A refund of sales tax may be issued when a new vehicle is returned to a dealer or manufacturer under the Minnesota Lemon Law. The refund is based on 6.5 percent of the buyback price, not the original purchase price.
Reference: Minnesota Statutes, 325F.665, 297B.031
The applicant must complete and sign section A of the Claim for Motor Vehicle Refund (PS2511).
The applicant must provide a written explanation in section D of the PS2511.
A copy of the title that was assigned to the dealership and a copy of the arbitration decision showing what the customer was awarded must be submitted with the PS2511.
If the dealer is the applicant, they must submit a copy of the check they issued to the customer as well as written authorization for the refund check to be issued to them.
When directly involved with a refund, motor vehicle manufacturers and dealers must provide the consumer with itemized statements listing each of the amounts refunded.
If a manufacturer or dealer fails to list the sales tax separately, or if they do not apply for a refund themselves within one year, the department may directly refund the sales tax to the consumer and/or lien holder.