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SF 3497

1st Engrossment - 91st Legislature (2019 - 2020) Posted on 03/05/2020 09:06am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 1st Engrossment

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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, thenew text begin registrationnew text end
tax isnew text begin calculated as:
new text end

new text begin (1)new text end $10new text begin;new text end plus deleted text beginan additional tax equal to
deleted text end

new text begin (2)new text end 1.25 percent of the deleted text beginbase valuedeleted text endnew text begin manufacturer's suggested retail price of the vehicle,
subject to the adjustments in paragraphs (f) and (g)
new text end.

(b) deleted text beginSubject to the classification provisions herein, "Base value" means the manufacturer's
suggested retail price of the vehicle 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 endnew text begin The registration tax calculation mustnew text end not include the cost of each accessory
or item of optional equipment separately added to the vehicle and thenew text begin manufacturer'snew text end
suggested retail price.new text begin The registration tax calculation must not include a destination charge,
except for a vehicle registered in Minnesota prior to January 1, 2020.
new text end

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 deleted text beginbase value ofdeleted text endnew text begin registration tax onnew text end the
vehicle usingnew text begin manufacturer'snew 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 new text beginThe registrar must use the manufactured suggested retail price determined by the
dealer as provided in paragraph (d).
new text endA dealer that elects to make the determination must
retain a copy of the new text beginmanufacturer's new text endsuggested 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 endnew text begin (d)new text end The registrar deleted text beginshall establishdeleted text end new text beginmust determine new text endthe deleted text beginbase value, when new, of every
passenger automobile and hearse registered prior to the effective date of Extra Session Laws
1971, chapter 31, using
deleted text endnew text begin manufacturer's suggested retail price:
new text end

new text begin (1) usingnew text end list price information published by the manufacturer or any nationally
recognized firm or association compiling such data for the automotive industrynew text begin;
new text end

new text begin (2) if the list price information is unavailable, then using the amount determined by a
licensed dealer under paragraph (c);
new text end

new text begin (3) if a dealer does not determine the amount, then using the retail price label as provided
by the manufacturer under United States Code, title 15, section 1232; or
new text end

new text begin (4) if the retail price label is not available, then using the actual sales price of the vehiclenew text end.
If new text beginthe registrar is new text endunable to ascertain the deleted text beginbase valuedeleted text end new text beginmanufacturer's suggested retail price new text endof
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 beginshalldeleted text endnew text begin mustnew text end calculatenew text begin the registrationnew text end tax using deleted text beginbase valuedeleted text end information
available to dealers and deputy registrars at the time thenew text begin initialnew text end application for registration
is submitted. deleted text beginThe 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

deleted text begin (h)deleted text endnew text begin (f)new text end The deleted text beginannual additional taxdeleted text endnew text begin amount under paragraph (a), clause (2),new text end must be
deleted text begin computed upondeleted text endnew text begin calculated based onnew text end a percentage of the deleted text beginbase valuedeleted text endnew text begin manufacturer's suggested
retail price,
new text end as follows: during the first year of vehicle life, upon 100 percent of the deleted text beginbase
value
deleted text endnew text begin pricenew text end; for the second year, 90 percent of deleted text beginsuch valuedeleted text endnew text begin the pricenew text end; for the third year, 80
percent of deleted text beginsuch valuedeleted text endnew text begin the pricenew text end; for the fourth year, 70 percent of deleted text beginsuch valuedeleted text endnew text begin the pricenew text end; for
the fifth year, 60 percent of deleted text beginsuch valuedeleted text endnew text begin the pricenew text end; for the sixth year, 50 percent of deleted text beginsuch valuedeleted text endnew text begin
the price
new text end; for the seventh year, 40 percent of deleted text beginsuch valuedeleted text endnew text begin the pricenew text end; for the eighth year, 30
percent of deleted text beginsuch valuedeleted text endnew text begin the pricenew text end; for the ninth year, 20 percent of deleted text beginsuch valuedeleted text endnew text begin the pricenew text end; for
the tenth year, ten percent of deleted text beginsuch value;deleted text endnew text begin the price; andnew text end for the 11th and each succeeding
year, the sum of $25.

deleted text begin (i)deleted text end new text begin(g) new text endIn no event shall the deleted text beginannual additional taxdeleted text endnew text begin amount in paragraph (a), clause (2),new text end be
less than $25.

deleted text begin (j)deleted text endnew text begin (h) Except as provided in paragraph (i),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 (i) For a vehicle with a registration tax determined based on the actual sales price, the
commissioner must adjust the registration tax within two years of the initial registration
using one of the methods described in paragraph (d), clauses (1) to (3). The commissioner
must adjust the registration tax amount of any vehicle to correct an error or omission that
was made in determining or entering the registration tax amount or the destination charge
amount. The adjusted registration tax amount is effective starting with the vehicle's next
registration period. The commissioner must not collect any amount that would have been
paid but for the error or omission. When the commissioner makes an adjustment to the
registration tax amount pursuant to this paragraph, the commissioner must mail written
notice to the owner of the vehicle stating that an adjustment was made to the registration
tax amount, the reason for the adjustment, and contact information that the owner may call
to ask questions.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraphs (a) to (g) are effective January 1, 2021, and apply to
taxes payable for a registration period starting on or after that date. Paragraphs (h) and (i)
are effective July 1, 2020.
new text end