1.1                          A bill for an act 
  1.2             relating to motor vehicles; providing for the 
  1.3             calculation of certain vehicle registration taxes; 
  1.4             regulating dealer transfers; amending Minnesota 
  1.5             Statutes 2000, sections 168.301, subdivision 3; 
  1.6             168A.11, subdivision 1; Minnesota Statutes 2001 
  1.7             Supplement, section 168.013, subdivision 1a. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 2001 Supplement, section 
  1.10  168.013, subdivision 1a, is amended to read: 
  1.11     Subd. 1a.  [PASSENGER AUTOMOBILE; HEARSE.] (a) On passenger 
  1.12  automobiles as defined in section 168.011, subdivision 7, and 
  1.13  hearses, except as otherwise provided, the tax shall be $10 plus 
  1.14  an additional tax equal to 1.25 percent of the base value.  
  1.15     (b) Subject to the classification provisions herein, "base 
  1.16  value" means the manufacturer's suggested retail price of the 
  1.17  vehicle including destination charge using list price 
  1.18  information published by the manufacturer or determined by the 
  1.19  registrar if no suggested retail price exists, and shall not 
  1.20  include the cost of each accessory or item of optional equipment 
  1.21  separately added to the vehicle and the suggested retail price. 
  1.22     (c) If the manufacturer's list price information contains a 
  1.23  single vehicle identification number followed by various 
  1.24  descriptions and suggested retail prices, the registrar shall 
  1.25  select from those listings only the lowest price for determining 
  1.26  base value. 
  2.1      (d) If unable to determine the base value because the 
  2.2   vehicle is specially constructed, or for any other reason, the 
  2.3   registrar may establish such value upon the cost price to the 
  2.4   purchaser or owner as evidenced by a certificate of cost but not 
  2.5   including Minnesota sales or use tax or any local sales or other 
  2.6   local tax. 
  2.7      (e) The registrar shall classify every vehicle in its 
  2.8   proper base value class as follows: 
  2.9                         FROM                   TO
  2.10                        $  0                $199.99
  2.11                         200                 399.99
  2.12  and thereafter a series of classes successively set in brackets 
  2.13  having a spread of $200 consisting of such number of classes as 
  2.14  will permit classification of all vehicles. 
  2.15     (f) The base value for purposes of this section shall be 
  2.16  the middle point between the extremes of its class. 
  2.17     (g) The registrar shall establish the base value, when new, 
  2.18  of every passenger automobile and hearse registered prior to the 
  2.19  effective date of Extra Session Laws 1971, chapter 31, using 
  2.20  list price information published by the manufacturer or any 
  2.21  nationally recognized firm or association compiling such data 
  2.22  for the automotive industry.  If unable to ascertain the base 
  2.23  value of any registered vehicle in the foregoing manner, the 
  2.24  registrar may use any other available source or method.  The 
  2.25  registrar shall calculate tax using base value information 
  2.26  available to dealers and deputy registrars at the time the 
  2.27  application for registration is submitted.  The tax on all 
  2.28  previously registered vehicles shall be computed upon the base 
  2.29  value thus determined taking into account the depreciation 
  2.30  provisions of paragraph (h). 
  2.31     (h) The annual additional tax computed upon the base value 
  2.32  as provided herein, during the first and second years of vehicle 
  2.33  life shall be computed upon 100 percent of the base value; for 
  2.34  the third and fourth years, 90 percent of such value; for the 
  2.35  fifth and sixth years, 75 percent of such value; for the seventh 
  2.36  year, 60 percent of such value; for the eighth year, 40 percent 
  3.1   of such value; for the ninth year, 30 percent of such value; for 
  3.2   the tenth year, ten percent of such value; for the 11th and each 
  3.3   succeeding year, the sum of $25.  
  3.4   In no event shall the annual additional tax be less than $25.  
  3.5   The total tax under this subdivision shall not exceed $189 for 
  3.6   the first renewal period and shall not exceed $99 for subsequent 
  3.7   renewal periods.  The total tax under this subdivision on any 
  3.8   vehicle filing its initial registration in Minnesota in the 
  3.9   second year of vehicle life shall not exceed $189 and shall not 
  3.10  exceed $99 for subsequent renewal periods.  The total tax under 
  3.11  this subdivision on any vehicle filing its initial registration 
  3.12  in Minnesota in the third or subsequent year of vehicle life 
  3.13  shall not exceed $99 and shall not exceed $99 in any subsequent 
  3.14  renewal period. 
  3.15     (i) As used in this subdivision and section 168.017, the 
  3.16  following terms have the meanings given:  "initial registration" 
  3.17  means the 12 consecutive months calendar period from the day of 
  3.18  first registration of a vehicle in Minnesota; and "renewal 
  3.19  periods" means the 12 consecutive calendar months periods 
  3.20  following the initial registration period. 
  3.21     Sec. 2.  Minnesota Statutes 2000, section 168A.11, 
  3.22  subdivision 1, is amended to read: 
  3.23     Subdivision 1.  [APPLICATION UPON TRANSFER.] If a dealer 
  3.24  buys a vehicle and holds it for resale and procures the 
  3.25  certificate of title from the owner, and complies with 
  3.26  subdivision 2 hereof, the dealer need not apply for a 
  3.27  certificate of title, but upon transferring the vehicle to 
  3.28  another person other than by the creation of a security interest 
  3.29  shall promptly execute the assignment and warranty of title by a 
  3.30  dealer, showing the names and addresses of the transferee and of 
  3.31  any secured party holding a security interest created or 
  3.32  reserved at the time of the resale, and the date of the security 
  3.33  agreement in the spaces provided therefor on the certificate or 
  3.34  secure reassignment.  With respect to motor vehicles subject to 
  3.35  the provisions of section 325E.15, the dealer shall also, in the 
  3.36  space provided therefor on the certificate or secure 
  4.1   reassignment, state the true cumulative mileage registered on 
  4.2   the odometer or that the exact mileage is unknown if the 
  4.3   odometer reading is known by the transferor to be different from 
  4.4   the true mileage.  The transferee shall complete the application 
  4.5   for title section on the certificate of title or separate title 
  4.6   application form prescribed by the department.  The dealer shall 
  4.7   mail or deliver the certificate to the registrar or deputy 
  4.8   registrar with the transferee's application for a new 
  4.9   certificate and appropriate taxes and fees, within ten business 
  4.10  days. 
  4.11     Sec. 3.  Minnesota Statutes 2000, section 168.301, 
  4.12  subdivision 3, is amended to read: 
  4.13     Subd. 3.  [LATE FEE.] In addition to any fee or tax 
  4.14  otherwise authorized or imposed upon the transfer of title for a 
  4.15  motor vehicle, the commissioner of public safety shall impose a 
  4.16  $2 additional fee for failure to deliver a title transfer within 
  4.17  ten business days.