SF 2489

as introduced - 89th Legislature (2015 - 2016) Posted on 03/11/2016 09:01am

A bill for an act
relating to taxes; sales and use tax and motor vehicle excise tax; exempting the
sale or lease of specially equipped motor vehicles sold or leased to disabled
veterans; amending Minnesota Statutes 2014, sections 297A.67, by adding a
subdivision; 297B.03.

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

Section 1.

Minnesota Statutes 2014, section 297A.67, is amended by adding a
subdivision to read:

new text begin Subd. 34. new text end

new text begin Leases of specially equipped motor vehicles to a disabled veteran or
the disabled veteran's primary family caretaker. new text end

new text begin Motor vehicles that would qualify for
the motor vehicle sales tax exemption under section 297B.03, paragraph (a), clause (16), if
purchased, are exempt from the sales tax under this chapter if leased for more than 28 days.
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, 2015.
new text end

Sec. 2.

Minnesota Statutes 2014, 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 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; deleted text begin and
deleted text end

(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 . deleted text end new text begin ; and
new text end

new text begin (16) purchase of a motor vehicle that is specially equipped to make it disability
accessible, if the motor vehicle is purchased by a disabled veteran or the primary family
caregiver of a disabled veteran.
new text end

new text begin (b) For purposes of paragraph (a), clause (16), the following terms have the
meanings given:
new text end

new text begin (1) "veteran" has the meaning given in section 197.447;
new text end

new text begin (2) "disabled veteran" means a veteran that has a service-connected disability, as
adjudicated by the United States Veterans Administration or the retirement board of one of
the several branches of the armed forces, that requires modifications to a motor vehicle in
order to accommodate the veteran as either a driver or a passenger; and
new text end

new text begin (3) "primary family caregiver" means a person who is approved by the secretary
of the United States Veterans Administration for assistance as the primary provider of
personal care services for an eligible veteran under the Program of Comprehensive
Assistance for Family Caregivers in United States Code, title 38, section 1720G.
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, 2015.
new text end