HF 1774

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; income; providing a credit for
carsharing; amending Minnesota Statutes 2004, sections
290.06, by adding a subdivision; 297A.64, subdivision
4.

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

Section 1.

Minnesota Statutes 2004, section 290.06, is
amended by adding a subdivision to read:

new text begin Subd. 32. new text end

new text begin Carsharing credit. new text end

new text begin (a) For purposes of this
subdivision, a "carsharing organization" means an organization
that:
new text end

new text begin (1) is described in section 501(c) of the Internal Revenue
Code;
new text end

new text begin (2) is comprised of members who purchase the use of a motor
vehicle from the organization;
new text end

new text begin (3) owns or leases a fleet of motor vehicles that are
available to members of the organization to pay for the use of a
vehicle on an hourly or per trip basis; and
new text end

new text begin (4) does not assign exclusive rights of use of specific
vehicles to individual members or allow individual members to
keep a vehicle in the member's sole possession.
new text end

new text begin (b) A taxpayer may take a credit against the tax due under
this chapter for the expenses incurred by the taxpayer to
purchase a membership and pay monthly dues to a carsharing
organization or to provide memberships and pay monthly dues to a
carsharing organization to employees of the taxpayer. The
amount of the credit is equal to the lesser of the actual cost
of the membership fee and the monthly dues, or $390. If an
employer purchases the membership or pays the monthly dues to
the nonprofit carsharing organization and resells the membership
to its employees or charges the monthly dues to its employees,
the credit allowed to the employer is the amount of the
difference between the amount paid by the employer and the
amount charged to the employee.
new text end

new text begin (c) A taxpayer who owns a parking facility that charges
customers an amount to park vehicles at the facility and
provides dedicated parking space at no charge to a nonprofit
carsharing organization to park the motor vehicles that are used
by the members of the organization on an hourly or per trip
basis, may take a credit against the tax due under this chapter
for the value of the dedicated parking space provided to the
nonprofit carsharing organization. The value of the dedicated
parking space is equal to the lowest amount charged to customers
who pay to park at the facility calculated on an hourly, daily,
or other long-term rate that results in the lowest total cost.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable
years beginning after December 31, 2005.
new text end

Sec. 2.

Minnesota Statutes 2004, 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; deleted text begin or deleted text end (3) a van designed or adapted primarily for
transporting property rather than passengers new text begin ; or (4) a vehicle
used by members of a carsharing organization as defined in
section 290.06, subdivision 32 new text end .

(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 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 leases or
rentals occurring on and after January 1, 2006.
new text end