HF 4050

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; allowing partial refund of fuel 
  1.3             tax for commercial owners of recreational fishing 
  1.4             launches; making technical and clarifying changes; 
  1.5             amending Minnesota Statutes 1998, sections 296A.16, 
  1.6             subdivision 2; and 297A.25, subdivision 7. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1998, section 296A.16, 
  1.9   subdivision 2, is amended to read: 
  1.10     Subd. 2.  [FUEL USED IN OTHER VEHICLE; REFUND.] (a) The 
  1.11  commissioner shall reimburse the amount of the tax paid by any 
  1.12  person who shall buy and use for: 
  1.13     (1) gasoline bought and used for a qualifying purpose, 
  1.14  other than use (i) in motor vehicles, (ii) in snowmobiles except 
  1.15  as provided in paragraph (g), clause (2), or (iii) in 
  1.16  motorboats, except for certain fishing launches as provided in 
  1.17  paragraph (g), clause (2); or 
  1.18     (2) special fuel bought and used for a qualifying purpose, 
  1.19  other than use in licensed motor vehicles, and who shall. 
  1.20  The taxpayer may have paid the tax directly or indirectly 
  1.21  through the amount of the tax being included in the price of the 
  1.22  gasoline or special fuel, or otherwise,. 
  1.23  shall be reimbursed and repaid the amount of the tax paid upon 
  1.24  filing with 
  1.25     (b) The commissioner shall repay a claim that is filed in 
  1.26  the form and manner prescribed by the commissioner, and 
  2.1   containing that contains the information the commissioner shall 
  2.2   require.  
  2.3      (c) By signing any such claim which is false or fraudulent, 
  2.4   the applicant shall be subject to the penalties provided in this 
  2.5   chapter for knowingly making a false claim.  
  2.6      (d) The claim shall set forth the total amount of the 
  2.7   gasoline so purchased and used by the applicant other than in 
  2.8   motor vehicles, or special fuel purchased and used by the 
  2.9   applicant other than in licensed motor vehicles, and shall state 
  2.10  when and for what purpose it was used.  When a claim contains an 
  2.11  error in computation or preparation, the commissioner is 
  2.12  authorized to adjust the claim in accordance with the evidence 
  2.13  shown on the claim or other information available to the 
  2.14  commissioner. 
  2.15     (e) The commissioner, on being satisfied that the claimant 
  2.16  is entitled to the payments, shall approve the claim and 
  2.17  transmit it to the commissioner of finance. 
  2.18     (f) The words "gasoline" or "special fuel" as used in this 
  2.19  subdivision do not include aviation gasoline or special fuel for 
  2.20  aircraft. 
  2.21     (g) Gasoline or special fuel bought and used for a 
  2.22  "qualifying purpose" means: 
  2.23     (1) Gasoline or special fuel used in carrying on a trade or 
  2.24  business, used on a farm situated in Minnesota, and used for a 
  2.25  farming purpose.  "Farm" and "farming purpose" have the meanings 
  2.26  given them in section 6420(c)(2), (3), and (4) of the Internal 
  2.27  Revenue Code of 1986, as amended through December 31, 1997. 
  2.28     (2) Gasoline or special fuel used for off-highway business 
  2.29  use.  "Off-highway business use" means any use off the public 
  2.30  highway by a person in that person's trade, business, or 
  2.31  activity for the production of income.  Off-highway business use 
  2.32  includes: 
  2.33     (i) use of a passenger snowmobile off the public highways 
  2.34  as part of the operations of a resort as defined in section 
  2.35  157.15, subdivision 11; and 
  2.36     (ii) use of gasoline or special fuel to operate a power 
  3.1   takeoff unit on a vehicle, but not including fuel consumed 
  3.2   during idling time; and 
  3.3      (iii) use of motor launches for recreational fishing 
  3.4   purposes as part of the operations of a resort as defined in 
  3.5   section 157.15, subdivision 11.  However, the taxpayer is 
  3.6   entitled to reimbursement under this item and paragraph (a) only 
  3.7   to the extent that the taxpayer's annual gasoline or special 
  3.8   fuel tax payments exceed $200.  
  3.9   Off-highway business use does not include use as a fuel in a 
  3.10  motor vehicle which, at the time of use, is registered or is 
  3.11  required to be registered for highway use under the laws of any 
  3.12  state or foreign country. 
  3.13     (3) Gasoline or special fuel placed in the fuel tanks of 
  3.14  new motor vehicles, manufactured in Minnesota, and shipped by 
  3.15  interstate carrier to destinations in other states or foreign 
  3.16  countries.  
  3.17     By July 1, 1998, (h) The commissioner shall adopt rules 
  3.18  that determine the rates and percentages necessary to develop 
  3.19  formulas for calculating the refund under clause (2), item (ii). 
  3.20     Sec. 2.  Minnesota Statutes 1998, section 297A.25, 
  3.21  subdivision 7, is amended to read: 
  3.22     Subd. 7.  [PETROLEUM PRODUCTS.] The gross receipts from the 
  3.23  sale of and storage, use or consumption of the following 
  3.24  petroleum products are exempt:  
  3.25     (1) products upon which a tax has been imposed and paid 
  3.26  under the provisions of chapter 296A, and no refund has been or 
  3.27  will be allowed because the buyer used the fuel for nonhighway 
  3.28  use; 
  3.29     (2) products which are used in the improvement of 
  3.30  agricultural land by constructing, maintaining, and repairing 
  3.31  drainage ditches, tile drainage systems, grass waterways, water 
  3.32  impoundment, and other erosion control structures; 
  3.33     (3) products purchased by a transit system receiving 
  3.34  financial assistance under section 174.24 or 473.384; 
  3.35     (4) products used in a passenger snowmobile, as defined in 
  3.36  section 296A.01, subdivision 39, or in a motor launch for 
  4.1   recreational fishing purposes, for off-highway business use as 
  4.2   part of the operations of a resort as to the extent provided 
  4.3   under section 296A.16, subdivision 2, clause (2); or 
  4.4      (5) products purchased by a state or a political 
  4.5   subdivision of a state for use in motor vehicles exempt from 
  4.6   registration under section 168.012, subdivision 1, paragraph (b).
  4.7      Sec. 3.  [EFFECTIVE DATE.] 
  4.8      Sections 1 and 2 are effective July 1, 2000, for gasoline 
  4.9   and special fuel purchased on and after that date.