HF 4338

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/11/2024 04:52pm

A bill for an act
relating to transportation; establishing certain exemptions from taxes and fees for
eligible surviving spouses of a veteran, including certain registration taxes, license
plates fees, title fees, driver's license and identification card fees, and motor vehicle
sales taxes; amending Minnesota Statutes 2022, section 171.01, by adding a
subdivision; Minnesota Statutes 2023 Supplement, sections 168.012, subdivision
13; 171.06, subdivision 2c; 297B.03.

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

Section 1.

Minnesota Statutes 2023 Supplement, section 168.012, subdivision 13, is
amended to read:

Subd. 13.

Vehicles registered by certain deleted text begin veterans deleted text end new text begin owners new text end .

(a) new text begin For purposes of this
subdivision, "eligible owner" means any of the following:
new text end

new text begin (1) a veteran with a total service-connected disability, as defined in section 171.01,
subdivision 51; and
new text end

new text begin (2) a Gold Star spouse, as defined in section 171.01, subdivision 33b.
new text end

new text begin (b) new text end A passenger automobile, one-ton pickup truck, motorcycle, or recreational vehicle
registered by deleted text begin a veteran with a total service-connected disability, as defined in section 171.01,
subdivision 51, deleted text end new text begin an eligible owner new text end is not subject to:

(1) registration taxes under this chapter;

(2) administrative fees imposed under subdivision 1c;

(3) filing fees and surcharges imposed under section 168.33, subdivision 7; or

(4) plate and validation sticker fees imposed under this chapter, including but not limited
to:

(i) fees under section 168.12, subdivision 5;

(ii) fees identified in any section authorizing special plates; and

(iii) transfer fees.

deleted text begin (b) deleted text end new text begin (c) new text end The exemptions under this subdivision apply to a motor vehicle that is jointly
registered by deleted text begin a qualifying veteran deleted text end new text begin an eligible owner new text end and a spouse or domestic partner.

deleted text begin (c) deleted text end new text begin (d) new text end The fees identified under paragraph deleted text begin (a) deleted text end new text begin (b) new text end , clause (4), do not include:

(1) a fee for personalized plates under section 168.12, subdivision 2a; or

(2) a required contribution or donation for a special plate, including but not limited to
a contribution under sections 168.1255, subdivision 1, clause (6); 168.1258, subdivision 1,
clause (4); 168.1259, subdivision 2, new text begin paragraph (a), new text end clause (5); 168.1287, subdivision 1,
clause (5); 168.129, subdivision 1, clause (5); 168.1295, subdivision 1, paragraph (a), clause
(5); 168.1296, subdivision 1, paragraph (a), clause (5); and 168.1299, subdivision 1, clause
(3).

deleted text begin (d) A qualifying veteran deleted text end new text begin (e) An eligible owner new text end may register no more than two motor
vehicles at the same time with the exemptions under this subdivision. Nothing in this
paragraph prevents registration of additional motor vehicles as otherwise provided in this
chapter.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to taxes payable for a registration period starting on or after January 1, 2025.
new text end

Sec. 2.

Minnesota Statutes 2022, section 171.01, is amended by adding a subdivision to
read:

new text begin Subd. 33b. new text end

new text begin Gold Star spouse. new text end

new text begin "Gold Star spouse" means the surviving spouse of a person
who has died while serving honorably in active service, as defined in section 190.05,
subdivision 5.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2025.
new text end

Sec. 3.

Minnesota Statutes 2023 Supplement, section 171.06, subdivision 2c, is amended
to read:

Subd. 2c.

Exemption; certain deleted text begin veterans deleted text end new text begin individuals new text end .

For an applicant who is a veteran
with a total service-connected disability new text begin or a Gold Star spouse new text end , the commissioner must not
impose:

(1) a license or endorsement fee, including fees and surcharges specified under:

(i) subdivisions 2 and 2a; and

(ii) section 171.02, subdivision 3;

(2) a filing fee under subdivision 2 or section 171.061, subdivision 4; or

(3) a fee for an identification card under section 171.07, subdivision 3 or 3a.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2025.
new text end

Sec. 4.

Minnesota Statutes 2023 Supplement, section 297B.03, is amended to read:

297B.03 EXEMPTIONS.

