HF 1681

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

  1.1                          A bill for an act 
  1.2             relating to motor vehicles; temporarily reducing 
  1.3             registration tax on motor vehicles powered by 
  1.4             alternative fuels; imposing registration fee on 
  1.5             certain vehicles; creating alternative fuel vehicle 
  1.6             development account to promote development of 
  1.7             alternative fuel vehicles and fueling facilities; 
  1.8             requiring rulemaking; temporarily halting taxation of 
  1.9             certain motor fuels; making technical correction; 
  1.10            amending Minnesota Statutes 1996, sections 168.013, by 
  1.11            adding a subdivision; 296.02, subdivision 1b; and 
  1.12            296.025, subdivision 1b; proposing coding for new law 
  1.13            in Minnesota Statutes, chapter 216C. 
  1.14  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.15     Section 1.  Minnesota Statutes 1996, section 168.013, is 
  1.16  amended by adding a subdivision to read: 
  1.17     Subd. 2a.  [TAX REDUCED.] The tax under this section for a 
  1.18  motor vehicle registered after November 15, 1997, that is 
  1.19  primarily powered by one or more alternative fuels as defined in 
  1.20  section 216C.01, subdivision 1a, is reduced by one-half, but not 
  1.21  more than $100 per registration year per vehicle; provided that 
  1.22  in no event shall the tax be less than the minimum amount 
  1.23  prescribed for that type of vehicle by the other provision of 
  1.24  this section. 
  1.25     This subdivision expires November 15, 2002. 
  1.26     Sec. 2.  [216C.404] [ALTERNATIVE FUEL VEHICLE DEVELOPMENT 
  1.27  FEE.] 
  1.28     Subdivision 1.  [APPLICATION AND AMOUNT.] Beginning January 
  1.29  1, 1998, and ending December 31, 1998, a fee of $1 per vehicle 
  2.1   is imposed on all motor vehicles requiring registration under 
  2.2   section 168.012.  
  2.3      Subd. 2.  [PAYMENT.] The fee must be paid to the registrar 
  2.4   of motor vehicles at the time that the motor vehicle is 
  2.5   registered or reregistered. 
  2.6      Subd. 3.  [DEPOSIT OF RECEIPTS.] Fees collected under this 
  2.7   section must be deposited in the alternative fuel vehicle 
  2.8   development account established in section 216C.405.  This 
  2.9   account will be a special revenue account.  Funds deposited in 
  2.10  this account will be available for use by the commissioner until 
  2.11  June 30, 2002. 
  2.12     Sec. 3.  [216C.405] [ALTERNATIVE FUEL VEHICLE DEVELOPMENT 
  2.13  ACCOUNT.] 
  2.14     Subdivision 1.  [ESTABLISHMENT; PURPOSE.] An alternative 
  2.15  fuel vehicle development account is created in the state 
  2.16  treasury as a special revenue account.  Money in the account 
  2.17  must be made available to the commissioner for activities that 
  2.18  promote the development of alternative fuel vehicles and 
  2.19  alternative fuel vehicle-fueling facilities in Minnesota. 
  2.20     Subd. 2.  [REVENUE SOURCE.] Revenue from the following 
  2.21  sources must be deposited in the alternative fuel vehicle 
  2.22  development account: 
  2.23     (1) fees collected under section 216C.404; 
  2.24     (2) future interest earned on the alternative fuel vehicle 
  2.25  development account; and 
  2.26     (3) repayments received as a condition of financial 
  2.27  assistance awarded from the alternative fuel vehicle development 
  2.28  account. 
  2.29     Subd. 3.  [REQUIRED ACTIVITIES.] The commissioner shall 
  2.30  conduct the following activities with the proceeds of this 
  2.31  account. 
  2.32     (a) The commissioner shall establish an alternative fuel 
  2.33  vehicle development revolving fund.  This fund may provide up to 
  2.34  $2,500,000 in loans, grants, or rebates to purchasers of 
  2.35  alternative fuel vehicles or facilities for fueling alternative 
  2.36  fuel vehicles.  The commissioner shall adopt rules to establish 
  3.1   the amount of financial assistance that may be awarded, 
  3.2   eligibility of recipients of assistance, and other reasonable 
  3.3   terms and conditions governing the award of financial assistance.
