SF 1976

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to transportation; exempting certain
unsubsidized providers of public transit service from
vehicle registration taxes, motor fuel taxes, and
corporate income tax; deleting restriction on use of
freeway and expressway shoulders by transit buses;
requiring Metropolitan Council to permit providers of
transit service to use its bus stops; amending
Minnesota Statutes 2004, sections 168.012, subdivision
1; 169.306; 290.01, subdivision 19d; 296A.07,
subdivision 4; 296A.08, subdivision 3; 473.411, by
adding a subdivision.

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

Section 1.

Minnesota Statutes 2004, section 168.012,
subdivision 1, is amended to read:

Subdivision 1.

Vehicles exempt from tax, fees, or plate
display.

(a) The following vehicles are exempt from the
provisions of this chapter requiring payment of tax and
registration fees, except as provided in subdivision 1c:

(1) vehicles owned and used solely in the transaction of
official business by the federal government, the state, or any
political subdivision;

(2) vehicles owned and used exclusively by educational
institutions and used solely in the transportation of pupils to
and from those institutions;

(3) vehicles used solely in driver education programs at
nonpublic high schools;

(4) vehicles owned by nonprofit charities and used
exclusively to transport disabled persons for educational
purposes;

(5) ambulances owned by ambulance services licensed under
section 144E.10, the general appearance of which is
unmistakable; deleted text begin and
deleted text end

(6) vehicles owned by a commercial driving school licensed
under section 171.34, or an employee of a commercial driving
school licensed under section 171.34, and the vehicle is used
exclusively for driver education and training new text begin ; and
new text end

new text begin (7) until July 1, 2025, vehicles owned by a motor carrier
of passengers registered under section 221.0252 and operated:
new text end

new text begin (i) primarily to provide regular route public transit, as
defined in section 174.22, subdivision 8;
new text end

new text begin (ii) in an urban area having a population of at least
50,000; and
new text end

new text begin (iii) without financial operating assistance from the state
or any political subdivision of the state new text end .

(b) Vehicles owned by the federal government, municipal
fire apparatuses including fire-suppression support vehicles,
police patrols, and ambulances, the general appearance of which
is unmistakable, are not required to register or display number
plates.

(c) Unmarked vehicles used in general police work, liquor
investigations, or arson investigations, and passenger
automobiles, pickup trucks, and buses owned or operated by the
Department of Corrections, must be registered and must display
appropriate license number plates, furnished by the registrar at
cost. Original and renewal applications for these license
plates authorized for use in general police work and for use by
the Department of Corrections must be accompanied by a
certification signed by the appropriate chief of police if
issued to a police vehicle, the appropriate sheriff if issued to
a sheriff's vehicle, the commissioner of corrections if issued
to a Department of Corrections vehicle, or the appropriate
officer in charge if issued to a vehicle of any other law
enforcement agency. The certification must be on a form
prescribed by the commissioner and state that the vehicle will
be used exclusively for a purpose authorized by this section.

(d) Unmarked vehicles used by the Departments of Revenue
and Labor and Industry, fraud unit, in conducting seizures or
criminal investigations must be registered and must display
passenger vehicle classification license number plates,
furnished at cost by the registrar. Original and renewal
applications for these passenger vehicle license plates must be
accompanied by a certification signed by the commissioner of
revenue or the commissioner of labor and industry. The
certification must be on a form prescribed by the commissioner
and state that the vehicles will be used exclusively for the
purposes authorized by this section.

(e) Unmarked vehicles used by the Division of Disease
Prevention and Control of the Department of Health must be
registered and must display passenger vehicle classification
license number plates. These plates must be furnished at cost
by the registrar. Original and renewal applications for these
passenger vehicle license plates must be accompanied by a
certification signed by the commissioner of health. The
certification must be on a form prescribed by the commissioner
and state that the vehicles will be used exclusively for the
official duties of the Division of Disease Prevention and
Control.

(f) Unmarked vehicles used by staff of the Gambling Control
Board in gambling investigations and reviews must be registered
and must display passenger vehicle classification license number
plates. These plates must be furnished at cost by the
registrar. Original and renewal applications for these
passenger vehicle license plates must be accompanied by a
certification signed by the board chair. The certification must
be on a form prescribed by the commissioner and state that the
vehicles will be used exclusively for the official duties of the
Gambling Control Board.

(g) All other motor vehicles must be registered and display
tax-exempt number plates, furnished by the registrar at cost,
except as provided in subdivision 1c. All vehicles required to
display tax-exempt number plates must have the name of the state
department or political subdivision, nonpublic high school
operating a driver education program, or licensed commercial
driving school, plainly displayed on both sides of the vehicle;
except that each state hospital and institution for the mentally
ill and mentally retarded may have one vehicle without the
required identification on the sides of the vehicle, and county
social service agencies may have vehicles used for child and
vulnerable adult protective services without the required
identification on the sides of the vehicle. This identification
must be in a color giving contrast with that of the part of the
vehicle on which it is placed and must endure throughout the
term of the registration. The identification must not be on a
removable plate or placard and must be kept clean and visible at
all times; except that a removable plate or placard may be
utilized on vehicles leased or loaned to a political subdivision
or to a nonpublic high school driver education program.

