SF 671

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 08/01/2023 02:07pm

A bill for an act
relating to transportation; sales and use taxation; modifying the rental motor vehicle
tax and fee; creating an account; transferring money; appropriating money;
amending Minnesota Statutes 2022, sections 297A.64, subdivisions 1, 2; 297A.94;
proposing coding for new law in Minnesota Statutes, chapter 174.

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

Section 1.

new text begin [174.46] DISADVANTAGED COMMUNITIES CARSHARING GRANT
ACCOUNT; GRANTS.
new text end

new text begin (a) The disadvantaged communities carsharing grant account is established in the special
revenue fund. The account consists of funds provided by law and any other money donated,
allotted, transferred, or otherwise provided to the account. Money in the account is annually
appropriated to the commissioner to make grants as provided in paragraph (b).
new text end

new text begin (b) The commissioner must administer a program to provide grants to nonprofit
organizations or carsharing operators to support the growth of carsharing in disadvantaged
communities through programs, marketing, and community engagement. A grant recipient
may use grant proceeds for capital and operational costs of a program. Eligible grant
recipients must be based in Minnesota and be either a nonprofit organization or carsharing
operator, with a preference given to nonprofit carsharing operators. Transportation
management organizations are not eligible to receive grants under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2023.
new text end

Sec. 2.

Minnesota Statutes 2022, section 297A.64, subdivision 1, is amended to read:

Subdivision 1.

Tax imposed.

new text begin (a) new text end A tax is imposed on the lease or rental in this state for
not more than 28 days of a passenger automobile as defined in section 168.002, subdivision
24, a van as defined in section 168.002, subdivision 40, or a pickup truck as defined in
section 168.002, subdivision 26. The rate of tax is 9.2 percent of the sales price. The tax
applies whether or not the vehicle is licensed in the state.

new text begin (b) The provisions of paragraph (a) do not apply to the vehicles of a nonprofit corporation
or similar entity, consisting of individual or group members who pay the organization for
the use of a motor vehicle, if the organization:
new text end

new text begin (1) owns, leases, or operates a fleet of vehicles of the type subject to the tax under this
subdivision that are available to its members for use, priced on the basis of intervals of one
hour or less;
new text end

new text begin (2) parks its vehicles in the public right-of-way or at unstaffed, self-service locations
that are accessible at any time of the day; and
new text end

new text begin (3) maintains its vehicles, insures its vehicles on behalf of its members, and purchases
fuel for its fleet.
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, 2023.
new text end

Sec. 3.

Minnesota Statutes 2022, section 297A.64, subdivision 2, is amended to read:

Subd. 2.

Fee imposed.

(a) A fee equal to five percent of the sales price is imposed on
leases or rentals of vehicles subject to the tax under subdivision 1. The lessor on the invoice
to the customer may designate the fee as "a fee imposed by the State of Minnesota for the
registration of rental cars."

(b) The provisions of this subdivision do not apply to the vehicles of a nonprofit
corporation or similar entity, consisting of individual or group members who pay the
organization for the use of a motor vehicle, if the organization:

(1) owns or leases a fleet of vehicles of the type subject to the tax under subdivision 1
that are available to its members for use, priced on the basis of intervals of one hour or less;

(2) parks its vehicles new text begin in the public right-of-way or new text end at unstaffed, self-service locations
that are accessible at any time of the day; new text begin and
new text end

(3) maintains its vehicles, insures its vehicles on behalf of its members, and purchases
fuel for its fleet deleted text begin ; and
deleted text end

deleted text begin (4) does not charge usage rates that decline on a per unit basis, whether specified based
on distance or time deleted 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, 2023.
new text end

Sec. 4. new text begin TRANSFER.
new text end

new text begin $500,000 in fiscal year 2024 and $500,000 in fiscal year 2025 are transferred from the
general fund to the disadvantaged communities carsharing grant account under Minnesota
Statutes, section 174.46.
new text end