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HF 1540

as introduced - 88th Legislature (2013 - 2014) Posted on 03/13/2013 03:03pm

KEY: stricken = removed, old language.
underscored = added, new language.
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Engrossments
Introduction Posted on 03/13/2013

Current Version - as introduced

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A bill for an act
 relating to taxation; sales and use; repealing the rental motor vehicle tax;
amending Minnesota Statutes 2012, section 297A.64, subdivisions 2, 3, 4;
repealing Minnesota Statutes 2012, section 297A.64, subdivision 1.

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

Section 1.

Minnesota Statutes 2012, 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 deleted text begin subject to the tax under subdivision 1deleted text end new text begin 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 26new text end . 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 deleted text begin tax under subdivision
1deleted text end new text begin fee under paragraph (a)new text end that are available to its members for use, priced on the basis
of intervals of one hour or less;

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

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

(4) does not charge usage rates that decline on a per unit basis, whether specified
based on distance or time.

Sec. 2.

Minnesota Statutes 2012, section 297A.64, subdivision 3, is amended to read:


Subd. 3.

Administration.

deleted text begin The retailer shall report and pay the tax imposed in
subdivision 1 to the commissioner of revenue with the taxes imposed in this chapter. The
tax imposed in subdivision 1 anddeleted text end The fee imposed in subdivision 2 deleted text begin aredeleted text end new text begin isnew text end subject to the
same interest, penalty, and other provisions provided for sales and use taxes under this
chapter and chapter 289A. The audit, assessment, appeal, collection, enforcement, and
administrative provisions of this chapter and chapters 270C and 289A, that apply to sales
and use taxes, apply to the deleted text begin tax anddeleted text end fee.

Sec. 3.

Minnesota Statutes 2012, section 297A.64, subdivision 4, is amended to read:


Subd. 4.

Exemptions.

(a) The deleted text begin tax and thedeleted text end fee imposed by this section deleted text begin dodeleted text end new text begin doesnew text end 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 deleted text begin tax and thedeleted text end fee imposed under this section deleted text begin dodeleted text end new text begin doesnew text end not apply when the lease or rental
of a vehicle is exempt from the tax imposed under section 297A.62, subdivision 1.

(b) 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 deleted text begin tax under this sectiondeleted text end new text begin the feenew text end , or no more than $50,000 in gross
receipts that would have been subject to deleted text begin tax under this sectiondeleted text end new text begin the feenew text end .

Sec. 4. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2012, section 297A.64, subdivision 1, new text end new text begin is repealed.
 new text end