MN SF1636

Adds rent-to-own and lease-to-own used vehicles to Minnesota's retail sale definition, with sales tax due at each payment rather than at lease execution for vehicles where lessees may purchase or return without penalty.

Modifies motor vehicle lease sales tax revenue calculation to include revenues from rent-to-own and lease-to-own used vehicle transactions under the new provision.

Allocates motor vehicle lease sales tax revenue 50 percent to the greater Minnesota transit account and 50 percent to county state-aid highway fund for metropolitan area counties (excluding Hennepin and Ramsey) based on population percentages.

Establishes baseline revenue subtractions of $30,100,000 in fiscal year 2011, $31,100,000 in fiscal year 2012, and $32,000,000 in fiscal year 2013 and beyond before distributing net revenues.

Effective date: June 30, 2012 for all lease transactions covered by the amendments.