SF 1086

as introduced - 87th Legislature (2011 - 2012) Posted on 02/23/2012 09:43am

A bill for an act
relating to taxation; exempting qualified plug-in electric drive vehicles from sales
tax on motor vehicles; amending Minnesota Statutes 2010, sections 297B.01, by
adding a subdivision; 297B.03.

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

Section 1.

Minnesota Statutes 2010, section 297B.01, is amended by adding a
subdivision to read:

new text begin Subd. 15a. new text end

new text begin Qualified plug-in electric drive vehicle. new text end

new text begin "Qualified plug-in electric
drive vehicle" means a four-wheeled motor vehicle that:
new text end

new text begin (1) is manufactured primarily for use on public streets, roads, and highways;
new text end

new text begin (2) has not been modified from the original manufacturer's specifications;
new text end

new text begin (3) has been acquired for use or lease, and not for resale;
new text end

new text begin (4) is rated at not more than 8,500 pounds unloaded gross vehicle weight;
new text end

new text begin (5) has a maximum speed capability of at least 55 miles per hour;
new text end

new text begin (6) is propelled to a significant extent by an electric motor that draws electricity from
a battery that (i) has a capacity of not less than four kilowatt hours and (ii) is capable of
being recharged from an external source of electricity; and
new text end

new text begin (7) is purchased or leased on or after October 1, 2010.
new text end

Sec. 2.

Minnesota Statutes 2010, section 297B.03, is amended to read:

297B.03 EXEMPTIONS.

new text begin (a) new text end 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;

(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 for use as an ambulance by an ambulance service
licensed under section 144E.10;

(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; and

(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.

new text begin (b) A qualified plug-in electric drive vehicle is exempt from payment of the sales tax
on motor vehicles under this chapter, up to a maximum of $2,000, under the following
conditions:
new text end

new text begin (1) the exemption is limited to one vehicle purchased or leased by an individual and
ten vehicles purchased or leased by a corporate or other business entity;
new text end

new text begin (2) the vehicle is registered in Minnesota; and
new text end

new text begin (3) the owner has conformed to any applicable state or federal laws or regulations
governing clean-fuel vehicle or electric vehicle purchases or leases applicable during the
calendar year in which the vehicle is registered.
new text end