Minnesota Session Laws - 2002, Regular Session

                            CHAPTER 388-S.F.No. 2422 
                  An act relating to motor vehicles; regulating dealer 
                  transfers; clarifying calculation of base value; 
                  amending Minnesota Statutes 2000, sections 168.301, 
                  subdivision 3; 168A.11, subdivision 1; Minnesota 
                  Statutes 2001 Supplement, section 168.013, subdivision 
                  1a. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 2001 Supplement, section 
        168.013, subdivision 1a, is amended to read: 
           Subd. 1a.  [PASSENGER AUTOMOBILE; HEARSE.] (a) On passenger 
        automobiles as defined in section 168.011, subdivision 7, and 
        hearses, except as otherwise provided, the tax shall be $10 plus 
        an additional tax equal to 1.25 percent of the base value.  
           (b) Subject 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 not 
        include the cost of each accessory or item of optional equipment 
        separately added to the vehicle and the suggested retail price. 
           (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. 
           (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. 
           (e) The registrar shall classify every vehicle in its 
        proper base value class as follows: 
                              FROM                   TO
                              $  0                $199.99
                               200                 399.99
        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. 
           (f) The base value for purposes of this section shall be 
        the middle point between the extremes of its class. 
           (g) The registrar shall establish the base value, when new, 
        of every passenger automobile and hearse registered prior to the 
        effective date of Extra Session Laws 1971, chapter 31, using 
        list price information published by the manufacturer or any 
        nationally recognized firm or association compiling such data 
        for the automotive industry.  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.  The 
        registrar shall calculate tax using base value information 
        available to dealers and deputy registrars at the time the 
        application for registration is submitted.  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). 
           (h) The annual additional tax computed upon the base value 
        as provided herein, during the first and second years of vehicle 
        life shall be computed upon 100 percent of the base value; for 
        the third and fourth years, 90 percent of such value; for the 
        fifth and sixth years, 75 percent of such value; for the seventh 
        year, 60 percent of such value; for the eighth year, 40 percent 
        of such value; for the ninth year, 30 percent of such value; for 
        the tenth year, ten percent of such value; for the 11th and each 
        succeeding year, the sum of $25.  
        In no event shall the annual additional tax be less than $25.  
        The total tax under this subdivision shall not exceed $189 for 
        the first renewal period and shall not exceed $99 for subsequent 
        renewal periods.  The total tax under this subdivision on any 
        vehicle filing its initial registration in Minnesota in the 
        second year of vehicle life shall not exceed $189 and shall not 
        exceed $99 for subsequent renewal periods.  The total tax under 
        this subdivision on any vehicle filing its initial registration 
        in Minnesota in the third or subsequent year of vehicle life 
        shall not exceed $99 and shall not exceed $99 in any subsequent 
        renewal period. 
           (i) As used in this subdivision and section 168.017, the 
        following terms have the meanings given:  "initial registration" 
        means the 12 consecutive months calendar period from the day of 
        first registration of a vehicle in Minnesota; and "renewal 
        periods" means the 12 consecutive calendar months periods 
        following the initial registration period. 
           Sec. 2.  Minnesota Statutes 2000, section 168.301, 
        subdivision 3, is amended to read: 
           Subd. 3.  [LATE FEE.] In addition to any fee or tax 
        otherwise authorized or imposed upon the transfer of title for a 
        motor vehicle, the commissioner of public safety shall impose a 
        $2 additional fee for failure to deliver a title transfer within 
        ten business days. 
           Sec. 3.  Minnesota Statutes 2000, section 168A.11, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [APPLICATION UPON TRANSFER.] If a dealer 
        buys a vehicle and holds it for resale and procures the 
        certificate of title from the owner, and complies with 
        subdivision 2 hereof, the dealer need not apply for a 
        certificate of title, but upon transferring the vehicle to 
        another person other than by the creation of a security interest 
        shall promptly execute the assignment and warranty of title by a 
        dealer, showing the names and addresses of the transferee and of 
        any secured party holding a security interest created or 
        reserved at the time of the resale, and the date of the security 
        agreement in the spaces provided therefor on the certificate or 
        secure reassignment.  With respect to motor vehicles subject to 
        the provisions of section 325E.15, the dealer shall also, in the 
        space provided therefor on the certificate or secure 
        reassignment, state the true cumulative mileage registered on 
        the odometer or that the exact mileage is unknown if the 
        odometer reading is known by the transferor to be different from 
        the true mileage.  The transferee shall complete the application 
        for title section on the certificate of title or separate title 
        application form prescribed by the department.  The dealer shall 
        mail or deliver the certificate to the registrar or deputy 
        registrar with the transferee's application for a new 
        certificate and appropriate taxes and fees, within ten business 
        days. 
           Presented to the governor May 18, 2002 
           Signed by the governor May 21, 2002, 3:16 p.m.