HF 1469

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; increasing the motor fuels excise tax; allowing a refundable
income tax credit; appropriating money; amending Minnesota Statutes 2006,
sections 290.06, by adding a subdivision; 296A.07, subdivision 3; 296A.08,
subdivision 2.

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

Section 1.

Minnesota Statutes 2006, section 290.06, is amended by adding a
subdivision to read:

new text begin Subd. 34. new text end

new text begin Highway fuels tax credit. new text end

new text begin (a) A credit is allowed against the tax imposed
under this section and section 290.091 to married individuals filing joint returns, surviving
spouses as defined in section 2(a) of the Internal Revenue Code, unmarried individuals
qualifying as heads of household under section 2(b) of the Internal Revenue Code, and
unmarried individuals who are not claimed as a dependent on another taxpayer's return
and who have attained the age of 18 by the end of the taxable year. To qualify, the
taxpayer's taxable net income for the taxable year must not exceed the maximum amount
that is taxable at the lowest rate under subdivision 2c. The amount of the credit equals
$50 for the taxpayer. For taxpayers with taxable net income that exceeds the amount of
income taxable at the lowest rate under subdivision 2c, the credit amount is zero.
new text end

new text begin (b) If the amount of the credit which the taxpayer is eligible to receive under this
subdivision exceeds the taxpayer's liability for tax under this chapter, the commissioner of
revenue shall refund the excess to the taxpayer.
new text end

new text begin (c) The amount necessary to pay claims for the refunds authorized under this
subdivision is appropriated from the general fund to the commissioner.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2006, except for taxable years beginning during calendar year 2007, the
credit is $25.
new text end

Sec. 2.

Minnesota Statutes 2006, section 296A.07, subdivision 3, is amended to read:

Subd. 3.

Rate of tax.

new text begin (a) new text end The gasoline excise tax is imposed at the following rates:

(1) E85 is taxed at the rate of deleted text begin 14.2 deleted text end new text begin 21.3 new text end cents per gallon;

(2) M85 is taxed at the rate of deleted text begin 11.4 deleted text end new text begin 17.1 new text end cents per gallon; and

(3) all other gasoline is taxed at the rate of deleted text begin 20 deleted text end new text begin 30 new text end cents per gallon.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007.
new text end

Sec. 3.

Minnesota Statutes 2006, section 296A.08, subdivision 2, is amended to read:

Subd. 2.

Rate of tax.

The special fuel excise tax is imposed at the following rates:

(a) Liquefied petroleum gas or propane is taxed at the rate of deleted text begin 15 deleted text end new text begin 22.5 new text end cents per gallon.

(b) Liquefied natural gas is taxed at the rate of deleted text begin 12 deleted text end new text begin 18 new text end cents per gallon.

(c) Compressed natural gas is taxed at the rate of deleted text begin $1.739 deleted text end new text begin $2.609 new text end per thousand cubic
feet; or deleted text begin 20 deleted text end new text begin 30 new text end cents per gasoline equivalent, as defined by the National Conference on
Weights and Measures, which is 5.66 pounds of natural gas.

(d) All other special fuel is taxed at the same rate as the gasoline excise tax as
specified in section 296A.07, subdivision 2. The tax is payable in the form and manner
prescribed by the commissioner.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007.
new text end