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HF 1357

as introduced - 91st Legislature (2019 - 2020) Posted on 02/18/2019 02:17pm

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

Bill Text Versions

Engrossments
Introduction Posted on 02/15/2019

Current Version - as introduced

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A bill for an act
relating to taxation; sales and use; exempting car-sharing services from the special
tax and fee on short-term motor vehicle rentals; amending Minnesota Statutes
2018, section 297A.64, subdivisions 2, 4.

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

Section 1.

Minnesota Statutes 2018, section 297A.64, subdivision 2, is amended to read:


Subd. 2.

Fee imposed.

deleted text begin (a)deleted text end 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."

deleted text begin (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:
deleted text end

deleted text begin (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;
deleted text end

deleted text begin (2) parks its vehicles at unstaffed, self-service locations that are accessible at any time
of the day;
deleted text end

deleted text begin (3) maintains its vehicles, insures its vehicles on behalf of its members, and purchases
fuel for its fleet; 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, 2019.
new text end

Sec. 2.

Minnesota Statutes 2018, section 297A.64, subdivision 4, is amended to read:


Subd. 4.

Exemptions.

(a) The tax and the fee imposed by this section do not apply to a
lease or rental of (1) a vehicle to be used by the lessee to provide a licensed taxi service;
(2) a hearse or limousine used in connection with a burial or funeral service; or (3) a van
designed or adapted primarily for transporting property rather than passengers. The tax and
the fee imposed under this section do not apply when the lease or rental of a vehicle is
exempt from the tax imposed under section 297A.62, subdivision 1.

(b)new text begin The tax and fee imposed by this section do not apply to the lease of vehicles by a
business or organization if the business or organization:
new text end

new text begin (1) requires individuals or groups to register for a membership in order to lease vehicles
from the business or organization;
new text end

new text begin (2) owns or leases a fleet of vehicles of the type subject to the tax under subdivision 1
that are available only to members for use, priced on the basis of intervals of one hour or
less;
new text end

new text begin (3) parks its vehicles at unstaffed, self-service locations that are accessible at any time
of the day;
new text end

new text begin (4) maintains and insures its vehicles on behalf of its members; and
new text end

new text begin (5) does not charge usage rates that decline on a per-unit basis, whether specified based
on distance or time, other than maximum daily rates.
new text end

new text begin (c)new text end The lessor may elect not to charge the fee imposed in subdivision 2 if in the previous
calendar year the lessor had no more than 20 vehicles available for lease that would have
been subject to tax under this section, or no more than $50,000 in gross receipts that would
have been subject to tax under this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after June
30, 2019.
new text end