HF 971

as introduced - 87th Legislature (2011 - 2012) Posted on 03/09/2011 09:38am

A bill for an act
relating to taxation; establishing exemptions from motor fuels taxes for school
transportation; amending Minnesota Statutes 2010, sections 169.011, by adding
a subdivision; 296A.07, subdivision 4; 296A.08, subdivision 3; 297A.68,
subdivision 19.

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

Section 1.

Minnesota Statutes 2010, section 169.011, is amended by adding a
subdivision to read:

new text begin Subd. 57a. new text end

new text begin Pupil transportation provider. new text end

new text begin "Pupil transportation provider" means:
new text end

new text begin (1) a school district;
new text end

new text begin (2) a school, as defined in section 120A.22, subdivision 4;
new text end

new text begin (3) a charter school operated under section 124D.10; and
new text end

new text begin (4) a private contractor operating under an agreement with an entity identified in
clause (1), (2), or (3).
new text end

Sec. 2.

Minnesota Statutes 2010, section 296A.07, subdivision 4, is amended to read:

Subd. 4.

Exemptions.

The provisions of subdivision 1 do not apply to gasoline or
denatured ethanol purchased by:

(1) a transit system or transit provider receiving financial assistance or
reimbursement under section 174.24, 256B.0625, subdivision 17, or 473.384;

(2) an ambulance service licensed under chapter 144E; deleted text begin or
deleted text end

(3) a licensed distributor to be delivered to a terminal for use in blending new text begin ; or
new text end

new text begin (4) a pupil transportation provider, as defined in section 169.011, subdivision 57a,
for pupil transportation performed with a school bus, as defined in section 169.011,
subdivision 71 new text end .

Sec. 3.

Minnesota Statutes 2010, section 296A.08, subdivision 3, is amended to read:

Subd. 3.

Exemptions.

The provisions of subdivisions 1 and 2 do not apply to
special fuel or alternative fuels purchased by:

(1) a transit system or transit provider receiving financial assistance or
reimbursement under section 174.24, 256B.0625, subdivision 17, or 473.384;

(2) an ambulance service licensed under chapter 144E; deleted text begin or
deleted text end

(3) a licensed distributor to be delivered to a terminal for use in blending new text begin ; or
new text end

new text begin (4) a pupil transportation provider, as defined in section 169.011, subdivision 57a,
for pupil transportation performed with a school bus, as defined in section 169.011,
subdivision 71 new text end .

Sec. 4.

Minnesota Statutes 2010, section 297A.68, subdivision 19, is amended to read:

Subd. 19.

Petroleum products.

The following petroleum products are exempt:

(1) products upon which a tax has been imposed and paid under chapter 296A,
and for which no refund has been or will be allowed because the buyer used the fuel
for nonhighway use;

(2) products that are used in the improvement of agricultural land by constructing,
maintaining, and repairing drainage ditches, tile drainage systems, grass waterways, water
impoundment, and other erosion control structures;

(3) products purchased by a transit system receiving financial assistance under
section 174.24, 256B.0625, subdivision 17, or 473.384;

(4) products purchased by an ambulance service licensed under chapter 144E;

(5) products used in a passenger snowmobile, as defined in section 296A.01,
subdivision 39, for off-highway business use as part of the operations of a resort as
provided under section 296A.16, subdivision 2, clause (2); deleted text begin or
deleted text end

(6) products purchased by a state or a political subdivision of a state for use in motor
vehicles exempt from registration under section 168.012, subdivision 1, paragraph (b) new text begin ; or
new text end

new text begin (7) products purchased by a pupil transportation provider, as defined in section
169.011, subdivision 57a, for pupil transportation performed with a school bus, as defined
in section 169.011, subdivision 71 new text end .

Sec. 5. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 4 are effective for sales and purchases made on or after July 1, 2011.
new text end