HF 112

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act
  1.2             relating to taxation; providing for depreciation of 
  1.3             passenger automobiles for purposes of registration 
  1.4             tax; increasing the rate of taxation on motor fuels; 
  1.5             amending Minnesota Statutes 1996, sections 168.013, 
  1.6             subdivision 1a; 296.02, subdivision 1b; and 296.025, 
  1.7             subdivision 1b. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1996, section 168.013, 
  1.10  subdivision 1a, is amended to read: 
  1.11     Subd. 1a.  [PASSENGER AUTOMOBILES; HEARSES.] (a) On 
  1.12  passenger automobiles as defined in section 168.011, subdivision 
  1.13  7, and hearses, except as otherwise provided, the tax shall be 
  1.14  $10 plus an additional tax equal to 1.25 percent of the base 
  1.15  value.  
  1.16     (b) Subject to the classification provisions herein, "base 
  1.17  value" means the manufacturer's suggested retail price of the 
  1.18  vehicle including destination charge using list price 
  1.19  information published by the manufacturer or determined by the 
  1.20  registrar if no suggested retail price exists, and shall not 
  1.21  include the cost of each accessory or item of optional equipment 
  1.22  separately added to the vehicle and the suggested retail price. 
  1.23     (c) If the manufacturer's list price information contains a 
  1.24  single vehicle identification number followed by various 
  1.25  descriptions and suggested retail prices, the registrar shall 
  1.26  select from those listings only the lowest price for determining 
  2.1   base value. 
  2.2      (d) If unable to determine the base value because the 
  2.3   vehicle is specially constructed, or for any other reason, the 
  2.4   registrar may establish such value upon the cost price to the 
  2.5   purchaser or owner as evidenced by a certificate of cost but not 
  2.6   including Minnesota sales or use tax or any local sales or other 
  2.7   local tax. 
  2.8      (e) The registrar shall classify every vehicle in its 
  2.9   proper base value class as follows: 
  2.10                        FROM                   TO
  2.11                        $  0                $199.99
  2.12                         200                 399.99
  2.13  and thereafter a series of classes successively set in brackets 
  2.14  having a spread of $200 consisting of such number of classes as 
  2.15  will permit classification of all vehicles. 
  2.16     (f) The base value for purposes of this section shall be 
  2.17  the middle point between the extremes of its class. 
  2.18     (g) The registrar shall establish the base value, when new, 
  2.19  of every passenger automobile and hearse registered prior to the 
  2.20  effective date of Extra Session Laws 1971, chapter 31, using 
  2.21  list price information published by the manufacturer or any 
  2.22  nationally recognized firm or association compiling such data 
  2.23  for the automotive industry.  If unable to ascertain the base 
  2.24  value of any registered vehicle in the foregoing manner, the 
  2.25  registrar may use any other available source or method.  The tax 
  2.26  on all previously registered vehicles shall be computed upon the 
  2.27  base value thus determined taking into account the depreciation 
  2.28  provisions of paragraph (h). 
  2.29     (h) Except as provided in paragraph (i), the annual 
  2.30  additional tax computed upon the base value as provided herein, 
  2.31  during the first and second years year of vehicle life shall be 
  2.32  computed upon 100 percent of the base value; for the third and 
  2.33  fourth years second year, 90 percent of such value; for 
  2.34  the fifth and sixth years third year, 75 percent of such value; 
  2.35  for the seventh fourth year, 60 percent of such value; for the 
  2.36  eighth fifth year, 40 45 percent of such value; for the ninth 
  3.1   sixth year, 30 35 percent of such value; for the seventh year, 
  3.2   30 percent of such value; for the eighth year, 20 percent of 
  3.3   such value; for the ninth year, 15 percent of such value; for 
  3.4   the tenth year, ten percent of such value; for the 11th and each 
  3.5   succeeding year, the sum of $25.  
  3.6      In no event shall the annual additional tax be less than 
  3.7   $25.  
  3.8      (i) The annual additional tax under paragraph (h) on a 
  3.9   motor vehicle on which the first annual tax was paid before 
  3.10  January 1, 1990, must not exceed the tax that was paid on that 
  3.11  vehicle the year before. 
  3.12     Sec. 2.  Minnesota Statutes 1996, section 296.02, 
  3.13  subdivision 1b, is amended to read: 
  3.14     Subd. 1b.  [RATES IMPOSED.] The gasoline excise tax is 
  3.15  imposed at the following rates: 
  3.16     (1) E85 is taxed at the rate of 14.2 .. cents per gallon; 
  3.17     (2) M85 is taxed at the rate of 11.4 .. cents per gallon; 
  3.18  and 
  3.19     (3) all other gasoline is taxed at the rate of 20 .. cents 
  3.20  per gallon.  
  3.21     Sec. 3.  Minnesota Statutes 1996, section 296.025, 
  3.22  subdivision 1b, is amended to read: 
  3.23     Subd. 1b.  [TAX RATES.] The special fuel excise tax is 
  3.24  imposed at the following rates: 
  3.25     (1) Liquefied petroleum gas or propane is taxed at the rate 
  3.26  of 15 .. cents per gallon. 
  3.27     (2) Liquefied natural gas is taxed at the rate of 12 .. 
  3.28  cents per gallon. 
  3.29     (3) Compressed natural gas is taxed at the rate of $1.739 
  3.30  $....... per thousand cubic feet; or 20 .. cents per gasoline 
  3.31  equivalent, as defined by the National Conference on Weights and 
  3.32  Measures, which is 5.66 pounds of natural gas. 
  3.33     (4) All other special fuel is taxed at the same rate as the 
  3.34  gasoline excise tax. 
  3.35     Sec. 4.  [EFFECTIVE DATE.] 
  3.36     Section 1 is effective November 15, 1997, for registration 
  4.1   year 1998 and subsequent years.  Section 2 is effective January 
  4.2   1, 1998, and applies to all gasoline in distributor storage on 
  4.3   that date.  Section 3 is effective January 1, 1998.