SF189 (Legislative Session 94 (2025-2026))

Vehicle taxes and fee exemptions for eligible surviving spouses of a veteran authorization

Related bill: HF1033

AI Generated Summary

Purpose

To reduce vehicle-related costs for eligible surviving spouses of veterans and certain veterans by creating exemptions from select taxes and fees when registering a vehicle.

Key Definitions

  • eligible owner: a person who can qualify for the exemptions, including:
    • a veteran with a total service-connected disability, or
    • a Gold Star spouse (as defined in law).
  • qualifying veteran: a veteran with a total service-connected disability.
  • Gold Star spouse: a spouse defined as Gold Star in statute.
  • spouse or domestic partner: the person who shares ownership with the eligible owner.
  • joint registration: a vehicle registration that lists the qualifying veteran, an eligible owner, and the spouse or domestic partner as owners.

Main Provisions

  • Exemptions from fees and taxes:
    • The following are exempt for eligible owners when the vehicle is registered under the described eligibility:
    • registration taxes
    • administrative fees
    • filing fees and surcharges
    • plate and validation sticker fees
    • transfer fees
  • Eligibility and ownership structure:
    • Exemptions apply to a motor vehicle that is jointly registered by a qualifying veteran, an eligible owner, and a spouse or domestic partner.
  • Exclusions to the exemptions:
    • The exemption does not include fees for personalized plates.
    • It does not include required contributions or donations for certain special plates.
  • Vehicle limit:
    • An eligible owner may register no more than two motor vehicles at the same time under these exemptions.
    • The bill does not prevent registering additional vehicles under normal law (outside these exemptions).

Changes to Existing Law

  • The bill would amend Minnesota Statutes to:
    • create the exemptions described above within the section governing vehicle registrations and fees.
    • add new definitions (and a new subdivision) related to eligible owners and the exemption framework.
    • adjust how exemptions apply to jointly registered vehicles and certain plate-related fees.

Significance and Practical Impact

  • Provides financial relief on several vehicle-related costs for eligible veterans and Gold Star spouses when sharing ownership of a vehicle with a spouse or domestic partner.
  • Creates a defined limit (two vehicles) for exemptions, preventing unlimited use of the tax/fee exemptions.
  • Keeps certain fees (personalized plate costs and required donations for special plates) outside the exemption, ensuring those charges still apply.

Potential Limitations and Considerations

  • Exemption scope is limited to specific fees; other unrelated costs may still apply.
  • The requirement of joint registration with specific parties may limit how exemptions can be used.

Relevant Terms - eligible owner - veteran with total service-connected disability - Gold Star spouse - spouse or domestic partner - joint registration - registration taxes - administrative fees - filing fees and surcharges - plate and validation sticker fees - transfer fees - personalized plates - special plates - two motor vehicles (exemption limit)

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
January 16, 2025SenateActionIntroduction and first reading
January 16, 2025SenateActionReferred toTransportation
January 23, 2025SenateActionAuthors added

