HF 3407

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; reducing passenger automobile 
  1.3             registration tax rate; changing vehicle depreciation 
  1.4             schedule; reducing minimum additional registration 
  1.5             tax; clarifying and removing obsolete, archaic, and 
  1.6             redundant statutory language; amending Minnesota 
  1.7             Statutes 1998, section 168.013, subdivision 1a. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1998, section 168.013, 
  1.10  subdivision 1a, is amended to read: 
  1.11     Subd. 1a.  [PASSENGER AUTOMOBILE; HEARSE.] (a) On passenger 
  1.12  automobiles as defined in section 168.011, subdivision 7, and 
  1.13  hearses, except as otherwise provided, the tax shall be is $10 
  1.14  plus an additional tax equal to 1.25 1.2 percent of the base 
  1.15  value.  
  1.16     (b) Subject to the classification provisions herein in this 
  1.17  subdivision, "base value" means the manufacturer's suggested 
  1.18  retail price of the vehicle, including destination charge, using 
  1.19  list price information published by the manufacturer or 
  1.20  determined by the registrar if no suggested retail price exists, 
  1.21  and shall.  Base value does not include the cost of each 
  1.22  accessory or item of optional equipment separately added to the 
  1.23  vehicle and the suggested retail price. 
  1.24     (c) If the manufacturer's list price information contains a 
  1.25  single vehicle identification number followed by various 
  1.26  descriptions and suggested retail prices, the registrar shall 
  2.1   select from those listings only the lowest price for determining 
  2.2   base value. 
  2.3      (d) If unable to determine the base value because the 
  2.4   vehicle is specially constructed, or for due to any other 
  2.5   reason, the registrar may establish such the value upon the cost 
  2.6   price to the purchaser or owner as evidenced by a certificate of 
  2.7   cost but not including Minnesota sales or use tax or any local 
  2.8   sales or other local tax. 
  2.9      (e) The registrar shall classify every vehicle in its 
  2.10  proper base value class as follows: 
  2.11                        FROM                   TO
  2.12                        $  0                $199.99
  2.13                         200                 399.99
  2.14  and thereafter, consisting of a series of classes successively 
  2.15  set in brackets having a spread of $200 consisting of such, with 
  2.16  that number of classes as will required to permit classification 
  2.17  of all vehicles. 
  2.18     (f) The base value for purposes of this section shall be is 
  2.19  the middle point between the extremes of its class. 
  2.20     (g) The registrar shall establish the base value, when new, 
  2.21  of every passenger automobile and hearse registered prior to the 
  2.22  effective date of Extra Session Laws 1971, chapter 31, using 
  2.23  list price information published by the manufacturer or any 
  2.24  nationally recognized firm or association compiling such data 
  2.25  for the automotive industry.  If unable to ascertain the base 
  2.26  value of any registered vehicle in the foregoing this manner, 
  2.27  the registrar may use any other available source or method.  The 
  2.28  tax on all previously registered vehicles shall must be computed 
  2.29  upon the base value thus determined taking into account the 
  2.30  depreciation provisions of paragraph (h). 
  2.31     (h) Except as provided in paragraph (i), The annual 
  2.32  additional tax computed upon the base value as provided herein 
  2.33  of a passenger automobile or hearse, during the first and second 
  2.34  years year of vehicle life shall be is computed upon 100 percent 
  2.35  of the base value; for the third and fourth years second year, 
  2.36  90 percent of such that value; for the fifth and sixth years, 75 
  3.1   third year, 80 percent of that value; for the fourth year, 70 
  3.2   percent of such that value; for the seventh fifth year, 60 
  3.3   percent of such that value; for the sixth year, 50 percent of 
  3.4   that value; for the eighth seventh year, 40 percent of such 
  3.5   that value; for the ninth eighth year, 30 percent of such that 
  3.6   value; for the ninth year, 20 percent of that value; for the 
  3.7   tenth year, ten percent of such that value; for the 11th and 
  3.8   each succeeding year, the sum of $25 $20.  
  3.9      In no event shall The annual additional tax must not be 
  3.10  less than $25 $20.  
  3.11     (i) The annual additional tax under paragraph (h) on a 
  3.12  motor vehicle on which the first annual tax was paid before 
  3.13  January 1, 1990, must not exceed the tax that was paid on that 
  3.14  vehicle the year before. 
  3.15     Sec. 2.  [EFFECTIVE DATE.] 
  3.16     Section 1 is effective October 1, 2000, for registrations 
  3.17  due on or after that date.