SF 1413

as introduced - 93rd Legislature (2023 - 2024) Posted on 06/13/2023 10:55am

A bill for an act
relating to taxation; sales and use; providing a temporary exemption for certain
natural gas fees.

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

Section 1. new text begin SALES AND USE TAX EXEMPTION; CERTAIN NATURAL GAS FEES.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption. new text end

new text begin Notwithstanding Minnesota Statutes, section 297A.67,
subdivision 15, clause (2), fees related to natural gas sold for residential use to customers
who were metered and billed as residential users and who used natural gas for their primary
source of residential heat are exempt for purposes of the billing periods May to October,
provided that:
new text end

new text begin (1) the fee for the natural gas is subject to a cost recovery plan for the price increase in
natural gas during the period February 13, 2021, to February 17, 2021, identified in docket
G-999/CI-21-135 before the Minnesota Public Utilities Commission; and
new text end

new text begin (2) the fee is separately stated and labeled as a fee pursuant to a cost recovery plan under
clause (1).
new text end

new text begin Subd. 2. new text end

new text begin Application; refund. new text end

new text begin (a) By October 1, 2023, each utility must apply to the
commissioner of revenue for a refund of sales taxes collected and remitted pursuant to
Minnesota Statutes, section 297A.77, on fees for sales and purchases of natural gas subject
to a cost recovery plan under subdivision 1, clause (1), that were added to residential
customers' bills for the period beginning September 1, 2021, and ending June 30, 2023.
new text end

new text begin (b) The provisions of Minnesota Statutes, section 289A.50, subdivision 2, except for
paragraph (c), apply to refunds issued under this subdivision. For purposes of this subdivision,
"utility" means a utility subject to the cost recovery plan under subdivision 1, clause (1).
Within 90 days after the date the commissioner issues the refund under Minnesota Statutes,
section 289A.50, subdivision 2, paragraph (a), to the utility, the utility must provide a plan
to the Minnesota Public Utilities Commission for crediting taxes exempt under subdivision
1 to residential customers.
new text end

new text begin (c) The plan must be approved by the Minnesota Public Utilities Commission. Any
amount not refunded or credited to a residential customer by a utility within 60 days of
approval of the plan must be returned to the commissioner by the utility.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for fees applied to sales
and purchases of natural gas that are billed from September 1, 2021, to December 31, 2026.
new text end