Sec. 2.

Minnesota Statutes 2004, section 169.306, is
amended to read:

169.306 USE OF new text begin FREEWAY new text end SHOULDERS BY BUSES.

If the commissioner of transportation permits the use by
transit buses of a shoulder of a freeway or expressway, as
defined in section 160.02, deleted text begin in the seven-county metropolitan
area, deleted text end the commissioner shall permit the use on that shoulder of
a bus with a seating capacity of 40 passengers or more operated
by a motor carrier of passengers, as defined in section 221.011,
subdivision 48, while operating in intrastate commerce.

Buses authorized to use the shoulder under this section may
be operated on the shoulder only when main line traffic speeds
are less than 35 miles per hour. Drivers of buses being
operated on the shoulder may not exceed the speed of main line
traffic by more than 15 miles per hour and may never exceed 35
miles per hour. Drivers of buses being operated on the shoulder
must yield to merging, entering, and exiting traffic and must
yield to other vehicles on the shoulder. Buses operated on the
shoulder must be registered with the Department of
Transportation.

Sec. 3.

Minnesota Statutes 2004, section 290.01,
subdivision 19d, is amended to read:

Subd. 19d.

Corporations; modifications decreasing federal
taxable income.

For corporations, there shall be subtracted
from federal taxable income after the increases provided in
subdivision 19c:

(1) the amount of foreign dividend gross-up added to gross
income for federal income tax purposes under section 78 of the
Internal Revenue Code;

(2) the amount of salary expense not allowed for federal
income tax purposes due to claiming the federal jobs credit
under section 51 of the Internal Revenue Code;

(3) any dividend (not including any distribution in
liquidation) paid within the taxable year by a national or state
bank to the United States, or to any instrumentality of the
United States exempt from federal income taxes, on the preferred
stock of the bank owned by the United States or the
instrumentality;

(4) amounts disallowed for intangible drilling costs due to
differences between this chapter and the Internal Revenue Code
in taxable years beginning before January 1, 1987, as follows:

(i) to the extent the disallowed costs are represented by
physical property, an amount equal to the allowance for
depreciation under Minnesota Statutes 1986, section 290.09,
subdivision 7, subject to the modifications contained in
subdivision 19e; and

(ii) to the extent the disallowed costs are not represented
by physical property, an amount equal to the allowance for cost
depletion under Minnesota Statutes 1986, section 290.09,
subdivision 8;

(5) the deduction for capital losses pursuant to sections
1211 and 1212 of the Internal Revenue Code, except that:

(i) for capital losses incurred in taxable years beginning
after December 31, 1986, capital loss carrybacks shall not be
allowed;

(ii) for capital losses incurred in taxable years beginning
after December 31, 1986, a capital loss carryover to each of the
15 taxable years succeeding the loss year shall be allowed;

(iii) for capital losses incurred in taxable years
beginning before January 1, 1987, a capital loss carryback to
each of the three taxable years preceding the loss year, subject
to the provisions of Minnesota Statutes 1986, section 290.16,
shall be allowed; and

(iv) for capital losses incurred in taxable years beginning
before January 1, 1987, a capital loss carryover to each of the
five taxable years succeeding the loss year to the extent such
loss was not used in a prior taxable year and subject to the
provisions of Minnesota Statutes 1986, section 290.16, shall be
allowed;

(6) an amount for interest and expenses relating to income
not taxable for federal income tax purposes, if (i) the income
is taxable under this chapter and (ii) the interest and expenses
were disallowed as deductions under the provisions of section
171(a)(2), 265 or 291 of the Internal Revenue Code in computing
federal taxable income;

(7) in the case of mines, oil and gas wells, other natural
deposits, and timber for which percentage depletion was
disallowed pursuant to subdivision 19c, clause (11), a
reasonable allowance for depletion based on actual cost. In the
case of leases the deduction must be apportioned between the
lessor and lessee in accordance with rules prescribed by the
commissioner. In the case of property held in trust, the
allowable deduction must be apportioned between the income
beneficiaries and the trustee in accordance with the pertinent
provisions of the trust, or if there is no provision in the
instrument, on the basis of the trust's income allocable to
each;

(8) for certified pollution control facilities placed in
service in a taxable year beginning before December 31, 1986,
and for which amortization deductions were elected under section
169 of the Internal Revenue Code of 1954, as amended through
December 31, 1985, an amount equal to the allowance for
depreciation under Minnesota Statutes 1986, section 290.09,
subdivision 7;

(9) amounts included in federal taxable income that are due
to refunds of income, excise, or franchise taxes based on net
income or related minimum taxes paid by the corporation to
Minnesota, another state, a political subdivision of another
state, the District of Columbia, or a foreign country or
possession of the United States to the extent that the taxes
were added to federal taxable income under section 290.01,
subdivision 19c, clause (1), in a prior taxable year;

(10) 80 percent of royalties, fees, or other like income
accrued or received from a foreign operating corporation or a
foreign corporation which is part of the same unitary business
as the receiving corporation;

