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Motor Vehicle Exemptions

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Some transactions are exempt from Motor Vehicle Tax depending on who purchases the vehicle, as listed in the following table.

For these sales, you must keep Form PS2000, Application to Title/Register a Vehicle on file, showing the exemption code.

There are also limited exemptions for motor vehicles purchased by specific government agencies.

Who is the Purchaser? They may buy the following vehicles exempt from Motor Vehicle Tax
Ambulance service

Ambulances sold or leased to an ambulance service (public or private) under M.S. 144E.10, Ambulance service licensing

Note: Exemption includes accessory items used to initially equip ambulances and repair and replacement parts for ambulances

Metropolitan Council Transit Buses (purchased or leased)
Municipal fire department

Fire trucks, pumper trucks, hook and ladder trucks, and clearly marked trailers

Note: Exemption includes items used to assemble or initially equip these vehicles or items that are permanently attached to them

Police department

Marked police patrol vehicles

Note: Exemption includes accessory items used to initially equip the vehicle

Public or private transit operations Vehicle used for transit services
Ready-mix producer Ready-mix concrete trucks
Township

Snow plows, dump trucks, and other motor vehicles used only for road maintenance

Note: This exemption does not include automobiles, vans, or pickup trucks. This exemption does not apply to purchases by other local governments.

Volunteer fire department

Fire trucks, pumper trucks, hook and ladder trucks, trailers, or components to assemble these vehicles

Note: Exemption includes components to assemble these vehicles and accessories, replacement parts, and repair parts

For more information, see: