HF 848

as introduced - 93rd Legislature (2023 - 2024) Posted on 01/25/2023 12:44pm

A bill for an act
relating to transportation; sales and use taxation; modifying the rental motor vehicle
tax and fee; creating an account; appropriating money; amending Minnesota
Statutes 2022, sections 297A.64, subdivisions 1, 2; 297A.94; proposing coding
for new law in Minnesota Statutes, chapter 174.

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

Section 1.

new text begin [174.46] DISADVANTAGED COMMUNITIES CARSHARING GRANT
ACCOUNT; GRANTS.
new text end

new text begin (a) The disadvantaged communities carsharing grant account is established in the special
revenue fund. The account consists of funds provided by law and any other money donated,
allotted, transferred, or otherwise provided to the account. Money in the account is annually
appropriated to the commissioner to make grants as provided in paragraph (b).
new text end

new text begin (b) The commissioner must administer a program to provide grants to nonprofit
organizations or carsharing operators to support the growth of carsharing in disadvantaged
communities through programs, marketing, and community engagement. A grant recipient
may use grant proceeds for capital and operational costs of a program. Eligible grant
recipients must be based in Minnesota and be either a nonprofit organization or carsharing
operator, with a preference given to nonprofit carsharing operators. Transportation
management organizations are not eligible to receive grants under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2023.
new text end

Sec. 2.

Minnesota Statutes 2022, section 297A.64, subdivision 1, is amended to read:

Subdivision 1.

Tax imposed.

new text begin (a) new text end A tax is imposed on the lease or rental in this state for
not more than 28 days of a passenger automobile as defined in section 168.002, subdivision
24, a van as defined in section 168.002, subdivision 40, or a pickup truck as defined in
section 168.002, subdivision 26. The rate of tax is 9.2 percent of the sales price. The tax
applies whether or not the vehicle is licensed in the state.

new text begin (b) The provisions of paragraph (a) do not apply to the vehicles of a nonprofit corporation
or similar entity, consisting of individual or group members who pay the organization for
the use of a motor vehicle, if the organization:
new text end

new text begin (1) owns, leases, or operates a fleet of vehicles of the type subject to the tax under this
subdivision that are available to its members for use, priced on the basis of intervals of one
hour or less;
new text end

new text begin (2) parks its vehicles in the public right-of-way or at unstaffed, self-service locations
that are accessible at any time of the day; and
new text end

new text begin (3) maintains its vehicles, insures its vehicles on behalf of its members, and purchases
fuel for its fleet.
new 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, 2023.
new text end

Sec. 3.

Minnesota Statutes 2022, section 297A.64, subdivision 2, is amended to read:

Subd. 2.

Fee imposed.

(a) A fee equal to five percent of the sales price is imposed on
leases or rentals of vehicles subject to the tax under subdivision 1. The lessor on the invoice
to the customer may designate the fee as "a fee imposed by the State of Minnesota for the
registration of rental cars."

(b) The provisions of this subdivision do not apply to the vehicles of a nonprofit
corporation or similar entity, consisting of individual or group members who pay the
organization for the use of a motor vehicle, if the organization:

(1) owns or leases a fleet of vehicles of the type subject to the tax under subdivision 1
that are available to its members for use, priced on the basis of intervals of one hour or less;

(2) parks its vehicles new text begin in the public right-of-way or new text end at unstaffed, self-service locations
that are accessible at any time of the day; new text begin and
new text end

(3) maintains its vehicles, insures its vehicles on behalf of its members, and purchases
fuel for its fleet deleted text begin ; and
deleted text end

deleted text begin (4) does not charge usage rates that decline on a per unit basis, whether specified based
on distance or time deleted 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, 2023.
new text end

Sec. 4.

Minnesota Statutes 2022, section 297A.94, is amended to read:

297A.94 DEPOSIT OF REVENUES.

(a) Except as provided in this section, the commissioner shall deposit the revenues,
including interest and penalties, derived from the taxes imposed by this chapter in the state
treasury and credit them to the general fund.

(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic
account in the special revenue fund if:

(1) the taxes are derived from sales and use of property and services purchased for the
construction and operation of an agricultural resource project; and

(2) the purchase was made on or after the date on which a conditional commitment was
made for a loan guaranty for the project under section 41A.04, subdivision 3.

The commissioner of management and budget shall certify to the commissioner the date on
which the project received the conditional commitment. The amount deposited in the loan
guaranty account must be reduced by any refunds and by the costs incurred by the Department
of Revenue to administer and enforce the assessment and collection of the taxes.

(c) The commissioner shall deposit the revenues, including interest and penalties, derived
from the taxes imposed on sales and purchases included in section 297A.61, subdivision 3,
paragraph (g), clauses (1) and (4), in the state treasury, and credit them as follows:

(1) first to the general obligation special tax bond debt service account in each fiscal
year the amount required by section 16A.661, subdivision 3, paragraph (b); and

(2) after the requirements of clause (1) have been met, the balance to the general fund.

