The bill proposes modifications to the rental motor vehicle tax and fee structure in Minnesota, establishing a new "Disadvantaged Communities Carsharing Grant Account" aimed at supporting carsharing initiatives in underserved areas. The account will be funded through various sources and will provide grants to nonprofit organizations or carsharing operators to enhance carsharing services in these communities. The bill specifies that eligible grant recipients must be based in Minnesota and gives preference to nonprofit carsharing operators, while excluding transportation management organizations from eligibility. This section of the bill is set to take effect on July 1, 2023.

Additionally, the bill amends existing statutes related to the taxation of rental vehicles, specifically exempting vehicles operated by nonprofit organizations from certain taxes and fees if they meet specific criteria, such as providing vehicles for member use on an hourly basis and maintaining those vehicles. The effective date for these tax provisions is also set for sales and purchases made after June 30, 2023. Furthermore, the bill outlines the allocation of revenues collected from these taxes, directing excess fees to the newly established grant account instead of the highway user tax distribution fund, thereby ensuring that funds are redirected to support disadvantaged communities.

Statutes affected:
Introduction: 297A.64, 297A.94