This bill aims to modify the rental motor vehicle tax and fee structure in Minnesota while establishing a new grant program to support carsharing initiatives in disadvantaged communities. It creates the "disadvantaged communities carsharing grant account" within the special revenue fund, which will be funded through various sources and appropriated annually to the commissioner for grants. These grants will be available to nonprofit organizations and carsharing operators to enhance carsharing services in underserved areas, with a preference for nonprofit operators. The bill specifies that transportation management organizations are not eligible for these grants and sets an effective date of July 1, 2023, for this section.

Additionally, the bill amends existing statutes regarding the rental motor vehicle tax and fee. It introduces new provisions that exempt vehicles operated by nonprofit organizations from certain taxes and fees, provided they meet specific criteria, such as operating a fleet available to members for short-term use. The amendments also clarify the fee structure for vehicle rentals and leases, with an effective date for these changes set for sales and purchases made after June 30, 2023. Furthermore, the bill allocates $500,000 from the general fund to the new grant account for fiscal years 2024 and 2025.

Statutes affected:
Introduction: 297A.64, 297A.94
1st Engrossment: 297A.64
1st Engrossment: 297A.64