Subdivision 1. Scope.
The following words, terms and phrases when used in Laws 1971,
chapter 853, shall have the meaning ascribed to them in this section except where the context
clearly indicates a different meaning.
Subd. 2. Person.
"Person" includes any individual, firm, partnership, joint adventure,
association, corporation, estate, business trust, receiver, or any other group or combination acting
as a unit and the plural as well as the singular number.
Subd. 3. Motor vehicle registrar.
"Motor vehicle registrar" shall mean the registrar of motor
vehicles who is the officer in charge of the Motor Vehicle Division, Department of Public Safety,
of this state and who shall act as the agent of the commissioner of revenue in administering the
provisions of this chapter.
Subd. 4. Vehicle.
"Vehicle" shall include every device in, upon, or by which any person or
property may be transported or drawn upon a public highway, except devices moved by human
power or animal power or used exclusively upon stationary rails or tracks.
Subd. 5. Motor vehicle.
"Motor vehicle" means any self-propelled vehicle not operated
exclusively upon railroad tracks and any vehicle propelled or drawn by a self-propelled vehicle
for which registration is required by chapter 168. Motor vehicle includes vehicles known as
trackless trolleys which are propelled by electric power obtained from overhead trolley wires but
not operated upon rails and motor vehicles that are purchased on Indian reservations where the
tribal council has entered into a sales tax on motor vehicles refund agreement with the state of
Minnesota. Motor vehicle does not include snowmobiles or manufactured homes.
Subd. 6. Use.
"Use" shall mean the exercise by any person of any right or power over a
motor vehicle incident to the ownership or possession of such a vehicle, except that it shall not
include the sale or holding for sale of such a vehicle in the regular course of business. The term
shall not include motor vehicles rented or leased.
Subd. 7. Sale, sells, selling, purchase, purchased, or acquired.
(a) "Sale," "sells," "selling,"
"purchase," "purchased," or "acquired" means any transfer of title of any motor vehicle, whether
absolutely or conditionally, for a consideration in money or by exchange or barter for any purpose
other than resale in the regular course of business.
(b) Any motor vehicle utilized by the owner only by leasing such vehicle to others or by
holding it in an effort to so lease it, and which is put to no other use by the owner other than resale
after such lease or effort to lease, shall be considered property purchased for resale.
(c) The terms also shall include any transfer of title or ownership of a motor vehicle by other
means, for or without consideration, except that these terms shall not include:
(1) the acquisition of a motor vehicle by inheritance from or by bequest of, a decedent
who owned it;
(2) the transfer of a motor vehicle which was previously licensed in the names of two or
more joint tenants and subsequently transferred without monetary consideration to one or more
of the joint tenants;
(3) the transfer of a motor vehicle by way of gift between individuals, or gift from a limited
used vehicle dealer licensed under section
168.27, subdivision 4a
, to an individual, when the
transfer is with no monetary or other consideration or expectation of consideration and the parties
to the transfer submit an affidavit to that effect at the time the title transfer is recorded;
(4) the voluntary or involuntary transfer of a motor vehicle between a husband and wife
in a divorce proceeding; or
(5) the transfer of a motor vehicle by way of a gift to an organization that is exempt from
federal income taxation under section 501(c)(3) of the Internal Revenue Code, as amended
through December 31, 1996, when the motor vehicle will be used exclusively for religious,
charitable, or educational purposes.
Subd. 8. Purchase price.
(a) "Purchase price" means the total consideration valued in money
for a sale, whether paid in money or otherwise. The purchase price excludes the amount of a
manufacturer's rebate paid or payable to the purchaser. If a motor vehicle is taken in trade as a
credit or as part payment on a motor vehicle taxable under this chapter, the credit or trade-in
value allowed by the person selling the motor vehicle shall be deducted from the total selling
price to establish the purchase price of the vehicle being sold and the trade-in allowance allowed
by the seller shall constitute the purchase price of the motor vehicle accepted as a trade-in. The
purchase price in those instances where the motor vehicle is acquired by gift or by any other
transfer for a nominal or no monetary consideration shall also include the average value of
similar motor vehicles, established by standards and guides as determined by the motor vehicle
registrar. The purchase price in those instances where a motor vehicle is manufactured by a
person who registers it under the laws of this state shall mean the manufactured cost of such
motor vehicle and manufactured cost shall mean the amount expended for materials, labor, and
other properly allocable costs of manufacture, except that in the absence of actual expenditures
for the manufacture of a part or all of the motor vehicle, manufactured costs shall mean the
reasonable value of the completed motor vehicle.
(b) The term "purchase price" shall not include the portion of the value of a motor vehicle
due solely to modifications necessary to make the motor vehicle disability accessible.
(c) The term "purchase price" shall not include the transfer of a motor vehicle by way of gift
between a husband and wife or parent and child, or to a nonprofit organization as provided under
subdivision 7, paragraph (e), nor shall it include the transfer of a motor vehicle by a guardian to a
ward when there is no monetary consideration and the title to such vehicle was registered in the
name of the guardian, as guardian, only because the ward was a minor.
(d) The term "purchase price" shall not include the transfer of a motor vehicle as a gift
between a foster parent and foster child. For purposes of this subdivision, a foster relationship
exists, regardless of the age of the child, if (1) a foster parent's home is or was licensed as a foster
family home under Minnesota Rules, parts 9545.0010
, and (2) the county verifies
that the child was a state ward or in permanent foster care.
(e) There shall not be included in "purchase price" the amount of any tax imposed by the
United States upon or with respect to retail sales whether imposed upon the retailer or the
Subd. 9. Purchaser.
"Purchaser" shall mean any person owning or in possession of a motor
vehicle who makes application to the motor vehicle registrar for registration plates for such
vehicle or for transfer of ownership of a vehicle previously registered in this state.
History: 1971 c 853 s 1; 1973 c 582 s 3; 1974 c 28 s 1; 1974 c 459 s 2; 1976 c 342 s 1; 1981
c 365 s 9; 1983 c 342 art 6 s 9; 1986 c 444; 1989 c 277 art 1 s 20; 1989 c 342 s 22; 1992 c 511 art
8 s 26; 1993 c 375 art 1 s 5; 1994 c 587 art 2 s 21; 1995 c 1 s 5; 1995 c 264 art 2 s 34; 1996 c 471
art 2 s 23; 1997 c 231 art 7 s 31,32; 2000 c 490 art 8 s 19; 1Sp2003 c 21 art 8 s 10; 2005 c 56 s 1