1.1                          A bill for an act 
  1.2             relating to transportation; providing registration 
  1.3             exemption for air ambulance; amending Minnesota 
  1.4             Statutes 1996, section 360.653. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 1996, section 360.653, is 
  1.7   amended to read: 
  1.8      360.653 [AIRCRAFT, EXEMPTIONS.] 
  1.9      The following aircraft, under the conditions specified, 
  1.10  shall be exempt from the registration and the tax provided by 
  1.11  sections 360.511 to 360.67. 
  1.12     (1) Any aircraft held by a dealer listed and used as 
  1.13  provided in section 360.63, except that aircraft held by dealers 
  1.14  on October 1, of each year, shall be registered and the entire 
  1.15  tax provided by sections 360.511 to 360.67 shall be paid for the 
  1.16  portion of the fiscal year, prorated on a monthly basis 
  1.17  remaining after the aircraft came into the possession of the 
  1.18  dealer.  It is further provided that a dealer who has previously 
  1.19  had aircraft on withholding may register such aircraft in 
  1.20  September of each fiscal year by payment of an amount equal to 
  1.21  one-third of the annual tax, which tax shall be applicable for 
  1.22  the months of September through December and in January the 
  1.23  dealer may again list these aircraft on the dealer's withholding 
  1.24  form.  
  1.25     (2) Aircraft remaining in the possession of aircraft 
  2.1   manufacturers ten months after completion shall become subject 
  2.2   to the tax provided by sections 360.511 to 360.67.  The tax 
  2.3   shall be computed from the expiration of the ten months period 
  2.4   and shall be prorated on a monthly basis.  
  2.5      (3) Aircraft while in the hands of aircraft refitters for 
  2.6   the purpose of being refitted or modified or both, and while 
  2.7   being refitted or modified or both.  
  2.8      (4) Aircraft licensed to provide air ambulance service 
  2.9   under section 144E.12.