Vehicle title transfers deadline to file modification to 20 days, rental motor vehicle license plates eligibility requirements modifications, and technical corrections

A bill for an act

relating to motor vehicles; increasing deadline to file vehicle title transfers to 20

days; modifying eligibility requirements for rental motor vehicle license plates;

making technical corrections; amending Minnesota Statutes 2024, sections 168.101,

subdivision 2a; 168.15, subdivision 1; 168.27, subdivision 9; 168.301, subdivision

2; 168A.04, subdivision 2; 168A.151, subdivision 1; 168A.154; Minnesota Statutes

2025 Supplement, section 168.1289, subdivision 1; repealing Minnesota Rules,

part 7400.5200, subpart 4.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 168.101, subdivision 2a, is amended to read:

Subd. 2a.

Failure to send to registrar
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within ten days
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.

Any person who fails to mail

in the application for registration or transfer with appropriate taxes and fees to the registrar

of motor vehicles or otherwise fails to submit
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said
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the
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forms and remittance to the registrar

within
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ten
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20 calendar
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days following
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the
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date of sale
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shall be
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is
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guilty of a misdemeanor.

Sec. 2.

Minnesota Statutes 2025 Supplement, section 168.1289, subdivision 1, is amended

to read:

Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms have

the meanings given.

(b) "Auto rental company" means a corporation, partnership, individual, or other person

that is engaged primarily in the renting of at least 50 rental motor vehicles at per diem rates.

(c) "Rental motor vehicle" means a passenger automobile,
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noncommercial
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one-ton pickup

truck, motorcycle, motorized bicycle, or recreational vehicle made available for rental by

an auto rental company.

Sec. 3.

Minnesota Statutes 2024, section 168.15, subdivision 1, is amended to read:

Subdivision 1.

Transfer of ownership.

(a) Upon the transfer of ownership, destruction,

theft, dismantling, or permanent removal by the owner from this state of any vehicle

registered in accordance with this chapter, the right of the owner of the vehicle to use the

registration certificate and plates assigned to the vehicle expires.

(b) When the ownership of a vehicle is transferred to another person required to register

the vehicle in this state, the transferor
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shall
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must
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assign the registration tax paid to the credit

of the transferee unless the registration stickers are surrendered to the commissioner before

the first day of the new registration period.

(c) When seeking to become the owner by gift, trade, or purchase of any vehicle for

which a registration certificate has been issued under this chapter, a person
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shall
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must
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join

with the registered owner in transmitting with the application for transfer of ownership, the

registration certificate, with the assignment and notice of sale duly executed.

(d) In case of loss of the title or certificate of registration of a vehicle not subject to

section
325E.15
, the person
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shall make
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must submit an
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application to the commissioner

with proof of loss of the title as specified in section
168A.09
and assign a notice of sale of

the vehicle on the application for title as specified in section
168A.04
.

(e) Upon the transfer of any vehicle by a manufacturer or dealer, for use within the state,

whether by sale, lease, or otherwise, the transferor
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shall
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must
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, within
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ten
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20 calendar
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days

after the transfer, file with the commissioner
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:
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(1) a notice containing the date of transfer, a

description of the vehicle, and the transferee's name and residence address in the state or if

not a natural person then the transferee's business and mailing address
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,
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;
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and (2) the

transferee's application for registration.

Sec. 4.

Minnesota Statutes 2024, section 168.27, subdivision 9, is amended to read:

Subd. 9.

Application.

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(a)
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All license applications under this section and all license

renewals must be made to the
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registrar of motor vehicles
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commissioner
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and duly verified

by oath. The applicant
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shall
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must
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submit
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such
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the
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information
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as
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required by
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the
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registrar

may require
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commissioner
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to administer this section in a manner and format prescribed by

the
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registrar
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commissioner
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.

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(b) Except as provided in paragraphs (c) to (f), a motor vehicle dealer must complete a

title and registration application and must submit the application along with the excise and

registration taxes and all applicable fees to the commissioner within 20 calendar days of

the sale of a vehicle. The dealer must have on file an itemized receipt issued by the

department showing a breakdown of the taxes and fees paid. The receipt must be maintained

and made available for the commissioner's inspection for three years after the sale of the

vehicle.

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(c) If the purchaser is not a Minnesota customer, the dealer is not required to complete

an application or submit the application, taxes, and fees.

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(d) If the purchaser is eligible to pay a prorated tax and provides a prorate account number

to the dealer, the dealer must complete and file a title application, but the dealer is not

required to collect and submit either the excise tax or registration tax.

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(e) If the vehicle is currently registered in Minnesota, the dealer is not required to collect

and submit the registration tax.

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(f) If the vehicle must have an emissions inspection before registration, the dealer is not

required to collect and submit the registration tax.

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Sec. 5.

Minnesota Statutes 2024, section 168.301, subdivision 2, is amended to read:

Subd. 2.

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Ten days to file
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Filing period
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.

