1st Engrossment - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to taxation; recodifying the tax on petroleum 1.3 and special fuels; providing civil and criminal 1.4 penalties; appropriating money; proposing coding for 1.5 new law as Minnesota Statutes, chapter 296A; repealing 1.6 Minnesota Statutes 1996, sections 296.01; 296.02, 1.7 subdivisions 1, 1a, 1b, 1c, 2, 3, 4, 6, and 8; 1.8 296.025; 296.0261; 296.035; 296.04; 296.041; 296.06; 1.9 296.11; 296.115; 296.12; 296.141, subdivisions 1, 2, 1.10 3, 5, 6, and 7; 296.15; 296.151; 296.152; 296.16, 1.11 subdivisions 1a and 2; 296.165; 296.17, subdivisions 1.12 1, 3, 5, 6, 7, 8, 9, 10, 11, 14, 15, 16, 17, 19, 20, 1.13 21, and 22; 296.171, subdivisions 1, 2, 3, 5, 6, 7, 8, 1.14 9, and 10; 296.18, subdivisions 2, 3, 4, 5, 6, and 8; 1.15 296.19; 296.20; 296.21; 296.23; 296.25; 296.26; 1.16 296.27; and 296.421; Minnesota Statutes 1997 1.17 Supplement, sections 296.141, subdivision 4; 296.16, 1.18 subdivision 1; 296.17, subdivision 18; 296.171, 1.19 subdivision 4; and 296.18, subdivision 1. 1.20 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.21 Section 1. [296A.01] [DEFINITIONS.] 1.22 Subdivision 1. [TERMS.] Unless the language or context 1.23 clearly indicates that a different meaning is intended, the 1.24 terms used in this chapter and sections 239.75 to 239.80 have 1.25 the meanings given them in this section. The petroleum product 1.26 definitions and specifications are intended to match the 1.27 definitions and specifications in sections 41A.09 and 239.761. 1.28 Subd. 2. [AGRICULTURAL ALCOHOL GASOLINE.] "Agricultural 1.29 alcohol gasoline" means a gasoline-ethanol blend of up to ten 1.30 percent agriculturally derived fermentation ethanol derived from 1.31 agricultural products, such as potatoes, cereal, grains, cheese 1.32 whey, sugar beets, forest products, or other renewable 2.1 resources, that: 2.2 (1) meets the specifications in ASTM specification D 2.3 4806-95b; and 2.4 (2) is denatured as specified in Code of Federal 2.5 Regulations, title 27, parts 20 and 21. 2.6 Subd. 3. [AIRCRAFT.] "Aircraft" means any contrivance, now 2.7 or hereafter invented, used or designed for navigation of or 2.8 flight in the air. 2.9 Subd. 4. [ALTERNATIVE FUEL.] "Alternative fuel" means 2.10 natural gas; liquefied petroleum gas; hydrogen; coal-derived 2.11 liquefied fuels; electricity; methanol, denatured ethanol, and 2.12 other alcohols; mixtures containing 85 percent or more, or other 2.13 percentage as may be set by regulation by Secretary of the 2.14 United States Department of Energy, by volume of methanol, 2.15 denatured ethanol, and other alcohols with gasoline or other 2.16 fuels; fuels other than alcohol that are derived from biological 2.17 materials; and other fuels that the Secretary of the United 2.18 States Department of Energy determines by regulation to be an 2.19 alternative fuel within the meaning of section 301(2) of the 2.20 National Energy Policy Act of 1992 and intended for use in motor 2.21 vehicles. 2.22 Subd. 5. [ALTERNATIVE FUEL VEHICLE.] "Alternative fuel 2.23 vehicle" means a dedicated, flexible, or dual-fuel vehicle 2.24 operated primarily on alternative fuel. 2.25 Subd. 6. [ASTM.] "ASTM" means the American Society for 2.26 Testing and Materials, which is a private organization that 2.27 utilizes committees of industry representatives and regulators 2.28 to develop product quality standards and test methods to be used 2.29 by industries, regulatory agencies, and purchasing agents. 2.30 Subd. 7. [AVIATION GASOLINE.] "Aviation gasoline" means 2.31 any gasoline that is capable of use for the purpose of producing 2.32 or generating power for propelling internal combustion engine 2.33 aircraft, that meets the specifications in ASTM specification D 2.34 910-96, and that either: 2.35 (1) is invoiced and billed by a producer, manufacturer, 2.36 refiner, or blender to a distributor or dealer, by a distributor 3.1 to a dealer or consumer, or by a dealer to consumer, as 3.2 "aviation gasoline"; or 3.3 (2) whether or not invoiced and billed as provided in 3.4 clause (1), is received, sold, stored, or withdrawn from storage 3.5 by any person, to be used for the purpose of producing or 3.6 generating power for propelling internal combustion engine 3.7 aircraft. 3.8 Subd. 8. [AVIATION TURBINE FUEL AND JET FUEL.] "Aviation 3.9 turbine fuel" and "jet fuel" mean blends of hydrocarbons derived 3.10 from crude petroleum, natural gasoline, and synthetic 3.11 hydrocarbons, intended for use in aviation turbine engines, and 3.12 that meet the specifications in ASTM specification D 1655-96c. 3.13 Subd. 9. [BULK PURCHASER.] "Bulk purchaser" means any 3.14 person not principally engaged in buying and selling petroleum 3.15 products or combustible gases who receives special fuel for 3.16 storage and subsequent delivery into the supply tank of an 3.17 aircraft or a licensed motor vehicle operated by the person. 3.18 Subd. 10. [CASINGHEAD, ABSORPTION, CONDENSATION, DRIP, OR 3.19 NATURAL GASOLINE.] "Casinghead gasoline," "absorption gasoline," 3.20 "condensation gasoline," "drip gasoline," and "natural gasoline" 3.21 mean a low-octane, high-volatility, liquid hydrocarbon 3.22 by-product of crude oil extraction and pumping, coal 3.23 gasification, or shipping of natural gas through a pipeline. 3.24 Subd. 11. [COMMISSIONER.] "Commissioner" means the 3.25 commissioner of revenue. 3.26 Subd. 12. [COMPRESSED NATURAL GAS OR CNG.] "Compressed 3.27 natural gas" or "CNG" means natural gas, primarily methane, 3.28 condensed under high pressure and stored in specially designed 3.29 storage tanks at between 2,000 and 3,600 pounds per square 3.30 inch. For purposes of this chapter, the energy content of CNG 3.31 is considered to be 1,000 BTUs per cubic foot. 3.32 Subd. 13. [DEALER.] "Dealer" means any person, except a 3.33 distributor, engaged in the business of buying and selling 3.34 gasoline and other petroleum products in this state. 3.35 Subd. 14. [DIESEL FUEL OIL.] "Diesel fuel oil" means a 3.36 petroleum distillate or blend of petroleum distillate and 4.1 residual fuels, intended for use as a motor fuel in internal 4.2 combustion diesel engines, that meets the specifications in ASTM 4.3 specification D 975-96a. Diesel fuel includes number 1 and 4.4 number 2 fuel oils. K-1 kerosene is not diesel fuel unless it 4.5 is blended with diesel fuel for use in motor vehicles. 4.6 Subd. 15. [DISTRIBUTOR.] "Distributor" means any person 4.7 who (1) receives petroleum products in this state for storage 4.8 and subsequent distribution by tank car or tank truck or both, 4.9 (2) produces, manufactures, or refines petroleum products in 4.10 this state, or (3) imports petroleum products into this state 4.11 via boat, barge, or pipeline for storage and subsequent delivery 4.12 at or further transportation from boat, barge, or pipe line 4.13 terminals in this state. 