(11) income or gains from the business of mining as defined
in section 290.05, subdivision 1, clause (a), that are not
subject to Minnesota franchise tax;

(12) the amount of handicap access expenditures in the
taxable year which are not allowed to be deducted or capitalized
under section 44(d)(7) of the Internal Revenue Code;

(13) the amount of qualified research expenses not allowed
for federal income tax purposes under section 280C(c) of the
Internal Revenue Code, but only to the extent that the amount
exceeds the amount of the credit allowed under section 290.068;

(14) the amount of salary expenses not allowed for federal
income tax purposes due to claiming the Indian employment credit
under section 45A(a) of the Internal Revenue Code;

(15) the amount of any refund of environmental taxes paid
under section 59A of the Internal Revenue Code;

(16) for taxable years beginning before January 1, 2008,
the amount of the federal small ethanol producer credit allowed
under section 40(a)(3) of the Internal Revenue Code which is
included in gross income under section 87 of the Internal
Revenue Code;

(17) for a corporation whose foreign sales corporation, as
defined in section 922 of the Internal Revenue Code, constituted
a foreign operating corporation during any taxable year ending
before January 1, 1995, and a return was filed by August 15,
1996, claiming the deduction under section 290.21, subdivision
4, for income received from the foreign operating corporation,
an amount equal to 1.23 multiplied by the amount of income
excluded under section 114 of the Internal Revenue Code,
provided the income is not income of a foreign operating
company;

(18) any decrease in subpart F income, as defined in
section 952(a) of the Internal Revenue Code, for the taxable
year when subpart F income is calculated without regard to the
provisions of section 614 of Public Law 107-147; deleted text begin and
deleted text end

(19) in each of the five tax years immediately following
the tax year in which an addition is required under subdivision
19c, clause (16), an amount equal to one-fifth of the delayed
depreciation. For purposes of this clause, "delayed
depreciation" means the amount of the addition made by the
taxpayer under subdivision 19c, clause (16). The resulting
delayed depreciation cannot be less than zero new text begin ; and
new text end

new text begin (20) for taxable years ending before January 1, 2026,
income earned by a registered motor carrier of passengers from
providing regular route public transit, as defined in section
174.22, subdivision 8, when provided:
new text end

new text begin (i) in an urban area having a population of at least
50,000;
new text end

new text begin (ii) without financial operating assistance from the state
or any political subdivision of the state; and
new text end

new text begin (iii) in vehicles exempt from taxation under section
168.012, subdivision 1, paragraph (a), clause (7) new text end .

Sec. 4.

Minnesota Statutes 2004, section 296A.07,
subdivision 4, is amended to read:

Subd. 4.

Exemptions.

The provisions of subdivision 1 do
not apply to gasoline purchased by:

(1) a transit system or transit provider receiving
financial assistance or reimbursement under section 174.24,
256B.0625, subdivision 17, or 473.384; deleted text begin or
deleted text end

(2) an ambulance service licensed under chapter 144E new text begin ; or
new text end

new text begin (3) until July 1, 2025, a registered motor carrier of
passengers for use exclusively in vehicles that:
new text end

new text begin (i) are exempt from taxation under section 168.012,
subdivision 1, paragraph (a), clause (7);
new text end

new text begin (ii) primarily provide regular route public transit, as
defined in section 174.22, subdivision 8;
new text end

new text begin (iii) are operated in any urban area of at least 50,000
population; and
new text end

new text begin (iv) are operated without financial operating assistance
from the state or any political subdivision of the state new text end .

Sec. 5.

Minnesota Statutes 2004, section 296A.08,
subdivision 3, is amended to read:

Subd. 3.

Exemptions.

The provisions of subdivisions 1
and 2 do not apply to special fuel or alternative fuels
purchased by:

(1) a transit system or transit provider receiving
financial assistance or reimbursement under section 174.24,
256B.0625, subdivision 17, or 473.384; deleted text begin or
deleted text end

(2) an ambulance service licensed under chapter 144E new text begin ; or
new text end

new text begin (3) until July 1, 2025, a registered motor carrier of
passengers for use exclusively in vehicles that:
new text end

new text begin (i) are exempt from taxation under section 168.012,
subdivision 1, paragraph (a), clause (7);
new text end

new text begin (ii) primarily provide regular route public transit, as
defined in section 174.22, subdivision 8;
new text end

new text begin (iii) are operated in any urban area of at least 50,000
population; and
new text end

new text begin (iv) are operated without financial operating assistance
from the state or any political subdivision of the state new text end .

Sec. 6.

Minnesota Statutes 2004, section 473.411, is
amended by adding a subdivision to read:

new text begin Subd. 6. new text end

new text begin Use of bus stops. new text end

new text begin The council shall take all
necessary steps to permit providers of regular route transit in
vehicles exempt from taxation under section 168.012, subdivision
1, paragraph (a), clause (7), to use bus stops and bus shelters
that the council uses in providing regular route transit
service, unless use by those vehicles unreasonably interferes
with the safety and reliability of the council's transit
operations.
new text end