The transferee's rights to the transferred vehicle's

registration plates and credit for taxes paid on the vehicle expire
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after ten days have elapsed

from the date of transfer
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unless: (1) the transfer has been filed as provided under section

168A.10
; or (2) the transferee is a dealer licensed under section
168.27
, and is complying

with section
168A.11
.

Sec. 6.

Minnesota Statutes 2024, section 168A.04, subdivision 2, is amended to read:

Subd. 2.

Secured party.

If the application refers to a vehicle purchased from a dealer
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it shall
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, the application must
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contain the name and address of any secured party holding a

security interest created or reserved at the time of the sale and the date of the security

agreement and be signed by the dealer
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as well as
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and
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the owner
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, and
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.
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The dealer
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shall within

ten days
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must
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mail or deliver the application and appropriate taxes to the department
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within

20 calendar days
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.

Sec. 7.

Minnesota Statutes 2024, section 168A.151, subdivision 1, is amended to read:

Subdivision 1.

Salvage and prior salvage brands.

(a) When an insurer, licensed to

conduct business in Minnesota, acquires ownership of a vehicle, excluding a recovered

intact vehicle, through payment of damages, the insurer must:

(1) for a late-model or high-value vehicle, immediately apply for a certificate of title

that bears a "salvage" brand or stamp the existing certificate of title with "salvage" in a

manner prescribed by the department; or

(2) for a vehicle that is not subject to clause (1), immediately apply for a certificate of

title that bears a "prior salvage" brand or stamp the existing certificate of title with "prior

salvage" in a manner prescribed by the department.

(b) Notwithstanding any other law to the contrary, supporting documents used to transfer

ownership of a vehicle to an insurer after payment of damages do not require a notarized

signature and may be signed electronically. For purposes of this paragraph, supporting

documents include but are not limited to power of attorney forms. The insurer shall indemnify

and hold harmless the department for any claims resulting from issuing a certificate of title,

salvage title, or junking certificate pursuant to this section.

(c) Within
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ten
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20 calendar
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days of obtaining the title of a vehicle through payment of

damages, an insurer must notify the department in a manner prescribed by the department.

(d) Except as provided in section
168A.11, subdivision 1
, a person must immediately

apply for a certificate of title that bears a "salvage" brand if the person acquires a damaged

late-model or high-value vehicle that:

(1) was acquired by an insurer through payment of damages;

(2) will incur a cost of repairs that exceeds the value of the damaged vehicle;

(3) has an out-of-state salvage certificate of title as proof of ownership; or

(4) bears the brand "damaged," "repairable," "salvage," or any similar term on the

certificate of title.

(e) Except as provided in section
168A.11, subdivision 1
, a person must immediately

apply for a certificate of title that bears a "prior salvage" brand if the person acquires a

damaged vehicle and:

(1) a "salvage" brand is not required under paragraph (d); and

(2) the vehicle:

(i) bears the brand "damaged," "repairable," "salvage," "rebuilt," "reconditioned," or

any similar term on the certificate of title; or

(ii) had a salvage certificate of title or brand issued at any time in the vehicle's history

by any other jurisdiction.

(f) A self-insured owner of a vehicle that sustains damage by collision or other occurrence

which exceeds 80 percent of its actual cash value must:

(1) for a late-model or high-value vehicle, immediately apply for a certificate of title

that bears a "salvage" brand; or

(2) for a vehicle that is not subject to clause (1), immediately apply for a certificate of

title that bears a "prior salvage" brand.

Sec. 8.

Minnesota Statutes 2024, section 168A.154, is amended to read:

168A.154 SALVAGE VEHICLE TAKEN OUT OF STATE.

A dealer who sells a salvage vehicle to a buyer who intends to remove the vehicle from

the state
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shall
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must
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report the sale within
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ten
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20 calendar
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days to the department in a format

prescribed by the department.

Sec. 9.
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REPEALER.
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Minnesota Rules, part 7400.5200, subpart 4,

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is repealed.

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APPENDIX

Repealed Minnesota Rule: 26-06101

7400.5200 SELLING NEW OR USED MOTOR VEHICLE.

§

Subp. 4.

Taxes, fees, and title application.

Except as provided in items A to D, the dealer shall complete a title and registration application and shall submit the application along with the excise and registration taxes and all applicable fees to the registrar within ten days of the sale of the vehicle. The dealer must have on file an itemized receipt showing a breakdown of the taxes and fees paid. The receipt must be stamped as paid by a deputy registrar. The receipt must be maintained and made available for the registrar's inspection for three years after the sale of the vehicle.

§

A.

If the purchaser is not a Minnesota customer, the dealer is not required to complete an application or submit the application, taxes, and fees.

§

B.

If the purchaser is eligible to pay a prorated tax and provides a prorate account number to the dealer, the dealer shall complete and file a title application, but the dealer is not required to collect and submit either the excise or registration tax.

§

C.

If the vehicle is currently registered in Minnesota, the dealer is not required to collect and submit the registration tax.

§

D.

If the vehicle must have an emissions inspection before registration, the dealer is not required to collect and submit the registration tax.