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Rentals Not Subject to Motor Vehicle Rental Tax and Fee

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The 9.2 percent rental tax and 5 percent rental fee do not apply to rentals of:

  • Ambulances rented to ambulance services
  • Box trucks and trailers
  • Buses, school buses, or specially licensed commuter vans
  • Buses converted to provide temporary living quarters
  • Conversion vans equipped with at least four of the following:
    • Liquid propane gas cooking stove
    • Heating or air-conditioning unit separate from the vehicle engine
    • Refrigerator
    • Self-contained or externally connected toilet
    • Separate electrical power supply
    • Water supply system including a sink with a faucet
  • Limousines that include the services of a driver
  • Limousines used in a burial or funeral services
  • Motorcycles and motor scooters
  • Motor homes
  • Passenger vehicles used to provide licensed taxi services
  • Vans designed or adapted primarily for transporting property (with or without a barrier between the operator and the cargo areas)  
  • Vehicles rented to federal government agencies
  • Vehicles that have a camper mounted on the chassis of the vehicle

 Note: The 9.2 percent rental tax and 5 percent rental fee do not apply to short-term rentals if the vehicle is either:

  • exempt from Minnesota general sales tax and local taxes
  • not a passenger vehicle, pickup truck, or van as defined in this section