Minnesota Legislature
SF 303
as introduced - 88th Legislature (2013 - 2014) Posted on 02/19/2013 04:03pm
Current Version - as introduced
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A bill for an act
relating to taxation; modifying provisions related to aircraft sales taxes, jet and
special fuel excise taxes, and aircraft registration taxes; amending Minnesota
Statutes 2012, sections 296A.09, subdivision 2; 296A.17, subdivision 3;
297A.82, subdivision 4; 360.531, subdivisions 2, 4, by adding a subdivision;
repealing Minnesota Statutes 2012, section 360.531, subdivisions 3, 6.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2012, section 296A.09, subdivision 2, is amended to read:
Subd. 2.
new text begin Jet fuel and new text end special fuel tax imposed.
There is imposed an excise tax
of deleted text begin the same ratedeleted text end new text begin ten cents new text end per gallon deleted text begin as the aviation gasolinedeleted text end on all jet fuel or special
fuel received, sold, stored, or withdrawn from storage in this state, for use as substitutes
for aviation gasoline and not otherwise taxed as gasoline. Jet fuel is defined in section
296A.01, subdivision 8.
Sec. 2.
Minnesota Statutes 2012, section 296A.17, subdivision 3, is amended to read:
Subd. 3.
Refund on graduated basis.
Any person who has directly or indirectly
paid the excise tax on aviation gasoline deleted text begin or special fueldeleted text end for aircraft use provided for
by this chapterdeleted text begin ,deleted text end shall, as to all deleted text begin suchdeleted text end aviation gasoline deleted text begin and special fueldeleted text end received, stored,
or withdrawn from storage by the person in this state in any calendar year and not sold
or otherwise disposed of to others, or intended for sale or other disposition to others, on
which deleted text begin suchdeleted text end new text begin the new text end tax has been deleted text begin sodeleted text end paid, be entitled to the following graduated reductions in
deleted text begin suchdeleted text end new text begin the new text end tax for that calendar year, to be obtained by means of the following refunds:
(1) on each gallon of deleted text begin suchdeleted text end aviation gasoline deleted text begin or special fueldeleted text end up to 50,000 gallons, all
but five cents per gallon;
(2) on each gallon of deleted text begin suchdeleted text end aviation gasoline deleted text begin or special fueldeleted text end above 50,000 gallons and
not more than 150,000 gallons, all but two cents per gallon;
(3) on each gallon of deleted text begin suchdeleted text end aviation gasoline deleted text begin or special fueldeleted text end above 150,000 gallons
and not more than 200,000 gallons, all but one cent per gallon;
(4) on each gallon of deleted text begin suchdeleted text end aviation gasoline deleted text begin or special fueldeleted text end above 200,000, all but
one-half cent per gallon.
Sec. 3.
Minnesota Statutes 2012, section 297A.82, subdivision 4, is amended to read:
Subd. 4.
Exemptions.
(a) The following transactions are exempt from the tax
imposed in this chapter to the extent provided.
(b) The purchase or use of aircraft previously registered in Minnesota by a
corporation or partnership is exempt if the transfer constitutes a transfer within the
meaning of section 351 or 721 of the Internal Revenue Code.
(c) The sale to or purchase, storage, use, or consumption by a licensed aircraft dealer
of an aircraft for which a commercial use permit has been issued pursuant to section
360.654 is exempt, if the aircraft is resold while the permit is in effect.
(d) Air flight equipment when sold to, or purchased, stored, used, or consumed by
airline companies, as defined in section 270.071, subdivision 4, is exempt. For purposes
of this subdivision, "air flight equipment" includes airplanes and parts necessary for the
repair and maintenance of such air flight equipment, and flight simulators, but does
not include airplanes with a gross weight of less than 30,000 pounds that are used on
intermittent or irregularly timed flights.
(e) Sales of, and the storage, distribution, use, or consumption of aircraft, as defined
in section 360.511 and approved by the Federal Aviation Administration, and which the
seller delivers to a purchaser outside Minnesota or which, without intermediate use, is
shipped or transported outside Minnesota by the purchaser are exempt, but only if the
purchaser is not a resident of Minnesota and provided that the aircraft is not thereafter
returned to a point within Minnesota, except in the course of interstate commerce or
isolated and occasional use, and will be registered in another state or country upon its
removal from Minnesota. This exemption applies even if the purchaser takes possession of
the aircraft in Minnesota and uses the aircraft in the state exclusively for training purposes
for a period not to exceed ten days prior to removing the aircraft from this state.
new text begin
(f) The sale or purchase of aircraft operated under Federal Aviation Regulations,
Parts 91 and 135, including airflight equipment and parts necessary for repair and
maintenance of aircraft, together with associated installation charges, are exempt.
new text end
Sec. 4.
Minnesota Statutes 2012, section 360.531, subdivision 2, is amended to read:
Subd. 2.
Rate.
The tax shall be deleted text begin at the rate of one percent of value; provided that the
minimum tax on an aircraft subject to the provisions of sections 360.511 to 360.67 shall
not be less than 25 percent of the tax on said aircraft computed on its base price or $50
whichever is the higher.deleted text end new text begin based on the base price of the aircraft as follows:
new text end
|
new text begin
Base price new text end |
new text begin
Tax new text end |
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|
new text begin
Under $1,000,000 new text end |
new text begin
$100 new text end |
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|
new text begin
$1,000,000 to $4,999,999 new text end |
new text begin
$2,500 new text end |
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new text begin
$5,000,000 to $9,999,999 new text end |
new text begin
$8,000 new text end |
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new text begin
$10,000,000 to $14,999,999 new text end |
new text begin
$10,000 new text end |
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new text begin
$15,000,000 to $19,999,999 new text end |
new text begin
$12,500 new text end |
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new text begin
$20,000,000 to $24,999,999 new text end |
new text begin
$15,000 new text end |
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new text begin
$25,000,000 to $29,999,999 new text end |
new text begin
$35,000 new text end |
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new text begin
$30,000,000 and over new text end |
new text begin
$50,000 new text end |
Sec. 5.
Minnesota Statutes 2012, section 360.531, subdivision 4, is amended to read:
Subd. 4.
Base price for taxation.
For the purpose of fixing a base price for taxation
deleted text begin from which depreciation in value at a fixed percent per annum can be counted, suchdeleted text end new text begin , the
basenew text end price is defined as follows:
(a) The base price for taxation of an aircraft shall be the manufacturer's list price.
(b) The commissioner shall have authority to fix the base value for taxation purposes
of any aircraft of which no such similar or corresponding model has been manufactured,
and of any rebuilt or foreign aircraft, any aircraft on which a record of the list price is not
available, or any military aircraft converted for civilian use, using as a basis for deleted text begin such
deleted text end valuation the list price of aircraft with comparable performance characteristics, and taking
into consideration the age and condition of the aircraft.
Sec. 6.
Minnesota Statutes 2012, section 360.531, is amended by adding a subdivision
to read:
new text begin Subd. 10. new text end
new text begin Applicability. new text end
new text begin
For any aircraft registered in this state before July 1,
2013, the annual tax under this section must not exceed the lowest amount of annual tax
previously paid or due to this state on the aircraft.
new text end
Sec. 7. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2012, section 360.531, subdivisions 3 and 6,
new text end
new text begin
are repealed.
new text end
Sec. 8. new text begin EFFECTIVE DATE.
new text end
new text begin
Sections 1 to 3 are effective July 1, 2013, and apply to sales and purchases made
on and after that date. Sections 4 to 7 are effective July 1, 2013, and apply to aircraft
registration on and after that date.
new text end