  3.4      (b) The commissioner shall award grants to not more than 
  3.5   five Minnesota heavy duty fleet owners for demonstrating heavy 
  3.6   duty alternative fuel vehicle technologies.  At least one of 
  3.7   these grant recipients must be a public school bus fleet.  The 
  3.8   commissioner shall request proposals from interested Minnesota 
  3.9   fleet owners.  Terms and conditions of the financial assistance 
  3.10  will be specified by contract.  Not more than $300,000 may be 
  3.11  used for this purpose.  
  3.12     (c) The commissioner shall conduct a comprehensive, 
  3.13  statewide motor vehicle fleet survey.  Not more than $100,000 
  3.14  may be made available for this purpose. 
  3.15     Subd. 4.  [ADDITIONAL ALLOWABLE ACTIVITIES.] The 
  3.16  commissioner may use the remaining funds for activities to 
  3.17  promote the use and acceptance of alternative motor fuels in 
  3.18  Minnesota.  The activities may include consumer education on 
  3.19  alternative fuel vehicles, technical education on alternative 
  3.20  fuel vehicle technologies, technical assistance to vehicle and 
  3.21  fleet owners, promotional activities, data collection, and 
  3.22  administrative support.  No more than $500,000 may be spent for 
  3.23  these purposes. 
  3.24     Subd. 5.  [DURATION.] Money remaining in the alternative 
  3.25  fuel vehicle development account on July 1, 2002, must be 
  3.26  returned to the general fund.  In addition, any repayment on 
  3.27  financial assistance awards under the account received after 
  3.28  July 1, 2002, must be deposited in the general fund. 
  3.29     Sec. 4.  Minnesota Statutes 1996, section 296.02, 
  3.30  subdivision 1b, is amended to read: 
  3.31     Subd. 1b.  [RATES IMPOSED.] The gasoline excise tax is 
  3.32  imposed at the following rates: 
  3.33     (1) E85 is taxed at the rate of 0 cents per gallon until 
  3.34  June 30, 2002.  After that date, E85 is taxed at the rate of 
  3.35  14.2 cents per gallon; 
  3.36     (2) M85 is taxed at the rate of 0 cents per gallon until 
  4.1   June 30, 2002.  After that date, M85 is taxed at the rate of 
  4.2   11.4 cents per gallon; and 
  4.3      (3) all other gasoline is taxed at the rate of 20 cents per 
  4.4   gallon.  
  4.5      Sec. 5.  Minnesota Statutes 1996, section 296.025, 
  4.6   subdivision 1b, is amended to read: 
  4.7      Subd. 1b.  [TAX RATES.] The special fuel excise tax is 
  4.8   imposed at the following rates: 
  4.9      (1) Liquefied petroleum gas or propane is taxed at the rate 
  4.10  of 0 cents per gallon until June 30, 2002.  After that date, 
  4.11  liquefied petroleum gas or propane is taxed at the rate of 15 
  4.12  cents per gallon. 
  4.13     (2) Liquefied natural gas is taxed at the rate of 0 cents 
  4.14  per gallon until June 30, 2002.  After that date, liquefied 
  4.15  natural gas is taxed at the rate of 12 cents per gallon. 
  4.16     (3) Compressed natural gas is taxed at the rate of 0 cents 
  4.17  per thousand cubic feet, or 0 cents per gasoline equivalent, 
  4.18  until June 30, 2002.  After that date, compressed natural gas is 
  4.19  taxed at the rate of $1.739 per thousand cubic feet;, or 20 
  4.20  cents per gasoline equivalent, as defined by the National 
  4.21  Conference on Weights and Measures, which is 5.66 pounds of 
  4.22  natural gas. 
  4.23     (4) All other special fuel not specifically taxed under 
  4.24  this section or section 296.02 is taxed at the same rate as the 
  4.25  gasoline excise tax. 
  4.26     Sec. 6.  [EFFECTIVE DATES.] 
  4.27     Sections 4 and 5 are effective July 1, 1997, and apply to 
  4.28  gasoline in distributor storage on and after that date.