4.14 Subd. 16. [DYED FUEL.] "Dyed fuel" means diesel fuel to 4.15 which indelible dye has been added, either before or upon 4.16 withdrawal at a terminal or refinery rack, and which may be sold 4.17 for exempt purposes. The dye may be either dye required to be 4.18 added per the EPA or dye that meets other specifications 4.19 required by the Internal Revenue Service or the commissioner. 4.20 Subd. 17. [EPA.] "EPA" means the United States 4.21 Environmental Protection Agency. 4.22 Subd. 18. [ETBE.] "ETBE" means ethyl tertiary butyl ether, 4.23 or the equivalent term tert-butyl ethyl ether. ETBE is a 4.24 hydrocarbon compound approved by the EPA for use as an oxygenate 4.25 in gasoline. ETBE is a liquid at normal atmospheric pressure 4.26 and temperature. The chemical composition of ETBE is C
2H 5OC(CH 3) 4.27 3. 4.28 Subd. 19. [E85.] "E85" means a petroleum product that is a 4.29 blend of agriculturally derived denatured ethanol and gasoline 4.30 that typically contains 85 percent ethanol by volume, but at a 4.31 minimum must contain 60 percent ethanol by volume. For the 4.32 purposes of this chapter, the energy content of E85 will be 4.33 considered to be 82,000 BTUs per gallon. E85 produced for use 4.34 as a motor fuel in alternative fuel vehicles as defined in 4.35 section 296A.01, subdivision 5, must comply with ASTM 4.36 specification D 5798-96. 5.1 Subd. 20. [ETHANOL, DENATURED.] "Ethanol, denatured" means 5.2 ethanol that is to be blended with gasoline, has been 5.3 agriculturally derived, and complies with ASTM specification D 5.4 4806-95b. This includes the requirement that ethanol may be 5.5 denatured only as specified in Code of Federal Regulations, 5.6 title 27, parts 20 and 21. 5.7 Subd. 21. [FOR USE IN MOTOR VEHICLES.] "For use in motor 5.8 vehicles" means for use in producing or generating power for 5.9 propelling motor vehicles on the public highways of this state 5.10 or in machinery operated on the public highways of this state 5.11 for the purpose of constructing, reconstructing, or maintaining 5.12 those public highways. For purposes of this subdivision, 5.13 "public highways" includes bridges. 5.14 Subd. 22. [GAS TURBINE FUEL OIL.] "Gas turbine fuel oil" 5.15 means fuel that contains mixtures of hydrocarbon oils free of 5.16 inorganic acid and excessive amounts of solid or fibrous foreign 5.17 matter, intended for use in nonaviation gas turbine engines, and 5.18 that meets the specifications in ASTM specification D 2880-96a. 5.19 Subd. 23. [GASOLINE.] (a) "Gasoline" means: 5.20 (1) all products commonly or commercially known or sold as 5.21 gasoline regardless of their classification or uses, except 5.22 casinghead gasoline, absorption gasoline, condensation gasoline, 5.23 drip gasoline, or natural gasoline that under the requirements 5.24 of section 239.761, subdivision 3, must not be blended with 5.25 gasoline that has been sold, transferred, or otherwise removed 5.26 from a refinery or terminal; and 5.27 (2) any liquid prepared, advertised, offered for sale or 5.28 sold for use as, or commonly and commercially used as, a fuel in 5.29 spark-ignition, internal combustion engines, and that when 5.30 tested by the weights and measures division meets the 5.31 specifications in ASTM specification D 4814-96. 5.32 (b) Gasoline that is not blended with ethanol must not be 5.33 contaminated with water or other impurities and must comply with 5.34 both ASTM specification D 4814-96 and the volatility 5.35 requirements in Code of Federal Regulations, title 40, part 80. 5.36 (c) After gasoline is sold, transferred, or otherwise 6.1 removed from a refinery or terminal, a person responsible for 6.2 the product: 6.3 (1) may blend the gasoline with agriculturally derived 6.4 ethanol, as provided in subdivision 24; 6.5 (2) must not blend the gasoline with any oxygenate other 6.6 than denatured, agriculturally derived ethanol; 6.7 (3) must not blend the gasoline with other petroleum 6.8 products that are not gasoline or denatured, agriculturally 6.9 derived ethanol; 6.10 (4) must not blend the gasoline with products commonly and 6.11 commercially known as casinghead gasoline, absorption gasoline, 6.12 condensation gasoline, drip gasoline, or natural gasoline; and 6.13 (5) may blend the gasoline with a detergent additive, an 6.14 antiknock additive, or an additive designed to replace 6.15 tetra-ethyl lead, that is registered by the EPA. 6.16 Subd. 24. [GASOLINE BLENDED WITH A NONETHANOL 6.17 OXYGENATE.] "Gasoline blended with a nonethanol oxygenate" means 6.18 gasoline blended with ETBE, MTBE, or other alcohol or ether, 6.19 except denatured ethanol, that is approved as an oxygenate by 6.20 the EPA, and that complies with ASTM specification D 4814-96. 6.21 Oxygenates, other than denatured ethanol, must not be blended 6.22 into gasoline after the gasoline has been sold, transferred, or 6.23 otherwise removed from a refinery or terminal. 6.24 Subd. 25. [GASOLINE BLENDED WITH ETHANOL.] "Gasoline 6.25 blended with ethanol" means gasoline blended with up to ten 6.26 percent, by volume, agriculturally derived, denatured ethanol. 6.27 The blend must comply with the volatility requirements in Code 6.28 of Federal Regulations, title 40, part 80. The blend must also 6.29 comply with ASTM specification D 4814-96, or the gasoline base 6.30 stock from which a gasoline-ethanol blend was produced must 6.31 comply with ASTM specification D 4814-96; and the 6.32 gasoline-ethanol blend must not be blended with casing head 6.33 gasoline, absorption gasoline, condensation gasoline, drip 6.34 gasoline, or natural gasoline after the gasoline-ethanol blend 6.35 has been sold, transferred, or otherwise removed from a refinery 6.36 or terminal. The blend need not comply with ASTM specification 7.1 D 4814-96 if it is subjected to a standard distillation test. 7.2 For a distillation test, a gasoline-ethanol blend is not 7.3 required to comply with the temperature specification at the 50 7.4 percent liquid recovery point, if the gasoline from which the 7.5 gasoline-ethanol blend was produced complies with all of the 7.6 distillation specifications. 7.7 Subd. 26. [HEATING FUEL OIL.] "Heating fuel oil" means a 7.8 petroleum distillate, blend of petroleum distillates and 7.9 residuals, or petroleum residual heating fuel that meets the 7.10 specifications in ASTM specification D 396-96. 7.11 Subd. 27. [HIGHWAY.] "Highway" means the entire width 7.12 between the boundary lines of every way publicly maintained when 7.13 part of the way is open for the public. 