HF 2056

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to motor fuels; indexing tax rate for
gasoline and special fuels; amending Minnesota
Statutes 2004, sections 296A.07, by adding a
subdivision; 296A.08, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2004, section 296A.07, is
amended by adding a subdivision to read:

new text begin Subd. 5. new text end

new text begin Annual gasoline tax rate adjustment. new text end

new text begin (a) Before
April 1 of each year, the commissioner of revenue shall
recompute and publish the rate of the gasoline excise tax. The
new rate per gallon must be calculated by multiplying the rate
in effect at the time of the calculation by an amount obtained
under paragraph (b). The new rate must be rounded to the
nearest 0.1 cent and takes effect the following July 1.
new text end

new text begin (b) Divide the annual average United States Consumer Price
Index for all urban consumers, United States city average, as
determined by the United States Department of Labor for the
previous year by that annual average for the year before the
previous year.
new text end

Sec. 2.

Minnesota Statutes 2004, section 296A.08, is
amended by adding a subdivision to read:

new text begin Subd. 7. new text end

new text begin Annual special fuel tax rate adjustment. new text end

new text begin (a)
Before April 1 of each year, the commissioner of revenue shall
recompute and publish the rate of the special fuel tax. The new
rate must be calculated by multiplying the rate in effect at the
time of the calculation by an amount obtained under paragraph
(b). The new rate must be rounded to the nearest 0.1 cent and
takes effect the following July 1.
new text end

new text begin (b) Divide the annual average United States Consumer Price
Index for all urban consumers, United States city average, as
determined by the United States Department of Labor for the
previous year by that annual average for the year before the
previous year.
new text end

Sec. 3. new text begin TRANSITION PROVISION.
new text end

new text begin For the fiscal year beginning July 1, 2005, the
commissioner of revenue shall recompute and publish the rates of
tax computed under sections 1 and 2 without regard to the April
1 date but as soon as practicable after the effective date of
this section and before the new rate takes effect on July 1,
2005.
new text end

Sec. 4. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 3 are effective the day following final
enactment and apply to gasoline and special fuel in distributor
storage after June 30, 2005.
new text end