SF1322

Purpose

• To increase how long a temporary vehicle permit is valid for nonresidents purchasing a vehicle in Minnesota, from 31 days to 60 days, and to confirm the permit serves as a temporary alternative to normal registration or highway use taxes while the vehicle is removed from the state.

Main Provisions

• The bill amends Minnesota Statutes 2024, section 168.091.
• Subdivision 1 — Nonresident buyer:
  • A nonresident who buys a vehicle in Minnesota may receive a temporary permit after paying a fee.
  • The permit allows the vehicle to be removed from Minnesota and acts in lieu of any other registration or taxation for highway use.
  • The permit is valid for 60 days from the sale, trade, or gift date (increasing from 31 days).
  • The permit must be available in an electronic format as determined by the commissioner.
  • If sale, gift, or trade information is electronically transmitted to the commissioner by a dealer or deputy registrar, the fee is waived.
  • The permit must be affixed to the rear of the vehicle in a visible manner and is valid only for the vehicle it was issued for.
• Subdivision 2 — Dealer:
  • The registrar may issue permits to licensed dealers, with the proper fee required for each permit.
• Subdivision 3 — Proceeds:
  • All payments received for these permits are deposited into the state treasury and credited to the Highway User Tax Distribution Fund.

Significant Changes to Existing Law

• Extends the temporary permit duration from 31 days to 60 days.
• Establishes an electronic format for the permit and allows fee waivers if electronically transmitted by a dealer or deputy registrar.
• Clarifies that the permit serves as a substitute for registration or highway use taxes for the purpose of allowing the vehicle to be removed from the state.
• Moves permit revenue into the Highway User Tax Distribution Fund through state treasury deposits.

Relevant Terms

• nonresident
• temporary vehicle permit
• 31-day to 60-day
• Minnesota Statutes 2024 § 168.091
• sale, gift, or trade
• electronic format / electronically transmitted
• dealer / deputy registrar
• registrar
• highway use tax / registration
• vehicle removal from Minnesota
• rear of the vehicle (affixed)
• fee
• state treasury
• Highway User Tax Distribution Fund (HUTF)