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Minnesota Legislature

Office of the Revisor of Statutes

297B.03 EXEMPTIONS.
There is specifically exempted from the provisions of this chapter and from computation of
the amount of tax imposed by it the following:
(1) purchase or use, including use under a lease purchase agreement or installment sales
contract made pursuant to section 465.71, of any motor vehicle by the United States and its
agencies and instrumentalities and by any person described in and subject to the conditions
provided in section 297A.67, subdivision 11;
(2) purchase or use of any motor vehicle by any person who was a resident of another state
or country at the time of the purchase and who subsequently becomes a resident of Minnesota,
provided the purchase occurred more than 60 days prior to the date such person began residing
in the state of Minnesota and the motor vehicle was registered in the person's name in the other
state or country;
(3) purchase or use of any motor vehicle by any person making a valid election to be taxed
under the provisions of section 297A.90;
(4) purchase or use of any motor vehicle previously registered in the state of Minnesota
when such transfer constitutes a transfer within the meaning of section 118, 331, 332, 336, 337,
338, 351, 355, 368, 721, 731, 1031, 1033, or 1563(a) of the Internal Revenue Code of 1986, as
amended through December 31, 1999;
(5) purchase or use of any vehicle owned by a resident of another state and leased to a
Minnesota-based private or for-hire carrier for regular use in the transportation of persons
or property in interstate commerce provided the vehicle is titled in the state of the owner or
secured party, and that state does not impose a sales tax or sales tax on motor vehicles used in
interstate commerce;
(6) purchase or use of a motor vehicle by a private nonprofit or public educational institution
for use as an instructional aid in automotive training programs operated by the institution.
"Automotive training programs" includes motor vehicle body and mechanical repair courses but
does not include driver education programs;
(7) purchase of a motor vehicle for use as an ambulance by an ambulance service licensed
under section 144E.10;
(8) purchase of a motor vehicle by or for a public library, as defined in section 134.001,
subdivision 2
, as a bookmobile or library delivery vehicle;
(9) purchase of a ready-mixed concrete truck;
(10) purchase or use of a motor vehicle by a town for use exclusively for road maintenance,
including snowplows and dump trucks, but not including automobiles, vans, or pickup trucks;
(11) purchase or use of a motor vehicle by a corporation, society, association, foundation, or
institution organized and operated exclusively for charitable, religious, or educational purposes,
except a public school, university, or library, but only if the vehicle is:
(i) a truck, as defined in section 168.011, a bus, as defined in section 168.011, or a passenger
automobile, as defined in section 168.011, if the automobile is designed and used for carrying
more than nine persons including the driver; and
(ii) intended to be used primarily to transport tangible personal property or individuals,
other than employees, to whom the organization provides service in performing its charitable,
religious, or educational purpose;
(12) purchase of a motor vehicle for use by a transit provider exclusively to provide transit
service is exempt if the transit provider is either (i) receiving financial assistance or reimbursement
under section 174.24 or 473.384, or (ii) operating under section 174.29, 473.388, or 473.405;
(13) purchase or use of a motor vehicle by a qualified business, as defined in section 469.310,
located in a job opportunity building zone, if the motor vehicle is principally garaged in the job
opportunity building zone and is primarily used as part of or in direct support of the person's
operations carried on in the job opportunity building zone. The exemption under this clause applies
to sales, if the purchase was made and delivery received during the duration of the job opportunity
building zone. The exemption under this clause also applies to any local sales and use tax.
History: 1971 c 853 s 3; Ex1971 c 31 art 1 s 10; art 5 s 2; 1975 c 262 s 1; 1982 c 523 art 15
s 3; 1983 c 327 s 15; 1984 c 502 art 6 s 9; 1Sp1985 c 14 art 2 s 13; 1986 c 444; 1987 c 268 art 4
s 21; 1988 c 719 art 10 s 18; 1989 c 277 art 1 s 23; 1990 c 556 s 6; 1993 c 375 art 1 s 6; 1994 c
587 art 2 s 17,21; 1997 c 31 art 2 s 48; 1997 c 199 s 14; 1998 c 389 art 8 s 21; 2000 c 418 art 1 s
44; 2000 c 490 art 8 s 20; 1Sp2001 c 5 art 7 s 55; art 12 s 85; 1Sp2003 c 21 art 1 s 14