(d) Beginning with sales taxes remitted after July 1, 2017, the commissioner shall deposit
in the state treasury the revenues collected under section 297A.64, subdivision 1, including
interest and penalties and minus refunds, and credit them to the highway user tax distribution
fund.

(e) The commissioner shall deposit the revenues, including interest and penalties,
collected under section 297A.64, subdivision 5, in the state treasury and credit them to the
general fund. By July 15 of each year the commissioner shall transfer to deleted text begin the highway user
tax distribution fund deleted text end new text begin the disadvantaged communities carsharing grant account new text end an amount
equal to the excess fees collected under section 297A.64, subdivision 5, for the previous
calendar year.

(f) Beginning with sales taxes remitted after July 1, 2017, in conjunction with the deposit
of revenues under paragraph (d), the commissioner shall deposit into the state treasury and
credit to the highway user tax distribution fund an amount equal to the estimated revenues
derived from the tax rate imposed under section 297A.62, subdivision 1, on the lease or
rental for not more than 28 days of rental motor vehicles subject to section 297A.64. The
commissioner shall estimate the amount of sales tax revenue deposited under this paragraph
based on the amount of revenue deposited under paragraph (d).

(g) The commissioner shall deposit an amount of the remittances monthly into the state
treasury and credit them to the highway user tax distribution fund as a portion of the estimated
amount of taxes collected from the sale and purchase of motor vehicle repair and replacement
parts in that month. The monthly deposit amount is $12,137,000. For purposes of this
paragraph, "motor vehicle" has the meaning given in section 297B.01, subdivision 11, and
"motor vehicle repair and replacement parts" includes (i) all parts, tires, accessories, and
equipment incorporated into or affixed to the motor vehicle as part of the motor vehicle
maintenance and repair, and (ii) paint, oil, and other fluids that remain on or in the motor
vehicle as part of the motor vehicle maintenance or repair. For purposes of this paragraph,
"tire" means any tire of the type used on highway vehicles, if wholly or partially made of
rubber and if marked according to federal regulations for highway use.

(h) 72.43 percent of the revenues, including interest and penalties, transmitted to the
commissioner under section 297A.65, must be deposited by the commissioner in the state
treasury as follows:

(1) 50 percent of the receipts must be deposited in the heritage enhancement account in
the game and fish fund, and may be spent only on activities that improve, enhance, or protect
fish and wildlife resources, including conservation, restoration, and enhancement of land,
water, and other natural resources of the state;

(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and may
be spent only for state parks and trails;

(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and may
be spent only on metropolitan park and trail grants;

(4) three percent of the receipts must be deposited in the natural resources fund, and
may be spent only on local trail grants; and

(5) two percent of the receipts must be deposited in the natural resources fund, and may
be spent only for the Minnesota Zoological Garden, the Como Park Zoo and Conservatory,
and the Duluth Zoo.

(i) The revenue dedicated under paragraph (h) may not be used as a substitute for
traditional sources of funding for the purposes specified, but the dedicated revenue shall
supplement traditional sources of funding for those purposes. Land acquired with money
deposited in the game and fish fund under paragraph (h) must be open to public hunting
and fishing during the open season, except that in aquatic management areas or on lands
where angling easements have been acquired, fishing may be prohibited during certain times
of the year and hunting may be prohibited. At least 87 percent of the money deposited in
the game and fish fund for improvement, enhancement, or protection of fish and wildlife
resources under paragraph (h) must be allocated for field operations.

(j) The commissioner must deposit the revenues, including interest and penalties minus
any refunds, derived from the sale of items regulated under section 624.20, subdivision 1,
that may be sold to persons 18 years old or older and that are not prohibited from use by
the general public under section 624.21, in the state treasury and credit:

(1) 25 percent to the volunteer fire assistance grant account established under section
88.068;

(2) 25 percent to the fire safety account established under section 297I.06, subdivision
3; and

(3) the remainder to the general fund.

For purposes of this paragraph, the percentage of total sales and use tax revenue derived
from the sale of items regulated under section 624.20, subdivision 1, that are allowed to be
sold to persons 18 years old or older and are not prohibited from use by the general public
under section 624.21, is a set percentage of the total sales and use tax revenues collected in
the state, with the percentage determined under Laws 2017, First Special Session chapter
1, article 3, section 39.

(k) The revenues deposited under paragraphs (a) to (j) do not include the revenues,
including interest and penalties, generated by the sales tax imposed under section 297A.62,
subdivision 1a, which must be deposited as provided under the Minnesota Constitution,
article XI, section 15.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for deposits resulting from sales and
purchases made after June 30, 2023.
new text end