HF 981

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; sales tax on motor vehicles; 
  1.3             excluding the transfer by gift to certain nonprofit 
  1.4             organizations; amending Minnesota Statutes 1996, 
  1.5             section 297B.01, subdivisions 7 and 8. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1996, section 297B.01, 
  1.8   subdivision 7, is amended to read: 
  1.9      Subd. 7.  [SALE, SELLS, SELLING, PURCHASE, PURCHASED, OR 
  1.10  ACQUIRED.] "Sale," "sells," "selling," "purchase," "purchased," 
  1.11  or "acquired" means any transfer of title of any motor vehicle, 
  1.12  whether absolutely or conditionally, for a consideration in 
  1.13  money or by exchange or barter for any purpose other than resale 
  1.14  in the regular course of business.  Any motor vehicle utilized 
  1.15  by the owner only by leasing such vehicle to others or by 
  1.16  holding it in an effort to so lease it, and which is put to no 
  1.17  other use by the owner other than resale after such lease or 
  1.18  effort to lease, shall be considered property purchased for 
  1.19  resale.  The terms also shall include any transfer of title or 
  1.20  ownership of a motor vehicle by way of gift or by any other 
  1.21  manner or by any other means whatsoever, for or without 
  1.22  consideration, except that these terms shall not include: 
  1.23     (a) the acquisition of a motor vehicle by inheritance from 
  1.24  or by bequest of, a decedent who owned it; 
  1.25     (b) the transfer of a motor vehicle which was previously 
  2.1   licensed in the names of two or more joint tenants and 
  2.2   subsequently transferred without monetary consideration to one 
  2.3   or more of the joint tenants; 
  2.4      (c) the transfer of a motor vehicle by way of gift between 
  2.5   a husband and wife or parent and child; or 
  2.6      (d) the voluntary or involuntary transfer of a motor 
  2.7   vehicle between a husband and wife in a divorce proceeding.; or 
  2.8      (e) the transfer of a motor vehicle by way of a gift to an 
  2.9   organization that is exempt from federal income taxation under 
  2.10  section 501(c)(3) of the Internal Revenue Code, as amended 
  2.11  through December 31, 1996, when the motor vehicle will be used 
  2.12  exclusively (1) for religious, charitable, scientific, public 
  2.13  safety testing, literary, or educational purposes; (2) to foster 
  2.14  national or international amateur sports competition; or (3) for 
  2.15  the prevention of cruelty to children or animals. 
  2.16     Sec. 2.  Minnesota Statutes 1996, section 297B.01, 
  2.17  subdivision 8, is amended to read: 
  2.18     Subd. 8.  [PURCHASE PRICE.] "Purchase price" means the 
  2.19  total consideration valued in money for a sale, whether paid in 
  2.20  money or otherwise.  The purchase price excludes the amount of a 
  2.21  manufacturer's rebate paid or payable to the purchaser.  If a 
  2.22  motor vehicle is taken in trade as a credit or as part payment 
  2.23  on a motor vehicle taxable under this chapter, the credit or 
  2.24  trade-in value allowed by the person selling the motor vehicle 
  2.25  shall be deducted from the total selling price to establish the 
  2.26  purchase price of the vehicle being sold and the trade-in 
  2.27  allowance allowed by the seller shall constitute the purchase 
  2.28  price of the motor vehicle accepted as a trade-in.  The purchase 
  2.29  price in those instances where the motor vehicle is acquired by 
  2.30  gift or by any other transfer for a nominal or no monetary 
  2.31  consideration shall also include the average value of similar 
  2.32  motor vehicles, established by standards and guides as 
  2.33  determined by the motor vehicle registrar.  The purchase price 
  2.34  in those instances where a motor vehicle is manufactured by a 
  2.35  person who registers it under the laws of this state shall mean 
  2.36  the manufactured cost of such motor vehicle and manufactured 
  3.1   cost shall mean the amount expended for materials, labor and 
  3.2   other properly allocable costs of manufacture, except that in 
  3.3   the absence of actual expenditures for the manufacture of a part 
  3.4   or all of the motor vehicle, manufactured costs shall mean the 
  3.5   reasonable value of the completed motor vehicle.  
  3.6      The term "purchase price" shall not include the portion of 
  3.7   the value of a motor vehicle due solely to modifications 
  3.8   necessary to make the motor vehicle handicapped accessible.  The 
  3.9   term "purchase price" shall not include the transfer of a motor 
  3.10  vehicle by way of gift between a husband and wife or parent and 
  3.11  child, or to a nonprofit organization as provided under section 
  3.12  297B.01, paragraph (e), nor shall it include the transfer of a 
  3.13  motor vehicle by a guardian to a ward when there is no monetary 
  3.14  consideration and the title to such vehicle was registered in 
  3.15  the name of the guardian, as guardian, only because the ward was 
  3.16  a minor.  There shall not be included in "purchase price" the 
  3.17  amount of any tax imposed by the United States upon or with 
  3.18  respect to retail sales whether imposed upon the retailer or the 
  3.19  consumer.  
  3.20     The term "purchase price" shall not include the transfer of 
  3.21  a motor vehicle as a gift between a foster parent and foster 
  3.22  child.  For purposes of this subdivision, a foster relationship 
  3.23  exists, regardless of the age of the child, if (1) a foster 
  3.24  parent's home is or was licensed as a foster family home under 
  3.25  Minnesota Rules, parts 9545.0010 to 9545.0260, and (2) the 
  3.26  county verifies that the child was a state ward or in permanent 
  3.27  foster care. 
  3.28     Sec. 3.  [EFFECTIVE DATE.] 
  3.29     Sections 1 and 2 are effective for transfers of motor 
  3.30  vehicles after June 30, 1997.