SF 3497

as introduced - 91st Legislature (2019 - 2020) Posted on 03/04/2020 10:45am

A bill for an act
relating to transportation; amending determination of the motor vehicle registration
tax; amending Minnesota Statutes 2019 Supplement, section 168.013, subdivision
1a.

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

Section 1.

Minnesota Statutes 2019 Supplement, 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 new text begin , new text end
plus an additional deleted text begin tax deleted text end new text begin amount new text end equal to 1.25 percent of the base value new text begin as adjusted in paragraphs
(f) and (g) new text end .

(b) deleted text begin Subject to the classification provisions herein, deleted text end "Base value" means the manufacturer's
suggested retail price of the vehicle deleted text begin including destination charge using list price information
published by the manufacturer or determined by the registrar if no suggested retail price
exists, and shall deleted text end new text begin , provided that base value includes a destination charge for a vehicle
previously registered in Minnesota before the effective date of this section. Base value does new text end
not include the cost of each accessory or item of optional equipment separately added to
the vehicle and the suggested retail price.

new text begin (c) new text end In the case of the first registration of a new vehicle sold or leased by a licensed dealer,
the dealer may elect to individually determine the base value of the vehicle using new text begin
manufacturer's new text end suggested retail price information provided by the manufacturer. deleted text begin The registrar
must use the base value determined by the dealer to properly classify the vehicle. deleted text end A dealer
that elects to make the determination must retain a copy of the suggested retail price label
or other supporting documentation with the vehicle transaction records maintained under
Minnesota Rules, part 7400.5200.

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) deleted text end new text begin (d) new text end The registrar deleted text begin shall deleted text end new text begin must new text end establish the base value deleted text begin , when new, of every passenger
automobile and hearse registered prior to the effective date of Extra Session Laws 1971,
chapter 31, deleted text end using new text begin (1) the amount determined by a licensed dealer under paragraph (c), (2) new text end
list price information published by the manufacturer or any nationally recognized firm or
association compiling such data for the automotive industry new text begin , or (3) the retail price label as
provided by the manufacturer under United States Code, title 15, section 1232 new text end . 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.

new text begin (e) new text end The registrar deleted text begin shall deleted text end new text begin must new text end calculate tax using base value information available to dealers
and deputy registrars at the time the application for registration is submitted. deleted text begin 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 new text begin Except for data integrity purposes,
the commissioner must not adjust the base value for the vehicle in a subsequent registration
period.
new text end

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

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

deleted text begin (j) deleted text end new text begin (h) 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 Nothing in this paragraph
prevents collection of a tax or fee that the commissioner determines is due for a current or
prior registration period.
new text end

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective the day following
final enactment and applies to taxes payable for a registration period starting on or after
initial deployment of the replacement motor vehicle information technology system. The
commissioner of public safety must notify the revisor of statutes of the implementation
date.
new text end