SF3563

SF3563 (Legislative Session 94 (2025-2026))

Vehicle registration tax refunds provision for certain returned vehicles

AI Generated Summary

Purpose

Provide a mechanism for a refund of the vehicle registration tax when a vehicle is temporarily transferred from a manufacturer or dealer to a transferee and then returned to the same manufacturer or dealer within 30 days.

Main provisions

Returned vehicle definition
- A returned vehicle is a vehicle that must be registered under Minnesota law, is transferred from a manufacturer or dealer to a transferee (by sale, lease, or other transfer), and the transferee permanently transfers it back to the same manufacturer or dealer within 30 days without keeping any right to use or possess the vehicle.
Transferee definition
- A transferee is the person who receives the vehicle transfer from a manufacturer or dealer and later permanently transfers the vehicle back to the same manufacturer or dealer.
Notice of returned vehicle required
- A manufacturer or dealer that receives a returned vehicle must send a notice to the commissioner within 10 days.
- The notice must include the date of the return transfer and reference the initial transfer notice, along with the transferee’s registration application as filed.
Refund of registration tax
- After the commissioner receives the notice, the commissioner has 30 days to cancel the returned vehicle’s registration and issue a refund to the transferee for the registration taxes paid on the returned vehicle.

What changes this bill makes

Creates a new statutory process (within Minnesota Statutes chapter 168) for refunds of the registration tax when a vehicle is returned under the described scenario.
Establishes specific timing requirements: a 10-day notice window to the commissioner and a 30-day window for the commissioner to cancel registration and issue a refund.
Defines roles and terms (returned vehicle, transferee, manufacturer, dealer) to clarify eligibility and procedures for refunds.

Practical implications

Dealers and manufacturers can promptly reclaim the registration tax paid by a transferee when a returned vehicle is quickly re-contracted with the original party.
The process is designed to minimize or reverse tax payments on vehicles that do not stay with the transferee beyond the 30-day window.

Significant terms carried from the bill

Returned vehicle
Transferee
Manufacturer
Dealer
Registration tax
Notice
Commissioner
Refund
Cancellation of registration
Initial transfer
Transfer

Relevant Terms - Returned vehicle - Transferee - Manufacturer - Dealer - Registration tax - Notice - Commissioner - Refund - Cancellation of registration - Initial transfer - Transfer - 30 days - 10 days - Minnesota Statutes chapter 168

Bill text versions

Introduction PDF PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
February 17, 2026	Senate		Action	Introduction and first reading
February 17, 2026	Senate		Action	Referred to	Transportation

Citations

[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill references Minnesota Statutes chapter 168 as the governing chapter for vehicle registration (motor vehicles) and notes its intent to add a new section to that chapter (168.151) addressing registration tax refunds for returned vehicles.",
      "modified": []
    },
    "citation": "168",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill cites Minnesota Statutes section 168.15, subdivision 1, paragraph e, as the basis for the transferee's application for registration referenced in the returned-vehicle notice requirement.",
      "modified": []
    },
    "citation": "168.15",
    "subdivision": "subd.1, paragraph e"
  }
]