HF 1635

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; allowing, for purposes of the 
  1.3             sales tax on motor vehicles, a reduction in the 
  1.4             purchase price of a motor vehicle for the value of a 
  1.5             previous vehicle that was sold by the purchaser and 
  1.6             for which the sales tax was paid; making a technical 
  1.7             change; amending Minnesota Statutes 1994, section 
  1.8             297B.01, subdivision 8. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 1994, section 297B.01, 
  1.11  subdivision 8, is amended to read: 
  1.12     Subd. 8.  [PURCHASE PRICE.] (a) "Purchase price" means the 
  1.13  total consideration valued in money for a sale, whether paid in 
  1.14  money or otherwise, provided however, that: 
  1.15     (1) when a motor vehicle is taken in trade as a credit or 
  1.16  as part payment on a motor vehicle taxable under Laws 1971, 
  1.17  chapter 853 this chapter, the credit or trade-in value allowed 
  1.18  by the person selling the motor vehicle shall be deducted from 
  1.19  the total selling price to establish the purchase price of the 
  1.20  vehicle being sold and the trade-in allowance allowed by the 
  1.21  seller shall constitute the purchase price of the motor vehicle 
  1.22  accepted as a trade-in; or 
  1.23     (2) when a motor vehicle was owned by the purchaser within 
  1.24  the past year and was sold rather than being offered in trade as 
  1.25  credit or as part payment under clause (1), for which the tax 
  1.26  required by section 297B.02 was paid, the selling price of that 
  1.27  previously owned vehicle as shown on the certificate of title 
  2.1   pursuant to section 168A.10, but not to exceed the value of the 
  2.2   vehicle as computed for registration purposes under section 
  2.3   168.013, shall be deducted from the total selling price of the 
  2.4   present vehicle to establish, for purposes of computing the tax 
  2.5   to be collected under this chapter, the purchase price of the 
  2.6   present vehicle. 
  2.7      (b) The purchase price in those instances where the motor 
  2.8   vehicle is acquired by gift or by any other transfer for a 
  2.9   nominal or no monetary consideration shall also include the 
  2.10  average value of similar motor vehicles, established by 
  2.11  standards and guides as determined by the motor vehicle 
  2.12  registrar.  
  2.13     (c) The purchase price in those instances where a motor 
  2.14  vehicle is manufactured by a person who registers it under the 
  2.15  laws of this state shall mean the manufactured cost of such 
  2.16  motor vehicle and manufactured cost shall mean the amount 
  2.17  expended for materials, labor and other properly allocable costs 
  2.18  of manufacture, except that in the absence of actual 
  2.19  expenditures for the manufacture of a part or all of the motor 
  2.20  vehicle, manufactured costs shall mean the reasonable value of 
  2.21  the completed motor vehicle.  
  2.22     (d) The term "purchase price" shall not include the portion 
  2.23  of the value of a motor vehicle due solely to modifications 
  2.24  necessary to make the motor vehicle handicapped accessible.  The 
  2.25  term "purchase price" shall not include the transfer of a motor 
  2.26  vehicle by way of gift between a husband and wife or parent and 
  2.27  child, nor shall it include the transfer of a motor vehicle by a 
  2.28  guardian to a ward when there is no monetary consideration and 
  2.29  the title to such vehicle was registered in the name of the 
  2.30  guardian, as guardian, only because the ward was a minor.  There 
  2.31  shall not be included in "purchase price" the amount of any tax 
  2.32  imposed by the United States upon or with respect to retail 
  2.33  sales whether imposed upon the retailer or the consumer.  
  2.34     Sec. 2.  [EFFECTIVE DATE.] 
  2.35     Section 1 is effective August 1, 1995, for sales made on 
  2.36  and after that date.