Bill Text: MN SF1086 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Plug-in electric drive vehicles motor vehicle sales tax exemption
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2011-04-04 - Referred to Taxes [SF1086 Detail]
Download: Minnesota-2011-SF1086-Introduced.html
1.2relating to taxation; exempting qualified plug-in electric drive vehicles from sales
1.3tax on motor vehicles; amending Minnesota Statutes 2010, sections 297B.01, by
1.4adding a subdivision; 297B.03.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 297B.01, is amended by adding a
1.7subdivision to read:
1.8 Subd. 15a. Qualified plug-in electric drive vehicle. "Qualified plug-in electric
1.9drive vehicle" means a four-wheeled motor vehicle that:
1.10(1) is manufactured primarily for use on public streets, roads, and highways;
1.11(2) has not been modified from the original manufacturer's specifications;
1.12(3) has been acquired for use or lease, and not for resale;
1.13(4) is rated at not more than 8,500 pounds unloaded gross vehicle weight;
1.14(5) has a maximum speed capability of at least 55 miles per hour;
1.15(6) is propelled to a significant extent by an electric motor that draws electricity from
1.16a battery that (i) has a capacity of not less than four kilowatt hours and (ii) is capable of
1.17being recharged from an external source of electricity; and
1.18(7) is purchased or leased on or after October 1, 2010.
1.19 Sec. 2. Minnesota Statutes 2010, section 297B.03, is amended to read:
1.20297B.03 EXEMPTIONS.
1.21 (a) There is specifically exempted from the provisions of this chapter and from
1.22computation of the amount of tax imposed by it the following:
2.1 (1) purchase or use, including use under a lease purchase agreement or installment
2.2sales contract made pursuant to section465.71 , of any motor vehicle by the United States
2.3and its agencies and instrumentalities and by any person described in and subject to the
2.4conditions provided in section297A.67, subdivision 11 ;
2.5 (2) purchase or use of any motor vehicle by any person who was a resident of
2.6another state or country at the time of the purchase and who subsequently becomes a
2.7resident of Minnesota, provided the purchase occurred more than 60 days prior to the date
2.8such person began residing in the state of Minnesota and the motor vehicle was registered
2.9in the person's name in the other state or country;
2.10 (3) purchase or use of any motor vehicle by any person making a valid election to be
2.11taxed under the provisions of section297A.90 ;
2.12 (4) purchase or use of any motor vehicle previously registered in the state of
2.13Minnesota when such transfer constitutes a transfer within the meaning of section 118,
2.14331, 332, 336, 337, 338, 351, 355, 368, 721, 731, 1031, 1033, or 1563(a) of the Internal
2.15Revenue Code;
2.16 (5) purchase or use of any vehicle owned by a resident of another state and leased
2.17to a Minnesota-based private or for-hire carrier for regular use in the transportation of
2.18persons or property in interstate commerce provided the vehicle is titled in the state of
2.19the owner or secured party, and that state does not impose a sales tax or sales tax on
2.20motor vehicles used in interstate commerce;
2.21 (6) purchase or use of a motor vehicle by a private nonprofit or public educational
2.22institution for use as an instructional aid in automotive training programs operated by the
2.23institution. "Automotive training programs" includes motor vehicle body and mechanical
2.24repair courses but does not include driver education programs;
2.25 (7) purchase of a motor vehicle for use as an ambulance by an ambulance service
2.26licensed under section144E.10 ;
2.27 (8) purchase of a motor vehicle by or for a public library, as defined in section
2.28134.001, subdivision 2
, as a bookmobile or library delivery vehicle;
2.29 (9) purchase of a ready-mixed concrete truck;
2.30 (10) purchase or use of a motor vehicle by a town for use exclusively for road
2.31maintenance, including snowplows and dump trucks, but not including automobiles,
2.32vans, or pickup trucks;
2.33 (11) purchase or use of a motor vehicle by a corporation, society, association,
2.34foundation, or institution organized and operated exclusively for charitable, religious,
2.35or educational purposes, except a public school, university, or library, but only if the
2.36vehicle is:
3.1 (i) a truck, as defined in section168.002 , a bus, as defined in section
168.002 , or a
3.2passenger automobile, as defined in section168.002 , if the automobile is designed and
3.3used for carrying more than nine persons including the driver; and
3.4 (ii) intended to be used primarily to transport tangible personal property or
3.5individuals, other than employees, to whom the organization provides service in
3.6performing its charitable, religious, or educational purpose;
3.7 (12) purchase of a motor vehicle for use by a transit provider exclusively to provide
3.8transit service is exempt if the transit provider is either (i) receiving financial assistance or
3.9reimbursement under section174.24 or
473.384 , or (ii) operating under section
174.29 ,
3.10473.388
, or
473.405 ;
3.11 (13) purchase or use of a motor vehicle by a qualified business, as defined in section
3.12469.310
, located in a job opportunity building zone, if the motor vehicle is principally
3.13garaged in the job opportunity building zone and is primarily used as part of or in direct
3.14support of the person's operations carried on in the job opportunity building zone. The
3.15exemption under this clause applies to sales, if the purchase was made and delivery
3.16received during the duration of the job opportunity building zone. The exemption under
3.17this clause also applies to any local sales and use tax; and
3.18 (14) purchase of a leased vehicle by the lessee who was a participant in a
3.19lease-to-own program from a charitable organization that is:
3.20 (i) described in section 501(c)(3) of the Internal Revenue Code; and
3.21 (ii) licensed as a motor vehicle lessor under section168.27, subdivision 4 .
