Accelerated Lease Tax Pending in Minnesota
The House-Senate conference committee is expected to work out differences in a tax-reduction package that includes new legislation regarding consumer and commercial vehicle leases in the state of Minnesota, according to the American Automotive Leasing Association (AALA).
The committee, expected to convene soon, will consider a proposed accelerated collection of sales tax at the consummation of consumer and commercial motor vehicle leases. Another matter in dispute is whether to exempt vehicles leased with a manufacturer’s gross weight rating greater than 10,000 pounds and rentals of vehicles for not more than 28 days.
The AALA State Tax Committee has been working closely with the Minnesota Automobile Dealers Association in an attempt to fine-tune the final language to differentiate between consumer and commercial leases, as well as to provide a refund or credit for taxes paid on leased vehicles that leave Minnesota in mid-lease. AALA said it will continue to lobby in the hope of developing conference language to address these two issues.