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Minnesota Legislature

Office of the Revisor of Statutes

168.181 NONRESIDENT OWNERS, RECIPROCITY AGREEMENTS OR
ARRANGEMENTS.
    Subdivision 1. Authority; conditions and limitations. Notwithstanding any provision of
law to the contrary or inconsistent herewith, the registrar of motor vehicles with the approval
of the attorney general is hereby empowered to make agreements with the duly authorized
representatives of the other states, District of Columbia, territories and possessions of the United
States, or arrangements with foreign countries or provinces exempting the residents of such other
states, districts, territories and possessions, and foreign countries or provinces using the public
streets and highways of this state from the payment of any or all motor vehicle taxes or fees
imposed by this chapter, subject to the following conditions and limitations:
(1) upon condition that the exemption provided herein shall be operative as to a motor
vehicle owned by a nonresident only to the extent that under the laws of the state, district, territory
or possession, or foreign country or province of residence like exemptions are granted to motor
vehicles registered under the laws and owned by residents of Minnesota;
(2) upon condition that any such motor vehicle so operated in this state by any such
nonresident shall at all times carry and display all license number plates or like insignia required by
the laws of the state, district, territory or possession, or foreign country or province of residence;
(3) upon condition that the exemptions provided herein shall not apply to a passenger
automobile or travel trailer owned by a resident of any state, district, territory or possession, or
foreign country or province temporarily residing in this state while gainfully employed on the
same job for a period of six months or more;
(4) upon condition that the exemptions provided herein shall not apply to motor vehicles
owned by nonresidents including any foreign corporation and used for carrying on intrastate
commerce within this state. Such nonresident or foreign corporation shall be required to register
each such vehicle and pay the same tax and penalties if any therefor as is required with reference
to like vehicles owned by residents of Minnesota;
(5) upon condition that the exemption provided herein shall not apply to a truck, tractor,
truck-tractor, or semitrailer, except two-wheeled trailers of less than 3,000 pounds carrying
capacity, if (i) the class of its registration does not permit to it a statewide operation in the state
of its registration, or if (ii) the registration fee or tax for which it is registered is computed on a
mileage basis, or if (iii) its gross weight exceeds the gross weight for which it is registered in the
state, district, territory or possession, or foreign country or province of its registration;
(6) upon condition that nonresident owners of commercial vehicles, including trucks,
truck-tractors, trailers, semitrailers, and buses domiciled in a foreign state, district, territory or
possession, or foreign country or province, and bringing such vehicles into the state of Minnesota
for the purpose of doing interstate business shall be required to comply with all the laws and
regulations as to payment of taxes applicable to like vehicles owned by Minnesota residents unless
the state, district, territory or possession, or foreign country or province grants full reciprocity
privileges comparable to that extended by this section and sections 168.183 to 168.221. In the
event a state, district, territory or possession, or foreign country or province is not fully reciprocal
as to taxes or fees on commercial vehicles or buses operated in interstate commerce, then in that
event such owners of foreign commercial vehicles or buses shall be required to pay a tax in an
amount similar to the tax of whatever character assessed by such other state, district, territory
or possession, or foreign country or province against vehicles registered in Minnesota and
operated in interstate commerce in that state, district, territory or possession, or foreign country or
province. It is further provided that such owners of foreign commercial vehicles and buses subject
to registration under the provisions of this clause shall make application for a permit in which
shall be set forth the conditions for operation of such vehicles in this state.
    Subd. 2. Exemption from tax or fee. Agreements made pursuant to this section may also
include exemption from taxes or fees on a vehicle owned by a person, firm, or corporation
licensed as a motor vehicle dealer or motor vehicle manufacturer in another state or country
when such vehicle is operated displaying the dealer plates or manufacturer plates issued to such
dealer or manufacturer by the jurisdiction of residence; provided, however, that such operation
is not for the purpose of soliciting the sale of vehicles within this state other than at an auction
conducted by a motor vehicle auctioneer licensed under section 168.27. Greater privileges shall
not be granted to such dealer or manufacturer than permitted by the laws of the jurisdiction
of residence. Nothing contained herein shall be construed to apply to or vary the terms and
conditions of sections 168.053 to 168.057.
    Subd. 3. Vehicle in foreign state and owned by Minnesotan. The provisions of this section
shall be operative as to motor vehicles actually domiciled in a foreign state, district, territory or
possession or foreign country or province and legally licensed in that state, district, territory or
possession or foreign country or province and owned by a Minnesota resident.
History: 1953 c 698 s 1,2; 1963 c 63 s 1; 1980 c 478 s 1; 1986 c 444; 1989 c 342 s 11;
1Sp2005 c 6 art 2 s 47