SF 1913

as introduced - 87th Legislature (2011 - 2012) Posted on 02/24/2012 09:45am

A bill for an act
relating to taxation; modifying provisions relating to air flight property tax
levies, aircraft fuel taxes, and aircraft registration taxes and filing fees;
amending Minnesota Statutes 2010, sections 270.075, by adding a subdivision;
296A.09, subdivision 2; 296A.17, subdivision 3; 297A.94; 360.511, by adding
a subdivision; 360.531, subdivisions 1, 2, by adding a subdivision; 360.532;
360.57.

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

Section 1.

Minnesota Statutes 2010, section 270.075, is amended by adding a
subdivision to read:

new text begin Subd. 1a. new text end

new text begin Limitation. new text end

new text begin Notwithstanding subdivision 1, the amount of revenues
generated under subdivision 1 may not exceed $8,000,000 in either fiscal year 2013
or 2014. Taxes and penalties paid or anticipated to be paid in 2013 or 2014 that are
attributable to previous years may not be included in computing estimated total fund
revenues from other sources under subdivision 1, and may not be considered as part or
all of the $8,000,000 limitation.
new text end

Sec. 2.

Minnesota Statutes 2010, section 296A.09, subdivision 2, is amended to read:

Subd. 2.

Special fuel tax imposed.

There is imposed an excise tax of deleted text begin the same rate deleted text end new text begin
ten cents new text end per gallon deleted text begin as the aviation gasoline deleted 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stored, or withdrawn from storage in this state, for use as substitutes for aviation gasoline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. 3.

Minnesota Statutes 2010, section 296A.17, subdivision 3, is amended to read:

Subd. 3.

Refund on graduated basis.

new text begin (a) Except as otherwise provided in
paragraph (b), new text end any person who has directly or indirectly paid the excise tax on aviation
gasoline or special fuel for aircraft use provided for by this chapter deleted text begin , deleted text end shall, as to all deleted text begin such deleted text end
aviation gasoline and special fuel received, stored, or withdrawn from storage by the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 such tax has been so paid,
be entitled to the following graduated reductions in such tax for that calendar year, to be
obtained by means of the following refunds:

(1) on each gallon of such aviation gasoline or special fuel up to 50,000 gallons, all
but five cents per gallon;

(2) on each gallon of such aviation gasoline or special fuel above 50,000 gallons and
not more than 150,000 gallons, all but two cents per gallon;

(3) on each gallon of such aviation gasoline or special fuel above 150,000 gallons
and not more than 200,000 gallons, all but one cent per gallon;

(4) on each gallon of such aviation gasoline or special fuel above 200,000, all but
one-half cent per gallon.

new text begin (b) The refund in paragraph (a) does not apply to aviation gasoline or special fuels
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 for use in aircraft specified in section 360.55, subdivisions 1 and 2.
new text end

Sec. 4.

Minnesota Statutes 2010, section 297A.94, is amended to read:

297A.94 DEPOSIT OF REVENUES.

(a) Except as provided in this section, the commissioner shall deposit the revenues,
including interest and penalties, derived from the taxes imposed by this chapter in the state
treasury and credit them to the general fund.

(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic
account in the special revenue fund if:

(1) the taxes are derived from sales and use of property and services purchased for
the construction and operation of an agricultural resource project; and

(2) the purchase was made on or after the date on which a conditional commitment
was made for a loan guaranty for the project under section 41A.04, subdivision 3.

The commissioner of management and budget shall certify to the commissioner the date
on which the project received the conditional commitment. The amount deposited in
the loan guaranty account must be reduced by any refunds and by the costs incurred by
the Department of Revenue to administer and enforce the assessment and collection of
the taxes.

(c) The commissioner shall deposit the revenues, including interest and penalties,
derived from the taxes imposed on sales and purchases included in section 297A.61,
subdivision 3, paragraph (g), clauses (1) and (4), in the state treasury, and credit them
as follows:

(1) first to the general obligation special tax bond debt service account in each fiscal
year the amount required by section 16A.661, subdivision 3, paragraph (b); and

(2) after the requirements of clause (1) have been met, the balance to the general
fund.