7.14 Subd. 28. [KEROSENE.] "Kerosene" means a refined petroleum 7.15 distillate consisting of a homogeneous mixture of hydrocarbons 7.16 essentially free of water, inorganic acidic and basic compounds, 7.17 and excessive amounts of particulate contaminants and that meets 7.18 the specifications in ASTM specification D 3699-96a. 7.19 Subd. 29. [LICENSED MOTOR VEHICLE.] "Licensed motor 7.20 vehicle" means (1) any vehicle subject to a motor vehicle 7.21 registration in which the power is produced with any fuel in an 7.22 internal combustion engine, and (2) any motor vehicle not 7.23 subject to a motor vehicle registration on which is mounted a 7.24 corn shelling, feed grinding, well drilling, or sawing machine. 7.25 Subd. 30. [LIQUEFIED NATURAL GAS OR LNG.] "Liquefied 7.26 natural gas" or "LNG" means natural gas, primarily methane, 7.27 which has been condensed through a cryogenic cooling process and 7.28 is stored in special pressurized and insulated storage tanks. 7.29 For purposes of this chapter, the energy content of LNG will be 7.30 considered to be 69,000 BTUs per gallon. 7.31 Subd. 31. [LIQUEFIED PETROLEUM GAS, LPG, OR 7.32 PROPANE.] "Liquefied petroleum gas," "LPG," or "propane" means a 7.33 product made of short hydrocarbon chains and containing 7.34 primarily propane and butane that is stored in specialized tanks 7.35 at moderate pressure. For purposes of this chapter, the energy 7.36 content of LPG or propane will be considered to be 86,000 BTUs 8.1 per gallon. 8.2 Subd. 32. [MARINE GASOLINE.] "Marine gasoline" means 8.3 gasoline used in producing and generating power for propelling 8.4 motorboats used on the waters of this state. 8.5 Subd. 33. [MOTOR FUEL.] "Motor fuel" means a liquid, 8.6 regardless of its composition or properties, used to propel a 8.7 motor vehicle. 8.8 Subd. 34. [MTBE.] "MTBE" means methyl tertiary butyl 8.9 ether, or the equivalent term tert-butyl methyl ether. MTBE is 8.10 a hydrocarbon compound approved by the United States 8.11 Environmental Protection Agency for use as an oxygenate in 8.12 gasoline. MTBE is a liquid at normal atmospheric pressure and 8.13 temperature. The chemical composition of MTBE is (CH 3) 3COCH 3. 8.14 Subd. 35. [M85.] "M85" means a petroleum product that is a 8.15 liquid fuel blend of methanol and gasoline that contains at 8.16 least 85 percent methanol by volume. For the purposes of this 8.17 chapter, the energy content of M85 will be considered to be 8.18 65,000 BTUs per gallon. M85 produced for use as a motor fuel in 8.19 alternative fuel vehicles, as defined in subdivision 5, must 8.20 comply with ASTM specification D 5797-96. 8.21 Subd. 36. [MOTOR VEHICLE GASOLINE EXCISE TAX.] "Motor 8.22 vehicle gasoline excise tax" means the tax imposed on gasoline 8.23 used in producing and generating power for propelling motor 8.24 vehicles used on the public highways of this state. 8.25 Subd. 37. [MOTOR VEHICLES USED ON PUBLIC HIGHWAYS OF THIS 8.26 STATE.] "Motor vehicles used on public highways of this state" 8.27 means every vehicle operated upon the highways of this state the 8.28 power for the operation of which is produced or generated in an 8.29 internal combustion engine, but does not include tractors used 8.30 solely for agricultural purposes. 8.31 Subd. 38. [MOTORBOAT.] "Motorboat" means any contrivance 8.32 used or designed for navigation on water other than a seaplane, 8.33 propelled in any respect by machinery, including detachable 8.34 motors. 8.35 Subd. 39. [PASSENGER SNOWMOBILE.] "Passenger snowmobile" 8.36 means a self-propelled vehicle designed for travel on snow or 9.1 ice, steered by skis or runners, with an enclosed passenger 9.2 section that provides seating for not less than four nor more 9.3 than 12 passengers. 9.4 Subd. 40. [PERSON.] "Person" means any individual, firm, 9.5 trust, estate, partnership, association, cooperative 9.6 association, joint stock company or corporation, public or 9.7 private, or any representative appointed by order of any court; 9.8 or an officer or employee of a corporation, or a member or 9.9 employee of a partnership, who as such officer, employee, or 9.10 member is under a duty to perform any act prescribed by this 9.11 chapter. 9.12 Subd. 41. [PETROLEUM DISTILLATE.] "Petroleum distillate" 9.13 means a hydrocarbon or group of hydrocarbon compounds that have 9.14 been extracted from petroleum crude oil by a distillation 9.15 process involving evaporation by heating, and subsequent 9.16 condensation by cooling. 9.17 Subd. 42. [PETROLEUM PRODUCTS.] "Petroleum products" means 9.18 all of the products defined in subdivisions 2, 7, 8, 10, 14, 16, 9.19 19, 20, 22 to 26, 28, 32, and 35. 9.20 Subd. 43. [PETROLEUM RESIDUAL.] "Petroleum residual" means 9.21 a heavy hydrocarbon or group of heavy hydrocarbon compounds that 9.22 do not evaporate during a distillation process. 9.23 Subd. 44. [RECEIVED.] (a) Except as otherwise provided in 9.24 this subdivision, petroleum products brought into this state 9.25 shall be deemed to be "received" in this state at the time and 9.26 place they are unloaded in this state. When so unloaded such 9.27 products shall be deemed to be received in this state by the 9.28 person who is the owner immediately after such unloading; 9.29 provided, however, that if such owner is not licensed as a 9.30 distributor in this state and if such products were shipped or 9.31 delivered into this state by a person who is licensed as a 9.32 distributor, then such products shall be deemed to be received 9.33 in this state by the licensed distributor by whom the same were 9.34 so shipped or delivered. 9.35 (b) Petroleum products produced, manufactured, or refined, 9.36 at a refinery in this state and stored there, or brought into 10.1 the state by boat or barge or like form of transportation and 10.2 delivered at a marine terminal in this state and stored there, 10.3 or brought into the state by pipeline and delivered at a 10.4 pipeline terminal in this state and stored there, shall not be 10.5 considered received until they are withdrawn from such refinery 10.6 or terminal for sale or use in this state or for delivery or 10.7 shipment to points within this state. 10.8 (c) When withdrawn such products shall be deemed received 10.9 by the person who was the owner immediately prior to withdrawal; 10.10 unless (1) such products are withdrawn for shipment or delivery 10.11 to another licensed distributor, in which case the licensed 10.12 distributor to whom such shipment or delivery is made shall be 10.13 deemed to have received such products in this state, or (2) such 10.14 products are withdrawn for shipment or delivery to a person not 10.15 licensed as a distributor, under one or more sale or exchange 10.16 agreements by or between persons one or more of whom is a 10.17 licensed distributor, in which case the last purchaser or 10.18 exchangee under such agreement or agreements, who is licensed as 10.19 a distributor, shall be deemed to have received such products in 10.20 this state. 