Bill Text: MN HF1080 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Nonprofit corporation leased vehicles exemption added.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2013-04-10 - Author added Loeffler [HF1080 Detail]
Download: Minnesota-2013-HF1080-Introduced.html
1.2relating to taxation; sales and use; adding an exemption for vehicles leased by
1.3nonprofit corporations;amending Minnesota Statutes 2012, section 297A.64,
1.4subdivisions 1, 2.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 297A.64, subdivision 1, is amended to read:
1.7 Subdivision 1. Tax imposed. (a) A tax is imposed on the lease or rental in this
1.8state for not more than 28 days of a passenger automobile as defined in section168.002,
1.9subdivision 24 , a van as defined in section
168.002, subdivision 40 , or a pickup truck as
1.10defined in section168.002, subdivision 26 . The rate of tax is 6.2 percent of the sales price.
1.11The tax applies whether or not the vehicle is licensed in the state.
1.12(b) The provisions of this subdivision do not apply to the vehicles of a nonprofit
1.13corporation or similar entity, consisting of members who pay the organization for the
1.14use of a motor vehicle, if the organization:
1.15(1) owns or leases a fleet of vehicles of the type subject to the tax under paragraph (a)
1.16that are available to its members for use, priced on the basis of intervals of one hour or less;
1.17(2) parks its vehicles at unstaffed, self-service locations that are accessible to its
1.18members at any time; and
1.19(3) maintains its vehicles, insures its vehicles on behalf of its members, and
1.20purchases fuel for its fleet.
1.21EFFECTIVE DATE.This section is effective for sales and purchases made after
1.22June 30, 2013.
1.23 Sec. 2. Minnesota Statutes 2012, section 297A.64, subdivision 2, is amended to read:
2.1 Subd. 2. Fee imposed. (a) A fee equal to five percent of the sales price is imposed
2.2on leases or rentals of vehicles subject to the tax under subdivision 1, paragraph (a). The
2.3lessor on the invoice to the customer may designate the fee as "a fee imposed by the State
2.4of Minnesota for the registration of rental cars."
2.5(b) The provisions of this subdivision do not apply to the vehiclesof a nonprofit
2.6corporation or similar entity, consisting of individual or group members who pay the
2.7organization for the use of a motor vehicle, if the organization:
2.8(1) owns or leases a fleet of vehicles of the type subject to the tax under subdivision 1
2.9that are available to its members for use, priced on the basis of intervals of one hour or less;
2.10(2) parks its vehicles at unstaffed, self-service locations that are accessible at any
2.11time of the day;
2.12(3) maintains its vehicles, insures its vehicles on behalf of its members, and
2.13purchases fuel for its fleet; and
2.14(4) does not charge usage rates that decline on a per unit basis, whether specified
2.15based on distance or time exempt from the tax imposed under subdivision 1, paragraph (b).
2.16EFFECTIVE DATE.This section is effective for sales and purchases made after
2.17June 30, 2013.
1.3nonprofit corporations;amending Minnesota Statutes 2012, section 297A.64,
1.4subdivisions 1, 2.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 297A.64, subdivision 1, is amended to read:
1.7 Subdivision 1. Tax imposed. (a) A tax is imposed on the lease or rental in this
1.8state for not more than 28 days of a passenger automobile as defined in section
1.9subdivision 24
1.10defined in section
1.11The tax applies whether or not the vehicle is licensed in the state.
1.12(b) The provisions of this subdivision do not apply to the vehicles of a nonprofit
1.13corporation or similar entity, consisting of members who pay the organization for the
1.14use of a motor vehicle, if the organization:
1.15(1) owns or leases a fleet of vehicles of the type subject to the tax under paragraph (a)
1.16that are available to its members for use, priced on the basis of intervals of one hour or less;
1.17(2) parks its vehicles at unstaffed, self-service locations that are accessible to its
1.18members at any time; and
1.19(3) maintains its vehicles, insures its vehicles on behalf of its members, and
1.20purchases fuel for its fleet.
1.21EFFECTIVE DATE.This section is effective for sales and purchases made after
1.22June 30, 2013.
1.23 Sec. 2. Minnesota Statutes 2012, section 297A.64, subdivision 2, is amended to read:
2.1 Subd. 2. Fee imposed. (a) A fee equal to five percent of the sales price is imposed
2.2on leases or rentals of vehicles subject to the tax under subdivision 1, paragraph (a). The
2.3lessor on the invoice to the customer may designate the fee as "a fee imposed by the State
2.4of Minnesota for the registration of rental cars."
2.5(b) The provisions of this subdivision do not apply to the vehicles
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2.16EFFECTIVE DATE.This section is effective for sales and purchases made after
2.17June 30, 2013.