(d) The commissioner shall deposit the revenues, including interest and penalties,
collected under section 297A.64, subdivision 5, in the state treasury and credit them to the
general fund. By July 15 of each year the commissioner shall transfer to the highway user
tax distribution fund an amount equal to the excess fees collected under section 297A.64,
subdivision 5, for the previous calendar year.

(e) For fiscal year 2001, 97 percent; for fiscal years 2002 and 2003, 87 percent; and
for fiscal year 2004 and thereafter, 72.43 percent of the revenues, including interest and
penalties, transmitted to the commissioner under section 297A.65, must be deposited by
the commissioner in the state treasury as follows:

(1) 50 percent of the receipts must be deposited in the heritage enhancement account
in the game and fish fund, and may be spent only on activities that improve, enhance, or
protect fish and wildlife resources, including conservation, restoration, and enhancement
of land, water, and other natural resources of the state;

(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and
may be spent only for state parks and trails;

(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and
may be spent only on metropolitan park and trail grants;

(4) three percent of the receipts must be deposited in the natural resources fund, and
may be spent only on local trail grants; and

(5) two percent of the receipts must be deposited in the natural resources fund,
and may be spent only for the Minnesota Zoological Garden, the Como Park Zoo and
Conservatory, and the Duluth Zoo.

(f) The revenue dedicated under paragraph (e) may not be used as a substitute
for traditional sources of funding for the purposes specified, but the dedicated revenue
shall supplement traditional sources of funding for those purposes. Land acquired with
money deposited in the game and fish fund under paragraph (e) must be open to public
hunting and fishing during the open season, except that in aquatic management areas or
on lands where angling easements have been acquired, fishing may be prohibited during
certain times of the year and hunting may be prohibited. At least 87 percent of the money
deposited in the game and fish fund for improvement, enhancement, or protection of fish
and wildlife resources under paragraph (e) must be allocated for field operations.

(g) The revenues deposited under paragraphs (a) to (f) do not include the revenues,
including interest and penalties, generated by the sales tax imposed under section
297A.62, subdivision 1a, which must be deposited as provided under the Minnesota
Constitution, article XI, section 15.

new text begin (h) The commissioner shall deposit the revenues specified in this paragraph,
including interest and penalties, collected from aircraft sales and aircraft parts sales in
the state treasury and credit them to the state airports fund, as defined in section 360.017.
The revenues to be deposited under this paragraph are $3,000,000 or an amount equaling
30 percent of the total revenue collected from aircraft sales and aircraft parts sales,
whichever is greater.
new text end

Sec. 5.

Minnesota Statutes 2010, section 360.511, is amended by adding a subdivision
to read:

new text begin Subd. 24a. new text end

new text begin Maximum takeoff weight. new text end

new text begin "Maximum takeoff weight" means the
maximum weight authorized for takeoff of a particular aircraft.
new text end

Sec. 6.

Minnesota Statutes 2010, section 360.531, subdivision 1, is amended to read:

Subdivision 1.

In lieu tax new text begin ; applicability new text end .

new text begin (a) new text end All aircraft using the air space
overlying the state of Minnesota or the airports thereof, except as set forth in section
360.55, shall be taxed in lieu of all other taxes thereon, on the basis deleted text begin and at the rate for the
period January 1, 1966, to June 30, 1967, and for each fiscal year as follows deleted text end new text begin of maximum
takeoff weight for registration periods beginning after June 30, 2012, except as otherwise
provided in this section new text end .

new text begin (b) Subdivisions 3, 4, and 6 do not apply to turbine-powered aircraft used for
commercial purposes and taxed pursuant to subdivision 2 after June 30, 2012.
new text end

new text begin (c) The fractional aircraft owner of an aircraft subject to the tax imposed under
this section by section 360.532 shall pay the fraction of the applicable amount under
subdivision 2 that equals the fractional ownership interest. From the amount, the fractional
aircraft owner may deduct the cost of registering the aircraft in another state that is
included in its fractional ownership interest. When submitting this tax, the fractional
aircraft must include evidence of registration in the other state and the cost of this
registration. For purposes of this paragraph, "fractional aircraft owner" means the owner
of an undivided interest in a specific serial-numbered aircraft.
new text end

Sec. 7.

