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SF2309 (Legislative Session 94 (2025-2026))

Dealer plate provisions modifications to provide for the use of a vehicle for courtesy purposes authorization

Related bill: HF2337

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to amend existing transportation laws in Minnesota related to the use of dealer plates. It specifically aims to clarify and expand how motor vehicle dealers can utilize dealer plates for courtesy vehicles.

Main Provisions

  • Dealer Plate Issuance and Fees: The bill maintains the process for issuing dealer plates to licensed motor vehicle dealers. The fee structure remains the same, with specific charges for the initial and additional plates, and a portion of fees designated as sales tax on motor vehicles.

  • Usage Guidelines for Dealer Plates:

    • Dealer plates can be used by the dealer, their spouse, or full-time employees for private or business purposes.
    • Part-time employees may use vehicles with dealer plates if it's directly related to business transactions.
    • Prospective buyers can use vehicles with dealer plates for demonstration purposes within specified time limits.
    • Dealer plates can be used for promotional events involving multiple vehicles over a limited duration.

  • Courtesy Vehicle Usage:

    • Defines a "courtesy vehicle" as a vehicle temporarily provided to customers by dealers while the customer's own vehicle is serviced.
    • Non-employees can use courtesy vehicles with dealer plates under specific conditions, such as:
    • The vehicle is part of a repair or maintenance service, not for sale.
    • The user must have a valid driver's license and insurance.
    • The vehicle is clearly marked as a courtesy vehicle with the dealer's business name visible.
    • Courtesy vehicles are exempt from the 72-hour use limit and registration and sales tax requirements when meeting criteria under this bill.

Significant Changes

  • Expansion of Eligible Users: The bill extends the authorized use of vehicles with dealer plates to certain non-employees and under broader conditions, especially concerning courtesy vehicles.
  • New Conditions for Courtesy Vehicles: Establishes specific conditions under which a courtesy vehicle can be used by non-employees and is not subject to usual time and tax-related restrictions.

Relevant Terms

dealer plates, motor vehicle dealer, courtesy vehicle, car registration, sales tax, nonemployee driver, vehicle lease agreement, vehicle servicing, Minnesota transportation law.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 09, 2025SenateFloorActionIntroduction and first reading
March 09, 2025SenateFloorActionReferred toTransportation

Citations

 
[
  {
    "analysis": {
      "added": [
        "Allows dealer plates to be used for courtesy vehicles by nonemployees under specific conditions."
      ],
      "removed": [
        "No changes based on the provided text regarding removal."
      ],
      "summary": "This bill modifies the provisions relating to the use of dealer plates issued under section 168.27 subdivision 16.",
      "modified": [
        "Adjusts the terms under which vehicles with dealer plates can be used, specifying demonstration and courtesy vehicle usage."
      ]
    },
    "citation": "168.27 subdivision 16"
  },
  {
    "analysis": {
      "added": [
        "References to additional sales tax stipulations for extra plates."
      ],
      "removed": [
        "No removal is indicated in the provided text regarding this section."
      ],
      "summary": "Mentions the tax implications tied to dealer plates affected under section 297B.035.",
      "modified": [
        "Details on how the sales tax on motor vehicles applies to additional plates."
      ]
    },
    "citation": "297B.035"
  },
  {
    "analysis": {
      "added": [
        "Details the deposit process for the sales tax into the state treasury."
      ],
      "removed": [
        "No removal is indicated in the provided text regarding this section."
      ],
      "summary": "Specifies where the sales tax on motor vehicles collected from dealer plates usage will be credited under section 297B.09.",
      "modified": [
        "Clarifies how the tax is handled and where it should be deposited."
      ]
    },
    "citation": "297B.09"
  }
]

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