Leased Vehicles - Registration and Extensions
Lease Vehicles - Determining Registration Tax for more than 12 months
New to fleet leased vehicles program:
Allows the vehicle registration expiration to be adjusted to coincide with the lease end date
The month of expiration should be selected at the time of the initial registration to match the lease end date, so that extensions are not necessary.
Most often thirteen registration months
The vehicle must be registered for a full year plus additional months to match the lease end date so that extensions are not necessary at the end of the lease.
Figuring registration tax on New to Fleet vehicles:
Example: 2012 vehicle with a base value of 26970 that was purchased September 5,2012. Lease ends November 2016.
Registration from September 2012 – August 2013 = $324
Registration for September, October and November 2013 – look up in the Calendar year guides for the 2013 chart. Base value $26970 - $313 for 12 months in calendar year 2013. Going to an increment chart looking up $313 @ 3 months = $78
Tax is $324 + $78 = $402 for 15 months expiring November 2013
If the lease end is September add one month from the increment chart $26. So 13 months registration would be $324 + $26 = $350 expiring September 2013
The registration period can still be extended at the end of a lease to match the lease end date or if the lease expiration was changed due to an extension. Only one lease extension is allowed. With a renewal an Administrative fee is collected when the registration is extended. Customer must present a copy of the lease or a letter from the leasing company clearly showing the lease expiration date.
Example: Vehicle registration expires August, lease ends October.
Customer presents evidence showing the lease end date
Collect two months registration (September and October) from the Calendar year tax table for the current year
Collect the Administrative fee , registration tax and renewal filing fee
If the new expiration is in the same calendar year do not give them a year sticker just a new month sticker
Clearly mark on the prebill or PS2000 that this is a lease extension and include the new month given
A licensed Minnesota dealer who operates a vehicle as a daily rental may choose to register the vehicle for as few as four months. Some common daily rental companies are PV Holding, Enterprise Leasing and Alamo Rental.
If you have questions about the procedure or how to determine registration tax, please contact Deputy Procedures.
All deputy registrars may accept initial applications to title and register a daily rental vehicle.
Sales Tax—Sales tax is not due but the Minnesota dealer must list their dealer number and write “daily rental” in the sales tax declaration area (Section D) of the Application for Title (PS2000).
Registration Tax—Daily rental vehicles may be registered for as few as 4 months. Prorate the registration according to how many months the dealer wishes to register.
All deputy registrars can do partial registration renewals for a daily rental vehicle. The registration tax due will be determined by the deputy registrar.
Transfer of Ownership
All deputy registrars may accept an application to transfer the ownership of a daily rental vehicle.
Starting August 1, 2011, the current registration month and expiration year will remain on the vehicle when it is transferred to new ownership or no longer used as a daily rental. These transactions will most likely be processed through licensed Minnesota dealers.
Procedures to follow:
Compare and confirm that the registration on the record and/or trans lookup is the same that is physically displayed on the vehicle.[GA2]
a. Confirm with dealer actual month and year on vehicle. If it corresponds with DVS record, note the expiration month and year on title.
b. If it is different, check trans look-up screen on Esupport to determine if registration was issued but not yet on record. [GA3] If so, print the record, attach it to your application and note the current month and expiration on the title.*
c. If an incorrect month is displayed on the vehicle, issue a correct month sticker with the application.*
If registration is expired or soon to expire, calculate full year registration tax renewal from date of expiration. Use the passenger class tax tables.
If registration has expired and the vehicle has been continuously held for resale, the registration may be prorated from the retail purchase date, through the month of expiration shown on record.*
*Note: see examples below.
Dealer sells vehicle displaying December 2011 stickers
Motor vehicle record shows August 2011 expiration
Trans look-up shows that the daily rental company purchased 4 months registration on August 30, 2011.
Attach a copy of the trans look-up to the application and mark the application Dec 2011 expiration. [GA4]
Dealer sells vehicle displaying September 2012 stickers – this is incorrect.
Motor vehicle record shows March 2012 expiration – this is correct.
Trans look-up shows that the daily rental company purchased 6 months registration bringing the previous registration from September 2011 to March 2012. [GA5]
The newly issued 2012 year sticker is displayed on the vehicle but not the March sticker that should have replaced the September month sticker.
Issue a March sticker with the application, clearly marking the application with the March 2012 expiration
2010 model year 27,300 base value
Dealer has been holding for resale the daily rental vehicle since February 2011.
The registration expiration of the vehicle is April 2011.
The vehicle was sold to customer on July 5, 2011.
Expiration will stay with April.
Calculate the registration tax according to the 2011 calendar year tax manual.
Full tax amount $317.00
Using the increment section of the tax manual, determine the amount of tax from July 2011 through December 2011– 6 months- $159.00
Calculate the amount of registration tax according to the 2012 calendar year tax manual.
Full tax amount $283.00
Using the increment section of the tax manual, determine the amount of tax from January 2012-April 2012-4 months- $94.00
2011: 6 months of annual tax of $317.00=$159.00
2012: 4 months of annual tax of $283.00=$ 94.00
Total tax due………………………………...$253.00
MS 168.017, Subd. 3
MS 168.013, Subd.2