1.1 A bill for an act
1.2 relating to transportation; providing certain exemptions from taxes and fees for
1.3 eligible veterans with a disability, including certain registration taxes, license plate
1.4 fees, title fees, driver's license and identification card fees, and motor vehicle sales
1.5 taxes; amending Minnesota Statutes 2022, sections 163.051, subdivision 1; 168.012,
1.6 by adding a subdivision; 168A.29, by adding a subdivision; 171.01, by adding a
1.7 subdivision; 171.06, by adding a subdivision; 297B.03.
1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.9 Section 1. Minnesota Statutes 2022, section 163.051, subdivision 1, is amended to read:
1.10 Subdivision 1.Tax authorized.(a) Except as provided in paragraph (c), the board of
1.11commissioners of each county is authorized to levy by resolution a wheelage tax at the rate
1.12specified in paragraph (b), on each motor vehicle that is kept in such county when not in
1.13operation and that is subject to annual registration and taxation under chapter 168. The
1.14board may provide by resolution for collection of the wheelage tax by county officials or
1.15it may request that the tax be collected by the state registrar of motor vehicles. The state
1.16registrar of motor vehicles shall collect such tax on behalf of the county if requested, as
1.17provided in subdivision 2.
1.18 (b) The wheelage tax under this section is at the rate of up to $20 per year, in any
1.19increment of a whole dollar, as specified by each county that authorizes the tax.
1.20 (c) The following vehicles are exempt from the wheelage tax:
1.21 (1) motorcycles, as defined in section 169.011, subdivision 44;
1.22 (2) motorized bicycles, as defined in section 169.011, subdivision 45; and
1.23 (3) motorized foot scooters, as defined in section 169.011, subdivision 46.; and
1Section 1.
23-01829 as introduced01/10/23 REVISOR KRB/RC
SENATE
STATE OF MINNESOTA
S.F. No. 603NINETY-THIRD SESSION
(SENATE AUTHORS: KREUN, Lieske, Coleman, Howe and Bahr)
OFFICIAL STATUSD-PGDATE
Introduction and first reading01/23/2023
Referred to Transportation 2.1 (4) vehicles that meet the requirements under section 168.012, subdivision 13.
2.2 (d) For any county that authorized the tax prior to May 24, 2013, the wheelage tax
2.3continues at the rate provided under paragraph (b).
2.4 EFFECTIVE DATE.This section is effective the day following final enactment and
2.5applies to taxes payable for a registration period starting on or after January 1, 2024.
2.6 Sec. 2. Minnesota Statutes 2022, section 168.012, is amended by adding a subdivision to
2.7read:
2.8 Subd. 13.Vehicles registered by certain veterans.(a) A passenger automobile, one-ton
2.9pickup truck, motorcycle, or recreational vehicle registered by a veteran with a total
2.10service-connected disability, as defined in section 171.01, subdivision 51, is not subject to:
2.11 (1) registration taxes under this chapter;
2.12 (2) administrative fees imposed under subdivision 1c;
2.13 (3) filing fees imposed under section 168.33, subdivision 7; or
2.14 (4) plate and validation sticker fees imposed under this chapter, including but not limited
2.15to:
2.16 (i) fees under section 168.12, subdivision 5;
2.17 (ii) fees identified in any section authorizing special plates; and
2.18 (iii) transfer fees.
2.19 (b) The fees identified under paragraph (a), clause (4), do not include:
2.20 (1) a fee for personalized plates under section 168.12, subdivision 2a; or
2.21 (2) a required contribution or donation for a special plate, including but not limited to
2.22a contribution under sections 168.1255, subdivision 1, clause (6); 168.129, subdivision 1,
2.23clause (5); 168.1295, subdivision 1, paragraph (a), clause (5); 168.1296, subdivision 1,
2.24paragraph (a), clause (5); and 168.1299, subdivision 1, clause (3).
2.25 EFFECTIVE DATE.This section is effective the day following final enactment and
2.26applies to taxes and fees payable for a registration period starting on or after January 1,
2.272024.
2Sec. 2.
23-01829 as introduced01/10/23 REVISOR KRB/RC 3.1 Sec. 3. Minnesota Statutes 2022, section 168A.29, is amended by adding a subdivision to
3.2read:
3.3 Subd. 4.Exemption; vehicles for certain veterans.The department must not impose
3.4any fee under subdivision 1 if the certificate of title is being issued to a person for a vehicle
3.5meeting the requirements under section 168.012, subdivision 13.
3.6 EFFECTIVE DATE.This section is effective January 1, 2024.
3.7 Sec. 4. Minnesota Statutes 2022, section 171.01, is amended by adding a subdivision to
3.8read:
3.9 Subd. 51.Veteran with a total service-connected disability."Veteran with a total
3.10service-connected disability" means a veteran, as defined in section 197.447, who provides
3.11satisfactory evidence to the commissioner demonstrating that the veteran has received a
3.12100 percent total and permanent service-connected disability rating as adjudicated by the
3.13United States Veterans Administration or the retirement board of one of the several branches
3.14of the armed forces.
3.15 EFFECTIVE DATE.This section is effective the day following final enactment.
3.16 Sec. 5. Minnesota Statutes 2022, section 171.06, is amended by adding a subdivision to
3.17read:
3.18 Subd. 2c.Exemption; certain veterans.For an applicant who is a veteran with a total
3.19service-connected disability, the commissioner shall not impose:
3.20 (1) a license or endorsement fee, including fees and surcharges specified under:
3.21 (i) subdivisions 2 and 2a; and
3.22 (ii) section 171.02, subdivision 3;
3.23 (2) a filing fee under subdivision 2 or section 171.061, subdivision 4; or
3.24 (3) a fee for an identification card under section 171.07, subdivision 3 or 3a.