3.22(b) A qualified plug-in electric drive vehicle is exempt from payment of the sales tax
3.23on motor vehicles under this chapter, up to a maximum of $2,000, under the following
3.24conditions:
3.25(1) the exemption is limited to one vehicle purchased or leased by an individual and
3.26ten vehicles purchased or leased by a corporate or other business entity;
3.27(2) the vehicle is registered in Minnesota; and
3.28(3) the owner has conformed to any applicable state or federal laws or regulations
3.29governing clean-fuel vehicle or electric vehicle purchases or leases applicable during the
3.30calendar year in which the vehicle is registered.
1.3tax on motor vehicles; amending Minnesota Statutes 2010, sections 297B.01, by
1.4adding a subdivision; 297B.03.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 297B.01, is amended by adding a
1.7subdivision to read:
1.8 Subd. 15a. Qualified plug-in electric drive vehicle. "Qualified plug-in electric
1.9drive vehicle" means a four-wheeled motor vehicle that:
1.10(1) is manufactured primarily for use on public streets, roads, and highways;
1.11(2) has not been modified from the original manufacturer's specifications;
1.12(3) has been acquired for use or lease, and not for resale;
1.13(4) is rated at not more than 8,500 pounds unloaded gross vehicle weight;
1.14(5) has a maximum speed capability of at least 55 miles per hour;
1.15(6) is propelled to a significant extent by an electric motor that draws electricity from
1.16a battery that (i) has a capacity of not less than four kilowatt hours and (ii) is capable of
1.17being recharged from an external source of electricity; and
1.18(7) is purchased or leased on or after October 1, 2010.
1.19 Sec. 2. Minnesota Statutes 2010, section 297B.03, is amended to read:
1.20297B.03 EXEMPTIONS.
1.21 (a) There is specifically exempted from the provisions of this chapter and from
1.22computation of the amount of tax imposed by it the following:
2.1 (1) purchase or use, including use under a lease purchase agreement or installment
2.2sales contract made pursuant to section
2.3and its agencies and instrumentalities and by any person described in and subject to the
2.4conditions provided in section
2.5 (2) purchase or use of any motor vehicle by any person who was a resident of
2.6another state or country at the time of the purchase and who subsequently becomes a
2.7resident of Minnesota, provided the purchase occurred more than 60 days prior to the date
2.8such person began residing in the state of Minnesota and the motor vehicle was registered
2.9in the person's name in the other state or country;
2.10 (3) purchase or use of any motor vehicle by any person making a valid election to be
2.11taxed under the provisions of section
2.12 (4) purchase or use of any motor vehicle previously registered in the state of
2.13Minnesota when such transfer constitutes a transfer within the meaning of section 118,
2.14331, 332, 336, 337, 338, 351, 355, 368, 721, 731, 1031, 1033, or 1563(a) of the Internal
2.15Revenue Code;
2.16 (5) purchase or use of any vehicle owned by a resident of another state and leased
2.17to a Minnesota-based private or for-hire carrier for regular use in the transportation of
2.18persons or property in interstate commerce provided the vehicle is titled in the state of
2.19the owner or secured party, and that state does not impose a sales tax or sales tax on
2.20motor vehicles used in interstate commerce;
2.21 (6) purchase or use of a motor vehicle by a private nonprofit or public educational
2.22institution for use as an instructional aid in automotive training programs operated by the
2.23institution. "Automotive training programs" includes motor vehicle body and mechanical
2.24repair courses but does not include driver education programs;
2.25 (7) purchase of a motor vehicle for use as an ambulance by an ambulance service
2.26licensed under section
2.27 (8) purchase of a motor vehicle by or for a public library, as defined in section
2.29 (9) purchase of a ready-mixed concrete truck;
2.30 (10) purchase or use of a motor vehicle by a town for use exclusively for road
2.31maintenance, including snowplows and dump trucks, but not including automobiles,
2.32vans, or pickup trucks;
2.33 (11) purchase or use of a motor vehicle by a corporation, society, association,
2.34foundation, or institution organized and operated exclusively for charitable, religious,
2.35or educational purposes, except a public school, university, or library, but only if the
2.36vehicle is:
3.1 (i) a truck, as defined in section
3.2passenger automobile, as defined in section
3.3used for carrying more than nine persons including the driver; and
3.4 (ii) intended to be used primarily to transport tangible personal property or
3.5individuals, other than employees, to whom the organization provides service in
3.6performing its charitable, religious, or educational purpose;
3.7 (12) purchase of a motor vehicle for use by a transit provider exclusively to provide
3.8transit service is exempt if the transit provider is either (i) receiving financial assistance or
3.9reimbursement under section
3.11 (13) purchase or use of a motor vehicle by a qualified business, as defined in section
3.13garaged in the job opportunity building zone and is primarily used as part of or in direct
3.14support of the person's operations carried on in the job opportunity building zone. The
3.15exemption under this clause applies to sales, if the purchase was made and delivery
3.16received during the duration of the job opportunity building zone. The exemption under
3.17this clause also applies to any local sales and use tax; and
3.18 (14) purchase of a leased vehicle by the lessee who was a participant in a
3.19lease-to-own program from a charitable organization that is:
3.20 (i) described in section 501(c)(3) of the Internal Revenue Code; and
3.21 (ii) licensed as a motor vehicle lessor under section
3.22(b) A qualified plug-in electric drive vehicle is exempt from payment of the sales tax
3.23on motor vehicles under this chapter, up to a maximum of $2,000, under the following
3.24conditions:
3.25(1) the exemption is limited to one vehicle purchased or leased by an individual and
3.26ten vehicles purchased or leased by a corporate or other business entity;
3.27(2) the vehicle is registered in Minnesota; and
3.28(3) the owner has conformed to any applicable state or federal laws or regulations
3.29governing clean-fuel vehicle or electric vehicle purchases or leases applicable during the
3.30calendar year in which the vehicle is registered.
