HF 2543

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to highway funding; providing for an increase
in the excise tax on gasoline and special fuels;
proposing an amendment to the Minnesota Constitution,
article XIV, section 10; amending Minnesota Statutes
2004, sections 296A.07, subdivision 3; 296A.08,
subdivision 2.

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

Section 1.

Minnesota Statutes 2004, section 296A.07,
subdivision 3, is amended to read:

Subd. 3.

Rate of tax.

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 17.8 new text end cents per gallon
new text begin until November 30, 2016, and 14.2 cents thereafter new text end ;

(2) M85 is taxed at the rate of deleted text begin 11.4 deleted text end new text begin 14.3 new text end cents per gallon
new text begin until November 30, 2016, and 11.4 cents thereafter new text end ; and

(3) all other gasoline is taxed at the rate of deleted text begin 20 deleted text end new text begin 25 new text end cents
per gallon new text begin until November 30, 2016, and 20 cents thereafter new text end .

[EFFECTIVE DATE.] new text begin This section is effective December 1, 2006,
and applies to all gasoline in distributor storage on that date,
except that if the constitutional amendment proposed under
section 3 is not adopted at the November 2006 general election
this section shall not take effect.
new text end

Sec. 2.

Minnesota Statutes 2004, 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 18.8 new text end cents per gallon new text begin until November 30, 2016, and 15
cents thereafter new text end .

(b) Liquefied natural gas is taxed at the rate of deleted text begin 12 deleted text end new text begin 15
new text end cents per gallon new text begin until November 30, 2016, and 12 cents
thereafter new text end .

(c) Compressed natural gas is taxed at the rate
of deleted text begin $1.739 deleted text end new text begin $2.174 new text end per thousand cubic feet; or 20 cents per
gasoline equivalent, as defined by the National Conference on
Weights and Measures, which is 5.66 pounds of natural gas new text begin until
November 30, 2016, and $1.739 per thousand cubic feet thereafter new text end .

(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.

[EFFECTIVE DATE.] new text begin This section is effective December 1, 2006,
except that if the constitutional amendment proposed under
section 3 is not adopted at the November 2006 general election
this section shall not take effect.
new text end

Sec. 3. new text begin CONSTITUTIONAL AMENDMENT PROPOSED.
new text end

new text begin An amendment to the Minnesota Constitution, article XIV,
section 10, is proposed to the people. If the amendment is
adopted, article XIV, section 10, will read:
new text end

Sec. 10.

The legislature may levy an excise tax on any
means or substance used for propelling vehicles on the public
highways of this state or on the business of selling it. The
proceeds of the tax shall be paid into the highway user tax
distribution fund. new text begin From December 1, 2006, to November 30, 2016,
the rate of tax under this section on gasoline and special fuel,
other than alternative fuels as defined by law, may not be less
than 25 cents per gallon.
new text end

Sec. 4. new text begin SUBMISSION TO VOTERS.
new text end

new text begin The constitutional amendment proposed under section 3 must
be submitted to the people at the November 2006 general
election. The question submitted must be:
new text end

new text begin "Shall the Minnesota Constitution be amended to provide
that from December 1, 2006, to November 30, 2016, the rate of
tax on gasoline and special fuels, other than alternative fuels,
may not be less than 25 cents per gallon?
new text end

new text begin Yes .......
No ........"
new text end