10.21 (d) Petroleum products produced in this state in any manner 10.22 other than as covered in this subdivision shall be considered 10.23 received by the producer at the time and place produced. 10.24 Subd. 45. [REFINERY OR TERMINAL.] "Refinery" or "terminal" 10.25 means any petroleum refinery, pipeline terminal, river terminal, 10.26 storage facility, or other point of origin where petroleum 10.27 products are manufactured, or imported by rail, truck, barge, or 10.28 pipe; and held, stored, transferred, offered for distribution, 10.29 distributed, offered for sale, or sold. For the purpose of 10.30 restricting petroleum product blending, this definition includes 10.31 all refineries and terminals within and outside of Minnesota. 10.32 For the purpose of assessing fees, this definition does not 10.33 include a licensed distributor's bulk storage facility that is 10.34 used to store petroleum products for which the petroleum 10.35 inspection fee charged under chapter 239 is either not due or 10.36 has been paid. 11.1 Subd. 46. [SPECIAL FUEL.] "Special fuel" means: 11.2 (1) all combustible gases and liquid petroleum products or 11.3 substitutes including undyed diesel fuel, except gasoline, 11.4 gasoline blended with ethanol, and agricultural alcohol gasoline 11.5 which are delivered into the supply tank of a licensed motor 11.6 vehicle or into storage tanks maintained by an owner or operator 11.7 of a licensed motor vehicle as a source of supply for such 11.8 vehicle; 11.9 (2) all combustible gases and liquid petroleum products or 11.10 substitutes, except gasoline, gasoline blended with ethanol, and 11.11 agricultural alcohol gasoline, when delivered to a licensed 11.12 special fuel dealer or to the retail service station storage of 11.13 a distributor who has elected to pay the special fuel excise tax 11.14 as provided in this chapter; 11.15 (3) all combustible gases and liquid petroleum products or 11.16 substitutes, except gasoline, which are used as aviation fuel; 11.17 or 11.18 (4) dyed fuel that is being used illegally in a licensed 11.19 motor vehicle. 11.20 Subd. 47. [SPECIAL FUEL DEALER.] "Special fuel dealer" 11.21 means any person engaged in the business of selling and 11.22 delivering special fuel into the supply tank of an aircraft or a 11.23 licensed motor vehicle. 11.24 Subd. 48. [USE IN LICENSED MOTOR VEHICLES.] "Use in 11.25 licensed motor vehicles" means use in producing or generating 11.26 power for propelling licensed motor vehicles on the public 11.27 highways of this state. 11.28 Subd. 49. [WATERS OF THIS STATE.] "Waters of this state" 11.29 means any waters capable of substantial beneficial public use 11.30 and any waters to which the public has access, which are within 11.31 the territorial limits of this state including boundary waters. 11.32 Subd. 50. [WET ALCOHOL.] "Wet alcohol" means 11.33 agriculturally derived fermentation ethyl alcohol having a 11.34 purity of at least 50 percent but less than 99 percent. 11.35 Sec. 2. [296A.02] [ADMINISTRATION.] 11.36 Subdivision 1. [ENFORCEMENT RESPONSIBILITY.] The 12.1 commissioner of revenue shall enforce and administer the 12.2 provisions of this chapter with the assistance of the 12.3 commissioners of public safety, public service, and 12.4 transportation. 12.5 Subd. 2. [POWERS OF COMMISSIONER OF REVENUE.] The 12.6 commissioner, or duly authorized agents, may conduct 12.7 investigations, inquiries, and hearings under this chapter. In 12.8 connection with such investigations, inquiries, and hearings, 12.9 the commissioner and the duly authorized agents have all the 12.10 powers conferred upon the commissioner and the commissioner's 12.11 examiners by section 270.06, and the provisions of that section 12.12 apply to all such investigations, inquiries, and hearings. 12.13 Subd. 3. [RULES; ADMINISTRATION AND ENFORCEMENT.] The 12.14 commissioner may adopt rules relating to the administration and 12.15 enforcement of laws regulating the sale, distribution, and use 12.16 of petroleum products and special fuel. The rules shall be 12.17 reasonable and consistent with the law. 12.18 Subd. 4. [APPLICATION TO FOREIGN OR INTERSTATE 12.19 COMMERCE.] No provision of this chapter shall apply to, or be 12.20 construed to apply to, foreign or interstate commerce, except 12.21 insofar as the same may be permitted under the constitution and 12.22 the laws of the United States. 12.23 Sec. 3. [296A.03] [DISTRIBUTOR'S LICENSE.] 12.24 Subdivision 1. [GENERAL RULE.] No person shall produce, 12.25 manufacture, or refine petroleum products in this state, or 12.26 receive, distribute, sell, or use in this state petroleum 12.27 products which have not been received in this state by a 12.28 licensed distributor, or in any manner act as a distributor as 12.29 defined in section 296A.01 without having been licensed by the 12.30 commissioner as a distributor. 12.31 Subd. 2. [QUALIFICATIONS.] (a) A distributor's license 12.32 shall be issued to any responsible person who applies and 12.33 qualifies as a distributor. 12.34 (b) Upon application to the commissioner, the commissioner 12.35 must issue a distributor's license to any person who: 12.36 (1) receives petroleum products in this state for bulk 13.1 storage and subsequent distribution by tank truck; 13.2 (2) produces, manufactures, or refines petroleum products 13.3 in this state; 13.4 (3) holds an unrevoked license as a distributor as of July 13.5 1, 1994; 13.6 (4) imports petroleum products into this state via boat, 13.7 barge, or pipeline for storage and subsequent delivery at or 13.8 further transportation from boat, barge, or pipeline terminals 13.9 in this state; or 13.10 (5) holds a license and performs a function under the motor 13.11 fuel tax law of an adjoining state equivalent to that of a 13.12 distributor under this chapter, who desires to ship or deliver 13.13 petroleum products from that state to persons in this state not 13.14 licensed as distributors in this state and who agrees to assume 13.15 with respect to all petroleum products so shipped or delivered 13.16 the liabilities of a distributor receiving petroleum products in 13.17 this state provided, however, that any such license shall be 13.18 issued only for the purpose of permitting such person to receive 13.19 in this state the petroleum products so shipped or delivered. 