Minnesota Legislature
HF 811
1st Engrossment - 88th Legislature (2013 - 2014) Posted on 04/11/2013 03:31pm
Bill Text Versions
| Engrossments | ||
|---|---|---|
| Introduction | Posted on 02/21/2013 | |
| 1st Engrossment | Posted on 04/11/2013 |
Current Version - 1st Engrossment
1.8 1.9 1.10 1.11 1.12 1.13
1.14 1.15 1.16 1.17 1.18 1.19
1.20 1.21 1.22 1.23 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13
2.14 2.15 2.16 2.17 2.18
2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32 2.33 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14
3.15 3.16 3.17 3.18 3.19
3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32 3.33 3.34 3.35 3.36 4.1 4.2 4.3 4.4 4.5
4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16
4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26
4.27 4.28 4.29 4.30 4.31 4.32 4.33 5.1 5.2
5.3 5.4 5.5 5.6 5.7
A bill for an act
relating to taxation; modifying provisions related to aircraft sales taxes, jet
and special fuel excise taxes, and aircraft registration taxes; requiring a report;
amending Minnesota Statutes 2012, sections 296A.09, subdivision 2, by adding
a subdivision; 296A.17, subdivision 3, by adding a subdivision; 297A.82,
subdivision 4, by adding a subdivision; 360.531, subdivisions 2, 4; 360.66.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2012, section 296A.09, subdivision 2, is amended to read:
Subd. 2.
new text begin Jet fuel and new text end special fuel tax imposed.
There is imposed an excise tax
of deleted text begin the same ratedeleted text end new text begin 15 cents new text end per gallon deleted text begin as the aviation gasolinedeleted text end on all jet fuel or special
fuel received, sold, stored, or withdrawn from storage in this state, for use as substitutes
for aviation gasoline and not otherwise taxed as gasoline. Jet fuel is defined in section
296A.01, subdivision 8.
Sec. 2.
Minnesota Statutes 2012, section 296A.09, is amended by adding a subdivision
to read:
new text begin Subd. 3a. new text end
new text begin Excise tax for certain airline companies. new text end
new text begin
Subdivision 2 does not apply
to jet fuel or special fuel purchased by an airline company that is engaged in air commerce
in this state and is required to pay air flight property tax under section 270.072. An excise
tax of five cents per gallon is imposed on fuel that is described in this subdivision.
new text end
Sec. 3.
Minnesota Statutes 2012, section 296A.17, subdivision 3, is amended to read:
Subd. 3.
Refund on graduated basis.
new text begin Except as provided in subdivision 3a, new text end any
person who has directly or indirectly paid the excise tax on aviation gasoline or special
fuel for aircraft use provided for by this chapter, shall, as to all such aviation gasoline
and special fuel received, stored, or withdrawn from storage by the person in this state
in any calendar year and not sold or otherwise disposed of to others, or intended for
sale or other disposition to others, on which such tax has been so paid, be entitled to
the following graduated reductions in such tax for that calendar year, to be obtained by
means of the following refunds:
(1) on each gallon of such aviation gasoline or special fuel up to 50,000 gallons, all
but five cents per gallon;
(2) on each gallon of such aviation gasoline or special fuel above 50,000 gallons and
not more than 150,000 gallons, all but two cents per gallon;
(3) on each gallon of such aviation gasoline or special fuel above 150,000 gallons
and not more than 200,000 gallons, all but one cent per gallon;
(4) on each gallon of such aviation gasoline or special fuel above 200,000, all but
one-half cent per gallon.
Sec. 4.
Minnesota Statutes 2012, section 296A.17, is amended by adding a subdivision
to read:
new text begin Subd. 3a. new text end
new text begin Nonrefundable excise tax. new text end
new text begin
Any person who has directly or indirectly
paid the jet fuel or special fuel tax imposed under section 296A.09, subdivision 2, is not
entitled to a tax refund under subdivision 3.
new text end
Sec. 5.
Minnesota Statutes 2012, section 297A.82, subdivision 4, is amended to read:
Subd. 4.
Exemptions.
(a) The following transactions are exempt from the tax
imposed in this chapter to the extent provided.
(b) The purchase or use of aircraft previously registered in Minnesota by a
corporation or partnership is exempt if the transfer constitutes a transfer within the
meaning of section 351 or 721 of the Internal Revenue Code.
(c) The sale to or purchase, storage, use, or consumption by a licensed aircraft dealer
of an aircraft for which a commercial use permit has been issued pursuant to section
360.654 is exempt, if the aircraft is resold while the permit is in effect.
(d) Air flight equipment when sold to, or purchased, stored, used, or consumed by
airline companies, as defined in section 270.071, subdivision 4, is exempt. For purposes
of this subdivision, "air flight equipment" includes airplanes and parts necessary for the
repair and maintenance of such air flight equipment, and flight simulators, but does
not include airplanes with a gross weight of less than 30,000 pounds that are used on
intermittent or irregularly timed flights.
(e) Sales of, and the storage, distribution, use, or consumption of aircraft, as defined
in section 360.511 and approved by the Federal Aviation Administration, and which the
seller delivers to a purchaser outside Minnesota or which, without intermediate use, is
shipped or transported outside Minnesota by the purchaser are exempt, but only if the
purchaser is not a resident of Minnesota and provided that the aircraft is not thereafter
returned to a point within Minnesota, except in the course of interstate commerce or
isolated and occasional use, and will be registered in another state or country upon its
removal from Minnesota. This exemption applies even if the purchaser takes possession of
the aircraft in Minnesota and uses the aircraft in the state exclusively for training purposes
for a period not to exceed ten days prior to removing the aircraft from this state.
new text begin
(f) The sale or purchase of the following items that relate to aircraft operated under
Federal Aviation Regulations, parts 91 and 135, and associated installation charges:
airflight equipment; parts necessary for repair and maintenance of aircraft; and equipment
and parts to upgrade and improve aircraft.
new text end
Sec. 6.
