Fillable Printable Motor Vehicle Transfer Guide - Minnesota
Fillable Printable Motor Vehicle Transfer Guide - Minnesota
Motor Vehicle Transfer Guide - Minnesota
Minnesota Department of Public Safety
Driver and Vehicle Services
445 Minnesota St r eet
Saint Paul, Minnesot a 55101
Motor V ehicle
General Informati o n for Dealers
Transfer Guide
November 2012
TABLE OF CONTENTS
DEALER REQUIREMENTS FOR TRANSFER OF OWNERSHIP ................................................................................................................. 3
REQUIREMENT TO SUBMIT DOCUMENTS - M.S.168A.04, SUBD. 2 & M.S.168A.11, SUBD. 1 ............................................................................... 3
RECORD RETENTION - M.S. 168A.11, SUBD. 3 ............................................................................................................................................... 3
NOTICE OF HELD FOR RESALE - M.S. 168A.11, SUBD. 2 ................................................................................................................................... 3
REPORTING SALES TO OUT OF STATE BUYERS M.S. 168A.11 SUBD.1 ................................................................................................................ 3
DOCUMENTS REQUIRED TO OBTAIN A MINNESOTA TITLE ................................................................................................................. 3
MINNESOTA TITLED VEHICLES....................................................................................................................................................................... 3
FOREIGN STATE/COUNTRY TITLED VEHICLES .................................................................................................................................................... 4
SECURED POWER OF ATTORNEY (SPOA) ........................................................................................................................................................ 4
Minnesota SPOA ............................................................................................................................................................................... 4
Foreign State SPOA ........................................................................................................................................................................... 4
SECURED REASSIGNMENT FORM (SRF) .......................................................................................................................................................... 4
SALE TO FOREIGN STATE RESIDENT ................................................................................................................................................................ 5
SALE TO A STATE AGENCY ............................................................................................................................................................................ 5
SALE TO A MOTOR (PRORATE) CARRIER .......................................................................................................................................................... 5
SALE TO NATIVE AMERICANS AND TRIBAL COUNCIL/AGENCY - M.S. 297B.01, (5) ................................................................................................ 5
Tribal Governments .......................................................................................................................................................................... 5
Tribal Residents ................................................................................................................................................................................ 5
ERRORS OR ERASURES ....................................................................................................................................................................... 6
TRANSFER OF NON-TITLED VEHICLES ................................................................................................................................................. 6
BOAT, MOTOR, TRAILER PACKAGES .................................................................................................................................................. 6
DEALER-INITIATED CONDITIONAL TRANSFERS ................................................................................................................................... 6
TAX IMPOSED – CHAPTER 297B ......................................................................................................................................................... 7
PURCHASE PRICE – M.S. 297B.01, SUBD. 8 .................................................................................................................................................. 7
TAX IMPOSED – M.S. 297B.02 & M.S. 297B.025 ........................................................................................................................................ 8
Rate of Tax ........................................................................................................................................................................................ 8
In Lieu Tax for Older Passenger Vehicles ($10 In Lieu Tax) ............................................................................................................... 8
In Lieu Tax for Collector Class Vehicles ($90 In Lieu Tax) .................................................................................................................. 9
MOTOR VEHICLE SALES TAX EXEMPTIONS ....................................................................................................................................................... 9
REBATES ................................................................................................................................................................................................... 9
MODIFICATIONS FOR DISABLED ..................................................................................................................................................................... 9
DEALER EXEMPTIONS – M.S. 297B.035 ..................................................................................................................................................... 10
UP-FRONT PAYMENTS OR CAPITAL COST REDUCTIONS .................................................................................................................................... 12
LEASE BUY-OUT....................................................................................................................................................................................... 12
Motor Vehicle Fee Chart .................................................................................................................................................................. 13
Salvage and Branding ...................................................................................................................................................................... 15
2013 Model Year Chart .................................................................................................................................................................... 17
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Procedur es concerning the titling and registration of motor vehicles are s ubject to f r equent change. Basic
inf ormation regarding vehicle transfers is pr ovided here. For mor e information, contact your local deput y
regist r ar office or call t he DVS Public I nf ormation Center (PIC) at (651) 297-2126.