13.20 Except as herein provided, all persons licensed as distributors 13.21 under this clause shall have the same rights and privileges and 13.22 be subject to the same duties, requirements, and penalties as 13.23 other licensed distributors. 13.24 Subd. 3. [LICENSE FEE.] An application for a distributor's 13.25 license must be accompanied by an initial fee of $25. Once 13.26 licensed, a distributor must remit a $25 fee annually to 13.27 maintain the license. 13.28 Subd. 4. [LICENSING PERIOD; EXPIRATION.] Each license 13.29 period shall be for one year ending each June 30. 13.30 Subd. 5. [FORM OF APPLICATION; BOND.] (a) A written 13.31 application shall be made in the form and manner prescribed by 13.32 the commissioner. 13.33 (b) The commissioner shall also require the applicant or 13.34 licensee to deposit with the state treasurer securities of the 13.35 United States government or the state of Minnesota or to execute 13.36 and file a bond, with a corporate surety approved by the 14.1 commissioner, to the state of Minnesota in an amount to be 14.2 determined by the commissioner and in a form to be fixed by the 14.3 commissioner and approved by the attorney general, and which 14.4 shall be conditioned for the payment when due of all excise 14.5 taxes, inspection fees, penalties, and accrued interest arising 14.6 in the ordinary course of business or by reason of any 14.7 delinquent money which may be due the state. The bond shall 14.8 cover all places of business within the state where petroleum 14.9 products are received by the licensee. The applicant or 14.10 licensee shall designate and maintain an agent in this state 14.11 upon whom service may be made for all purposes of this section. 14.12 (c) An initial applicant for a distributor's license shall 14.13 furnish a bond in a minimum sum of $3,000 for the first year. 14.14 (d) The commissioner, on reaching the opinion that the bond 14.15 given by a licensee is inadequate in amount to fully protect the 14.16 state, shall require an additional bond in such amount as the 14.17 commissioner deems sufficient. 14.18 (e) A licensee who desires to be exempt from depositing 14.19 securities or furnishing such bond shall furnish to the 14.20 commissioner an itemized financial statement showing the assets 14.21 and the liabilities of the applicant. If it appears to the 14.22 commissioner, from the financial statement or otherwise, that 14.23 the applicant is financially responsible, then the commissioner 14.24 may exempt the applicant from depositing such securities or 14.25 furnishing such bond until the commissioner otherwise orders. 14.26 (f) When the surety upon any bond issued under the 14.27 provisions of this chapter have fulfilled the conditions of such 14.28 bond and compensated the state for any loss occasioned by any 14.29 act or omission of any licensee under this chapter, such surety 14.30 shall be subrogated to all the rights of the state in connection 14.31 with the transaction where such loss occurred. 14.32 Subd. 6. [SURRENDER OF LICENSE.] When the licensee shall 14.33 voluntarily or involuntarily sell, dispose of, or discontinue 14.34 business during the term of a license, the licensee shall 14.35 immediately notify the commissioner in writing and shall within 14.36 ten days surrender the license at the commissioner's office in 15.1 St. Paul, Minnesota. 15.2 Sec. 4. [296A.04] [SPECIAL FUEL DEALER'S LICENSE.] 15.3 Subdivision 1. [REQUIREMENTS; APPLICATION AND FEE.] No 15.4 person, except a licensed distributor, shall engage in the 15.5 business of selling or delivering special fuel, upon which no 15.6 tax has been imposed, as a special fuel dealer without having 15.7 applied for and secured from the commissioner a special fuel 15.8 dealer's license. The application shall be made in a form and 15.9 manner prescribed by the commissioner and shall be accompanied 15.10 by the payment of a $25 license fee. A special fuel dealer's 15.11 license shall be issued to any responsible person qualifying as 15.12 a special fuel dealer who makes proper application. The license 15.13 shall be displayed in a conspicuous manner in the place of 15.14 business and shall expire annually on November 30. 15.15 Subd. 2. [BONDS.] The provisions of section 296A.03, 15.16 subdivision 5, paragraphs (b), (d), (e), and (f), relating to 15.17 bonds apply to special fuel dealers. 15.18 Subd. 3. [SALES TICKETS.] A sales ticket shall be issued 15.19 for each delivery of special fuel to a special fuel dealer or 15.20 bulk purchaser. A sales ticket shall also be issued for each 15.21 delivery into the supply tank of an aircraft or a licensed motor 15.22 vehicle, if so requested by the purchaser. The person who 15.23 delivers the special fuel shall issue the sales ticket and shall 15.24 show on the ticket the name and address of the purchaser, date 15.25 of sale, number of gallons, price per gallon, amount of tax, and 15.26 total amount of sale. 15.27 Subd. 4. [ACCUMULATING METERS.] Every special fuel dealer 15.28 shall make all withdrawals of special fuel, except liquefied 15.29 petroleum gas, through an accumulating meter in working order, 15.30 which shall be provided by such dealer. Whenever a licensed 15.31 special fuel dealer fails to comply with the provisions of this 15.32 subdivision or any rules of the commissioner pertinent thereto, 15.33 the license issued to such dealer under subdivision 1 may be 15.34 revoked by the commissioner. 15.35 Subd. 5. [SURRENDER OF LICENSE.] A special fuel dealer who 15.36 discontinues, sells, or disposes of the business in any manner, 16.1 at any time, shall surrender the special fuel dealer's license 16.2 at the commissioner's office in St. Paul, Minnesota. 16.3 Sec. 5. [296A.05] [BULK PURCHASER'S LICENSE.] 16.4 Subdivision 1. [REQUIREMENTS; APPLICATION AND FEE.] No 16.5 person shall receive special fuel, upon which no tax has been 16.6 imposed, as a bulk purchaser without having applied for and 16.7 secured from the commissioner a bulk purchaser's license. The 16.8 application shall be made in a form and manner prescribed by the 16.9 commissioner and shall be accompanied by the payment of a $25 16.10 license fee. A bulk purchaser's license shall be issued to any 16.11 responsible person qualifying as a bulk purchaser who makes 16.12 proper application. The license shall be displayed in a 16.13 conspicuous manner in the place of business and shall expire 16.14 annually on November 30. 16.15 Subd. 2. [BONDS.] The provisions of section 296A.03, 16.16 subdivision 5, paragraphs (b), (d), (e), and (f), relating to 16.17 bonds apply to bulk purchasers. 