Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

HF 479

1st Engrossment - 90th Legislature (2017 - 2018) Posted on 02/23/2017 03:54pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 01/23/2017
1st Engrossment Posted on 02/23/2017

Current Version - 1st Engrossment

Line numbers 1.1 1.2 1.3 1.4 1.5
1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32 2.33 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32 3.33 4.1 4.2 4.3 4.4 4.5
4.6 4.7

A bill for an act
relating to taxation; motor vehicle sales; expanding an exemption for certain motor
vehicle purchases by local governments; making technical changes; amending
Minnesota Statutes 2016, section 297B.03.

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

Section 1.

Minnesota Statutes 2016, section 297B.03, is amended to read:


297B.03 EXEMPTIONS.

new text begin Subdivision 1. new text end

new text begin Scope. new text end

deleted text begin There is specifically exempteddeleted text end new text begin The purchases or acquisitions of
a motor vehicle listed in this section are exempt
new text end from the provisions of this chapter and
from computation of the amount of tax imposed by it deleted text begin the following:deleted text end new text begin .
new text end

new text begin Subd. 2. new text end

new text begin Federal government. new text end

deleted text begin (1)deleted text end new text begin Thenew text end purchase or use, including use under a lease
purchase agreement or installment sales contract made pursuant to section 465.71, of any
motor vehicle by the United States and its agencies and instrumentalities and by any person
described in and subject to the conditions provided in section 297A.67, subdivision 11deleted text begin ;deleted text end new text begin is
exempt.
new text end

new text begin Subd. 3. new text end

new text begin Purchased while a resident of another state. new text end

deleted text begin (2)deleted text end new text begin Thenew text end purchase or use of any
motor vehicle by any person who was a resident of another state or country at the time of
the purchase and who subsequently becomes a resident of Minnesota, provided the purchase
occurred more than 60 days prior to the date such person began residing in the state of
Minnesota and the motor vehicle was registered in the person's name in the other state or
countrydeleted text begin ;deleted text end new text begin is exempt.
new text end

new text begin Subd. 4. new text end

new text begin Interstate motor carriers. new text end

deleted text begin (3)deleted text end new text begin Thenew text end purchase or use of any motor vehicle by
any person making a valid election to be taxed under the provisions of section 297A.90deleted text begin ;deleted text end new text begin is
exempt.
new text end

new text begin Subd. 5. new text end

new text begin Sale of a business. new text end

deleted text begin (4)deleted text end new text begin Thenew text end purchase or use of any motor vehicle previously
registered in the state of Minnesota when such transfer constitutes a transfer within the
meaning of section 118, 331, 332, 336, 337, 338, 351, 355, 368, 721, 731, 1031, 1033, or
1563(a) of the Internal Revenue Codedeleted text begin ;deleted text end new text begin is exempt.
new text end

new text begin Subd. 6. new text end

new text begin Leased vehicles for interstate commerce. new text end

deleted text begin (5)deleted text end new text begin Thenew text end purchase or use of any
vehicle owned by a resident of another state and leased to a Minnesota-based private or
for-hire carrier for regular use in the transportation of persons or property in interstate
commerce provided the vehicle is titled in the state of the owner or secured party, and that
state does not impose a sales tax or sales tax on motor vehicles used in interstate commercedeleted text begin ;deleted text end new text begin
is exempt.
new text end

new text begin Subd. 7. new text end

new text begin Use in automotive training programs. new text end

deleted text begin (6)deleted text end new text begin Thenew text end purchase or use of a motor
vehicle by a private nonprofit or public educational institution for use as an instructional
aid in automotive training programs operated by the institution new text begin is exemptnew text end . "Automotive
training programs" includes motor vehicle body and mechanical repair courses but does not
include driver education programsdeleted text begin ;deleted text end new text begin .
new text end

new text begin Subd. 8. new text end

new text begin Ambulance and emergency response. new text end

deleted text begin (7)deleted text end new text begin Thenew text end purchase of a motor vehicle
by an ambulance service licensed under section 144E.10 when that vehicle is equipped and
specifically intended for emergency response or for providing ambulance servicedeleted text begin ;deleted text end new text begin is exempt.
new text end

new text begin Subd. 9. new text end

new text begin Library use. new text end

deleted text begin (8)deleted text end new text begin Thenew text end purchase of a motor vehicle by or for a public library, as
defined in section 134.001, subdivision 2, as a bookmobile or library delivery vehicledeleted text begin ;deleted text end new text begin is
exempt.
new text end

