1.1 	A bill for an act
1.2 	relating to taxation; income; providing a credit for
1.3 	carsharing; amending Minnesota Statutes 2004, sections
1.4 	290.06, by adding a subdivision; 297A.64, subdivision
1.5 	4.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2004, section 290.06, is
1.8 	amended by adding a subdivision to read:
1.9 		Subd. 32.Carsharing credit. (a) For purposes of this
1.10 	subdivision, a "carsharing organization"  means an organization
1.11 	that:
1.12 	(1) is described in section 501(c) of the Internal Revenue
1.13 	Code;
1.14 	(2) is comprised of members who purchase the use of a motor
1.15 	vehicle from the organization;
1.16 	(3) owns or leases a fleet of motor vehicles that are
1.17 	available to members of the organization to pay for the use of a
1.18 	vehicle on an hourly or per trip basis; and 
1.19 	(4) does not assign exclusive rights of use of specific
1.20 	vehicles to individual members or allow individual members to
1.21 	keep a vehicle in the member's sole possession.
1.22 	(b) A taxpayer may take a credit against the tax due under
1.23 	this chapter for the expenses incurred by the taxpayer to
1.24 	purchase a membership and pay monthly dues to a carsharing
1.25 	organization or to provide memberships and pay monthly dues to a
2.1 	carsharing organization to employees of the taxpayer.  The
2.2 	amount of the credit is equal to the lesser of the actual cost
2.3 	of the membership fee and the monthly dues, or $390.  If an
2.4 	employer purchases the membership or pays the monthly dues to
2.5 	the nonprofit carsharing organization and resells the membership
2.6 	to its employees or charges the monthly dues to its employees,
2.7 	the credit allowed to the employer is the amount of the
2.8 	difference between the amount paid by the employer and the
2.9 	amount charged to the employee.
2.10 	(c) A taxpayer who owns a parking facility that charges
2.11 	customers an amount to park vehicles at the facility and
2.12 	provides dedicated parking space at no charge to a nonprofit
2.13 	carsharing organization to park the motor vehicles that are used
2.14 	by the members of the organization on an hourly or per trip
2.15 	basis, may take a credit against the tax due under this chapter
2.16 	for the value of the dedicated parking space provided to the
2.17 	nonprofit carsharing organization.  The value of the dedicated
2.18 	parking space is equal to the lowest amount charged to customers
2.19 	who pay to park at the facility calculated on an hourly, daily,
2.20 	or other long-term rate that results in the lowest total cost.
2.21 	
EFFECTIVE DATE. This section is effective for taxable
2.22 	years beginning after December 31, 2005.

2.23 	Sec. 2. Minnesota Statutes 2004, section 297A.64,
2.24 	subdivision 4, is amended to read:
2.25 		Subd. 4.Exemptions.  (a) The tax and the fee imposed by
2.26 	this section do not apply to a lease or rental of (1) a vehicle
2.27 	to be used by the lessee to provide a licensed taxi service; (2)
2.28 	a hearse or limousine used in connection with a burial or
2.29 	funeral service; or (3) a van designed or adapted primarily for
2.30 	transporting property rather than passengers; or (4) a vehicle
2.31 	used by members of a carsharing organization as defined in
2.32 	section 290.06, subdivision 32.
2.33 	(b) The lessor may elect not to charge the fee imposed in
2.34 	subdivision 2 if in the previous calendar year the lessor had no
2.35 	more than 20 vehicles available for lease that would have been
2.36 	subject to tax under this section, or no more than $50,000 in
3.1 	gross receipts that would have been subject to tax under this
3.2 	section.
3.3 	
EFFECTIVE DATE. This section is effective for leases or
3.4 	rentals occurring on and after January 1, 2006.