Minnesota Legislature
HF 964
1st Engrossment - 92nd Legislature (2021 - 2022) Posted on 02/11/2022 11:39am
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A bill for an act
relating to motor vehicles; making various policy changes to title fee transfers,
mileage disclosures, driver's license photograph variances, deputy registrar fees,
and vehicle registration tax due dates; amending Minnesota Statutes 2020, sections
168.301, subdivision 1; 168.31, subdivision 4; 168A.11, subdivisions 1, 2; 171.071,
by adding a subdivision; 325E.15.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2020, section 168.301, subdivision 1, is amended to read:
Subdivision 1.
Surrender plates and credit tax paid.
new text begin (a) new text end On transferring a motor
vehicle, the transferor shall surrender the registration plates and assign the registration tax
paid to the credit of the transferee.
new text begin
(b) A fee of $10 shall be charged on each transfer of title within the state, other than
transfers for resale purposes, of every motor vehicle weighing more than 1,000 pounds, as
specified in section 115A.908.
new text end
Sec. 2.
Minnesota Statutes 2020, section 168.31, subdivision 4, is amended to read:
Subd. 4.
Installments; registration generally.
new text begin (a) new text end If the tax for a vehicle assessed under
section 168.013, subdivision 1c, 1d, 1e, or 1g, amounts to more than $400, the owner may
pay the tax by installments.
new text begin (b)new text end The owner shall tender with the application for registration one-third of the annual
tax due or $400, whichever is greater, plus any penalties or arrears, plus a fee of $10. Instead
of this fee, the applicant may furnish a bond, bank letter of credit, or certificate of deposit
approved by the registrar of motor vehicles, for the total of the tax still due. The amount of
the bond, letter of credit, or certificate of deposit may include any penalties assessed. The
bond, letter of credit, or certificate of deposit must be for the benefit of the state for monetary
loss caused by failure of the vehicle owner to pay delinquent license fees and penalties.
new text begin (c)new text end The remainder of the tax due must be paid in two equal installmentsdeleted text begin ;deleted text end new text begin .new text end The due date
of the first installment is deleted text begin the first day of the fifth month of the registration period for whichdeleted text end
deleted text begin the tax is assesseddeleted text end new text begin July 1,new text end and the second installment is due deleted text begin on the first day of the ninth
month of the registration period for which the tax is assesseddeleted text end new text begin November 1new text end .
new text begin (d)new text end When the applicant elects to pay the administrative fee, the registrar shall issue to
the applicant validation stickers indicating the expiration date of a registration. When the
applicant elects to furnish a bond, bank letter, or letter of deposit, the registrar shall issue
regular validation stickers for the registration year.
new text begin (e)new text end If an owner of a vehicle fails to pay an installment on or before its due date, the
vehicle must not be used on the public streets or highways in this state until the installment
or installments of the tax remaining due on the vehicle have been paid in full for the licensed
year together with a penalty at the rate of $1 per day for the remainder of the month in which
the balance of the tax becomes due and $4 a month for each succeeding month or fraction
of a month during which the balance of the tax remains unpaid. Upon the payment of the
balance of the tax and the penalties, the registrar shall issue a registration certificate to the
owner of the vehicle in the manner provided by law. The registrar shall deny installment
payment privileges provided in this subdivision in the subsequent year to any owner on any
or all vehicles of the owner who during the current year fails to pay any installment due
within one month after the due date.
Sec. 3.
Minnesota Statutes 2020, section 168A.11, subdivision 1, is amended to read:
Subdivision 1.
Requirements upon subsequent transfer; service fee.
(a) A dealer who
buys a vehicle and holds it for resale need not apply for a certificate of title. Upon transferring
the vehicle to another person, other than by the creation of a security interest, the dealer
shall promptly execute the assignment and warranty of title by a dealer, showing the names
and addresses of the transferee and of any secured party holding a security interest created
or reserved at the time of the resale, and the date of the security agreement in the spaces
provided therefor on the certificate of title or secure reassignment.
