Instructions - Tax Exempt from Motor Vehicle Sales Taxes

FYI: Very few winning bidders in Minnesota are exempt from paying motor vehicle sales tax.

Entities that would qualify for Tax Exemption:

-Ambulance Service

-Disabled Veterans (must have grant under U.S. Code, title 38, section 3902)

-Federal Government & its agencies

-Federally Qualified Health Center

-Job Opportunity Building Zone (JOBZ)

-Library

-Metro Transit Council (Buses)

-Municipal Fire Department

-Nonprofit Group (Trucks, Buses, or Autos that are designed to carry at least 10 people)

-Police Department

-Private Nonprofit or Public School (This exemption does not include vehicles used in driver education programs)

-Private or Public Transit operations

-Ready-mix Producer (ready-mix concrete trucks)

-Township (snow plows, dump trucks, other autos used for road maintenance, ONLY)

-Tribal Governments and Members (see below)

-Volunteer Fire Department

It is not the affiliate’s responsibility to determine the tax exempt status of winning bidders. If a winning bidder is claiming to be exempt from motor vehicle sales taxes, a properly completed and signed ST3 form must be submitted before the motor vehicle sales taxes are removed from the invoice.

The ST3 form ONLY applies to sales taxes, ALL other vehicle fees listed on the invoice must be collected.

Sales to Tribal Governments and Members:

Vehicles that require licensing to drive on Minnesota roads are NOT taxable when sold to members of any Minnesota
reservation (all eleven reservations) if both of the following conditions are met:

- the purchaser lives on the reservation and
- the sale occurs on the reservation. A sale occurs on the reservation if papers are signed on the reservation, payment
is made on the reservation, or the vehicle is delivered to the purchaser on the reservation.

To complete the transfer and remove the sales tax from the invoice, we will need a signed statement from the buyer that states:

-the name of the tribe

-they are a member of the tribe

-they reside on the tribe

-the sale took place on the tribe

If you have any questions, please contact K-BID's Title Department.