Minnesota MCDP prorated sales tax
Frequently asked questions for IRP carriers, owner operators and designated representatives
What documentation do I need to provide when registering or transferring the title for a new vehicle purchase to receive the prorated Minnesota motor vehicle sales tax?
Beginning Sept. 1, 2026, to receive the prorated Minnesota motor vehicle sales tax rate during registration, you will need to provide a copy of your Motor Carrier Direct Pay (MCDP) authorization letter and Minnesota Tax ID number confirmation letter to the Driver and Vehicle Services (DVS) International Registration Plan (IRP) office as part of the IRP documentation process. You may also provide the MCDP authorization letter during the vehicle purchase and registration process to verify eligibility for the prorated sales tax rate.
If the MCDP authorization documentation is already on file with us, you do not need to provide another copy unless requested.
What does an MCDP authorization allow a carrier to do?
MCDP authorization allows an eligible carrier or other qualifying participant to pay a prorated Minnesota motor vehicle sales tax rate on the purchase of a qualifying tractor or trailer based on the applicable Minnesota mileage percentage. This prorated tax is collected at a deputy registrar or our office at the time of vehicle transfer and registration.
The MCDP authorization also allows you to pay prorated Minnesota sales tax to the Minnesota Department of Revenue on qualifying purchases, instead of paying sales tax to your vendor seller at the time of purchase. These prorated purchases are reported on your Minnesota Sales and Use Tax Return. Qualifying purchases include repair parts and accessories that are attached to mobile transport equipment.
Who is required to apply for MCDP authorization?
Applying for MCDP authorization is voluntary. However, if you want to purchase a qualifying vehicle and/or trailer and pay a prorated Minnesota sales tax rate based on the Minnesota mileage percentage, you must have MCDP authorization from the Minnesota Department of Revenue.
How do I obtain MCDP authorization?
You must have a Minnesota Tax ID number to apply for MCDP authorization. If you do not have a Minnesota Tax ID number, you can register online through MN e-Services or call 651-282-5225 or 1-800-657-3605 (toll free) for assistance.
Once you have a Minnesota Tax ID number, complete and submit Form MCDP-AP, Motor Carrier Direct Pay Application (PDF), to the Minnesota Department of Revenue.
Important
IRP registration does not automatically grant you MCDP authorization.