MN HF5333

Modifies Minnesota's sales tax on motor vehicle leases by adding an exception for commercial motor vehicle leases used primarily in a lessee's trade or business.

Allows lessors to elect taxation based on the vehicle's purchase price (collected at lease execution) or use the standard method of taxation on total lease payments for commercial leases with adjustment provisions.

Establishes refund procedures for leases canceled within 90 days or vehicles returned to the manufacturer, allowing lessors to claim refunds minus taxes for actual vehicle use.

Creates a tax credit mechanism for lessees whose lease obligations are canceled after 90 days, allowing credits against subsequent lease or vehicle purchase taxes if consummated within 30 days of cancellation.

Effective date for all provisions is June 30, 2024.