Citations

 
[
  {
    "analysis": {
      "added": [
        "Exemption from registration taxes, administrative fees, filing fees and surcharges, and plate/validation sticker fees for eligible owners.",
        "Eligibility tied to veterans with total service-connected disability and Gold Star spouses as defined in Minnesota Statutes."
      ],
      "removed": [],
      "summary": "The bill creates exemptions for eligible owners (veterans with certain disabilities and Gold Star spouses) from certain registration-related fees for vehicles registered by the veteran/owner.",
      "modified": [
        "Uses existing definitions (17101, subd. 5 and 33b) to define eligible owners and related beneficiaries."
      ]
    },
    "citation": "168.012",
    "subdivision": "subdivision 13"
  },
  {
    "analysis": {
      "added": [
        "Reference to total service-connected disability as a basis for exemptions in vehicle registration-related provisions."
      ],
      "removed": [],
      "summary": "Defines total service-connected disability, which the bill uses to identify eligible veteran owners.",
      "modified": []
    },
    "citation": "171.01",
    "subdivision": "subdivision 5"
  },
  {
    "analysis": {
      "added": [
        "Reference to Gold Star spouse as an eligible recipient of registration and fee exemptions."
      ],
      "removed": [],
      "summary": "Defines Gold Star spouse, used to identify eligible owners for exemptions.",
      "modified": []
    },
    "citation": "171.01",
    "subdivision": "subdivision 33b"
  },
  {
    "analysis": {
      "added": [
        "New subdivision 2c establishing the exemption framework relevant to surviving spouses."
      ],
      "removed": [],
      "summary": "Adds subdivision 2c to section 171.06 related to exemptions for eligible surviving spouses of veterans.",
      "modified": []
    },
    "citation": "171.06",
    "subdivision": "subdivision 2c"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Cross-reference to an existing Minnesota Statute (section 297B.03) as part of the bill's framework; no specific text shown here adding or amending 297B.03.",
      "modified": []
    },
    "citation": "297B.03",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Links the exemption to fees described in 168.12, subd. 5."
      ],
      "removed": [],
      "summary": "References the fees that are implicated by the exemptions (e.g., certain registration-related fees).",
      "modified": []
    },
    "citation": "168.12",
    "subdivision": "subdivision 5"
  },
  {
    "analysis": {
      "added": [
        "Notes that certain plate-related fees are or are not included in the exemptions."
      ],
      "removed": [],
      "summary": "References fees related to special plates (personalized plates) in the context of exemptions.",
      "modified": []
    },
    "citation": "168.12",
    "subdivision": "subdivision 2a"
  },
  {
    "analysis": {
      "added": [
        "Explicitly references a specific clause involving special plate-related fees within the exemption framework."
      ],
      "removed": [],
      "summary": "Identifies a fee related to special plates that is subject to or excluded from exemptions.",
      "modified": []
    },
    "citation": "168.1255",
    "subdivision": "subdivision 1 clause 6"
  },
  {
    "analysis": {
      "added": [
        "Explicitly references clause controlling special plate fees within the exemption design."
      ],
      "removed": [],
      "summary": "Identifies another clause related to special plates/fees in the exemption structure.",
      "modified": []
    },
    "citation": "168.1258",
    "subdivision": "subdivision 1 clause 4"
  },
  {
    "analysis": {
      "added": [
        "Incorporates a particular fee-related clause (2(a)(5)) into the exemption framework."
      ],
      "removed": [],
      "summary": "References a specific provision affecting fees for special plates within the exemptions.",
      "modified": []
    },
    "citation": "168.1259",
    "subdivision": "subdivision 2 paragraph a clause 5"
  },
  {
    "analysis": {
      "added": [
        "Includes a specific clause (1(1)(5)) tied to plate-related fees within exemptions."
      ],
      "removed": [],
      "summary": "Cites a clause related to certain plate-related fees in the exemption context.",
      "modified": []
    },
    "citation": "168.1287",
    "subdivision": "subdivision 1 clause 5"
  },
  {
    "analysis": {
      "added": [
        "Incorporates a particular fee provision (1(a)(5)) into the exemption scheme."
      ],
      "removed": [],
      "summary": "Specifies a fee provision (1(a)(5)) linked to the exemptions for eligible owners.",
      "modified": []
    },
    "citation": "168.129",
    "subdivision": "subdivision 1 paragraph a clause 5"
  },
  {
    "analysis": {
      "added": [
        "Inclusion of a specific fee clause (1(a)(2)) in the exemption context."
      ],
      "removed": [],
      "summary": "References a fee-related provision (1(a)(2)) within the exemption framework.",
      "modified": []
    },
    "citation": "168.1295",
    "subdivision": "subdivision 1 paragraph a clause 2"
  },
  {
    "analysis": {
      "added": [
        "Adds a specific fee clause (1(a)(5)) to the exemption provisions."
      ],
      "removed": [],
      "summary": "Cites a fee clause (1(a)(5)) within the exemptions.",
      "modified": []
    },
    "citation": "168.1296",
    "subdivision": "subdivision 1 paragraph a clause 5"
  },
  {
    "analysis": {
      "added": [
        "Includes a particular fee clause (1(2)) within the exemption scheme."
      ],
      "removed": [],
      "summary": "References another fee-related provision (1(2)) within the exemption framework.",
      "modified": []
    },
    "citation": "168.1299",
    "subdivision": "subdivision 1 clause 2"
  }
]

Progress through the legislative process

17%
In Committee
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