Minnesota Vehicle Bill of Sale
Minnesota's stated bill-of-sale price drives the tax: a flat $10 in lieu of 6.875% for old, cheap cars.
Introduction
Minnesota's motor vehicle tax turns directly on the price you write on the bill of sale, and two statutory in-lieu rules can replace the standard 6.875 percent excise tax with a flat amount. Under Minn. Stat. 297B.02 and 297B.025, a passenger automobile in its tenth or later year of vehicle life with a resale value under $3,000 is taxed a flat $10 instead of 6.875 percent of the purchase price, and a passenger automobile or fire truck registered as Collector, Classic, Street Rod, or Pioneer is taxed a flat $150. Because most private used-car sales in Minnesota are exactly old, inexpensive vehicles, the price on your bill of sale is what decides whether you owe the $10 flat tax or 6.875 percent. Minnesota does not publish an official state bill-of-sale form; the Department of Public Safety, Driver and Vehicle Services (DVS) lets the seller assign ownership on the title, on the PS2000 registration application, or on a free-form bill of sale, and none of these needs to be notarized. The seller states the odometer reading on the title under Minn. Stat. 168A.10, and the buyer must apply for a new title within 20 days at any deputy registrar office. DocDraft drafts a Minnesota vehicle bill of sale from your facts, with attorney review available.
Key Things to Know
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No official state bill-of-sale form. Minnesota does not publish an official Driver and Vehicle Services (DVS) bill-of-sale form, and there is no PS2080 bill-of-sale form. DVS lets the seller assign ownership three ways: on the back of the title, on the PS2000 registration application, or on a free-form bill of sale that identifies the vehicle, the date of sale, and the buyer's name.
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A bill of sale does not need to be notarized. A Minnesota title assignment or bill of sale does not need to be notarized. Notarization only comes up for a lien release form, where DVS requires a signed lien release card or a notarized lien release form for any secured parties (lien holders).
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Odometer disclosure goes on the title (Minn. Stat. 168A.10). Minn. Stat. 168A.10 requires the seller to state the true cumulative mileage in the space provided on the certificate of title, or to state that the actual mileage is unknown if the reading differs from the true mileage. This follows the federal 49 CFR 580 odometer rule, including the post-2021 expansion of the disclosure window as adopted.
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Tax is 6.875% of the bill-of-sale price. Minnesota imposes a 6.875 percent motor vehicle excise tax on the purchase price (price minus rebates and any trade-in allowance) under Minn. Stat. 297B.02, paid at title transfer. The stated bill-of-sale price, not a book value, drives the tax, and local sales tax does not apply to the motor vehicle tax.
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Title within 20 days at a deputy registrar. The buyer must execute the application for a new certificate of title within 20 calendar days after the title is assigned (Minn. Stat. 168A.10), at any of the nearly 200 deputy registrar offices or by mail to DVS. The seller must return the Notice of Sale to the department within 10 days of the sale; a buyer who misses the 20-day window can have the vehicle's registration suspended.
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A bill of sale is optional, not required to transfer. A bill of sale is not required to transfer or register a titled vehicle in Minnesota; the assigned certificate of title is the controlling instrument, and the bill of sale is one of three permitted ways to assign ownership. A bill of sale is the primary instrument for untitled or exempt vehicles, such as older trailers.
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Flat $10 or $150 in-lieu tax can replace the 6.875%. Two statutory in-lieu rules can replace the 6.875 percent rate with a flat amount. A flat $10 tax applies when a passenger automobile is in its tenth or later year of vehicle life and does not have a resale value of $3,000 or more (Minn. Stat. 297B.02 subd. 2 and 297B.025 subd. 1). A flat $150 tax applies to a passenger automobile or fire truck registered as Collector, Classic, Street Rod, or Pioneer (Minn. Stat. 297B.02 subd. 3 and 297B.025 subd. 2). DVS restates the $10 test as model year 10 years old or older, purchase price under $3,000, and average value of similar vehicles under $3,000.
Key decisions before you file
Before you file a Bill of Sale in Minnesota, a few decisions shape the document: which option to choose and what each one means. The Bill of Sale guide walks through them.