There is specifically exempted from the provisions of this chapter and from computation
of the amount of tax imposed by it the following:

(1) purchase or use, including use under a lease purchase agreement or installment sales
contract made pursuant to section 465.71, of any motor vehicle by the United States and its
agencies and instrumentalities and by any person described in and subject to the conditions
provided in section 297A.67, subdivision 11;

(2) purchase or use of any motor vehicle by any person who was a resident of another
state or country at the time of the purchase and who subsequently becomes a resident of
Minnesota, provided the purchase occurred more than 60 days prior to the date such person
began residing in the state of Minnesota and the motor vehicle was registered in the person's
name in the other state or country;

(3) purchase or use of any motor vehicle by any person making a valid election to be
taxed under the provisions of section 297A.90;

(4) purchase or use of any motor vehicle previously registered in the state of Minnesota
when such transfer constitutes a transfer within the meaning of section 118, 331, 332, 336,
337, 338, 351, 355, 368, 721, 731, 1031, 1033, or 1563(a) of the Internal Revenue Code,
as amended through December 16, 2016;

(5) purchase or use of any vehicle owned by a resident of another state and leased to a
Minnesota-based private or for-hire carrier for regular use in the transportation of persons
or property in interstate commerce provided the vehicle is titled in the state of the owner or
secured party, and that state does not impose a sales tax or sales tax on motor vehicles used
in interstate commerce;

(6) purchase or use of a motor vehicle by a private nonprofit or public educational
institution for use as an instructional aid in automotive training programs operated by the
institution. "Automotive training programs" includes motor vehicle body and mechanical
repair courses but does not include driver education programs;

(7) purchase of a motor vehicle by an ambulance service licensed under section 144E.10
when that vehicle is equipped and specifically intended for emergency response or for
providing ambulance service;

(8) purchase of a motor vehicle by or for a public library, as defined in section 134.001,
subdivision 2, as a bookmobile or library delivery vehicle;

(9) purchase of a ready-mixed concrete truck;

(10) purchase or use of a motor vehicle by a town for use exclusively for road
maintenance, including snowplows and dump trucks, but not including automobiles, vans,
or pickup trucks;

(11) purchase or use of a motor vehicle by a corporation, society, association, foundation,
or institution organized and operated exclusively for charitable, religious, or educational
purposes, except a public school, university, or library, but only if the vehicle is:

(i) a truck, as defined in section 168.002, a bus, as defined in section 168.002, or a
passenger automobile, as defined in section 168.002, if the automobile is designed and used
for carrying more than nine persons including the driver; and

(ii) intended to be used primarily to transport tangible personal property or individuals,
other than employees, to whom the organization provides service in performing its charitable,
religious, or educational purpose;

(12) purchase of a motor vehicle for use by a transit provider exclusively to provide
transit service is exempt if the transit provider is either (i) receiving financial assistance or
reimbursement under section 174.24 or 473.384, or (ii) operating under section 174.29,
473.388, or 473.405;

(13) purchase or use of a motor vehicle by a qualified business, as defined in section
469.310, located in a job opportunity building zone, if the motor vehicle is principally
garaged in the job opportunity building zone and is primarily used as part of or in direct
support of the person's operations carried on in the job opportunity building zone. The
exemption under this clause applies to sales, if the purchase was made and delivery received
during the duration of the job opportunity building zone. The exemption under this clause
also applies to any local sales and use tax;

(14) purchase of a leased vehicle by the lessee who was a participant in a lease-to-own
program from a charitable organization that is:

(i) described in section 501(c)(3) of the Internal Revenue Code; and

(ii) licensed as a motor vehicle lessor under section 168.27, subdivision 4;

(15) purchase of a motor vehicle used exclusively as a mobile medical unit for the
provision of medical or dental services by a federally qualified health center, as defined
under title 19 of the Social Security Act, as amended by Section 4161 of the Omnibus Budget
Reconciliation Act of 1990; deleted text begin and
deleted text end

(16) purchase of a motor vehicle by a veteran having a total service-connected disability,
as defined in section 171.01, subdivision 51 deleted text begin . deleted text end new text begin ; and
new text end

new text begin (17) purchase of a motor vehicle by a Gold Star spouse, as defined in section 171.01,
subdivision 33b.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after June
30, 2025.
new text end