2007 Minnesota Statutes

297A.64 RENTAL MOTOR VEHICLE TAX IMPOSED; RATE.
    Subdivision 1. Tax imposed. A tax is imposed on the lease or rental in this state for not more
than 28 days of a passenger automobile as defined in section 168.011, subdivision 7, a van as
defined in section 168.011, subdivision 28, or a pickup truck as defined in section 168.011,
subdivision 29 . The rate of tax is 6.2 percent of the sales price. The tax applies whether or not
the vehicle is licensed in the state.
    Subd. 2. Fee imposed. A fee equal to three percent of the sales price is imposed on leases
or rentals of vehicles subject to the tax under subdivision 1. The lessor on the invoice to the
customer may designate the fee as "a fee imposed by the State of Minnesota for the registration
of rental cars."
    Subd. 3. Administration. The retailer shall report and pay the tax imposed in subdivision
1 to the commissioner of revenue with the taxes imposed in this chapter. The tax imposed in
subdivision 1 and the fee imposed in subdivision 2 are subject to the same interest, penalty, and
other provisions provided for sales and use taxes under this chapter and chapter 289A. The audit,
assessment, appeal, collection, enforcement, and administrative provisions of this chapter and
chapters 270C and 289A, that apply to sales and use taxes, apply to the tax and fee.
    Subd. 4. Exemptions. (a) The tax and the fee imposed by this section do not apply to a lease
or rental of (1) a vehicle to be used by the lessee to provide a licensed taxi service; (2) a hearse or
limousine used in connection with a burial or funeral service; or (3) a van designed or adapted
primarily for transporting property rather than passengers. The tax and the fee imposed under
this section do not apply when the lease or rental of a vehicle is exempt from the tax imposed
under section 297A.62, subdivision 1.
(b) The lessor may elect not to charge the fee imposed in subdivision 2 if in the previous
calendar year the lessor had no more than 20 vehicles available for lease that would have been
subject to tax under this section, or no more than $50,000 in gross receipts that would have
been subject to tax under this section.
    Subd. 5. Payment of excess fees. On the first sales tax return due following the end of a
calendar year during which a lessor has imposed a fee under subdivision 2, the lessor shall report
to the commissioner of revenue, in the form required by the commissioner, the amount of the fee
collected during the previous year and the amount of motor vehicle registration taxes paid during
the previous year by the lessor under chapter 168 on vehicles subject to the fee under this section.
If the amount of the fees collected exceeds the amount of motor vehicle registration taxes paid, the
lessor shall remit the excess to the commissioner of revenue at the time the report is submitted.
History: 2000 c 418 art 1 s 7; 1Sp2001 c 5 art 12 s 31,32,95; 2002 c 377 art 3 s 24; 1Sp2003
c 21 art 8 s 15; 2005 c 151 art 2 s 13; art 7 s 8; 1Sp2005 c 3 art 5 s 33; 2006 c 212 art 1 s 26 subd 5