2001 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 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 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. 

    HIST: 2000 c 418 art 1 s 7 

*   NOTE:  This section, as added by Laws 2000, chapter 418, 
*article 1, section 7, is effective for sales and purchases 
*occurring after June 30, 2001.  Laws 2000, chapter 418, article 
*1, section 46.

*   NOTE:  Subdivision 1 is repealed by Laws 2001, First Special 
*Session chapter 5, article 12, section 95, effective for sales and 
*purchases made after December 31, 2005.

*   NOTE:  Subdivision 3 was amended by Laws 2001, First Special 
*Session chapter 5, article 12, section 31, effective for leases entered 
*into after December 31, 2005.  Laws 2001, First Special Session chapter 
*5, article 12, section 31, the effective date.  The subdivision, as 
*amended, will read as follows:

*   "Subd. 3.    Administration.  The 
*fee imposed in subdivision 2 is 
*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 fee that are given the commissioner in 
*chapters 270 and 289A and this chapter to assess and collect 
*sales and use tax." 

*   NOTE:  Subdivision 4 was amended by Laws 2001, First Special 
*Session chapter 5, article 12, section 32, effective for leases entered 
*into after December 31, 2005.  Laws 2001, First Special Session chapter 
*5, article 12, section 32, the effective date.  The subdivision, as 
*amended, will read as follows:

*   "Subd. 4.    Exemptions.  (a) The fee imposed by 
*this section does 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 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."