16.18 Subd. 3. [SURRENDER OF LICENSE.] A bulk purchaser who 16.19 discontinues, sells, or disposes of the business in any manner, 16.20 at any time, shall surrender the bulk purchaser's license at the 16.21 commissioner's office in St. Paul, Minnesota. 16.22 Sec. 6. [296A.06] [REVOCATION OF LICENSES, PERMITS, AND 16.23 CERTIFICATES.] 16.24 If any person fails to comply with this chapter or the 16.25 rules adopted under this chapter, without reasonable cause, the 16.26 commissioner may give the person 30 days' notice in writing, 16.27 specifying the violations, and stating that based upon such 16.28 violations the commissioner intends to revoke the person's 16.29 license, permit, or certificate. The notice shall also advise 16.30 the person of the person's right to contest the revocation under 16.31 this section and the general procedures for a contested case 16.32 hearing under chapter 14. The notice may be served personally 16.33 or by mail in the manner prescribed for service of an order of 16.34 assessment. A license, permit, or certificate is revoked when 16.35 the commissioner serves a notice of revocation upon the person 16.36 after 30 days have passed following the date of the notice of 17.1 intent to revoke without the person requesting a hearing. If a 17.2 hearing is timely requested and held, the license, permit, or 17.3 certificate is revoked after the commissioner serves an order of 17.4 revocation under section 14.62, subdivision 1. 17.5 Sec. 7. [296A.07] [GASOLINE TAX.] 17.6 Subdivision 1. [TAX IMPOSED.] There is imposed an excise 17.7 tax on gasoline, gasoline blended with ethanol, and agricultural 17.8 alcohol gasoline used in producing and generating power for 17.9 propelling motor vehicles used on the public highways of this 17.10 state. The tax is imposed on the first licensed distributor who 17.11 received the product in Minnesota. For purposes of this 17.12 section, gasoline is defined in section 296A.01, subdivisions 17.13 10, 18, 20, 23, 24, 25, 32, and 34. The tax is payable at the 17.14 time and in the form and manner prescribed by the commissioner. 17.15 The tax is payable at the rates specified in subdivision 3, 17.16 subject to the exceptions and reductions specified in section 17.17 296A.17. 17.18 Subd. 2. [TAX IMPOSED FOR MARINE USE.] Subject to the 17.19 provisions of section 296A.16, subdivision 2, there is imposed 17.20 an excise tax, at the same rate per gallon as the gasoline 17.21 excise tax, on all marine gasoline received, sold, stored, or 17.22 withdrawn from storage in this state. This tax is payable at 17.23 the times, in the manner, and by persons specified in this 17.24 chapter. 17.25 Subd. 3. [RATE OF TAX.] The gasoline excise tax is imposed 17.26 at the following rates: 17.27 (1) E85 is taxed at the rate of 14.2 cents per gallon; 17.28 (2) M85 is taxed at the rate of 11.4 cents per gallon; and 17.29 (3) all other gasoline is taxed at the rate of 20 cents per 17.30 gallon. 17.31 Subd. 4. [TRANSIT SYSTEMS EXEMPT.] The provisions of 17.32 subdivision 1 do not apply to gasoline purchased by a transit 17.33 system or transit provider receiving financial assistance or 17.34 reimbursement under section 174.24, 256B.0625, subdivision 17, 17.35 or 473.384. 17.36 Sec. 8. [296A.08] [SPECIAL FUEL TAX.] 18.1 Subdivision 1. [TAX IMPOSED.] There is imposed an excise 18.2 tax on all special fuel at the rates specified in subdivision 18.3 2. For purposes of this section, "owner or operator" means the 18.4 operation of licensed motor vehicles, whether loaded or empty, 18.5 whether for compensation or not for compensation, and whether 18.6 owned by or leased to the motor carrier who operates them or 18.7 causes them to operated. 18.8 (a) For undyed diesel fuel and undyed kerosene, the tax is 18.9 imposed on the first licensed distributor who received the 18.10 product in Minnesota. 18.11 (b) For dyed fuel being used illegally in a licensed motor 18.12 vehicle, the tax is imposed on the owner or operator of the 18.13 motor vehicle. 18.14 (c) For dyed fuel used in a motor vehicle but subject to a 18.15 federal exemption, although no federal tax may be imposed, the 18.16 owner or operator of the vehicle is liable for the state tax. 18.17 (d) For other fuels, including jet fuel, propane, and 18.18 compressed natural gas, the tax is imposed on the distributor, 18.19 special fuel dealer, or bulk purchaser. 18.20 (e) Any person delivering special fuel on which the excise 18.21 tax has not previously been paid, into the supply tank of an 18.22 aircraft or a licensed motor vehicle shall report such delivery 18.23 and shall pay, or collect and pay the excise tax on the special 18.24 fuel so delivered to the commissioner. 18.25 Subd. 2. [RATE OF TAX.] The special fuel excise tax is 18.26 imposed at the following rates: 18.27 (1) Liquefied petroleum gas or propane is taxed at the rate 18.28 of 15 cents per gallon. 18.29 (2) Liquefied natural gas is taxed at the rate of 12 cents 18.30 per gallon. 18.31 (3) Compressed natural gas is taxed at the rate of $1.739 18.32 per thousand cubic feet; or 20 cents per gasoline equivalent, as 18.33 defined by the National Conference on Weights and Measures, 18.34 which is 5.66 pounds of natural gas. 18.35 (4) All other special fuel is taxed at the same rate as the 18.36 gasoline excise tax as specified in section 296A.07, subdivision 19.1 2. The tax is payable in the form and manner prescribed by the 19.2 commissioner. 19.3 Subd. 3. [TRANSIT SYSTEMS EXEMPT.] The provisions of 19.4 subdivisions 1 and 2 do not apply to special fuel or alternative 19.5 fuels purchased by a transit system or transit provider 19.6 receiving financial assistance or reimbursement under section 19.7 174.24, 256B.0625, subdivision 17, or 473.384. 19.8 Subd. 4. [TAX IMPOSED ON USE.] If it is determined by the 19.9 commissioner from an examination of any records pertaining to 19.10 the operation of any licensed motor vehicle which uses special 19.11 fuel, that the special fuel tax on the special fuel used in this 19.12 state has not been paid to this state, or to any other state if 19.13 purchased in such other state, there is hereby imposed an excise 19.14 tax at the same rate per gallon as the gasoline tax, on all such 19.15 special fuel. All assessments of tax made under this 19.16 subdivision shall be paid by the user to the commissioner upon 19.17 demand. For purposes of this subdivision, "special fuel" means 19.18 any fuel other than gasoline used in a licensed motor vehicle in 19.19 this state. 19.20 Subd. 5. [INTENDED USE.] All special fuel except that used 19.21 for aviation fuel shall be deemed to be intended for use in a 19.22 licensed motor vehicle in this state at the time of sale or 19.23 delivery. 