HF2337 (Legislative Session 94 (2025-2026))

Dealer plate provisions modified to provide for the use of a vehicle for courtesy purposes.

Related bill: SF2309

AI Generated Summary

This Minnesota House bill (H.F. No. 2337) seeks to amend Minnesota Statutes 2024, section 168.27, subdivision 16, to modify provisions regarding dealer plates, specifically allowing their use for courtesy vehicles.

Key Provisions:

  1. Dealer Plates and Fees:

    • Motor vehicle dealers can request dealer plates from the state registrar.
    • Fees include $75 for the first four plates per year ($60 to the registrar and $15 as a sales tax) and $25 per additional plate, with an additional $15 in sales tax.
  2. Authorized Uses of Dealer Plates:

    • Vehicles owned by the dealership with dealer plates can be used by:
      • The dealer, their spouse, or full-time employees for private or business purposes.
      • Part-time employees if related to a business transaction.
      • Prospective buyers for test drives (48 hours for regular vehicles, seven days for trucks).
      • Promotional events lasting up to four days involving at least three vehicles.
      • Buyers for 72 hours after purchase for registration or removal to another state.
  3. Courtesy Vehicle Provisions:

    • Dealer plates may be used on courtesy vehicles provided to customers during vehicle servicing.
    • The courtesy vehicle must meet conditions including:
      • Being regularly used for this purpose and not for sale or resale.
      • Displaying the dealer’s business name on the exterior.
      • Having a lease agreement outlining driver responsibilities and liabilities.
    • Exemptions:
      • Courtesy vehicles are not subject to the 72-hour restriction.
      • They are not required to be registered or subject to sales tax while in this use.

Purpose:

The bill aims to clarify and formalize the use of dealer plates on courtesy vehicles, ensuring they can be used legally without unnecessary registration or tax burdens, while maintaining consumer protections.

This bill was first introduced by Representative Olson and referred to the Committee on Transportation Finance and Policy.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 12, 2025HouseFloorActionIntroduction and first reading, referred toTransportation Finance and Policy
March 12, 2025HouseFloorActionIntroduction and first reading, referred toTransportation Finance and Policy

Citations

 
[
  {
    "analysis": {
      "added": [
        "Provision for courtesy vehicle use by nonemployees with specific conditions."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill modifies dealer plate provisions allowing vehicles to be used for courtesy purposes under section 168.27, subdivision 16.",
      "modified": [
        "Clarifies and expands the allowable uses of dealer plates, including promotional events and courtesy vehicles."
      ]
    },
    "citation": "168.27",
    "subdivision": "subdivision 16"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "References the sales tax on motor vehicles in the context of dealer plates under section 297B.035.",
      "modified": [
        ""
      ]
    },
    "citation": "297B.035",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Cites the deposition of tax in state treasury as provided in section 297B.09 for dealer plates.",
      "modified": [
        ""
      ]
    },
    "citation": "297B.09",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Mentions replacement plates fees in accordance with section 168.12.",
      "modified": [
        ""
      ]
    },
    "citation": "168.12",
    "subdivision": ""
  }
]