| 1 | 1 | | 1.1 A bill for an act |
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| 2 | 2 | | 1.2 relating to transportation; amending exemptions to the sales tax on motor vehicles; |
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| 3 | 3 | | 1.3 amending Minnesota Statutes 2024, section 297B.03. |
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| 4 | 4 | | 1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: |
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| 5 | 5 | | 1.5 Section 1. Minnesota Statutes 2024, section 297B.03, is amended to read: |
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| 6 | 6 | | 1.6 297B.03 EXEMPTIONS. |
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| 7 | 7 | | 1.7 There is specifically exempted from the provisions of this chapter and from computation |
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| 8 | 8 | | 1.8of the amount of tax imposed by it the following: |
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| 9 | 9 | | 1.9 (1) purchase or use, including use under a lease purchase agreement or installment sales |
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| 10 | 10 | | 1.10contract made pursuant to section 465.71, of any motor vehicle by the United States and its |
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| 11 | 11 | | 1.11agencies and instrumentalities and by any person described in and subject to the conditions |
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| 12 | 12 | | 1.12provided in section 297A.67, subdivision 11; |
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| 13 | 13 | | 1.13 (2) purchase or use of any motor vehicle by any person who was a resident of another |
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| 14 | 14 | | 1.14state or country at the time of the purchase and who subsequently becomes a resident of |
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| 15 | 15 | | 1.15Minnesota, provided the purchase occurred more than 60 days prior to the date such person |
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| 16 | 16 | | 1.16began residing in the state of Minnesota and the motor vehicle was registered in the person's |
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| 17 | 17 | | 1.17name in the other state or country; |
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| 18 | 18 | | 1.18 (3) purchase or use of any motor vehicle by any person making a valid election to be |
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| 19 | 19 | | 1.19taxed under the provisions of section 297A.90; |
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| 20 | 20 | | 1.20 (4) purchase or use of any motor vehicle previously registered in the state of Minnesota |
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| 21 | 21 | | 1.21when such transfer constitutes a transfer within the meaning of section 118, 331, 332, 336, |
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| 22 | 22 | | 1Section 1. |
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| 23 | 23 | | REVISOR KRB/VJ 25-0064211/22/24 |
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| 24 | 24 | | State of Minnesota |
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| 25 | 25 | | This Document can be made available |
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| 26 | 26 | | in alternative formats upon request |
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| 27 | 27 | | HOUSE OF REPRESENTATIVES |
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| 28 | 28 | | H. F. No. 2751 |
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| 29 | 29 | | NINETY-FOURTH SESSION |
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| 30 | 30 | | Authored by Schultz03/24/2025 |
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| 31 | 31 | | The bill was read for the first time and referred to the Committee on Transportation Finance and Policy 2.1337, 338, 351, 355, 368, 721, 731, 1031, 1033, or 1563(a) of the Internal Revenue Code, |
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| 32 | 32 | | 2.2as amended through December 16, 2016; |
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| 33 | 33 | | 2.3 (5) purchase or use of any vehicle owned by a resident of another state and leased to a |
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| 34 | 34 | | 2.4Minnesota-based private or for-hire carrier for regular use in the transportation of persons |
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| 35 | 35 | | 2.5or property in interstate commerce provided the vehicle is titled in the state of the owner or |
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| 36 | 36 | | 2.6secured party, and that state does not impose a sales tax or sales tax on motor vehicles used |
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| 37 | 37 | | 2.7in interstate commerce; |
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| 38 | 38 | | 2.8 (6) purchase or use of a motor vehicle by a private nonprofit or public educational |
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| 39 | 39 | | 2.9institution for use as an instructional aid in automotive training programs operated by the |
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| 40 | 40 | | 2.10institution. "Automotive training programs" includes motor vehicle body and mechanical |
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| 41 | 41 | | 2.11repair courses but does not include driver education programs; |
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| 42 | 42 | | 2.12 (7) purchase of a motor vehicle by an ambulance service licensed under section 144E.10 |
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| 43 | 43 | | 2.13when that vehicle is equipped and specifically intended for emergency response or for |