new text begin Subd. 10. new text end

new text begin Ready-mix concrete truck. new text end

deleted text begin (9)deleted text end new text begin Thenew text end purchase of a deleted text begin ready-mixeddeleted text end new text begin ready-mixnew text end
concrete truckdeleted text begin ;deleted text end new text begin is exempt.
new text end

new text begin Subd. 11. new text end

new text begin Local government road maintenance. new text end

deleted text begin (10)deleted text end new text begin Thenew text end purchase or use of a motor
vehicle by a deleted text begin towndeleted text end new text begin local governmentnew text end for use exclusively for road maintenance, including
deleted text begin snowplows and dump trucksdeleted text end new text begin a snowplow or dump trucknew text end , but not including deleted text begin automobiles,
vans, or pickup trucks;
deleted text end new text begin an automobile, van, or pickup truck is exempt. For purposes of this
subdivision, "local government" means:
new text end

new text begin (1) a home rule charter or statutory city;
new text end

new text begin (2) a county;
new text end

new text begin (3) a town; or
new text end

new text begin (4) an instrumentality of a home rule charter or statutory city, county, or town. An
instrumentality may be a special district under section 6.465, or a special district organized
under a joint powers agreement under section 471.59, if the special district was established
by the county, city, or town, or the majority of the special district's governing board is made
up of:
new text end

new text begin (i) elected officials of the city, county, or town; or
new text end

new text begin (ii) members appointed by the governing body of the city, county, or town.
new text end

new text begin Subd. 12. new text end

new text begin Charitable use. new text end

deleted text begin (11)deleted text end new text begin Thenew text end purchase or use of a motor vehicle by a corporation,
society, association, foundation, or institution organized and operated exclusively for
charitable, religious, or educational purposes, except a public school, university, or librarynew text begin
is exempt
new text end , but only if the vehicle is:

deleted text begin (i)deleted text end new text begin (1)new text end a truck, as defined in section 168.002, a bus, as defined in section 168.002, or a
passenger automobile, as defined in section 168.002, if the automobile is designed and used
for carrying more than nine persons including the driver; and

deleted text begin (ii)deleted text end new text begin (2)new text end intended to be used primarily to transport tangible personal property or individuals,
other than employees, to whom the organization provides service in performing its charitable,
religious, or educational purposedeleted text begin ;deleted text end new text begin .
new text end

new text begin Subd. 13. new text end

new text begin Transit use. new text end

deleted text begin (12)deleted text end new text begin Thenew text end purchase of a motor vehicle for use by a transit provider
exclusively to provide transit service is exempt if the transit provider is either (i) receiving
financial assistance or reimbursement under section 174.24 or 473.384, or (ii) operating
under section 174.29, 473.388, or 473.405deleted text begin ;deleted text end new text begin .
new text end

new text begin Subd. 14. new text end

new text begin Job opportunity building zone. new text end

deleted text begin (13)deleted text end new text begin Thenew text end purchase or use of a motor vehicle
by a qualified business, as defined in section 469.310, located in a job opportunity building
zone, if the motor vehicle is principally garaged in the job opportunity building zone and
is primarily used as part of or in direct support of the person's operations carried on in the
job opportunity building zone new text begin is exemptnew text end . The exemption under this clause applies to sales,
if the purchase was made and delivery received during the duration of the job opportunity
building zone. The exemption under this clause also applies to any local sales and use taxdeleted text begin ;deleted text end new text begin .
new text end

new text begin Subd. 15. new text end

new text begin Certain purchases from a nonprofit. new text end

deleted text begin (14)deleted text end new text begin Thenew text end purchase of a leased vehicle
by the lessee who was a participant in a lease-to-own program new text begin is exempt if the purchase is
new text end from a charitable organization that is:

deleted text begin (i)deleted text end new text begin (1)new text end described in section 501(c)(3) of the Internal Revenue Code; and

deleted text begin (ii)deleted text end new text begin (2)new text end licensed as a motor vehicle lessor under section 168.27, subdivision 4deleted text begin ; anddeleted text end new text begin .
new text end

new text begin Subd. 16. new text end

new text begin Mobile medical unit. new text end

deleted text begin (15)deleted text end new text begin Thenew text end purchase of a motor vehicle used exclusively
as a mobile medical unit for the provision of medical or dental services by a federally
qualified health center, as defined under title 19 of the Social Security Act, as amended by
section 4161 of the Omnibus Budget Reconciliation Act of 1990new text begin , is exemptnew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after June
30, 2017.
new text end