6   vehicle filing its initial registration in Minnesota in the 
  3.7   second year of vehicle life shall not exceed $189 and shall not 
  3.8   exceed $99 for subsequent renewal periods.  The total tax under 
  3.9   this subdivision on any vehicle filing its initial registration 
  3.10  in Minnesota in the third or subsequent year of vehicle life 
  3.11  shall not exceed $99 and shall not exceed $99 in any subsequent 
  3.12  renewal period. 
  3.13     (i) The annual additional tax under paragraph (h) on a 
  3.14  motor vehicle on which the first annual tax was paid before 
  3.15  January 1, 1990, must not exceed the tax that was paid on that 
  3.16  vehicle the year before. 
  3.17     (j) For taxes paid under this subdivision on and after 
  3.18  November 15, 2001, the registrar shall allow a credit against 
  3.19  the tax equal to all tax in excess of $189 for vehicles in the 
  3.20  second year of vehicle life, and all tax in excess of $99 in the 
  3.21  third and subsequent years of vehicle life.  The registrar shall 
  3.22  include on registration certificates for passenger automobiles 
  3.23  for which the credit under this paragraph has been allowed, or 
  3.24  include with the certificate if mailed to the registered owner, 
  3.25  a notice substantially to the effect that the tax on the vehicle 
  3.26  has been reduced to a maximum of $189 in the second year and $99 
  3.27  in the third and subsequent years by action of the legislature.  
  3.28     Sec. 2.  Minnesota Statutes 2000, section 168.013, is 
  3.29  amended by adding a subdivision to read: 
  3.30     Subd. 21.  [TRANSFERS FROM GENERAL FUND.] The registrar 
  3.31  shall notify the commissioner of finance once each week of the 
  3.32  total amount of tax credit allowed by the registrar under 
  3.33  subdivision 1a, paragraph (j), on taxes collected by the 
  3.34  registrar under subdivision 1a in the previous week.  Within two 
  3.35  days of receiving the notice from the registrar, the 
  3.36  commissioner of finance shall transfer from the general fund to 
  4.1   the highway user tax distribution fund an amount equal to the 
  4.2   amount identified in the registrar's notice.