The bill amends Minnesota Statutes 2022, section 297A.815, to modify the taxation of motor vehicle leases, specifically addressing the sales price for certain leases. It introduces a new subdivision (1a) that allows lessors of commercial motor vehicle leases, which are primarily used for trade or business, to choose between two methods of tax collection: either imposing the tax on the purchase price of the vehicle at the time the lease is executed or collecting the tax according to the existing provisions in subdivision 1. Additionally, the bill clarifies that the effective date for these changes will apply to sales and purchases made after June 30, 2024.

The bill also includes provisions for the collection of sales tax at the time of lease execution and outlines the process for refunds in cases of lease cancellation within 90 days. It specifies that if a lessee's payment obligations are canceled after 90 days, they may receive a credit against future sales tax obligations based on the sales tax paid at the lease's inception. The amendments aim to streamline the tax process for motor vehicle leases while providing flexibility for commercial leases.

Statutes affected:
Introduction: 297A.815