HF 1336

as introduced - 90th Legislature (2017 - 2018) Posted on 03/01/2017 02:41pm

A bill for an act
relating to taxation; petroleum and sales and use; exempting special fuels for certain
off-road uses; amending Minnesota Statutes 2016, sections 296A.16, subdivision
2; 297A.68, subdivision 19.

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

Section 1.

Minnesota Statutes 2016, section 296A.16, subdivision 2, is amended to read:

Subd. 2.

Fuel used in other vehicle; claim for refund.

Any person who buys and uses
gasoline for a qualifying purpose other than use in motor vehicles, snowmobiles except as
provided in clause (2), or motorboats, or special fuel for a qualifying purpose other than
use in licensed motor vehicles, and who paid the tax directly or indirectly through the amount
of the tax being included in the price of the gasoline or special fuel, or otherwise, shall be
reimbursed and repaid the amount of the tax paid upon filing with the commissioner a claim
for refund in the form and manner prescribed by the commissioner, and containing the
information the commissioner shall require. By signing any such claim which is false or
fraudulent, the applicant shall be subject to the penalties provided in this chapter for
knowingly making a false claim. The claim shall set forth the total amount of the gasoline
so purchased and used by the applicant other than in motor vehicles, or special fuel purchased
and used by the applicant other than in licensed motor vehicles, and shall state when and
for what purpose it was used. When a claim contains an error in computation or preparation,
the commissioner is authorized to adjust the claim in accordance with the evidence shown
on the claim or other information available to the commissioner. The commissioner, on
being satisfied that the claimant is entitled to the payments, shall approve the claim and
transmit it to the commissioner of management and budget. The words "gasoline" or "special
fuel" as used in this subdivision do not include aviation gasoline or special fuel for aircraft.
Gasoline or special fuel bought and used for a "qualifying purpose" means:

(1) Gasoline or special fuel used in carrying on a trade or business, used on a farm
situated in Minnesota, and used for a farming purpose. "Farm" and "farming purpose" have
the meanings given them in section 6420(c)(2), (3), and (4) of the Internal Revenue Code
as defined in section 289A.02, subdivision 7.

(2) Gasoline or special fuel used for off-highway business use.

(i) "Off-highway business use" means any use off the public highway by a person in
that person's trade, business, or activity for the production of income.

(ii) Off-highway business use includes use of a passenger snowmobile off the public
highways as part of the operations of a resort as defined in section 157.15, subdivision 11;
and use of gasoline or special fuel to operate a power takeoff unit on a vehicle, but not
including fuel consumed during idling time.

(iii) Off-highway business use does not include use as a fuel in a motor vehicle which,
at the time of use, is registered or is required to be registered for highway use under the
laws of any state or foreign country; or use of a licensed motor vehicle fuel tank in lieu of
a separate storage tank for storing fuel to be used for a qualifying purpose, as defined in
this section. Fuel purchased to be used for a qualifying purpose cannot be placed in the fuel
tank of a licensed motor vehicle and must be stored in a separate supply tank.

(3) Gasoline or special fuel placed in the fuel tanks of new motor vehicles, manufactured
in Minnesota, and shipped by interstate carrier to destinations in other states or foreign
countries.

new text begin (4) Special fuel used in one of the following:
new text end

new text begin (i) to power a refrigeration unit mounted on a licensed motor vehicle, provided that the
unit has an engine separate from the one used to propel the vehicle and the fuel is used
exclusively for the unit;
new text end

new text begin (ii) to power an unlicensed motor vehicle that is used solely or primarily to move
semitrailers within a cargo yard, warehouse facility, or intermodal facility; or
new text end

new text begin (iii) to operate a power take-off unit or auxiliary engine in or on a licensed motor vehicle,
whether or not the unit or engine is fueled from the same or a different fuel tank as that
from which the motor vehicle is fueled.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after June
30, 2017.
new text end

Sec. 2.

Minnesota Statutes 2016, 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);

(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);

(7) products purchased by providers of transportation to recipients of medical assistance
home and community-based services waivers enrolled in day programs, including adult day
care, family adult day care, day treatment and habilitation, prevocational services, and
structured day services; deleted text begin or
deleted text end

(8) products used in a motor vehicle used exclusively as a mobile medical unit for the
provision of medical or dental services by a federally qualified health center, as defined
under title 19 of the federal Social Security Act, as amended by Section 4161 of the Omnibus
Budget Reconciliation Act of 1990 new text begin ; or
new text end

new text begin (9) special fuels eligible for a motor fuel tax refund under section 296A.16, subdivision
2, clause (4) new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after June
30, 2017.
new text end