SF3987
Vehicle title transfers deadline to file modification to 20 days, rental motor vehicle license plates eligibility requirements modifications, and technical corrections
Legislative Session 94 (2025-2026)
Related bill: HF4062
AI Generated Summary
Purpose
This bill updates Minnesota’s motor vehicle laws to modernize and tighten how title transfers, registrations, taxes, and related paperwork are handled. It also adds new definitions for rental vehicles, makes changes to salvage branding rules, and repeals an outdated administrative rule. The overall goals are to improve timing, accuracy, and accountability in vehicle title and registration processes.
Key Provisions
Extended deadline for title/transfer filings
- If a registration or transfer application and the related taxes and fees aren’t mailed to the registrar within 20 calendar days after a sale, the person is guilty of a misdemeanor (instead of the previous 10-day deadline).
New definitions for rental vehicles
- Defines “auto rental company” as a business that rents many vehicles, and “rental motor vehicle” as a rental vehicle of various types (passenger cars, pickups, motorcycles, RVs, etc.).
Transfer of ownership rules
- For ownership transfers, the transferor must handle assigned taxes and credits and certain transfer paperwork, with specific steps if the title is lost or when transfers involve manufacturers or dealers.
- Dealers and manufacturers must file transfer notices within 10 or 20 calendar days after a sale or transfer, depending on the situation.
License and tax filing by dealers
- License applications and renewals must be filed within 20 calendar days of a vehicle sale.
- Dealers must keep an itemized receipt showing taxes and fees, and the receipt must be available for three years.
- Certain exemptions remain (e.g., non-Minnesota buyers, prorated taxes with a provided account number, emissions-inspection scenarios).
Timing for transfer-related rights and taxes
- The transferee’s rights to the vehicle’s registration plates and any tax credits expire after 10 days unless timely filed under the applicable sections or the transferee is a compliant dealer.
Secured party information
- When a vehicle is purchased from a dealer, the application must include the name and address of any secured party, and the dealer must file the paperwork and taxes within 20 calendar days.
Salvage branding and insurer duties
- Insurers acquiring vehicles through damage settlements must apply for salvage or prior salvage titles for certain high-value or damaged vehicles, with electronic signatures allowed for supporting documents.
- Insurers must notify the department within 10–20 calendar days after obtaining title, and certain salvage-brand rules apply to late-model or high-value vehicles and to self-insured owners.
- The rules specify when a salvage brand or prior salvage brand must be applied to titles.
Salvage vehicles taken out of state
- Dealers selling salvage vehicles to buyers who intend to remove them from Minnesota must report the sale within 10–20 calendar days to the department.
Repeal of an outdated rule
- Repeals Minnesota Rules part 7400.5200 subpart 4, which previously described practical requirements for dealers related to title applications, taxes, and receipts.
Significant Changes to Law
- Longer filing deadline: The time to file title transfers and related taxes/fees is extended from 10 days to 20 calendar days.
- New rental vehicle terms: Introduces formal definitions for auto rental companies and rental motor vehicles.
- Expanded dealer responsibilities: Dealers face clearer timelines for submitting title applications and paying taxes, plus required record-keeping (three-year retention of receipts).
- Salvage title process tightening: Adds explicit insurer responsibilities and timelines for applying for salvage or prior salvage titles, with electronic signatures permitted for some documents.
- Out-of-state salvage reporting: Adds a requirement to report sales of salvage vehicles leaving the state.
- Administrative rule repeal: Removes an outdated Minnesota Rules provision related to dealership tax and title paperwork.
Effects and Rationale (plain-language summary)
- This bill aims to reduce delays and confusion by standardizing deadlines and paperwork for title transfers, registrations, and taxes.
- It clarifies who must follow certain rules (e.g., auto rental companies and their vehicles) and how salvage vehicles should be titled, including when insurers must act.
- It updates enforcement (misdemeanor for late filings) to encourage timely compliance.
- It removes an older administrative rule that covered similar processes.
