2000 Minnesota Statutes

     297A.135 Rental motor vehicle tax. 

    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 
 tax is imposed at the rate of 6.2 percent of the sales price as 
 defined for the purpose of imposing the sales and use tax in 
 this chapter.  It applies whether or not the vehicle is licensed 
 in the state. 

    Subd. 1a.    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. 2.    Sales and use tax.  The tax imposed in 
 subdivision 1 and the fee imposed in subdivision 1a are not 
 included in the sales price for purposes of determining the 
 sales and use tax imposed in this chapter or any sales and use 
 tax imposed on the transaction under a special law. 

    Subd. 3.    Administration.  The tax imposed in 
 subdivision 1 must be reported and paid to the commissioner of 
 revenue with the taxes imposed in this chapter.  The tax imposed 
 in subdivision 1 and the fee imposed in subdivision 1a are 
 subject to the same interest, penalty, and other provisions 
 provided for sales and use taxes under chapter 289A and this 
 chapter.  The commissioner has the same powers to assess and 
 collect the tax and fee that are given the commissioner in 
 chapters 270 and 289A and this chapter to assess and collect 
 sales and use tax. 

    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. 

    (b) The lessor may elect not to charge the fee imposed in 
 subdivision 1a 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 1a, the lessor 
 shall report to the commissioner of revenue, in the form 
 required by the commissioner, the amount of the fee collected 
 and the amount of motor vehicle registration taxes paid by the 
 lessor under chapter 168 on vehicles subject to the fee under 
 this section.  If the amount of the fee collected during the 
 previous year exceeds the amount of motor vehicle registration 
 taxes paid under chapter 168 during the previous year, the 
 lessor shall remit the excess to the commissioner of revenue at 
 the time the report is submitted. 

    HIST: 1991 c 291 art 8 s 12; 1992 c 511 art 8 s 8,9; 1994 c 
 587 art 2 s 6; 1995 c 264 art 2 s 25; 3Sp1997 c 3 s 23; 1998 c 
 389 art 8 s 6,7 

*   NOTE:  This section is repealed by Laws 2000, chapter 418, 
*article 1, section 45, effective July 1, 2001.  Laws 2000, 
*chapter 418, article 1, section 46.