HF2751

HF2751 (Legislative Session 94 (2025-2026))

Motor vehicle sales tax exemption amended.

Related bill: SF1210

AI Generated Summary

Purpose of the Bill

This bill aims to expand and clarify exemptions to the sales tax on motor vehicles in Minnesota. By amending existing statutes, it aims to specify which entities and scenarios qualify for tax exemptions when purchasing motor vehicles.

Main Provisions

Exempt Organizations: Broadens the list of organizations eligible for sales tax exemptions on motor vehicles, including nonprofits and public educational institutions when used for instructional purposes.
Specific Use Cases: Details unique exemptions such as vehicles used exclusively for ambulance services or as a mobile medical unit by a federally qualified health center.
Interstate and International Considerations: Outlines exemptions for vehicles leased to Minnesota-based carriers but owned by residents of other states that do not tax interstate commerce vehicles.
Leased Vehicles: Allows tax exemptions for participants in lease-to-own programs from charitable organizations recognized under section 501(c)(3).
Qualified Veterans: Grants tax exemption for motor vehicles purchased by veterans with a total service-connected disability.

Significant Changes to Existing Law

Clarification of Exemptions: This amendment specifies the applicable conditions under which a purchase would be exempt, improving the transparency and understanding of the tax law.
Expansion of Eligible Entities: It explicitly lists more types of organizations and scenarios that can benefit from the sales tax exemptions, including educational and charitable uses not covered before.
Inclusion of New Vehicle Uses: The new terms provide exemptions for specific vehicle functionalities, such as mobile medical units and transit service vehicles, under certain conditions.

Relevant Terms

Sales tax exemption
Motor vehicles
Nonprofit organizations
Federally qualified health center
Lease-to-own program
Service-connected disability
Job opportunity building zone

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
March 23, 2025	House	Floor	Action	Introduction and first reading, referred to	Transportation Finance and Policy

Citations

[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill amends the exemptions to the sales tax on motor vehicles under section 297B.03.",
      "modified": [
        "Updates conditions for exemption criteria and entities qualifying for exemptions."
      ]
    },
    "citation": "297B.03",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This section is referenced regarding conditions provided for tax exemptions.",
      "modified": []
    },
    "citation": "297A.67",
    "subdivision": "subdivision 11"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This section is referenced in context to exemptions for purchases by licensed ambulance services.",
      "modified": []
    },
    "citation": "144E.10",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This section defines a public library for an exemption involving library delivery vehicles.",
      "modified": []
    },
    "citation": "134.001",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Defines vehicle types relevant to tax exemption qualifications under this bill.",
      "modified": []
    },
    "citation": "168.002",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Referenced for transit providers receiving financial assistance for transit service-related exemptions.",
      "modified": []
    },
    "citation": "174.24",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Referenced for transit providers receiving reimbursements for transit service-related exemptions.",
      "modified": []
    },
    "citation": "473.384",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Defines operations of transit services under exemption conditions.",
      "modified": []
    },
    "citation": "174.29",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Operations of transit services are referenced under exemption conditions.",
      "modified": []
    },
    "citation": "473.388",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This section is included in transit service operation references for vehicle exemptions.",
      "modified": []
    },
    "citation": "473.405",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Defines a qualified business for use in the job opportunity building zone exemption clause.",
      "modified": []
    },
    "citation": "469.310",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Licensing requirements for motor vehicle lessors relevant to lease-to-own exemptions.",
      "modified": []
    },
    "citation": "168.27",
    "subdivision": "subdivision 4"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Defines service-connected disability for veterans-related vehicle purchase exemptions.",
      "modified": []
    },
    "citation": "171.01",
    "subdivision": "subdivision 51"
  }
]