DEALER REQUIREMENTS FOR TRAN SFER OF OWNERSHIP
1. REQUI R EM ENT TO SUBMIT DOCUMENTS - M.S.168A.04, SUBD. 2 & M.S.168A.11, SUBD. 1
A dealer is req uir ed to submit a Minnesota r etail buyer's applicat ion for title and appropr iat e fees and
taxes, within ten (10) business days of the date of sale.
2. R
ECORD RETENTION - M.S. 168A.11, SUBD. 3
A dealer is req uir ed to retain proof of tr ansfer for each vehicle sold, for a period of three years. T he
deputy registrar wil l supply a dealer with a r eceipt that contains deputy inf ormation (off ice number and
date issued); a description of the vehicle; and taxes and f ees paid.
3. N
OTICE OF HELD FOR RESALE - M.S. 168A.11, SUBD. 2
Effective August 1, 2004, within 48 hours of acquiring a vehicle t itled and registered in Minnesota, a
dealer must notify Driver and Vehicle Services that t he dealer ship is holding the vehicle for resale. T he
notification must be made electronically. A dealer m ay contract this ser vice to a deputy registrar or
apply for a login I D and password to enable electronic filing. Applications for the login ID and password
can be found on the Internet at dvs.dps.mn.gov
4. R
EPORTING SALES TO OUT OF STATE BU YER S M.S. 168A.11 SUBD.1
Effective August 1, 2004, a dealer must repor t a sale to an out of state buyer within 48 hours on any
vehicle t it led and reg ist ered in Minnesota. The dealer must notify Driver and Vehicle Services
electr onically. A dealer may contract t his service to a deputy registrar or apply for a login ID and
password to enable electronic f iling. Applications f or the login ID and password can be found on the
Int ernet at dvs. dps .mn.gov.
A dealer is req uir ed to remove any license plates from t he vehicle and issue a 31-day temporary permit.
DOCUMENTS REQUIRED TO OBTAIN A MINNESOTA TITLE
A transfer of owner ship must be m ade on t he certificat e of t it le. If t he title has been lost, a duplicate title mus t
be applied for by the owner/s of r ec ord. The duplicat e title will be mailed to the owner, unless the owner
request s it be mailed to a different address and provides a self -addr essed, stamped envelope.
A lien notification/release card (sent to the secured party) must be signed by the lienholder once the securit y
interes t has been satisfied. Submit the signed lien release with the tr ansfer of owner ship. If the lien card has
been lost, a signed and notarized "Notification of Assignm ent, Release or G r ant of Secured Inter est" (PS2017)
is required.
1. M
INNESOTA TITLED VEHICLES
Transfer of ownership must be made on the certif icat e of t itle. If the title has been lost, a duplicat e title
must be applied f or by the owner/s of record. The duplicate title will be mailed to the owner, unless the
owner r equests it be m ailed to a different address and provides a self -addressed, stamped envel ope.
A lien notification/release card (sent to the secured party) must be signed by the lienholder once the
security interest has been satisf ied. Submit the signed lien release with the transfer of owners hip. If the
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lien card has been lost, a signed and notarized "Notificat ion of Assignment, Release or Grant of
Secured Interest" (PS2017) is re quired.
2. F
OREIGN STATE/COUNTRY TITLED VEHICLES
The properly assigned, or iginal ownership document is required to be submit t ed with an Application t o
Tit le/ Register a Vehicle (PS2000).
A for eign state " Secur e Reassignment Form" can only be accept ed if t he f orm is f r om the state that
issued the title, or is from the stat e in which the dealer or customer, using the form, is a resident.
3. S
ECURED POWER OF ATTORNEY (SPOA)
a. Minnesota SPOA
A Minnesota SPOA f orm may only be used when the orig inal title has been lost. In t hese situations
this form allows t he dealership to sig n on behalf of the seller and/or buyer.
b. Foreign State SPOA
A Foreign State SPO A form is subjec t to t he restrict ions list ed on the form. The form must be an
orig inal, with a "live" signature, and t he transfer must involve a Minnesota purchaser.
4. S
ECURED REASSIGNMENT FORM (SRF)
The use of a Minnesota “Secure Reassignment Form” (SRF) is now authorized by licensed dealers.
