Bill Text: MN HF1540 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Rental motor vehicle tax repealed.
Spectrum: Partisan Bill (Republican 15-0)
Status: (Introduced - Dead) 2013-03-13 - Introduction and first reading, referred to Taxes [HF1540 Detail]
Download: Minnesota-2013-HF1540-Introduced.html
1.2relating to taxation; sales and use; repealing the rental motor vehicle tax;
1.3amending Minnesota Statutes 2012, section 297A.64, subdivisions 2, 3, 4;
1.4repealing Minnesota Statutes 2012, section 297A.64, subdivision 1.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 297A.64, subdivision 2, is amended to read:
1.7 Subd. 2. Fee imposed. (a) A fee equal to five percent of the sales price is imposed
1.8on leases or rentals of vehiclessubject to the tax under subdivision 1 in this state for not
1.9more than 28 days of a passenger automobile as defined in section 168.002, subdivision
1.1024, a van as defined in section 168.002, subdivision 40, or a pickup truck as defined in
1.11section 168.002, subdivision 26. The lessor on the invoice to the customer may designate
1.12the fee as "a fee imposed by the State of Minnesota for the registration of rental cars."
1.13(b) The provisions of this subdivision do not apply to the vehicles of a nonprofit
1.14corporation or similar entity, consisting of individual or group members who pay the
1.15organization for the use of a motor vehicle, if the organization:
1.16(1) owns or leases a fleet of vehicles of the type subject to thetax under subdivision
1.171 fee under paragraph (a) that are available to its members for use, priced on the basis
1.18of intervals of one hour or less;
1.19(2) parks its vehicles at unstaffed, self-service locations that are accessible at any
1.20time of the day;
1.21(3) maintains its vehicles, insures its vehicles on behalf of its members, and
1.22purchases fuel for its fleet; and
1.23(4) does not charge usage rates that decline on a per unit basis, whether specified
1.24based on distance or time.
2.1 Sec. 2. Minnesota Statutes 2012, section 297A.64, subdivision 3, is amended to read:
2.2 Subd. 3. Administration.The retailer shall report and pay the tax imposed in
2.3subdivision 1 to the commissioner of revenue with the taxes imposed in this chapter. The
2.4tax imposed in subdivision 1 and The fee imposed in subdivision 2 are is subject to the
2.5same interest, penalty, and other provisions provided for sales and use taxes under this
2.6chapter and chapter 289A. The audit, assessment, appeal, collection, enforcement, and
2.7administrative provisions of this chapter and chapters 270C and 289A, that apply to sales
2.8and use taxes, apply to thetax and fee.
2.9 Sec. 3. Minnesota Statutes 2012, section 297A.64, subdivision 4, is amended to read:
2.10 Subd. 4. Exemptions. (a) Thetax and the fee imposed by this section do does not
2.11apply to a lease or rental of (1) a vehicle to be used by the lessee to provide a licensed taxi
2.12service; (2) a hearse or limousine used in connection with a burial or funeral service; or
2.13(3) a van designed or adapted primarily for transporting property rather than passengers.
2.14Thetax and the fee imposed under this section do does not apply when the lease or rental
2.15of a vehicle is exempt from the tax imposed under section297A.62, subdivision 1 .
2.16(b) The lessor may elect not to charge the fee imposed in subdivision 2 if in the
2.17previous calendar year the lessor had no more than 20 vehicles available for lease that
2.18would have been subject totax under this section the fee, or no more than $50,000 in gross
2.19receipts that would have been subject totax under this section the fee.
2.20 Sec. 4. REPEALER.
2.21Minnesota Statutes 2012, section 297A.64, subdivision 1, is repealed.
1.3amending Minnesota Statutes 2012, section 297A.64, subdivisions 2, 3, 4;
1.4repealing Minnesota Statutes 2012, section 297A.64, subdivision 1.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 297A.64, subdivision 2, is amended to read:
1.7 Subd. 2. Fee imposed. (a) A fee equal to five percent of the sales price is imposed
1.8on leases or rentals of vehicles
1.9more than 28 days of a passenger automobile as defined in section 168.002, subdivision
1.1024, a van as defined in section 168.002, subdivision 40, or a pickup truck as defined in
1.11section 168.002, subdivision 26. The lessor on the invoice to the customer may designate
1.12the fee as "a fee imposed by the State of Minnesota for the registration of rental cars."
1.13(b) The provisions of this subdivision do not apply to the vehicles of a nonprofit
1.14corporation or similar entity, consisting of individual or group members who pay the
1.15organization for the use of a motor vehicle, if the organization:
1.16(1) owns or leases a fleet of vehicles of the type subject to the
1.17
1.18of intervals of one hour or less;
1.19(2) parks its vehicles at unstaffed, self-service locations that are accessible at any
1.20time of the day;
1.21(3) maintains its vehicles, insures its vehicles on behalf of its members, and
1.22purchases fuel for its fleet; and
1.23(4) does not charge usage rates that decline on a per unit basis, whether specified
1.24based on distance or time.
2.1 Sec. 2. Minnesota Statutes 2012, section 297A.64, subdivision 3, is amended to read:
2.2 Subd. 3. Administration.
2.3
2.4
2.5same interest, penalty, and other provisions provided for sales and use taxes under this
2.6chapter and chapter 289A. The audit, assessment, appeal, collection, enforcement, and
2.7administrative provisions of this chapter and chapters 270C and 289A, that apply to sales
2.8and use taxes, apply to the
2.9 Sec. 3. Minnesota Statutes 2012, section 297A.64, subdivision 4, is amended to read:
2.10 Subd. 4. Exemptions. (a) The
2.11apply to a lease or rental of (1) a vehicle to be used by the lessee to provide a licensed taxi
2.12service; (2) a hearse or limousine used in connection with a burial or funeral service; or
2.13(3) a van designed or adapted primarily for transporting property rather than passengers.
2.14The
2.15of a vehicle is exempt from the tax imposed under section
2.16(b) The lessor may elect not to charge the fee imposed in subdivision 2 if in the
2.17previous calendar year the lessor had no more than 20 vehicles available for lease that
2.18would have been subject to
2.19receipts that would have been subject to
2.20 Sec. 4. REPEALER.
2.21Minnesota Statutes 2012, section 297A.64, subdivision 1, is repealed.
