HF 489

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/01/2021 04:25pm

A bill for an act
relating to transportation; taxes; modifying calculation of the motor fuels tax;
amending Minnesota Statutes 2020, sections 296A.07, subdivision 3; 296A.08,
subdivision 2.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2020, section 296A.07, subdivision 3, is amended to read:

Subd. 3.

Rate of tax.

new text begin (a) new text end The gasoline excise tax is imposed at the following rates:

(1) E85 is taxed at the rate of 17.75 cents per gallon;

(2) M85 is taxed at the rate of 14.25 cents per gallon; and

(3) all other gasoline is taxed at the rate of 25 cents per gallon.

new text begin (b) On or before April 1, 2022, and on or before April 1 in each subsequent year, the
commissioner must determine the tax rate applicable to the sale of E85, M85, and all other
gasoline subject to tax under this section for the upcoming 12-month period, beginning
October 1, by adding to the current fiscal year tax rate the percentage increase, if any, in
the National Highway Construction Cost Index for the previous calendar year. The tax rate
must be rounded to the nearest tenth of a cent. The tax rates for E85, M85, and all other
gasoline must not be lower than the respective rates specified in paragraph (a).
new text end

new text begin (c) For purposes of this subdivision, the National Highway Construction Cost Index is
as determined by the United States Department of Transportation.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for tax imposed after September 30,
2022.
new text end

Sec. 2.

Minnesota Statutes 2020, section 296A.08, subdivision 2, is amended to read:

Subd. 2.

Rate of tax.

new text begin (a) new text end The special fuel excise tax is imposed at the following rates:

deleted text begin (a) deleted text end new text begin (1) new text end liquefied petroleum gas or propane is taxed at the rate of 18.75 cents per gallon deleted text begin . deleted text end new text begin ;
new text end

deleted text begin (b) deleted text end new text begin (2) new text end liquefied natural gas is taxed at the rate of 15 cents per gallon deleted text begin . deleted text end new text begin ;
new text end

deleted text begin (c) deleted text end new text begin (3) new text end compressed natural gas is taxed at the rate of $1.974 per thousand cubic feet; or
25 cents per gasoline equivalent deleted text begin . For purposes of this paragraph, "gasoline equivalent," as
defined by the National Conference on Weights and Measures, is 5.66 pounds of natural
gas or 126.67 cubic feet. deleted text end new text begin ; and
new text end

deleted text begin (d) deleted text end new text begin (4) new text end all other special fuel is taxed at the same rate as the gasoline excise tax as specified
in section 296A.07, subdivision 2.

new text begin (b) On or before April 1, 2022, and on or before April 1 in each subsequent year, the
commissioner must determine the tax rate applicable to the sale of special fuels subject to
tax under this section for the upcoming 12-month period, beginning October 1, by adding
to the current fiscal year tax rate the percentage increase, if any, calculated under section
296A.07, subdivision 3, paragraph (b). The tax rate must be rounded to the nearest tenth of
a cent. The tax rates for liquefied natural gas or propane, liquefied natural gas, compressed
natural gas, and all other special fuel must not be lower than the respective rates specified
in paragraph (a).
new text end

new text begin (c) new text end The tax is payable in the form and manner prescribed by the commissioner.

new text begin (d) For purposes of this paragraph, "gasoline equivalent," as defined by the National
Conference on Weights and Measures, is 5.66 pounds of natural gas or 126.67 cubic feet.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for tax imposed after September 30,
2022.
new text end