Minnesota Legislature
HF 3547
1st Engrossment - 91st Legislature (2019 - 2020) Posted on 03/02/2020 03:38pm
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A bill for an act
relating to transportation; amending determination of the motor vehicle registration
tax; amending Minnesota Statutes 2019 Supplement, section 168.013, subdivision
1a.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2019 Supplement, section 168.013, subdivision 1a, is
amended to read:
Subd. 1a.
Passenger automobile; hearse.
(a) On passenger automobiles as defined in
section 168.002, subdivision 24, and hearses, except as otherwise provided, thenew text begin registrationnew text end
tax isnew text begin calculated as:
new text end
new text begin (1)new text end $10new text begin ;new text end plus deleted text begin an additional tax equal to
deleted text end
new text begin (2)new text end 1.25 percent of the deleted text begin base valuedeleted text end new text begin manufacturer's suggested retail price of the vehicle,
subject to the adjustments in paragraphs (f) and (g)new text end .
(b) deleted text begin Subject to the classification provisions herein, "Base value" means the manufacturer's
suggested retail price of the vehicle including destination charge using list price information
published by the manufacturer or determined by the registrar if no suggested retail price
exists, and shalldeleted text end new text begin The registration tax calculation doesnew text end not include the cost of each accessory
or item of optional equipment separately added to the vehicle and thenew text begin manufacturer'snew text end
suggested retail pricenew text begin , and does not include a destination charge, except for a vehicle
previously registered in Minnesota prior to the effective date of this sectionnew text end .
new text begin (c)new text end In the case of the first registration of a new vehicle sold or leased by a licensed dealer,
the dealer may elect to individually determine the deleted text begin base value ofdeleted text end new text begin registration tax onnew text end the
vehicle usingnew text begin manufacturer'snew text end suggested retail price information provided by the manufacturer.
deleted text begin The registrar must use the base value determined by the dealer to properly classify the
vehicle.deleted text end A dealer that elects to make the determination must retain a copy of the suggested
retail price label or other supporting documentation with the vehicle transaction records
maintained under Minnesota Rules, part 7400.5200.
deleted text begin
(c) If the manufacturer's list price information contains a single vehicle identification
number followed by various descriptions and suggested retail prices, the registrar shall
select from those listings only the lowest price for determining base value.
deleted text end
deleted text begin
(d) If unable to determine the base value because the vehicle is specially constructed,
or for any other reason, the registrar may establish such value upon the cost price to the
purchaser or owner as evidenced by a certificate of cost but not including Minnesota sales
or use tax or any local sales or other local tax.
deleted text end
deleted text begin
(e) The registrar shall classify every vehicle in its proper base value class as follows:
deleted text end
|
deleted text begin
FROM deleted text end |
deleted text begin
TO deleted text end |
||
|
deleted text begin
$ deleted text end |
deleted text begin
0 deleted text end |
deleted text begin
$ 199.99 deleted text end |
|
|
deleted text begin
$ deleted text end |
deleted text begin
200 deleted text end |
deleted text begin
$ 399.99 deleted text end |
|
deleted text begin
and thereafter a series of classes successively set in brackets having a spread of $200
consisting of such number of classes as will permit classification of all vehicles.
deleted text end
deleted text begin
(f) The base value for purposes of this section shall be the middle point between the
extremes of its class.
deleted text end
deleted text begin (g)deleted text end new text begin (d)new text end The registrar deleted text begin shalldeleted text end new text begin mustnew text end establish the deleted text begin base value, when new, of every passenger
automobile and hearse registered prior to the effective date of Extra Session Laws 1971,
chapter 31,deleted text end new text begin registration taxnew text end usingnew text begin : (1) the amount determined by a licensed dealer under
paragraph (c), if determined; (2)new text end list price information published by the manufacturer or
any nationally recognized firm or association compiling such data for the automotive
industrynew text begin ; or (3) the retail price label as provided by the manufacturer under United States
Code, title 15, section 1232new text end . If unable to ascertain the base value of any registered vehicle
in the foregoing manner, the registrar may use any other available source or method.
new text begin (e)new text end The registrar deleted text begin shalldeleted text end new text begin mustnew text end calculatenew text begin the registrationnew text end tax using deleted text begin base valuedeleted text end information
available to dealers and deputy registrars at the time thenew text begin initialnew text end application for registration
is submitted. deleted text begin The tax on all previously registered vehicles shall be computed upon the base
value thus determined taking into account the depreciation provisions of paragraph (h).deleted text end new text begin
Except for data integrity purposes, the commissioner must not adjust the manufacturer's
suggested retail price or destination charge for the vehicle in a subsequent registration period.
new text end
deleted text begin (h)deleted text end new text begin (f)new text end The deleted text begin annual additional taxdeleted text end new text begin calculation under paragraph (a), clause (2),new text end must be
deleted text begin computed upondeleted text end new text begin adjusted based onnew text end a percentage of the deleted text begin base valuedeleted text end new text begin identified amount,new text end as
follows: during the first year of vehicle life, upon 100 percent of the deleted text begin base valuedeleted text end new text begin amountnew text end ;
for the second year, 90 percent of deleted text begin such valuedeleted text end new text begin the amountnew text end ; for the third year, 80 percent of
deleted text begin such valuedeleted text end new text begin the amountnew text end ; for the fourth year, 70 percent of deleted text begin such valuedeleted text end new text begin the amountnew text end ; for the
fifth year, 60 percent of deleted text begin such valuedeleted text end new text begin the amountnew text end ; for the sixth year, 50 percent of deleted text begin such valuedeleted text end new text begin
the amountnew text end ; for the seventh year, 40 percent of deleted text begin such valuedeleted text end new text begin the amountnew text end ; for the eighth year,
30 percent of deleted text begin such valuedeleted text end new text begin the amountnew text end ; for the ninth year, 20 percent of deleted text begin such valuedeleted text end new text begin the amountnew text end ;new text begin
andnew text end for the tenth year, ten percent of deleted text begin such value;deleted text end new text begin the amount.
new text end
new text begin (g)new text end For the 11th and each succeeding year, the deleted text begin sum ofdeleted text end new text begin calculation under paragraph (a),
clause (2), must be adjusted tonew text end $25.
deleted text begin
(i) In no event shall the annual additional tax be less than $25.
deleted text end
deleted text begin (j)deleted text end new text begin (h)new text end For any vehicle previously registered in Minnesota and regardless of prior
ownership, the total amount due under this subdivision and subdivision 1m must not exceed
the smallest total amount previously paid or due on the vehicle.
new text begin
(i) Nothing in this subdivision prevents collection of a tax or fee that for data integrity
purposes the commissioner determines is due for a current or prior registration period.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2021, or upon completion of
the necessary programming changes to the replacement motor vehicle title and registration
information system, whichever is earlier, and applies to taxes payable for a registration
period starting on or after that date. The commissioner of public safety must notify the
revisor of statutes of the implementation date.
new text end