Minnesota Statutes 2010, section 360.531, subdivision 2, is amended to read:

Subd. 2.

deleted text begin Rate deleted text end new text begin Amount new text end .

new text begin (a) new text end new text begin Except as otherwise provided in paragraph (b) and
subject to section 360.55, subdivision 8, new text end the tax deleted text begin shall be 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 for registration periods beginning after June 30,
2012, and in each subsequent fiscal year is: new text end

new text begin Maximum takeoff weight: new text end	new text begin Amount of tax: new text end
new text begin Over 40,001 pounds new text end	new text begin $25,000 new text end
new text begin 30,001 - 40,000 pounds new text end	new text begin $20,000 new text end
new text begin 20,001 - 30,000 pounds new text end	new text begin $15,000 new text end
new text begin 15,501 - 20,000 pounds new text end	new text begin $10,000 new text end
new text begin 12,501 - 15,000 pounds new text end	new text begin $5,000 new text end
new text begin 6,001 - 12,500 pounds new text end	new text begin $2,500 new text end
new text begin Under 6,001 pounds new text end	new text begin $1,000 new text end

new text begin For an aircraft for which aircraft registration tax was due and paid from July 1, 2011,
through June 30, 2012, the amount of the tax each year is the lesser of the amount paid
from July 1, 2011, through June 30, 2012, or the tax computed under this subdivision.
new text end

new text begin (b) For aircraft that consume aviation gasoline, the tax shall be 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 the aircraft
computed on its base price or $50, whichever is the higher.
new text end

Sec. 8.

Minnesota Statutes 2010, section 360.531, is amended by adding a subdivision
to read:

new text begin Subd. 8a. new text end

new text begin Turbine-powered aircraft. new text end

new text begin A resident of this state or an entity based
in this state who owns turbine-powered aircraft shall pay a filing fee of $25 to the
commissioner and file an affidavit with the commissioner that states:
new text end

new text begin (1) the name and address of the owner;
new text end

new text begin (2) the name and address of the person or entity from whom the aircraft was
purchased; and
new text end

new text begin (3) the aircraft's make, year, model number, federal aircraft registration number,
manufacturer's identification number, and maximum takeoff weight.
new text end

Sec. 9.

Minnesota Statutes 2010, section 360.532, is amended to read:

360.532 NONRESIDENT deleted text begin COMMERCIAL OPERATION deleted text end new text begin AIRCRAFT new text end
SUBJECT TO TAX.

Any aircraft of which a nonresident has the right to possession and which is used for
commercial operations in this state new text begin , or in which a resident of this state or an entity doing
business in this state has a fractional ownership interest, new text end shall be registered in this state
before said aircraft is used for such commercial operations, except that aircraft used for
charter which a nonresident has the right to possession need not be so registered if while in
the state the nonresident does not advertise, represent, or hold out as giving or offering to
provide such service with such aircraft. Aircraft registered under this section shall not be
entitled to a refund under 360.62 except if destroyed or for errors in computing the tax or
fees and for the error on the part of an owner who may have registered an aircraft that was
not before or at the time of such registration, or at any time thereafter during the current
past year, subject to such tax in this state, or the aircraft is sold to a nonresident who is not
engaged in a commercial operation in this state. new text begin For purposes of this section, "fractional
ownership interest" means an undivided interest in a specific serial-numbered aircraft.
new text end

Sec. 10.

Minnesota Statutes 2010, section 360.57, is amended to read:

360.57 FILING SWORN STATEMENT BY MANUFACTURER.

Every manufacturer of an aircraft sold or offered for sale within this state, either by
the manufacturer, distributor, dealer, or any other person, shall, on or before the first day in
August of each year, file in the office of the commissioner a sworn statement showing
the various models manufactured by the manufacturer and the deleted text begin retail list price deleted text end new text begin maximum
takeoff weight new text end of each model being manufactured August 1 of that year, and shall also
file with the commissioner, in such form as manufacturers usually use for advertising,
complete specifications of the construction of each model that has been manufactured by
the manufacturer. Upon each change in deleted text begin such price deleted text end new text begin the maximum takeoff weight new text end and upon
the manufacture of each new model thereafter such manufacturer shall in like manner file
a new statement setting forth deleted text begin such deleted text end new text begin the new text end change.

Sec. 11. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 10 are effective July 1, 2012.
new text end