19.24 Subd. 6. [LIABILITY FOR FAILURE TO KEEP ADEQUATE RECORDS.] 19.25 If adequate records are not kept, or if the sales are not 19.26 adequately accounted for, then all sales of combustible gases 19.27 and liquid petroleum products, except gasoline, are deemed to be 19.28 sales of special fuel. In such cases, there is imposed an 19.29 excise tax of the same rate per gallon as the gasoline excise 19.30 tax on all such products, and the vendor is liable for the tax. 19.31 Sec. 9. [296A.09] [AVIATION TAX.] 19.32 Subdivision 1. [GASOLINE TAX IMPOSED.] Subject to any 19.33 refunds or credits there is imposed an excise tax, at the rate 19.34 of five cents per gallon on all aviation gasoline received, 19.35 sold, stored, or withdrawn from storage in this state. Aviation 19.36 gasoline is defined in section 296A.01, subdivision 7. 20.1 Subd. 2. [SPECIAL FUEL TAX IMPOSED.] There is imposed an 20.2 excise tax of the same rate per gallon as the aviation gasoline 20.3 on all jet fuel or special fuel received, sold, stored, or 20.4 withdrawn from storage in this state, for use as substitutes for 20.5 aviation gasoline and not otherwise taxed as gasoline. Jet fuel 20.6 is defined in section 296A.01, subdivision 8. 20.7 Subd. 3. [EXCEPTION TO TAX FOR AVIATION USE.] The 20.8 provisions of subdivisions 1 and 2 do not apply to aviation 20.9 gasoline or special fuel purchased and placed in the fuel tanks 20.10 of an aircraft outside the state, even though the gasoline may 20.11 be consumed within this state. 20.12 Subd. 4. [MANNER OF PAYMENT.] These taxes are payable in 20.13 the form and manner prescribed by the commissioner. 20.14 Subd. 5. [TAX NOT ON CONSUMPTION.] The taxes imposed by 20.15 subdivisions 1 and 2 are expressly declared not to be a tax upon 20.16 consumption of aviation gasoline or special fuel by an aircraft. 20.17 Sec. 10. [296A.10] [LIABILITY FOR UNPAID TAX.] 20.18 Subdivision 1. [UNREPORTED FUEL.] It is the duty of every 20.19 distributor, dealer, and person who sells or uses gasoline 20.20 manufactured, produced, received, or stored by the distributor, 20.21 dealer, or person, and of every person using gasoline in motor 20.22 vehicles or special fuel in licensed motor vehicles to know 20.23 whether the tax has been paid on the fuel. If the tax has not 20.24 been reported or if the tax has not been paid, it is that 20.25 person's duty to report to the commissioner the quantity of the 20.26 gasoline or special fuel sold or used and to pay the tax as 20.27 provided in this chapter. All provisions of this chapter 20.28 relating to the calculation, collections, and payment of the tax 20.29 shall be applicable to any such person, dealer, or distributor. 20.30 Subd. 2. [UNREPORTED AVIATION GASOLINE.] The provisions of 20.31 subdivision 1 do not apply to aviation gasoline. It is the duty 20.32 of every distributor, dealer, and person who receives, sells, 20.33 stores, or withdraws from storage in this state aviation 20.34 gasoline manufactured, produced, received, or stored by the 20.35 distributor, dealer, or person to know whether the tax has been 20.36 paid on the aviation gasoline. If the fuel has not been 21.1 reported, or if the tax has not been paid to the commissioner, 21.2 it is that person's duty to report to the commissioner the 21.3 quantity of such gasoline so received, sold, stored, or 21.4 withdrawn from storage. That person is also liable for the 21.5 payment of the tax. All provisions of this chapter relating to 21.6 the calculation, collections, and payment of the tax apply to 21.7 any such person, dealer, or distributor. 21.8 Sec. 11. [296A.11] [SELLER MAY COLLECT TAX.] 21.9 A person who directly or indirectly pays a gasoline or 21.10 special fuel tax as provided in this chapter and who does not in 21.11 fact use the gasoline or special fuel in motor vehicles in this 21.12 state or receive, store, or withdraw it from storage to be used 21.13 personally for the purpose of producing or generating power for 21.14 propelling aircraft, but sells or otherwise disposes of the 21.15 same, except as provided in section 296A.16, subdivision 3, is 21.16 hereby authorized to collect, from the person to whom the 21.17 gasoline or special fuel is so sold or disposed of, the tax so 21.18 paid, and is hereby required, upon request, to make, sign, and 21.19 deliver to such person an invoice of such sale or disposition. 21.20 The sums collected must be held as a special fund in trust for 21.21 the state of Minnesota. 21.22 Sec. 12. [296A.12] [GASOLINE AND SPECIAL FUEL TAX IN LIEU 21.23 OF OTHER TAXES.] 21.24 Gasoline and special fuel excise taxes shall be in lieu of 21.25 all other taxes imposed upon the business of selling or dealing 21.26 in gasoline or special fuel, whether imposed by the state or by 21.27 any of its political subdivisions, but are in addition to all ad 21.28 valorem taxes now imposed by law. Nothing in this chapter is 21.29 construed as prohibiting the governing body of any city of this 21.30 state from licensing and regulating such business where its 21.31 authority is conferred by state law or city charter. 21.32 Sec. 13. [296A.13] [PERSONAL LIABILITY FOR TAX.] 21.33 Liability for payment of taxes under this chapter includes 21.34 a responsible person or entity described in the personal 21.35 liability provisions of section 270.101. 21.36 Sec. 14. [296A.14] [TAX AS PERSONAL DEBT OF FIDUCIARY.] 22.1 The tax imposed by this chapter, and interest and 22.2 penalties, is a personal debt of the taxpayer from the time the 22.3 liability arises, regardless of when the time for discharging 22.4 the liability by payment occurs. The debt is, in the case of 22.5 any fiduciary, that of the individual in the individual's 22.6 official or fiduciary capacity only, unless the individual has 22.7 voluntarily distributed the assets held in that capacity without 22.8 reserving sufficient assets to pay the tax, interest, and 22.9 penalties, in which event the individual is personally liable 22.10 for the deficiency. 22.11 Sec. 15. [296A.15] [PAYMENT OF TAX.] 22.12 Subdivision 1. [MONTHLY GASOLINE REPORTS; SHRINKAGE 22.13 ALLOWANCE.] (a) Except as provided in paragraph (e), on or 22.14 before the 23rd day of each month, every person who is required 22.15 to pay a gasoline tax shall file with the commissioner a report, 22.16 in the form and manner prescribed by the commissioner, showing 22.17 the number of gallons of petroleum products received by the 22.18 reporter during the preceding calendar month, and other 22.19 information the commissioner may require. A written report is 22.20 deemed to have been filed as required in this subdivision if 22.21 postmarked on or before the 23rd day of the month in which the 22.22 tax is payable. 