Motor Vehicle Sales Tax Exemption (100% Disabled)

Starting July 1, 2024, purchases of a motor vehicle by a veteran having a total service-connected disability are exempt from the Motor Vehicle Sales Tax. Minnesota Statutes 171.01, subdivision 51 defines "veteran with a total service-connected disability" as a veteran (as defined in section 197.447) who provides the commissioner satisfactory evidence that is issued by the Department of Veterans Affairs, the United States Veterans Administration, or the retirement board of one of the branches of the armed forces, and that demonstrates the veteran has received a 100 percent total and permanent service-connected disability rating.

Exempts the purchase of a motor vehicle from the Motor Vehicle Sales Tax. Minnesota's motor vehicle sales tax rate is 6.875% of the taxable vehicle sales price (effective July 1, 2023). Charges for parts, accessories, and labor to make a vehicle disability accessible are also not taxable (and remain nontaxable even if the purchaser is not the original purchaser of the modifications).

The Motor Vehicle Sales Tax is paid to a deputy registrar or Driver and Vehicle Services of the Department of Public Safety when the title is transferred. For these exempt sales, you must keep on file Form PS2000, Application to Title/Register a Vehicle, showing the exemption code.