The form look s similar to t he Minnesota t it le, except it is blue in color and is named “Supplem ent al
Dealer Reassig nment.” The form may be used as described below:
a. The form is available only to certain classes of licensed Minnesota dealers: new, used, lessors,
wholesalers or auctioneer. It is not available t o any unlicensed person or entities or to dealer s with
only a br oker, parts or scrap metal pr ocess or dealer license.
b. A dealer who appear s as owner on the Minnesota t it le cannot use this form to assign the vehicle.
c. Only licensed dealers may appear as the seller on the form (I t may also be used by a dealer
licensed in another st at e, if a Minnesota dealer appears as the buyer or seller) .
d. Under no circumstances may the form be used on private party sales. A licensed dealer must
appear as seller on the form.
e. The form may be used as a reas signm ent supplement on a foreign state title, provided a Minnesota
licensed dealer appears as a seller or buyer on the form.
f. More t han one form may accom pany the title.
g. When the title is not available and a dealer has sold the vehicle, the f orm may be used even though
the reassi gnment areas on the title are not “ used up. ” The form cannot be submitted wit hout the
title. If you need to submit a Dealer Initiated Conditional Trans fer, retain the SRFs and submit them
when you are ready to turn in the orig inal title.
h. The buyer may make applicat ion f or tit le on a PS2000, if the Minnesota t itle is not available at the
time of sale. However, all documents, including the title, m ust be submitted together.
i. Any erasure or alteration voids the form. A new SRF wi ll have to be completed.
j. The department may r equire this form to be used in place of an “administrative tit le, ” when a dealer
fails to properly complete a reassignm ent on the title.
k. Use of this form does not chang e the way tit le/ transfer fees are collected.
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l. A $6.50 transfer fee is assessed for every reassignm ent of owner ship when accompanied by a
Minnesota tit le.
m. If used in conjunction with a foreign state t it le, only the applicant would pay the $7.25 title/transfer
fee for the applicat ion t o t it le (no title/transfer fee is assessed for ot her reassignments).
5. S
ALE TO FOREIGN STATE RESIDENT
A Minnesota dealer is not required to collect taxes and fees on a vehicle that is sold t o a f or eign state
resident . The dealer is requir ed to remove t he license plates and provide the purchaser with a 31-Day
Non-Resident Permit, and the docum ents necessary f or t he transfer of owners hip in their home st ate.
The transfer documents must be provided to the pur chas er immediately.
Note on the purchase contr act that you have done so. T he purchase contract m ust reflect that t he
buyer resides in another stat e.
6. S
ALE TO A STATE AGENCY
A Minnesota dealer does not collect motor vehicle sales tax or transfer f ees. Transfer documents may
be given t o the purchasing state ag ency. They will submit the transfer to the central offic e, Mail Stop A,
for processing. To meet record requirem ents, dealers need t he following it ems:
• One copy of the Int eragency Payment Form NA69 showing t he correct fees and taxes paid. This is
supplied by t he stat e agency buying the vehicle.
• Copy of t he Manufact u rer’s Certific a te of Origin (MCO ) or tit le
• Copy of t he purchase contract
7. S
ALE TO A MOTOR (PRORATE) CARRIER
The dealer is required to list the vehicle purc hase price and the customer's Prorat e account number in
the motor vehicle sales tax ar ea of the title application.
Fees: All t it le transfer fees m ust be collected and submitted to the department. However, the dealer
does not collect sales tax if the purchaser indicates that they are elig ible to pay motor vehicle sales t ax
based on the per centage of miles driven in Minnesota.
Registration: If the customer wishes t o obtain Prorate license plates, t he dealer should give
photocopies of all documents to the customer, that show the date of sale and the collect ion of t it le
fees.
8. S
ALE TO NATIVE AMERICAN S AND TRIBAL COUNCIL/AGENCY - M.S. 297B.01, (5)
Tribal Governments
Minnesota tribal governments and any businesses owned by t he tribal governments do not pay sales
tax on vehicles t hey lease or buy, either on or off the reservation, for t heir own use.
The purchaser must indicate “governmental unit” in t he sales tax declaration area of t he title or PS2000.
Thes e vehicles display tax-exempt plates.
Tribal Residents
Under certain conditions, residents of all the t r ibal reservations are exempt from sales tax on motor
vehicle pur chas es.
