SF 4603

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/07/2024 04:23pm

A bill for an act
relating to transportation; establishing a vehicle size and weight surcharge for
motor vehicle registration; making technical changes; amending Minnesota Statutes
2022, sections 168.013, by adding a subdivision; 174.40, subdivision 3; Minnesota
Statutes 2023 Supplement, section 168.013, subdivision 1a.

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

Section 1.

Minnesota Statutes 2023 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 registration
tax is calculated as $10 plus:

(1) for a vehicle initially registered in Minnesota prior to November 16, 2020, 1.54
percent of the manufacturer's suggested retail price of the vehicle and the destination charge,
subject to the adjustments in paragraphs (e) and (f); or

(2) for a vehicle initially registered in Minnesota on or after November 16, 2020, 1.575
percent of the manufacturer's suggested retail price of the vehicle, subject to the adjustments
in paragraphs (e) and (f).

(b) The registration tax calculation must not include the cost of each accessory or item
of optional equipment separately added to the vehicle and the manufacturer's suggested
retail price. The registration tax calculation must not include a destination charge, except
for a vehicle previously registered in Minnesota prior to November 16, 2020.

(c) The registrar must determine the manufacturer's suggested retail price:

(1) using list price information published by the manufacturer or any nationally
recognized firm or association compiling such data for the automotive industry;

(2) if a dealer does not determine the amount, using the retail price label as provided by
the manufacturer under United States Code, title 15, section 1232; or

(3) if the retail price label is not available, using the actual sales price of the vehicle.

If the registrar is unable to ascertain the manufacturer's suggested retail price of any registered
vehicle in the foregoing manner, the registrar may use any other available source or method.

(d) The registrar must calculate the registration tax using information available to dealers
and deputy registrars at the time the initial application for registration is submitted.

(e) The amount under paragraph (a), clauses (1) and (2), must be calculated based on a
percentage of the manufacturer's suggested retail price, as follows:

(1) during the first year of vehicle life, upon 100 percent of the price;

(2) for the second year, 95 percent of the price;

(3) for the third year, 90 percent of the price;

(4) for the fourth year, 80 percent of the price;

(5) for the fifth year, 70 percent of the price;

(6) for the sixth year, 60 percent of the price;

(7) for the seventh year, 50 percent of the price;

(8) for the eighth year, 40 percent of the price;

(9) for the ninth year, 25 percent of the price; and

(10) for the tenth year, ten percent of the price.

(f) For the 11th and each succeeding year, the amount under paragraph (a), clauses (1)
and (2), must be calculated as $20.

(g) Except as provided in subdivision 23, for any vehicle previously registered in
Minnesota and regardless of prior ownership, the total amount due under this subdivision
and deleted text begin subdivision deleted text end new text begin subdivisions new text end 1m new text begin and 1n new text end must not exceed the smallest total amount previously
paid or due on the vehicle. new text begin The commissioner must reduce the amount imposed under this
subdivision as necessary to meet the requirements under this paragraph.
new text end

new text begin EFFECTIVE DATE. 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 January 1, 2025.
new text end

Sec. 2.

Minnesota Statutes 2022, section 168.013, is amended by adding a subdivision to
read:

new text begin Subd. 1n. new text end

new text begin Vehicle size and weight surcharge. new text end

new text begin (a) In addition to the tax under subdivision
1a, a surcharge is imposed on a passenger automobile equal to the sum of the amounts
determined in paragraphs (b) and (c), if any.
new text end

new text begin (b) An amount is determined from the gross vehicle weight rating of the vehicle, as
indicated on the manufacturer's certification label, as follows:
new text end

new text begin (1) for under 3,000 pounds, $0;
new text end

new text begin (2) for 3,000 to 3,999 pounds, $50;
new text end

new text begin (3) for 4,000 to 4,999 pounds, $75;
new text end

new text begin (4) for 5,000 to 5,999 pounds, $100; and
new text end

new text begin (5) for 6,000 pounds or more, $150.
new text end

new text begin (c) An amount is determined from the height of the front hood of the vehicle, as follows:
new text end

new text begin (1) for fewer than 36 inches, $0;
new text end

new text begin (2) for 36 to 40 inches, $15;
new text end

new text begin (3) for 41 to 45 inches, $20; and
new text end

new text begin (4) for 46 inches or more, $25.
new text end

new text begin (d) The commissioner must identify the height of the front hood of a vehicle under
paragraph (c) using information from the following, in order of precedence:
new text end

new text begin (1) as published by the manufacturer;
new text end

new text begin (2) as published by any nationally recognized firm or association compiling such data
for the automotive industry; or
new text end

new text begin (3) any other available source or method.
new text end

new text begin (e) Notwithstanding subdivision 8, the commissioner must allocate revenue from the
surcharge under this subdivision as follows:
new text end

new text begin (1) 45 percent deposited in the active transportation account in the special revenue fund;
new text end

new text begin (2) 45 percent to the Metropolitan Council for active transportation grants as provided
under section 473.4465, subdivision 3; and
new text end

new text begin (3) ten percent deposited in the safe routes to school account in the special revenue fund.
new text end

new text begin (f) The surcharge under this subdivision does not apply to:
new text end

new text begin (1) a vehicle for which disability plates are issued; and
new text end

new text begin (2) a vehicle owner who provides documentation from a government or nonprofit agency
or legal aid office that the owner:
new text end

new text begin (i) is homeless;
new text end

new text begin (ii) receives relief based on need as specified under section 168B.07, subdivision 3,
paragraph (a); or
new text end

new text begin (iii) is eligible for legal aid services.
new text end

new text begin EFFECTIVE DATE. 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 January 1, 2025.
new text end

Sec. 3.

Minnesota Statutes 2022, section 174.40, subdivision 3, is amended to read:

Subd. 3.

Safe routes to school accounts.

(a) A safe routes to school account is established
in the bond proceeds fund. The account consists of state bond proceeds appropriated to the
commissioner. Money in the account may only be expended on bond-eligible costs of a
project receiving financial assistance as provided under this section. All uses of funds from
the account must be for publicly owned property.

(b) A safe routes to school account is established in the deleted text begin general deleted text end new text begin special revenue new text end fund.
The account consists of funds as provided by law, and any other money donated, allotted,
transferred, or otherwise provided to the account. Money in the account may only be
expended on a project receiving financial assistance as provided under this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end