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| 44 | 44 | | 2.14providing ambulance service; |
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| 45 | 45 | | 2.15 (8) purchase of a motor vehicle by or for a public library, as defined in section 134.001, |
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| 46 | 46 | | 2.16subdivision 2, as a bookmobile or library delivery vehicle; |
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| 47 | 47 | | 2.17 (9) purchase of a ready-mixed concrete truck; |
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| 48 | 48 | | 2.18 (10) purchase or use of a motor vehicle by a town for use exclusively for road |
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| 49 | 49 | | 2.19maintenance, including snowplows and dump trucks, but not including automobiles, vans, |
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| 50 | 50 | | 2.20or pickup trucks; |
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| 51 | 51 | | 2.21 (11) purchase or use of a motor vehicle by a corporation, society, association, foundation, |
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| 52 | 52 | | 2.22or institution organized and operated exclusively for charitable, religious, or educational |
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| 53 | 53 | | 2.23purposes, except a public school, university, or library, but only if the vehicle is: |
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| 54 | 54 | | 2.24 (i) a truck, as defined in section 168.002, a bus, as defined in section 168.002, or a |
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| 55 | 55 | | 2.25passenger automobile, as defined in section 168.002, if the automobile is designed and used |
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| 56 | 56 | | 2.26for carrying more than nine persons including the driver; and |
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| 57 | 57 | | 2.27 (ii) intended to be used primarily to transport tangible personal property or individuals, |
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| 58 | 58 | | 2.28other than employees, to whom the organization provides service in performing its charitable, |
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| 59 | 59 | | 2.29religious, or educational purpose; |
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| 60 | 60 | | 2.30 (12) purchase of a motor vehicle for use by a transit provider exclusively to provide |
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| 61 | 61 | | 2.31transit service is exempt if the transit provider is either (i) receiving financial assistance or |
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| 62 | 62 | | 2.32reimbursement under section 174.24 or 473.384, or (ii) operating under section 174.29, |
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| 63 | 63 | | 2.33473.388, or 473.405; |
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| 64 | 64 | | 2Section 1. |
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| 65 | 65 | | REVISOR KRB/VJ 25-0064211/22/24 3.1 (13) purchase or use of a motor vehicle by a qualified business, as defined in section |
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| 66 | 66 | | 3.2469.310, located in a job opportunity building zone, if the motor vehicle is principally |
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| 67 | 67 | | 3.3garaged in the job opportunity building zone and is primarily used as part of or in direct |
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| 68 | 68 | | 3.4support of the person's operations carried on in the job opportunity building zone. The |
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| 69 | 69 | | 3.5exemption under this clause applies to sales, if the purchase was made and delivery received |
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| 70 | 70 | | 3.6during the duration of the job opportunity building zone. The exemption under this clause |
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| 71 | 71 | | 3.7also applies to any local sales and use tax; |
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| 72 | 72 | | 3.8 (14) purchase of a leased vehicle by the lessee who was a participant in a lease-to-own |
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| 73 | 73 | | 3.9program from a charitable organization that is: |
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| 74 | 74 | | 3.10 (i) described in section 501(c)(3) of the Internal Revenue Code; and |
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| 75 | 75 | | 3.11 (ii) licensed as a motor vehicle lessor under section 168.27, subdivision 4; |
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| 76 | 76 | | 3.12 (15) purchase of a motor vehicle used exclusively as a mobile medical unit for the |
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| 77 | 77 | | 3.13provision of medical or dental services by a federally qualified health center, as defined |
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| 78 | 78 | | 3.14under title 19 of the Social Security Act, as amended by Section 4161 of the Omnibus Budget |
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| 79 | 79 | | 3.15Reconciliation Act of 1990; and |
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| 80 | 80 | | 3.16 (16) purchase of a motor vehicle by a veteran having a total service-connected disability, |
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| 81 | 81 | | 3.17as defined in section 171.01, subdivision 51. |
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| 82 | 82 | | 3Section 1. |
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| 83 | 83 | | REVISOR KRB/VJ 25-0064211/22/24 |
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