This bill proposes an exemption from the motor vehicle sales tax for the sale of preowned motor vehicles in Minnesota. It amends Minnesota Statutes 2024 by adding new subdivisions to sections 297A.67 and 297B.01, defining "preowned motor vehicle" and specifying that such vehicles are exempt from taxation under chapter 297B. The definition includes any motor vehicle that has been previously sold, titled, registered, leased, or otherwise transferred and has been operated or placed into service prior to the current sale or transfer. The effective date for these provisions is set for sales and purchases made after June 30, 2026.

Additionally, the bill amends section 297B.03 to include the purchase or use of a preowned motor vehicle as an exemption from the provisions of the chapter. This amendment adds a new exemption (17) while deleting the previous exemption (16) related to the purchase of a motor vehicle by a veteran with a total service-connected disability. The effective date for this section is also aligned with the other provisions, taking effect for sales and purchases made after June 30, 2026.

Statutes affected:
Introduction: 297A.67, 297B.01, 297B.03