1.1 	A bill for an act
1.2 	relating to motor fuels; indexing tax rate for
1.3 	gasoline and special fuels; amending Minnesota
1.4 	Statutes 2004, sections 296A.07, by adding a
1.5 	subdivision; 296A.08, by adding a subdivision.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2004, section 296A.07, is
1.8 	amended by adding a subdivision to read:
1.9 		Subd. 5.Annual gasoline tax rate adjustment. (a) Before
1.10 	April 1 of each year, the commissioner of revenue shall
1.11 	recompute and publish the rate of the gasoline excise tax.  The
1.12 	new rate per gallon must be calculated by multiplying the rate
1.13 	in effect at the time of the calculation by an amount obtained
1.14 	under paragraph (b).  The new rate must be rounded to the
1.15 	nearest 0.1 cent and takes effect the following July 1.
1.16 	(b) Divide the annual average United States Consumer Price
1.17 	Index for all urban consumers, United States city average, as
1.18 	determined by the United States Department of Labor for the
1.19 	previous year by that annual average for the year before the
1.20 	previous year.

1.21 	Sec. 2. Minnesota Statutes 2004, section 296A.08, is
1.22 	amended by adding a subdivision to read:
1.23 		Subd. 7.Annual special fuel tax rate adjustment. (a)
1.24 	Before April 1 of each year, the commissioner of revenue shall
1.25 	recompute and publish the rate of the special fuel tax.  The new
2.1 	rate must be calculated by multiplying the rate in effect at the
2.2 	time of the calculation by an amount obtained under paragraph
2.3 	(b).  The new rate must be rounded to the nearest 0.1 cent and
2.4 	takes effect the following July 1.
2.5 	(b) Divide the annual average United States Consumer Price
2.6 	Index for all urban consumers, United States city average, as
2.7 	determined by the United States Department of Labor for the
2.8 	previous year by that annual average for the year before the
2.9 	previous year.

2.10 	Sec. 3. TRANSITION PROVISION.
 2.11 	For the fiscal year beginning July 1, 2005, the
2.12 	commissioner of revenue shall recompute and publish the rates of
2.13 	tax computed under sections 1 and 2 without regard to the April
2.14 	1 date but as soon as practicable after the effective date of
2.15 	this section and before the new rate takes effect on July 1,
2.16 	2005.

2.17 	Sec. 4. EFFECTIVE DATE.
 2.18 	Sections 1 to 3 are effective the day following final
2.19 	enactment and apply to gasoline and special fuel in distributor
2.20 	storage after June 30, 2005.