HF 638

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/01/2021 03:27pm

A bill for an act
relating to transportation; imposing a luxury vehicle surcharge on the sale of certain
motor vehicles; amending Minnesota Statutes 2020, section 297B.02, by adding
a subdivision.

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

Section 1.

Minnesota Statutes 2020, section 297B.02, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Luxury vehicle surcharge. new text end

new text begin (a) A luxury vehicle surcharge is imposed at a
rate of four percent on the luxury increment of any motor vehicle that is subject to (1) the
tax imposed under subdivision 1, and (2) registration under chapter 168 as a passenger
automobile, as defined in section 168.002, subdivision 24; a noncommercial vehicle, as
defined in section 168.002, subdivision 21a; or a recreational vehicle, as defined in section
168.002, subdivision 27. The surcharge is in addition to the tax imposed under subdivision
1.
new text end

new text begin (b) The "luxury increment" is the greater of zero or the amount calculated as follows:
new text end

new text begin (1) the purchase price of the motor vehicle; minus
new text end

new text begin (2) 200 percent of the most recent average purchase price of all motor vehicles subject
to registration under chapter 168 for the vehicle classification of passenger automobile,
noncommercial vehicle, or recreational vehicle, as appropriate.
new text end

new text begin (c) After July 1 but before August 31 annually, the commissioner must revise the average
purchase prices used in the calculation of the luxury increment under paragraph (b), clause
(2), separately for each relevant vehicle classification. The commissioner must use sales
data from the previous fiscal year. Each revised average purchase price is effective for sales
and purchases made on or after October 1 in that year.
new text end

new text begin (d) For purposes of this chapter, a reference to the tax under subdivision 1 is inclusive
of the luxury vehicle surcharge.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2021, for sales and purchases on
or after October 1, 2021.
new text end