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To qualif y f or this exemption, the resident must provide a signed stat em ent that all of the following
crit er ia are met. If more than one individual joint ly owns the vehicle, all owners must mee t the
qualifications):
a. The purchaser is a member of and resides on one of these reservations:
Bois Forte
Fond du Lac
Grand Portage
Leech Lake
Lower Sioux
Mille Lac s
Prairie Is land Sioux
Red Lake
Shakopee Mde wakant on Sioux
Upper Sioux
White Earth
b. The sale occurred on the reservation. “Sale” m eans:
• The papers were signed on the reservation, or
• Payment was made on the reservation, or
• The vehicle was delivered to t he purchaser on the reservation.
If you have any questions on vehicles leased to tribal members, contact the Minnesota Department of
Revenue at (651) 296-6181.
ERRORS OR ERASURES
An alteration or erasure on a t itle document may void the document. If an err or is made, contact the Public
Inf ormation Center or your local deputy r egistrar for instructions.
TRANSFER OF NON-TITLED VEHICLES
Ownership of vehicles that have not been issued a certif icat e of t itle, or are not requir ed to be tit led, may be
tr ansferred with a bill of sale. The bill of sale must have a complete description of the vehicle, the purc haser s ’
name, date of sale and sig nature of s eller.
BOAT, MOTOR, TRAILER PACKAGES
The dealer must tur n in the mot or vehicle sales tax collected on the sale of the trailer at t he time of the transf er.
The transfer of owner ship must be completed on the appropriate ownership docum ent.
The purchase contract must list the trailer information (vehicle identificat ion number, dollar value, motor vehicle
sales tax), separately from the boat and m ot or.
DEALER-INITIATED CONDITIONAL TRANSFERS
DVS allows dealer s to f ile a “condit ional” transfer when they are unable to obtain all of the required documents
and/or sig natures to trans fer ownership. This allo ws the dealer to comply with the 10-day transfer laws. This
does not exempt the dealer from the responsibilit y of obtai ni ng the mi ssing items; the dealer m ust
obtai n the missing items and submi t them lat er .
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Dealer Conditional Procedure:
1. Complete a title application (PS2000 – registration can be issued if needed) and subm it all available
documents, unless signatures are missing from a title. In t his situation, a photocopy of the title is
submitted and the original tit le is kept to obtain proper assignments.
2. Pay all applicable f ees and taxes to a deputy registrar.
3. Submit a letter explaining what documents are missing and why. If the missing docum ent is a for eign
stat e title, the letter must indicate which stat e t he title is from and the names of t he owners and any
lienholders, i f known.
Upon receipt of t he conditional transfer application, the department will send a letter to the owner, with a copy
to the dealer, indicating what is needed t o issue a clear certif icate of title.
The dealer must cont inue to make eff orts to obtain the m issing items. If a dealer has problems obtaining
paperwork from another dealer the Dealer Unit must be notified in writing. The statement must include the full
vehicle description, dat e t he vehicle was purc hased f r om the other dealer, name of the retail cust omer and t he
date the conditional transfer was f iled.
TAX IMPOSED – CHAPTER 297B
Minnesota imposes a sales t ax on the purc hase price of any motor vehicle purc hased or acquired, either in or
outside of the st at e of Minnesota, which is required to be registered under Minnesota Statutes, chapter 168.
All transf ers are taxed at 6 ½ percent, except certain passenger vehicles that are in t he tenth or subseq uent
year of vehicle life (see $10 In Lieu T ax), and passenger vehicles and fir e trucks registered in a collector class
(see $90 In Lieu Tax).
The purchase price must be completed in all cases, in the tax declaration area on the Minnesota certificat e of
title or PS2000. T his is required regardless of type of s ales tax due.
1. P
URCHASE PRICE – M.S. 297B.01, SUBD. 8
a. Purchase Price
This means the tot al consideration valued in money f or a sale, whether paid in money or ot herwise.
If a vehicle is transferred for nominal or no monetary consideration, the purc hase price is the
average value of sim ilar vehicles.
b. Trade-In
Motor vehicles used as a trade-in credit must be:
• A vehicle required to be regist ered under Minnesota Chapt er 168
• Tit led in the name of the party tr ading t he vehicle.
