1.1                          A bill for an act 
  1.2             relating to taxation; exempting gasoline and special 
  1.3             fuel used to operate well drilling machines; amending 
  1.4             Minnesota Statutes 1996, sections 296.18, subdivision 
  1.5             1; and 297A.25, subdivision 7. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1996, section 296.18, 
  1.8   subdivision 1, is amended to read: 
  1.9      Subdivision 1.  [CLAIM; FUEL USED IN OTHER VEHICLES.] Any 
  1.10  person who shall buy and use gasoline for a qualifying purpose 
  1.11  other than use in motor vehicles except as provided in clause 
  1.12  (4), snowmobiles except as provided in clause (2), or 
  1.13  motorboats, or special fuel for a qualifying purpose other than 
  1.14  use in licensed motor vehicles except as provided in clause (4), 
  1.15  and who shall have paid the Minnesota excise tax directly or 
  1.16  indirectly through the amount of the tax being included in the 
  1.17  price of the gasoline or special fuel, or otherwise, shall be 
  1.18  reimbursed and repaid the amount of the tax paid upon filing 
  1.19  with the commissioner a claim in the form and manner prescribed 
  1.20  by the commissioner, and containing the information the 
  1.21  commissioner shall require.  By signing any such claim which is 
  1.22  false or fraudulent, the applicant shall be subject to the 
  1.23  penalties provided in this section for knowingly making a false 
  1.24  claim.  The claim shall set forth the total amount of the 
  1.25  gasoline so purchased and used by the applicant other than in 
  2.1   motor vehicles, or special fuel so purchased and used by the 
  2.2   applicant other than in licensed motor vehicles, and shall state 
  2.3   when and for what purpose it was used.  When a claim contains an 
  2.4   error in computation or preparation, the commissioner is 
  2.5   authorized to adjust the claim in accordance with the evidence 
  2.6   shown on the claim or other information available to the 
  2.7   commissioner.  The commissioner, on being satisfied that the 
  2.8   claimant is entitled to the payments, shall approve the claim 
  2.9   and transmit it to the commissioner of finance.  No repayment 
  2.10  shall be made unless the claim and invoice shall be filed with 
  2.11  the commissioner within one year from the date of the purchase.  
  2.12  The postmark on the envelope in which a written claim is mailed 
  2.13  shall determine its date of filing.  The words "gasoline" or 
  2.14  "special fuel" as used in this subdivision do not include 
  2.15  aviation gasoline or special fuel for aircraft.  Gasoline or 
  2.16  special fuel bought and used for a "qualifying purpose" means: 
  2.17     (1) Gasoline or special fuel used in carrying on a trade or 
  2.18  business, used on a farm situated in Minnesota, and used for a 
  2.19  farming purpose.  "Farm" and "farming purpose" have the meanings 
  2.20  given them in section 6420(c)(2), (3), and (4) of the Internal 
  2.21  Revenue Code of 1986, as amended through December 31, 1988.  
  2.22     (2) Gasoline or special fuel used for off-highway business 
  2.23  use.  "Off-highway business use" means any use off the public 
  2.24  highways by a person in that person's trade, business, or 
  2.25  activity for the production of income.  "Off-highway business 
  2.26  use" includes use of a passenger snowmobile off the public 
  2.27  highways as part of the operations of a resort as defined in 
  2.28  section 157.15.  "Off-highway business use" does not include use 
  2.29  as a fuel in a motor vehicle which, at the time of use, is 
  2.30  registered or is required to be registered for highway use under 
  2.31  the laws of any state or foreign country.  
  2.32     (3) Gasoline or special fuel placed in the fuel tanks of 
  2.33  new motor vehicles, manufactured in Minnesota, and shipped by 
  2.34  interstate carrier to destinations in other states or foreign 
  2.35  countries. 
  2.36     (4) Gasoline or special fuel used to operate a well 
  3.1   drilling machine registered under chapter 103I for off-highway 
  3.2   business use as defined in clause (2).  The commissioner shall 
  3.3   accept hub meter readings as records to support a claim for 
  3.4   refund under this clause.  
  3.5      Sec. 2.  Minnesota Statutes 1996, section 297A.25, 
  3.6   subdivision 7, is amended to read: 
  3.7      Subd. 7.  [PETROLEUM PRODUCTS.] The gross receipts from the 
  3.8   sale of and storage, use or consumption of the following 
  3.9   petroleum products are exempt:  
  3.10     (1) products upon which a tax has been imposed and paid 
  3.11  under the provisions of chapter 296, and no refund has been or 
  3.12  will be allowed because the buyer used the fuel for nonhighway 
  3.13  use; 
  3.14     (2) products which are used in the improvement of 
  3.15  agricultural land by constructing, maintaining, and repairing 
  3.16  drainage ditches, tile drainage systems, grass waterways, water 
  3.17  impoundment, and other erosion control structures; 
  3.18     (3) products purchased by a transit system receiving 
  3.19  financial assistance under section 174.24 or 473.384; or 
  3.20     (4) products used in a passenger snowmobile, as defined in 
  3.21  section 296.01, subdivision 27a, for off-highway business use as 
  3.22  part of the operations of a resort as provided under section 
  3.23  296.18, subdivision 1, clause (2); or 
  3.24     (5) products used to operate a well drilling machine 
  3.25  registered under chapter 103I for off-highway business use as 
  3.26  provided under section 296.18, subdivision 1, clause (4). 
  3.27     Sec. 3.  [EFFECTIVE DATE.] 
  3.28     Sections 1 and 2 are effective the day following final 
  3.29  enactment and apply to gasoline and special fuel purchased 
  3.30  before, on, or after the effective date of this act, provided 
  3.31  that claims for refund must be made within the time period 
  3.32  provided in Minnesota Statutes, section 296.18, subdivision 1.