SF 1023

1st Engrossment - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; imposing a fee on motor vehicle 
  1.3             rentals; providing for a rebate of the fee to motor 
  1.4             vehicle lessors to compensate for motor vehicle 
  1.5             registration fees paid by lessors; appropriating 
  1.6             money; amending Minnesota Statutes 1996, section 
  1.7             297A.135. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1996, section 297A.135, is 
  1.10  amended to read: 
  1.11     297A.135 [RENTAL MOTOR VEHICLE TAX.] 
  1.12     Subdivision 1.  [TAX IMPOSED.] A tax is imposed on the 
  1.13  lease or rental in this state for not more than 28 days of a 
  1.14  passenger automobile as defined in section 168.011, subdivision 
  1.15  7, a van as defined in section 168.011, subdivision 28, or a 
  1.16  pickup truck as defined in section 168.011, subdivision 29.  A 
  1.17  van designed or adapted primarily for transporting property 
  1.18  rather than passengers is exempt from the tax imposed under this 
  1.19  section.  The tax is imposed at the rate of 6.2 percent of the 
  1.20  sales price as defined for the purpose of imposing the sales and 
  1.21  use tax in this chapter.  The tax does not apply to the lease or 
  1.22  rental of a hearse or limousine used in connection with a burial 
  1.23  or funeral service.  It applies whether or not the vehicle is 
  1.24  licensed in the state. 
  1.25     Subd. 1a.  [FEE IMPOSED.] A fee equal to three percent of 
  1.26  the sales price is imposed on leases or rentals of vehicles 
  2.1   subject to the tax under subdivision 1. 
  2.2      Subd. 2.  [SALES AND USE TAX.] The tax imposed in 
  2.3   subdivision 1 is and the fee imposed in subdivision 1a are not 
  2.4   included in the sales price for purposes of determining the 
  2.5   sales and use tax imposed in this chapter or any sales and use 
  2.6   tax imposed on the transaction under a special law. 
  2.7      Subd. 3.  [ADMINISTRATION.] The tax imposed in subdivision 
  2.8   1 and the fee imposed in subdivision 1a must be reported and 
  2.9   paid to the commissioner of revenue with the taxes imposed in 
  2.10  this chapter.  It is They are subject to the same interest, 
  2.11  penalty, and other provisions provided for sales and use taxes 
  2.12  under chapter 289A and this chapter.  The commissioner has the 
  2.13  same powers to assess and collect the tax and fee that are given 
  2.14  the commissioner in chapters 270 and 289A and this chapter to 
  2.15  assess and collect sales and use tax. 
  2.16     Subd. 4.  [EXEMPTION.] The tax and the fee imposed by this 
  2.17  section does do not apply to a lease or rental if the vehicle is 
  2.18  to be used by the lessee to provide a licensed taxi service. 
  2.19     Subd. 5.  [REBATE AUTHORIZED.] A lessor collecting the fee 
  2.20  imposed by subdivision 1a is entitled to a rebate of the fee 
  2.21  collected.  A claim for rebate must state the amount of fees 
  2.22  collected during the period beginning June 1 of the previous 
  2.23  year and ending May 31 of the current year under subdivision 1a 
  2.24  and the amount of Minnesota motor vehicle registration taxes 
  2.25  paid under chapter 168A during the same period.  The rebate to a 
  2.26  lessor shall be equal to the amount of the fees collected and 
  2.27  remitted by the lessor for that period or the amount of 
  2.28  Minnesota motor vehicle registration taxes paid by the lessor 
  2.29  during that period for vehicles rented, whichever amount is 
  2.30  less.  The claims must be filed with the commissioner by July 1 
  2.31  each year on forms prescribed by the commissioner.  A rebate 
  2.32  shall bear no interest. 
  2.33     Subd. 6.  [APPROPRIATION.] An amount sufficient to pay the 
  2.34  rebates authorized in subdivision 5 is annually appropriated to 
  2.35  the commissioner of revenue from the general fund. 
  2.36     Sec. 2.  [EFFECTIVE DATE.] 
  3.1      Section 1 is effective for leases or rentals of motor 
  3.2   vehicles and for motor vehicle registration taxes paid after 
  3.3   June 30, 1997.