Exceptions:
o A child may trade-in a vehicle in their parents name
o A husband or wif e may t rade-in a vehicle titled in their spouses name
o A gifted vehicle t o ot her individuals m ay be used as a tr ade-in if a Gift Affidavit ( PS2080B) is
submitted with the transf er documents for the vehicle purchased
• Traded to the par t y that the new vehicle is purchased fr om
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Note: If a dealer allows “t r ade equity ” for a leased vehicle t hat is not trans ferr ed and t it led in the
customer ’s name, against the purchase of a vehicle, tax is ass essed on the full purchase price. A
trade-in r eduction is not allowed. A mot or vehicle, traded in f or credit against t he purchase price,
must be one that is required to be r egistered, as defined in Minnesota Statute 168.011. The vehicle
must be in the nam e of the ent it y t r ading it in, and that entity must have paid moto r vehicle sales
tax on it.
c. Low Purchase Price
When the reported pur chase price is substantially less t han its fair mark et value, an explanat ion is
required by the applicant. T he applicant must c omplete and sig n the "Motor Vehicle Sales Tax
Affidavit" ( PS2080A) f orm. Unless a vehicle has been damaged, mileage is the only factor that may
aff ect the value. Norm al wear and t ear (such as worn tires, shocks, etc.) has already been taken
into account in establishing the fair mark et value. If a vehicle does not have hig h mileage and is not
in need of r epair, then the motor vehicle sales tax must be collected on the fair market value.
2. T
AX IMPOSED – M.S. 297B.02 & M.S. 297B.025
In all cases, the vehicle purchase price is to be completed in the excise tax declaration area on the
Minnesota tit le or PS2000 form.
a. Rate of Tax
There is a sales tax imposed on t he net purchase price of any mot or vehicle purchas ed or acq uir ed,
either in or outside of the state of Minnesota, which is required to be register ed under the laws of
this state.
All transf ers are taxed at 6 ½ per cent, except certain passenger vehicles t hat are in the t ent h or
subseq uent year of vehicle life and passenger vehicles register ed in a collector class .
(See exceptions in “b” and “c” that follow )
b. In Lieu Tax for Older Passenger Vehicles ($10 In Lieu Tax)
1. That meet the following quali fications :
• The vehicle is in the tenth or subsequent year of vehicle l ife at the t im e of sale (e.g., on
January 1, 2004, a 1995 or older model year qualif ies), and
• The purchase price is less than $3,000, and
• The vehicle fair market value is less than $3,000
2. The initial vehicle purchas e pr ice determines the type of tax due, not the net purchase pr ice
after a trade-in.
For example:
$ 3,500 Initial purc hase price
$-1,500 Trade-in
$ 2,000 Net purchase price – 6 ½ PERCENT SALES TAX IS DUE ON $2,000
• If the vehicle pur chased meet s the crit er ia for t he $10 in lieu tax and the trade-in does not
reduce the net purchase price to zero, the $10 in lieu t ax is due (even if the $10 is more than
6 ½ percent):
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For example:
$ 2,000 Purchase price
$-1,950 Trade-in
$ 50 Net purchase price – $10 LIEU TAX IS DUE
• The trade-in is of equal or greater value, no tax is due:
For example:
$ 2,500 Purchase price
$-2,500 Trade-in
$ 0 Net purchase price – NO TAX IS DUE
c. In Lieu Tax for Collector Class Vehicles ($90 In Lieu Tax)
The purchase price must be completed in all cases, in the tax declaration area on the Minnesota
certificate of title or PS2000.
The $90 in lieu tax is charged on passenger vehicles and fir e trucks registered in, or convert ed to,
one of the collector classes at the time of sale. This in lieu tax does not apply to other vehicles
regist er ed in the c ollector classes (e.g., one-ton pickups, motorcy cles, trucks, etc.)
Note: If, within one year of the transfer, the registration is changed to the passenger class, 6 ½
percent sales tax is due if the f air market value is $3,000 or more. The applicant owes the
difference betw een the $90 tax paid and t he 6 ½ percent tax on t he purchase price.
