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S.F. No. 1539 - Modifying Tax Provisions Relating to Aircraft and Motor Vehicle Taxes
Author: Senator David H. Senjem
Prepared By: Alexis C. Stangl, Senate Counsel (651/296-4397)
Date: March 14, 2017


Section 1. Department of Transportation. The commissioner of revenue may disclose tax return information to the commissioner of transportation only: 1) if there is an agreement between the commissioners that the Department of Revenue will collect sales tax on aircraft; and 2) to the extent necessary for the commissioner of transportation to verify that the applicable taxes have been paid on aircraft. This section is effective the day following final enactment.

Section 2. Presumptions. When a business entity organized outside of Minnesota owns a motor vehicle that is under control of a Minnesota resident, it is presumed that the Minnesota resident is the owner of the vehicle if two or more of the following are true:

  1. the business lacks a specific business purpose other than avoiding the tax;
  2. the business maintains no physical location in the jurisdiction where it is organized;
  3. the business earns very little or no revenue;
  4. the business maintains minimal or no business records;
  5. the business doesn’t employ people and provide them with W-2 statements; or
  6. the business fails to file federal or state income tax returns.

A vehicle is under the control of a Minnesota resident if the resident:

  1. is a partner, member, or shareholder of the business;
  2. is insured to drive the vehicle; and
  3. operates or stores the vehicle in Minnesota.

This section is effective the day following final enactment. 

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