Minnesota Statutes 2012, section 297A.82, is amended by adding a subdivision
to read:
new text begin Subd. 4a. new text end
new text begin Deposit in state airports fund. new text end
new text begin
Tax revenue collected from the sale or
purchase of an aircraft taxable under this chapter must be deposited in the state airports
fund, established in section 360.017.
new text end
Sec. 7.
Minnesota Statutes 2012, section 360.531, subdivision 2, is amended to read:
Subd. 2.
Rate.
The tax shall be deleted text begin at the rate of one percent of value; provided that
the minimum tax on an aircraft subject to the provisions of sections 360.511 to 360.67
shall not be less than 25 percent of the tax on said aircraft computed on its base price or
$50 whichever is the higher.deleted text end new text begin as follows:
new text end
|
new text begin
Base Price new text end |
new text begin
Tax new text end |
|
|
new text begin
$499,999 and under new text end |
new text begin
$100 new text end |
|
|
new text begin
$500,000 to $999,999 new text end |
new text begin
$200 new text end |
|
|
new text begin
$1,000,000 to $2,499,999 new text end |
new text begin
$2,000 new text end |
|
|
new text begin
$2,500,000 to $4,999,999 new text end |
new text begin
$4,000 new text end |
|
|
new text begin
$5,000,000 to $7,499,999 new text end |
new text begin
$7,500 new text end |
|
|
new text begin
$7,500,000 to $9,999,999 new text end |
new text begin
$10,000 new text end |
|
|
new text begin
$10,000,000 to $12,499,999 new text end |
new text begin
$12,500 new text end |
|
|
new text begin
$12,500,000 to $14,999,999 new text end |
new text begin
$15,000 new text end |
|
|
new text begin
$15,000,000 to $17,499,999 new text end |
new text begin
$17,500 new text end |
|
|
new text begin
$17,500,000 to $19,999,999 new text end |
new text begin
$20,000 new text end |
|
|
new text begin
$20,000,000 to $22,499,999 new text end |
new text begin
$22,500 new text end |
|
|
new text begin
$22,500,000 to $24,999,999 new text end |
new text begin
$25,000 new text end |
|
|
new text begin
$25,000,000 to $27,499,999 new text end |
new text begin
$27,500 new text end |
|
|
new text begin
$27,500,000 to $29,999,999 new text end |
new text begin
$30,000 new text end |
|
|
new text begin
$30,000,000 to $39,999,999 new text end |
new text begin
$50,000 new text end |
|
|
new text begin
$40,000,000 and over new text end |
new text begin
$75,000 new text end |
Sec. 8.
Minnesota Statutes 2012, section 360.531, subdivision 4, is amended to read:
Subd. 4.
Base price for taxation.
For the purpose of fixing a base price for taxation
deleted text begin from which depreciation in value at a fixed percent per annum can be counted, suchdeleted text end new text begin , the
basenew text end price is defined as follows:
(a) The base price for taxation of an aircraft shall be the manufacturer's list price.
(b) The commissioner shall have authority to fix the base value for taxation purposes
of any aircraft of which no such similar or corresponding model has been manufactured,
and of any rebuilt or foreign aircraft, any aircraft on which a record of the list price is not
available, or any military aircraft converted for civilian use, using as a basis for deleted text begin such
deleted text end valuation the list price of aircraft with comparable performance characteristics, and taking
into consideration the age and condition of the aircraft.
Sec. 9.
Minnesota Statutes 2012, section 360.66, is amended to read:
360.66 STATE AIRPORTS FUND.
Subdivision 1.
Tax credited to fund.
The proceeds of the tax imposed on aircraft
under sections deleted text begin 360.54deleted text end new text begin 360.531 new text end to 360.67 and all fees and penalties provided for therein
shall be collected by the commissioner and paid into the state treasury and credited to the
state airports fund created by other statutes of this state.
Subd. 2.
Reimbursement for expenses.
There shall be transferred by the
commissioner of management and budget each year from the state airports fund to the
general fund in the state treasury the amount expended from the latter fund for expenses of
administering the provisions of sections deleted text begin 360.54deleted text end new text begin 360.531 new text end to 360.67.
Sec. 10. new text begin REPORT.
new text end
new text begin
On or before June 30, 2016, and every four years thereafter, the commissioner of
transportation, in consultation with the commissioner of revenue, shall prepare and submit
to the chairs and ranking minority members of the senate and house of representatives
committees with jurisdiction over transportation policy and budget, a report that identifies
the amount and sources of annual revenues attributable to each type of aviation tax, along
with annual expenditures from the state airports fund, and any other transfers out of the
fund, during the previous four years. The report must include draft legislation for any
recommended statutory changes to ensure the future adequacy of the state airports fund.
new text end
Sec. 11. new text begin EFFECTIVE DATE.
new text end
new text begin
Sections 1 to 4 are effective July 1, 2014, and apply to sales and purchases made
on or after that date. Sections 5 and 6 are effective July 1, 2013, and apply to sales and
purchases made on or after that date. Sections 7 to 9 are effective July 1, 2014, and apply
to aircraft tax due on or after that date. Section 10 is effective July 1, 2013.
new text end