3.25 EFFECTIVE DATE.This section is effective January 1, 2024.
3.26 Sec. 6. Minnesota Statutes 2022, section 297B.03, is amended to read:
3.27 297B.03 EXEMPTIONS.
3.28 There is specifically exempted from the provisions of this chapter and from computation
3.29of the amount of tax imposed by it the following:
3Sec. 6.
23-01829 as introduced01/10/23 REVISOR KRB/RC 4.1 (1) purchase or use, including use under a lease purchase agreement or installment sales
4.2contract made pursuant to section 465.71, of any motor vehicle by the United States and its
4.3agencies and instrumentalities and by any person described in and subject to the conditions
4.4provided in section 297A.67, subdivision 11;
4.5 (2) purchase or use of any motor vehicle by any person who was a resident of another
4.6state or country at the time of the purchase and who subsequently becomes a resident of
4.7Minnesota, provided the purchase occurred more than 60 days prior to the date such person
4.8began residing in the state of Minnesota and the motor vehicle was registered in the person's
4.9name in the other state or country;
4.10 (3) purchase or use of any motor vehicle by any person making a valid election to be
4.11taxed under the provisions of section 297A.90;
4.12 (4) purchase or use of any motor vehicle previously registered in the state of Minnesota
4.13when such transfer constitutes a transfer within the meaning of section 118, 331, 332, 336,
4.14337, 338, 351, 355, 368, 721, 731, 1031, 1033, or 1563(a) of the Internal Revenue Code,
4.15as amended through December 16, 2016;
4.16 (5) purchase or use of any vehicle owned by a resident of another state and leased to a
4.17Minnesota-based private or for-hire carrier for regular use in the transportation of persons
4.18or property in interstate commerce provided the vehicle is titled in the state of the owner or
4.19secured party, and that state does not impose a sales tax or sales tax on motor vehicles used
4.20in interstate commerce;
4.21 (6) purchase or use of a motor vehicle by a private nonprofit or public educational
4.22institution for use as an instructional aid in automotive training programs operated by the
4.23institution. "Automotive training programs" includes motor vehicle body and mechanical
4.24repair courses but does not include driver education programs;
4.25 (7) purchase of a motor vehicle by an ambulance service licensed under section 144E.10
4.26when that vehicle is equipped and specifically intended for emergency response or for
4.27providing ambulance service;
4.28 (8) purchase of a motor vehicle by or for a public library, as defined in section 134.001,
4.29subdivision 2, as a bookmobile or library delivery vehicle;
4.30 (9) purchase of a ready-mixed concrete truck;
4.31 (10) purchase or use of a motor vehicle by a town for use exclusively for road
4.32maintenance, including snowplows and dump trucks, but not including automobiles, vans,
4.33or pickup trucks;
4Sec. 6.
23-01829 as introduced01/10/23 REVISOR KRB/RC 5.1 (11) purchase or use of a motor vehicle by a corporation, society, association, foundation,
5.2or institution organized and operated exclusively for charitable, religious, or educational
5.3purposes, except a public school, university, or library, but only if the vehicle is:
5.4 (i) a truck, as defined in section 168.002, a bus, as defined in section 168.002, or a
5.5passenger automobile, as defined in section 168.002, if the automobile is designed and used
5.6for carrying more than nine persons including the driver; and
5.7 (ii) intended to be used primarily to transport tangible personal property or individuals,
5.8other than employees, to whom the organization provides service in performing its charitable,
5.9religious, or educational purpose;
5.10 (12) purchase of a motor vehicle for use by a transit provider exclusively to provide
5.11transit service is exempt if the transit provider is either (i) receiving financial assistance or
5.12reimbursement under section 174.24 or 473.384, or (ii) operating under section 174.29,
5.13473.388, or 473.405;
5.14 (13) purchase or use of a motor vehicle by a qualified business, as defined in section
5.15469.310, located in a job opportunity building zone, if the motor vehicle is principally
5.16garaged in the job opportunity building zone and is primarily used as part of or in direct
5.17support of the person's operations carried on in the job opportunity building zone. The
5.18exemption under this clause applies to sales, if the purchase was made and delivery received
5.19during the duration of the job opportunity building zone. The exemption under this clause
5.20also applies to any local sales and use tax;
5.21 (14) purchase of a leased vehicle by the lessee who was a participant in a lease-to-own
5.22program from a charitable organization that is:
5.23 (i) described in section 501(c)(3) of the Internal Revenue Code; and
5.24 (ii) licensed as a motor vehicle lessor under section 168.27, subdivision 4; and
5.25 (15) purchase of a motor vehicle used exclusively as a mobile medical unit for the
5.26provision of medical or dental services by a federally qualified health center, as defined
5.27under title 19 of the Social Security Act, as amended by Section 4161 of the Omnibus Budget
5.28Reconciliation Act of 1990.; and
5.29 (16) purchase of a motor vehicle by a veteran having a total service-connected disability,
5.30as defined in section 171.01, subdivision 51.
5.31 EFFECTIVE DATE.This section is effective for sales and purchases made after June
5.3230, 2024.
5Sec. 6.
23-01829 as introduced01/10/23 REVISOR KRB/RC