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SF4465 (Legislative Session 94 (2025-2026))

Pre-owned motor vehicles sales tax exemption establishment

Related bill: HF4387

AI Generated Summary

Purpose

The bill seeks to provide an exemption from the motor vehicle sales tax for preowned motor vehicles that are already exempt from taxation under chapter 297B. It links the tax exemption for used cars to the existing exemptions in the chapter that handles other motor vehicle taxes.

Main Provisions

  • Adds Subdivision 30a to Minnesota Statutes 297A.67 to create an exemption for preowned motor vehicles from the motor vehicle sales tax.
  • Defines “preowned motor vehicles” by referring to the definition in Minnesota Statutes 297B.01, subdivision 13a.
  • Includes amendments related to section 297B.01 (specifically subdivision 13a) to define the type of preowned motor vehicles eligible for the exemption.
  • Adds or references 297B.03 (details not provided in the excerpt) to support or implement the exemption framework under chapter 297B.

How it changes existing law

  • Establishes an exemption from the motor vehicle sales tax for a subset of vehicles classified as preowned motor vehicles.
  • Ties the eligibility to vehicles that are already exempt from taxation under chapter 297B.
  • Expands the list of statutory provisions interacting with motor vehicle tax exemptions by adding a new subdivision and definitions in 297A.67 and related sections in 297B.01 and 297B.03.

Practical impact

  • Buyers of preowned motor vehicles that meet the defined criteria would not pay the motor vehicle sales tax if they are already exempt under chapter 297B.
  • Creates alignment between the existing tax exemptions under chapter 297B and the motor vehicle sales tax for these specific used vehicles.

Significant changes to existing law (summary)

  • Creation of Subd. 30a in 297A.67 establishing the motor vehicle sales tax exemption for preowned motor vehicles.
  • Introduction of a cross-reference to a definition of “preowned motor vehicles” in 297B.01, subdivision 13a.
  • Addition of 297B.03 to support the exemption framework and the interaction with the motor vehicle sales tax.

Limitations and scope (from the excerpt)

  • The exemption applies only to preowned motor vehicles defined by 297B.01, subdivision 13a, and only if they are exempt from taxation under chapter 297B.
  • The exact content of the 297B.01(13a) definition is not provided in the excerpt.

Relevant Terms - preowned motor vehicles - motor vehicle sales tax - exemption from taxation - Minnesota Statutes 2024 - chapter 297B - 297A.67 - subdivision 30a - 297B.01 - subdivision 13a - 297B.03

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 17, 2026SenateActionIntroduction and first reading
March 17, 2026SenateActionReferred toTransportation

Citations

 
[
  {
    "analysis": {
      "added": [
        "Adds Subd.30a establishing the 'Preowned motor vehicles' exemption tied to definitions in § 297B.01(13a) and exemption under chapter 297B."
      ],
      "removed": [],
      "summary": "This bill creates an exemption from the motor vehicle sales tax for preowned motor vehicles by adding Subd.30a to Minn. Stat. § 297A.67.",
      "modified": [
        "Amends § 297A.67 to create a tax exemption for preowned motor vehicles."
      ]
    },
    "citation": "297A.67",
    "subdivision": "subd.30a"
  },
  {
    "analysis": {
      "added": [
        "Adds subdivision 13a to § 297B.01 defining 'Preowned motor vehicles'."
      ],
      "removed": [],
      "summary": "Defines 'Preowned motor vehicles' in Minn. Stat. § 297B.01, subdivision 13a, to which the exemption in § 297A.67 Subd.30a applies.",
      "modified": []
    },
    "citation": "297B.01",
    "subdivision": "subd.13a"
  },
  {
    "analysis": {
      "added": [
        "Adds subdivision 1.5 to § 297B.03 related to the preowned motor vehicle exemption."
      ],
      "removed": [],
      "summary": "Adds subdivision 1.5 to Minn. Stat. § 297B.03 to implement the exemption provisions.",
      "modified": []
    },
    "citation": "297B.03",
    "subdivision": "subd.1.5"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Cross-reference to Chapter 297B relevant to the exemption for preowned motor vehicles.",
      "modified": []
    },
    "citation": "297B",
    "subdivision": ""
  }
]

Progress through the legislative process

17%
In Committee

Sponsors

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