Current through Register Vol. 49, No. 13, September 23, 2024
Subpart
1.
Direct payment and notice.
Under Minnesota Statutes, section
297A.90,
persons described in subpart
2 engaged in interstate
for-hire transportation of property or passengers by motor vehicle may elect to
pay sales and use taxes directly to the commissioner of revenue on mobile
transportation equipment and parts and accessories attached or to be attached
to the equipment. Electing carriers shall give notice of the election to the
commissioner of revenue and shall pay taxes due in accordance with this part.
The notice must be in the form of a letter setting forth the electing carrier's
name, address, sales and use tax account number, and accompanied by the
carrier's certificate or permit issued by, or registration with, the United
States Department of Transportation, the transportation regulation board, or
other evidence such as the file number issued by the Minnesota Department of
Transportation to verify that it is a carrier engaged in transporting tangible
personal property or passengers in interstate commerce.
Subp. 2.
Persons included.
Persons referred to in subpart
1 include:
A. persons possessing a certificate or permit
or having completed a registration process that authorizes for-hire
transportation of property or passengers from the United States Department of
Transportation, the transportation regulation board, or the Minnesota
Department of Transportation;
B.
persons transporting commodities defined as exempt in for-hire transportation
in interstate commerce;
C. persons
who, pursuant to contracts with persons described in items A or B, transport
tangible personal property or passengers in interstate commerce; and
D. persons who in the course of their
business are transporting solely their own goods in interstate
commerce.
Subp. 3.
Motor carrier direct pay authorization.
A motor carrier direct pay authorization issued to qualified
electing carriers by the commissioner of revenue is effective as of the date
shown on the authorization.
Subp.
4.
Governing provisions.
Carriers that elect to pay the tax under the provisions of
Minnesota Statutes, section
297A.90,
are governed by the following:
A. The
carrier must hold or must have applied for a Minnesota sales and use tax
permit. Application for such a permit must be made at the same time as the
carrier's notice of election if none has previously been applied for.
B. Sales and use taxes due on the purchases
and leases of tangible personal property other than mobile transportation
equipment and parts and accessories attached or to be attached shall be paid
directly to retailers authorized to collect the Minnesota tax at the same time
and in the same manner as though no election had been made. Such property may
not be purchased or leased exempt under a motor carrier direct pay
authorization.
C. Mobile
transportation equipment intended for use both within and without Minnesota and
parts and accessories attached or to be attached may be purchased or leased tax
free by presenting a copy of motor carrier direct pay authorization to the
seller.
(1) Mobile transportation equipment
includes trucks, tractors, and trailers used in interstate
transportation.
(2) Parts and
accessories attached or to be attached thereto includes refrigeration
equipment, tires, batteries, repair parts, and any other property which is
attached or affixed to such mobile transportation equipment.
(3) Not included in mobile transportation
equipment and parts and accessories attached or to be attached thereto are
equipment such as flashlights, flares, grease, oil, antifreeze, additives,
containers used for packing and transporting customers' goods, dollies,
pallets, hand trucks, forklift trucks, snowplows, local pickup and delivery
vehicles, other warehouse and plant equipment, office supplies and equipment,
etc.
D. Use taxes due in
respect of mobile transportation equipment and parts and accessories attached
or to be attached thereto shall be paid directly to the commissioner of revenue
by way of a return filed on or before the 20th day of the month following the
purchase or rental of such property. The return must show the sum of:
(1) the sales price of items purchased or
leased other than mobile transportation equipment and parts and accessories
attached or to be attached, which are subject to the use tax and upon which no
sales or use tax has previously been paid; and
(2) an amount determined by multiplying the
total cost of mobile transportation equipment and parts and accessories
attached or to be attached purchased or leased during the month by a fraction,
the numerator of which is the Minnesota mileage as reported in the current pro
rata application provided for in Minnesota Statutes, section
168.187,
and the denominator of which is the total mileage reported on the current pro
rata registration application.
For purposes of the computation in subitem (2), the total
cost of mobile transportation equipment and parts and accessories attached or
to be attached shall include the sales price of all such property purchased and
the total payments for lease or rental (not including interchange between
carriers) of such property for use in interstate commerce within or without
Minnesota, irrespective of whether such property was physically present in
Minnesota. For a new carrier without a prior year's mileage, an estimated ratio
may be used subject to approval by the commissioner.
E. If sales or use tax has been
paid to another state on an item which is includable in the Minnesota return, a
credit is allowable for such tax (limited to the Minnesota sales and use tax
rate) in the same ratio as the cost of the item is included in the Minnesota
tax base.
F. Withdrawal of an
election to come under the provisions of Minnesota Statutes, section
297A.90,
becomes effective only upon notice of such intent to the commissioner of
revenue. If such election is withdrawn, subsequent reelection is effective only
upon approval of the commissioner of revenue.
G. If an interstate motor carrier does not
elect to pay Minnesota sales and use tax under the provisions of Minnesota
Statutes, section
297A.90,
then mobile transportation equipment subject to the sales tax on motor vehicles
under Minnesota Statutes, chapter 297B, is not subject to the Minnesota sales
and use tax under Minnesota Statutes, chapter 297A, and a sales tax on motor
vehicles, equal to the sales and use tax rate, is collected at the time such
equipment is registered in Minnesota. On purchases of parts, accessories,
equipment, and supplies not exempt, the carrier shall pay the sales and use tax
directly to registered retailers. If the retailer is not registered, the
carrier shall pay the use tax directly to the commissioner of
revenue.