(b) If a dealer elects to apply for a certificate of title on a vehicle held for resale, the
dealer need not register the vehicle but shall pay one month's registration tax. If a dealer
elects to apply for a certificate of title on a vehicle held for resale, the department shall not
place any legend on the title that no motor vehicle sales tax was paid by the dealer, but may
indicate on the title whether the vehicle is a new or used vehicle.
(c) With respect to motor vehicles subject to the provisions of section 325E.15, the dealer
shall also, in the space provided therefor on the certificate of title or secure reassignment,
state the true cumulative mileage registered on the odometer or that the exact mileage is
unknown if the odometer reading is known by the transferor to be different from the true
mileage.
(d) The transferee shall complete the application for title section on the certificate of
title or separate title application form prescribed by the department. The dealer shall mail
or deliver the certificate to the registrar or deputy registrar with the transferee's application
for a new certificate and appropriate taxes and fees, within ten business days.
(e) With respect to vehicles sold to buyers who will remove the vehicle from this state,
the dealer shall remove any license plates from the vehicle, issue a 31-day temporary permit
pursuant to section 168.091, and notify the registrar within 48 hours of the sale that the
vehicle has been removed from this state. The notification must be made in an electronic
format prescribed by the registrar. The dealer may contract with a deputy registrar for the
notification of sale to an out-of-state buyer. The deputy registrar may charge a fee deleted text begin not to
exceeddeleted text end new text begin ofnew text end $7 per transaction to provide this service.
Sec. 4.
Minnesota Statutes 2020, section 168A.11, subdivision 2, is amended to read:
Subd. 2.
Notification on vehicle held for resale; service fee.
Within 48 hours of
acquiring a vehicle titled and registered in Minnesota, a dealer shall notify the registrar that
the dealership is holding the vehicle for resale. The notification must be made electronically
as prescribed by the registrar. The dealer may contract this service to a deputy registrar and
the registrar may charge a fee deleted text begin not to exceeddeleted text end new text begin ofnew text end $7 per transaction to provide this service.
Sec. 5.
Minnesota Statutes 2020, section 171.071, is amended by adding a subdivision to
read:
new text begin Subd. 4. new text end
new text begin Variance for homebound individuals. new text end
new text begin
(a) Notwithstanding section 171.07 or
Minnesota Rules, part 7410.1810, the commissioner may grant a variance from the
photograph requirements for a noncompliant identification card if (1) the individual is
homebound as defined in paragraph (b); (2) the individual has submitted proof of homebound
status; and (3) the department has a photograph of the applicant on file that was taken within
the last four years or during the most recent renewal cycle or the applicant has submitted a
photograph to the department that meets the requirements of section 171.07, Minnesota
Rules, part 7410.1810, subpart 1, and other technical requirements established by the
commissioner such as background color and electronic file size to ensure the image can be
used on a credential and conforms with images taken by the department. Applicants granted
a photograph variance under this subdivision are not required to appear in person to have
a new photograph taken.
new text end
new text begin
(b) For purposes of this subdivision, "homebound" means the individual is unable to
leave the individual's residence due to a medical, physical, or mental health condition or
infirmity as documented in writing by a physician, case worker, or social worker.
new text end
Sec. 6.
Minnesota Statutes 2020, section 325E.15, is amended to read:
325E.15 TRANSFER OF MOTOR VEHICLE; MILEAGE DISCLOSURE.
No person shall transfer a motor vehicle without disclosing deleted text begin in writingdeleted text end to the transferee
the true mileage registered on the odometer reading or that the actual mileage is unknown
if the odometer reading is known by the transferor to be different from the true mileage.
The regulations contained in Code of Federal Regulations, title 49, sections 580.1 to 580.17,
deleted text begin as amended through October 1, 1998, implementing title IV of the Federal Motor Vehicle
Information and Cost Savings Actdeleted text end new text begin that implement odometer disclosure requirements andnew text end
prescribe the manner in which new text begin electronic ornew text end written disclosure must be made in this state
deleted text begin anddeleted text end new text begin ,new text end are adopted by reference. No transferor shall violate any regulations adopted under
this section or knowingly give a false statement to a transferee in making any disclosure
required by the regulations.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end