HF 1821

as introduced - 90th Legislature (2017 - 2018) Posted on 03/06/2017 03:44pm

A bill for an act
relating to taxation; allowing disclosure of certain return information to the
Department of Transportation; modifying presumptions for the motor vehicle sales
tax; amending Minnesota Statutes 2016, sections 270B.14, by adding a subdivision;
297B.07.

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

Section 1.

Minnesota Statutes 2016, section 270B.14, is amended by adding a subdivision
to read:

new text begin Subd. 21. new text end

new text begin Department of Transportation. new text end

new text begin The commissioner may disclose return
information related to the taxes imposed by chapter 297A to the Department of Transportation
only:
new text end

new text begin (1) if the commissioner has an agreement with the commissioner of transportation under
section 297A.82, subdivision 7; and
new text end

new text begin (2) to the extent necessary for the Department of Transportation to verify that the
applicable sales or use tax has been paid or that a sales tax exemption applies on the lease,
purchase, or sale of an aircraft by an individual or business who owns and operates the
aircraft that must be registered or licensed in Minnesota, and to otherwise administer sections
297A.82 and 360.018.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2016, section 297B.07, is amended to read:

297B.07 PRESUMPTIONS.

new text begin Subdivision 1. new text end

new text begin Presumption; sale and registration. new text end

For the purpose of the proper
administration of deleted text begin Laws 1971, chapter 853 deleted text end new text begin this chapter new text end , and to prevent evasion of the tax,
the following presumptions shall apply:

(a) Evidence that a motor vehicle was sold for delivery in this state shall be prima facie
evidence that it was sold for use in this state.

(b) When an application for registration plates for a motor vehicle is received by the
motor vehicle registrar within 30 days of the date it was purchased or acquired by the
purchaser, it shall be presumed, until the contrary is shown by the purchaser, that it was
purchased or acquired for use in this state. This presumption shall apply whether or not such
vehicle was previously titled or registered in another state.

new text begin Subd. 2. new text end

new text begin Presumption; ownership. new text end

new text begin (a) When a business entity not organized under the
laws of this state owns a motor vehicle that is under the control of a Minnesota resident, it
is presumed that the Minnesota resident is the owner of the motor vehicle if two or more
of the following are true:
new text end

new text begin (1) the business entity lacks a specific business activity or purpose other than the
avoidance of tax;
new text end

new text begin (2) the business entity maintains no physical location in the jurisdiction where it is
organized;
new text end

new text begin (3) the business entity earns de minimis or no revenue;
new text end

new text begin (4) the business entity maintains minimal or no business records;
new text end

new text begin (5) the business entity fails to employ individual persons and provide those persons with
federal income tax W-2 wage and tax statements; or
new text end

new text begin (6) the business entity fails to file federal income tax returns or fails to file a required
state tax return where it is organized.
new text end

new text begin (b) For purposes of this subdivision, a motor vehicle is under the control of a Minnesota
resident if the Minnesota resident:
new text end

new text begin (1) is a partner, member, or shareholder of the business entity;
new text end

new text begin (2) is insured to drive the vehicle; and
new text end

new text begin (3) operates or stores the vehicle in Minnesota for any period of time.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end