3. M
OTOR VEHICLE SALES TAX EXEMPTIONS
Ref er to the exemptions listed on the back of the Application to Title/Register a Motor Vehicle
(PS2000). If you need assistance, cont act the Public Information Center or your local deputy registrar.
4. R
EBATES
a. Manufacturer Rebates
Rebates made by the manufacturer directly t o the purchaser of a new vehicle may be deducted
fr om the pur chas e price when com put ing motor vehicle sales tax due. Indicate “rebate” and list on
trade-in line of motor vehicle sales tax computation area.
b. Dealer Rebates, Checks, Coupons, Certif i cates, etc.
Incent ives to purchase a vehicle, suc h as dealer rebates, checks, coupons, or certificates, are not
the same as manufacturer rebates. They are tr eated the same as a down payment. Tax is due on
the full purchase price.
c. Discounts
Discounts should not be shown on the application for title, only on t he actual price. T ax is due on
the actual sale price. If you are required by anot her authority to docum ent the discount, use your
purchase contract.
5. M
ODIFICATIONS FOR DISABLED
The definition of “purchase price” does not include the value of modificat ions necessary to m ake the
vehicle acces sible to the disabled.
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Submit a statement, signed by the applicant, explaining the m odifications m ade to the vehicl e and the
value of each m odif icat ion. Record t his amount as a trade-in. If there already is a trade-in, add this
amount to the trade-in and reco rd the total amount in the trade-in area on the tax declaration ar ea. T his
amount is deducted f r om the purchase price before computing t he sales tax.
6. D
EALER EXEMPTIONS – M.S. 297B.035
The following exempt ions apply to dealers licensed by the State of Minnesota.
Held for Resale
a. Exemption:
If a vehicle is held f or resale by a Minnesota licen sed dealer , they must claim exemption code 8,
provide their dealer license number, and note “held f or resale” in the sales tax declaration area of
the certificate of title.
b. Title On ly – M.S. 168A.11, subd. 1
If a Minnesot a dealer elects to apply for a t itle on a vehicle held for resale, the dealer is not required
to register the vehicle. Howe ver, the dealer must pay one month’s registration tax. The dealer m ust
also note “held f or resale” in the sales t ax declaration ar ea on the certificate of t itle.
c. Dealer License and Franchi se
If a dealer applies for tit le and regist ration on a new vehicle and claims they are holding the vehicle
for resale, they must be f r anchised to sell that make of vehicle and have a val id Minnesota dealer
license.
If a dealer is not franc hised to sell that particular make, or if the dealer is licensed as a used car
dealer, they must title and r egist er the vehicle in their name and pay sales tax. Both t he dealer and
the individual t hat they sell the vehicle t o would owe sales tax.
d. Trailers
A dealer license is not requir ed to sell utility t r ailers wit h a gr oss vehicle weig ht of 4,000 pounds or
less. However, the com pany must have Minnesota sales and use tax account number.
Note: Sellers of boat and snowmobile trailers and mopeds must have a valid dealer license.
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DLR98765
Held f or
Resale
10
Daily Rental
If a vehicle is a daily rental, the dealer must provide their dealer license number and note “daily rent al” in the
sales tax declaration area on the PS2000 (Rental tax is submitted to t he Department of Revenue).
Business Use
A dealer using a vehicle for their business must pay 6 ½ perc ent motor vehicle sales t ax or, if they elect t o pay
general sales tax to t he Depart ment of Revenue, they must pr ovide their dealer license number and note
“business use” and “tax paid under 297A” in the sales tax declaration area on the PS2000.
Leases
Lease Exemptions
For exemption from motor vehicle sales tax (general sales tax is paid on the monthly lease payment s to the
Departm ent of Revenue) in a lease sit uation:
• Minnesota dealers and lessor s must claim exempt ion code 8 and pr ovide the dealer/lessor license num ber
on the PS2000.
• Foreig n state lessors must c laim exem pt ion code 8 and provide their Minn esot a s ales and use tax account
number. Refer q ues t ions about the Minnesota sales and use tax account num ber to the Depart m ent of
Revenue, Sales Tax Section at (651) 296-6181.
Note: a Lessee Designation form must be submitted with the applicat ion.
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Daily Rental
17000 00
DLR98765
8
Business Use Tax
Paid Under 297 A
17000 00
DLR98765
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