SF 819

as introduced - 91st Legislature (2019 - 2020) Posted on 02/04/2019 02:59pm

A bill for an act
relating to transportation; amending the calculation of vehicle registration tax;
amending Minnesota Statutes 2018, section 168.013, subdivision 1a.

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

Section 1.

Minnesota Statutes 2018, 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, the tax is $10
plus an additional tax equal to 1.25 percent of the deleted text begin base value deleted text end new text begin purchase price, as defined in
section 297B.01, except that if a motor vehicle is taken in trade as a credit or as part payment
on a motor vehicle taxable under this chapter, the credit or trade-in value allowed by the
person selling the motor vehicle shall not be deducted from the total selling price when
establishing the purchase price of the vehicle being sold new text end .

deleted text begin (b) 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 shall not include the cost of each accessory or item of optional equipment
separately added to the vehicle and the suggested retail price.
deleted text end

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) The registrar shall establish the base value, when new, of every passenger automobile
and hearse registered prior to the effective date of Extra Session Laws 1971, chapter 31,
using list price information published by the manufacturer or any nationally recognized
firm or association compiling such data for the automotive industry. 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. The registrar shall calculate tax using base value
information available to dealers and deputy registrars at the time the application for
registration is submitted. 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

deleted text begin (h) deleted text end new text begin (b) new text end The annual additional tax must be computed upon a percentage of the deleted text begin base value deleted text end new text begin
purchase price new text end as follows: during the first year of vehicle life, upon 100 percent of the deleted text begin base
value deleted text end new text begin purchase price new text end ; for the second year, 90 percent of such deleted text begin value deleted text end new text begin price new text end ; for the third year,
80 percent of such deleted text begin value deleted text end new text begin price new text end ; for the fourth year, 70 percent of such deleted text begin value deleted text end new text begin price new text end ; for the
fifth year, 60 percent of such deleted text begin value deleted text end new text begin price new text end ; for the sixth year, 50 percent of such deleted text begin value deleted text end new text begin price new text end ;
for the seventh year, 40 percent of such deleted text begin value deleted text end new text begin price new text end ; for the eighth year, 30 percent of such
deleted text begin value deleted text end new text begin price new text end ; for the ninth year, 20 percent of such deleted text begin value deleted text end new text begin price new text end ; for the tenth year, ten percent
of such deleted text begin value deleted text end new text begin price new text end ; for the 11th and each succeeding year, the sum of $25.

deleted text begin (i) deleted text end new text begin (c) new text end In no event shall the annual additional tax be less than $25.

deleted text begin (j) deleted text end new text begin (d) 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 EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020.
new text end