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Page 8 of 9 <br /> <br />A $20 Transit Improvement Vehicle Excise Tax applies to sales of motor vehicles registered for road use. The $20 <br />must be collected by any person in the business of selling new or used motor vehicles at retail when the sale occurs <br />in the transit tax area. The $20 tax applies even if the buyer is from out of state and will take the vehicle out of <br />Minnesota for registration. The $20 tax is not connected to registration, but rather to the sale. The Deputy Registrar <br />does not collect this tax. The Contractor (dealer) must report the $20 on their electronic sales tax return at the same <br />time as they report their Minnesota sales and use tax. <br /> <br />The sale occurs where the purchaser takes possession of the vehicle. So, if the vehicle is sold in the transit tax <br />area, but is delivered out of the transit tax area, the $20 excise tax does not apply. Conversely, if the vehicle is sold <br />outside of the transit tax area, but is delivered into the transit tax area, the $20 excise tax does apply. <br /> <br />Exceptions to the $20 Transit Improvement Vehicle Excise Tax: <br />• Federal government agencies, vehicles not required to be licensed for road use (e.g., marked police cars, fire <br />trucks and ambulances) and vehicles for resale. <br />• Leased vehicles. <br />As a point of clarification, the following taxes DO NOT apply to the sale of motor vehicles: <br />• General Sales and Use Tax <br />• City and County Local Tax <br />• Federal Excise Tax (as the State is Exempt) <br />• Transit Improvement 0.25% Sales and Use Tax <br />Transit improvement Vehicle Excise Tax is not to be included in the prices offered. Transit Improvement Vehicle <br />Excise Tax shall be a separate line item on the quote and invoice. <br /> <br /> <br />PRICING DOCUMENTS <br />Price Lists: Contact the Contractor to confirm the equipment brand, model and build specifications to satisfy your <br />operational requirements. The Contractor shall confirm the equipment brand, model and build specifications to the customer. <br />Contracts were executed with either a fix price or percent discount off a list price. The pricing offered must match the prices <br />in the price book found on the Minnesota Department of Transportation Maintenance Contracts link below. <br /> <br /> <br /> <br />Page 45 of 111