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Minnesota Requirements for Bill of Sale
Minnesota does not publish an official DVS bill-of-sale form, and there is no PS2080 bill-of-sale form. DVS accepts a free-form bill of sale that identifies the vehicle, the date of sale, and the buyer's name, alongside the title assignment or the PS2000 registration application. The PS2000 is a registration application, not a bill of sale.
A Minnesota title assignment or bill of sale does not need to be notarized. Notarization applies only to a lien release form, where DVS requires a signed lien release card or a notarized lien release form for any secured parties (lien holders).
Identify the vehicle by VIN, year, make, model, body type, and color so the bill of sale matches the certificate of title and the PS2000 registration application. DVS asks that a bill of sale identify the vehicle being sold.
Minn. Stat. 168A.10 requires the seller to state the true cumulative mileage in the space provided on the certificate of title, or to state that the actual mileage is unknown if the reading differs from the true mileage. This follows the federal 49 CFR 580 odometer rule.
Record the purchase price (and any trade-in allowance) and the date of sale. The price drives the motor vehicle tax, and the date of sale starts both the buyer's 20-day title clock and the seller's 10-day Notice of Sale deadline.
Minnesota imposes a 6.875 percent excise tax on the purchase price (minus rebates and trade-in) under Minn. Stat. 297B.02, paid at title transfer. A flat $10 applies for a passenger automobile in its tenth or later year of life with resale value under $3,000 (297B.02 subd. 2 and 297B.025 subd. 1); a flat $150 applies for a Collector, Classic, Street Rod, or Pioneer vehicle (297B.02 subd. 3 and 297B.025 subd. 2). The stated bill-of-sale price drives which applies.
The buyer must apply for a new certificate of title within 20 calendar days after the title is assigned (Minn. Stat. 168A.10), at any of the nearly 200 deputy registrar offices or by mail to DVS. The seller must return the Notice of Sale to the department within 10 days of the sale; missing the 20-day window can suspend the registration.
Both the buyer and seller should sign and date the bill of sale and keep a copy. Notarization is not required for a Minnesota vehicle bill of sale or title assignment.
Frequently Asked Questions
A bill of sale is not required to transfer or register a titled vehicle in Minnesota. The assigned certificate of title is the controlling instrument, and Driver and Vehicle Services (DVS) lets the seller assign ownership on the title, on the PS2000 registration application, or on a free-form bill of sale. A bill of sale is still a useful record of the price, the as-is terms, and the date of sale, and it is the primary instrument for untitled vehicles such as older trailers.
No. A Minnesota title assignment or vehicle bill of sale does not need to be notarized. Notarization only comes up for a lien release: DVS requires a signed lien release card or a notarized lien release form for any secured parties (lien holders). Both the buyer and seller should still sign and date the bill of sale and keep a copy.
Minnesota does not publish an official state bill-of-sale form, and there is no PS2080 bill-of-sale form. Driver and Vehicle Services (DVS) lets the seller assign ownership on the back of the title, on the PS2000 registration application, or on a free-form bill of sale that identifies the vehicle, the date of sale, and the buyer's name. The PS2000 is a registration application, not a bill of sale.
Minnesota charges a 6.875 percent motor vehicle excise tax on the purchase price (price minus rebates and any trade-in allowance) under Minn. Stat. 297B.02, paid at title transfer, with no separate local sales tax. Two flat in-lieu rules can replace the 6.875 percent: a flat $10 for a passenger automobile in its tenth or later year of life with a resale value under $3,000, and a flat $150 for a Collector, Classic, Street Rod, or Pioneer vehicle. The stated bill-of-sale price drives the tax.
You title and register the vehicle at any of the nearly 200 deputy registrar offices, or by mail to Driver and Vehicle Services (DVS). The buyer must apply for a new certificate of title within 20 calendar days after the title is assigned (Minn. Stat. 168A.10), and the seller must return the Notice of Sale to the department within 10 days of the sale. Missing the 20-day window can lead to the registration being suspended.
Include the seller and buyer names and addresses, the vehicle description (VIN, year, make, model, body type, color), the odometer reading and disclosure, the sale price, the date of sale, an as-is statement if the vehicle is sold without a warranty, and both signatures. DVS asks that a bill of sale identify the vehicle, the date of sale, and the buyer's name, and the price matters because it drives the 6.875 percent or the flat $10 or $150 in-lieu tax.