Relevant Terms - 20 calendar days - ten days - registrar of motor vehicles - department - title and registration application - excise tax - registration tax - fees - auto rental company - rental motor vehicle - transfer of ownership - assignment and notice of sale - proof of loss - salvage brand - prior salvage brand - salvage title - electronic signatures - insurer - self-insured - secured party - prorated tax - prorate account number - emissions inspection
Bill text versions
- Introduction PDF PDF file
Past committee meetings
- Transportation on: March 02, 2026 15:00
- Transportation on: March 25, 2026 15:00
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| February 26, 2026 | Senate | Action | Introduction and first reading | ||
| February 26, 2026 | Senate | Action | Referred to | Transportation | |
| April 07, 2026 | Senate | Action | Comm report: To pass | ||
| April 07, 2026 | Senate | Action | Second reading |
Citations
[
{
"analysis": {
"added": [],
"removed": [],
"summary": "Modifies the deadline for sending in the registration or transfer application and remittance to the registrar from 10 days to 20 calendar days after the sale, with the misdemeanor penalty remaining for failure to comply.",
"modified": [
"Increases the filing deadline for registration/transfer paperwork from 10 to 20 calendar days following the date of sale.",
"Maintains misdemeanor penalty for failure to mail in the registration/transfer forms within the new deadline."
]
},
"citation": "168.101",
"subdivision": "2a"
},
{
"analysis": {
"added": [
"Adds definitions: auto rental company and rental motor vehicle, including criteria (e.g., at least 50 rental motor vehicles and per diem rates)."
],
"removed": [],
"summary": "Adds definitions in 168.1289 related to rental vehicle operations.",
"modified": []
},
"citation": "168.1289",
"subdivision": "1"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Revises transfer of ownership provisions for vehicles, including transfer-related duties and documentation.",
"modified": [
"Rewrites transfer-of-ownership provisions, including how ownership transfers affect registration, tax credits, and related duties; clarifies requirements for surrendering registration stickers and handling transfers by gift, trade, or purchase."
]
},
"citation": "168.15",
"subdivision": "1"
},
{
"analysis": {
"added": [
"Adds requirement for an itemized receipt showing taxes and fees; receipt must be maintained for three years."
],
"removed": [],
"summary": "Adjusts license application processes and dealer requirements; adds timing, documentation, and retention rules.",
"modified": [
"Requires motor vehicle dealers to file title/registration applications within 20 calendar days of a sale."
]
},
"citation": "168.27",
"subdivision": "9"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Clarifies filing period and expiry for transferee rights to registration plates and tax credits.",
"modified": [
"Specifies that transferees' rights to the transferred vehicle’s registration plates and credit for taxes paid expire after ten days unless filing occurs under certain conditions."
]
},
"citation": "168.301",
"subdivision": "2"
},
{
"analysis": {
"added": [
"Requires including the name and address of any secured party holding a security interest in the vehicle."
],
"removed": [],
"summary": "Requires secured party information in the title/registration application and extends filing timelines.",
"modified": [
"Dealer must mail or deliver the application and related taxes within 20 calendar days."
]
},
"citation": "168A.04",
"subdivision": "2"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Strengthens salvage branding requirements and related procedures for insurers and owners.",
"modified": [
"Mandates salvage branding on titles for certain vehicles acquired by insurers after damages; allows prior salvage branding in specified cases; permits electronic signatures on transfer documents; includes insurer indemnification and notice provisions; expands timelines for notification to the department."
]
},
"citation": "168A.151",
"subdivision": "1"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Requires reporting of salvage vehicle sales taken out of state by dealers.",
"modified": [
"Requires reporting of salvage vehicle sales to buyers who will remove the vehicle from Minnesota within 20 calendar days."
]
},
"citation": "168A.154",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Defines applicability of salvage branding requirements and related procedures.",
"modified": [
"Specifies when a salvage brand must be applied to titles based on vehicle damage, insurer ownership, and other conditions; allows electronic signatures for related documents; includes related indemnification provisions for the department."
]
},
"citation": "168A.11",
"subdivision": "1"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced in connection with transfer filings and exceptions; no subdivision specified.",
"modified": [
"Notes exceptions for filing under 168A.10 related to transferee rights and dealer obligations in the transfer process."
]
},
"citation": "168A.10",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Cross-referenced for proof of loss and title procedures related to salvage branding.",
"modified": [
"References section 168A.09 for proof-of-loss requirements tied to salvage branding and title transfers."
]
},
"citation": "168A.09",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Cross-reference to 325E.15; used to denote a provision not subject to a particular section.",
"modified": [
"Notes that certain provisions are not subject to section 325E.15 as part of the context for title/registration processes."
]
},
"citation": "325E.15",
"subdivision": ""
}
]Progress through the legislative process
In Committee