1.1 	A bill for an act
1.2 	relating to motor fuels; providing for tax refund on fuel used in certain auxiliary 
1.3 	power devices; amending Minnesota Statutes 2006, section 296A.16, subdivision 
1.4 	2.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2006, section 296A.16, subdivision 2, is amended to 
1.7 	read:
1.8 		Subd. 2.Fuel used in other vehicle; claim for refund. Any person who buys and 
1.9 	uses gasoline for a qualifying purpose other than use in motor vehicles, snowmobiles 
1.10 	except as provided in clause (2), or motorboats, or special fuel for a qualifying purpose 
1.11 	other than use in licensed motor vehicles, and who paid the tax directly or indirectly 
1.12 	through the amount of the tax being included in the price of the gasoline or special fuel, or 
1.13 	otherwise, shall be reimbursed and repaid the amount of the tax paid upon filing with the 
1.14 	commissioner a claim for refund in the form and manner prescribed by the commissioner, 
1.15 	and containing the information the commissioner shall require. By signing any such claim 
1.16 	which is false or fraudulent, the applicant shall be subject to the penalties provided in this 
1.17 	chapter for knowingly making a false claim. The claim shall set forth the total amount 
1.18 	of the gasoline so purchased and used by the applicant other than in motor vehicles, or 
1.19 	special fuel purchased and used by the applicant other than in licensed motor vehicles, 
1.20 	and shall state when and for what purpose it was used. When a claim contains an error 
1.21 	in computation or preparation, the commissioner is authorized to adjust the claim in 
1.22 	accordance with the evidence shown on the claim or other information available to the 
1.23 	commissioner. The commissioner, on being satisfied that the claimant is entitled to the 
1.24 	payments, shall approve the claim and transmit it to the commissioner of finance. The 
2.1 	words "gasoline" or "special fuel" as used in this subdivision do not include aviation 
2.2 	gasoline or special fuel for aircraft. Gasoline or special fuel bought and used for a 
2.3 	"qualifying purpose" means:
2.4 	(1) Gasoline or special fuel used in carrying on a trade or business, used on a farm 
2.5 	situated in Minnesota, and used for a farming purpose. "Farm" and "farming purpose" 
2.6 	have the meanings given them in section 6420(c)(2), (3), and (4) of the Internal Revenue 
2.7 	Code of 1986, as amended through December 31, 1997.
2.8 	(2) Gasoline or special fuel used for off-highway business use.
2.9 	(i) "Off-highway business use" means any use off the public highway by a person in 
2.10 	that person's trade, business, or activity for the production of income.
2.11 	(ii) Off-highway business use includes:
2.12 	(A)  use of a passenger snowmobile off the public highways as part of the operations 
2.13 	of a resort as defined in section 157.15, subdivision 11; and
2.14 	(B) use of gasoline or special fuel to operate a power takeoff unit on a vehicle, but 
2.15 	not including fuel consumed during idling time; and
2.16 	(C) use of gasoline or special fuel to operate devices, including but not limited 
2.17 	to auxiliary power units, designed to heat, cool, provide electricity, or otherwise keep 
2.18 	occupants of a truck cab safe and comfortable when the main truck engine is not operating. 
2.19 	(iii) Off-highway business use does not include use as a fuel in a motor vehicle 
2.20 	which, at the time of use, is registered or is required to be registered for highway use under 
2.21 	the laws of any state or foreign country; or use of a licensed motor vehicle fuel tank in lieu 
2.22 	of a separate storage tank for storing fuel to be used for a qualifying purpose, as defined in 
2.23 	this section. Fuel purchased to be used for a qualifying purpose cannot be placed in the 
2.24 	fuel tank of a licensed motor vehicle and must be stored in a separate supply tank.
2.25 	(3) Gasoline or special fuel placed in the fuel tanks of new motor vehicles, 
2.26 	manufactured in Minnesota, and shipped by interstate carrier to destinations in other 
2.27 	states or foreign countries.

2.28 	EFFECTIVE DATE. This section is effective for gasoline and special fuels 
2.29 	purchased after June 30, 2008.