Purpose

This bill creates a refund process for the registration tax paid on a vehicle that is returned to the original manufacturer or dealer within 30 days. It aims to reimburse the transferee (the person who initially received the vehicle transfer) when the vehicle is permanently returned to the seller, ensuring the tax paid on that returned vehicle is refunded.

Key Definitions

• Returned vehicle: A vehicle that must be registered, is transferred from a manufacturer or dealer to a transferee (by sale, lease, or other means), and is permanently transferred back to the same manufacturer or dealer within 30 days without the transferee retaining any right to use or possess the vehicle.
• Transferee: The person who receives the vehicle transfer from a manufacturer or dealer and later permanently transfers the vehicle back to the same manufacturer or dealer.

Required Notice

• A manufacturer or dealer that receives a returned vehicle must notify the commissioner within 10 days.
• The notice must reference the date of the return transfer and the initial transfer, and it must reference the transferee’s application for registration as filed by the manufacturer or dealer under Minn. Stat. 168.15(1)(e).

Refund Process

• When the commissioner receives the notice, the commissioner must cancel the returned vehicle’s registration within 30 days.
• The commissioner must issue a refund to the transferee of the registration taxes paid on the returned vehicle.

What changes or additions this makes to law

• Establishes a new statutory framework (Minnesota Statutes chapter 168) specifically for refunding the registration tax on returned vehicles.
• Requires documentation and notification by manufacturers or dealers and assigns the refund administration to the state commissioner.

How it works in practice (summary)

• A vehicle is returned shortly after transfer to the manufacturer/dealer.
• The manufacturer/dealer files a notice to the commissioner within 10 days, including relevant transfer details.
• The commissioner cancels the returned vehicle’s registration within 30 days and refunds the transferee for the registration tax paid.

Relevant Terms - returned vehicle - transferee - manufacturer or dealer - registration tax - refund - notice - commissioner - Minnesota Statutes chapter 168 - 168.15(1)(e)