22.23 (b) The number of gallons of gasoline must be reported in 22.24 United States standard liquid gallons, 231 cubic inches, except 22.25 that the commissioner may upon written application and for cause 22.26 shown permit the distributor to report the number gallons of 22.27 gasoline as corrected to a temperature of 60-degrees 22.28 Fahrenheit. If the application is granted, all gasoline covered 22.29 in the application and allowed by the commissioner must continue 22.30 to be reported by the distributor on the adjusted basis for a 22.31 period of one from the date of the granting of the application. 22.32 The number of gallons of petroleum products other than gasoline 22.33 must be reported as originally invoiced. Each report must show 22.34 separately the number of gallons of aviation gasoline received 22.35 by the reporter during each calendar month. 22.36 (c) Each report must also include the amount of gasoline 23.1 tax on gasoline received by the reporter during the preceding 23.2 month. In computing the tax a deduction of three percent of the 23.3 quantity of gasoline received by a distributor shall be made for 23.4 evaporation and loss. At the time of reporting, the reporter 23.5 shall submit satisfactory evidence that one-third of the three 23.6 percent deduction has been credited or paid to dealers on 23.7 quantities sold to them. 23.8 (d) Each report shall contain a confession of judgment for 23.9 the amount of the tax shown due to the extent not timely paid. 23.10 (e) Under certain circumstances and with the approval of 23.11 the commissioner, taxpayers may be allowed to file reports 23.12 annually. 23.13 Subd. 2. [PETROLEUM TANK RELEASE CLEANUP FEE.] Persons 23.14 required to pay a petroleum tank release cleanup fee under 23.15 section 115C.08, subdivision 3, must file a report with the 23.16 commissioner of revenue. Each report must include the amount of 23.17 fees due on petroleum products. Reports must be filed in the 23.18 form and manner prescribed by the commissioner. A written 23.19 report is considered filed as required if postmarked on or 23.20 before the 23rd day of the month in which the fee is payable. 23.21 Subd. 3. [MONTHLY SPECIAL FUEL REPORTS; SHRINKAGE 23.22 ALLOWANCE.] On or before the 23rd day of each month, 23.23 distributors, special fuel dealers, and bulk purchasers shall 23.24 file a report in the form and manner prescribed by the 23.25 commissioner. Reports shall contain information as follows: 23.26 (a) Distributors of undyed diesel fuel and undyed kerosene 23.27 must file a monthly tax return with the department listing all 23.28 purchases or receipts of undyed diesel fuel and undyed 23.29 kerosene. Distributors may be allowed to take a credit or 23.30 credits under section 296A.16, subdivision 1. 23.31 (b) Distributors and dealers of special fuel other than 23.32 undyed diesel fuel or undyed kerosene shall report the total 23.33 number of gallons delivered to them during the preceding 23.34 calendar month and shall pay the special fuel excise tax due to 23.35 the commissioner. The invoice must show the true and correct 23.36 name and address of the purchaser, and the purchaser's 24.1 signature. The report shall contain other information as the 24.2 commissioner may require. 24.3 (c) Distributors and dealers of special fuel other than 24.4 undyed diesel fuel or undyed kerosene must pay the special fuel 24.5 excise tax on all special fuel delivered or sold into the supply 24.6 tank of an aircraft or licensed motor vehicle and shall file a 24.7 report with the commissioner. The report shall show the total 24.8 number of gallons delivered or sold into the supply tank of an 24.9 aircraft or licensed motor vehicle during the preceding calendar 24.10 month and the special fuel excise tax due shall be paid to the 24.11 commissioner. Any person delivering special fuel on which the 24.12 excise tax has not previously been paid into the supply tank of 24.13 an aircraft or a licensed motor vehicle shall report such 24.14 delivery and shall pay or collect and pay to the commissioner 24.15 the excise tax on the special fuel so delivered. 24.16 (d) Distributors and special fuel dealers may, subject to 24.17 the approval of the commissioner, elect to pay to the 24.18 commissioner the special fuel excise tax on all special fuel 24.19 delivered or sold into the supply tank of an aircraft or 24.20 licensed motor vehicle. Under this option, an invoice must be 24.21 issued at the time of each delivery showing the name and address 24.22 of the purchaser, date of sale, number of gallons, price per 24.23 gallon, and total amount of sale. A separate sales ticket book 24.24 shall be maintained for special fuel sales. The tax is also 24.25 imposed on all special fuel held in storage on the effective 24.26 date of this election. 24.27 (e) Bulk purchasers shall report and pay the special fuel 24.28 excise tax on all special fuel, including alternative fuels, 24.29 except undyed diesel fuel or undyed kerosene purchased by them 24.30 for storage during the preceding calendar month. In such cases 24.31 as the commissioner may permit, credit for the excise tax due or 24.32 previously paid on special fuel not used in aircraft or licensed 24.33 motor vehicles may be allowed in computing tax liability. The 24.34 report shall contain other information as the commissioner may 24.35 require. 24.36 (f) In computing the special fuel excise tax due, a 25.1 deduction of one percent of the quantity of special fuel on 25.2 which tax is due shall be made for evaporation and loss. 25.3 (g) Each report shall contain a confession of judgment for 25.4 the amount of the tax shown due to the extent not timely paid. 25.5 Subd. 4. [FAILURE TO USE OR SELL FOR INTENDED PURPOSE; 25.6 REPORTS REQUIRED.] (a) Any person who buys aviation gasoline or 25.7 special fuel for aircraft use and who has paid the excise taxes 25.8 due directly or indirectly through the amount of the tax being 25.9 included in the price, or otherwise, and uses said gasoline or 25.10 special fuel in motor vehicles or knowingly sells it to any 25.11 person for use in motor vehicles shall, on or before the 23rd 25.12 day of the month following that in which such gasoline or 25.13 special fuel was so used or sold, report the fact of the use or 25.14 sale to the commissioner in the form and manner prescribed by 25.15 the commissioner. 25.16 (b) Any person who buys gasoline other than aviation 25.17 gasoline and who has paid the motor vehicle gasoline excise tax 25.18 directly or indirectly through the amount of the tax being 25.19 included in the price of the gasoline, or otherwise, who 25.20 knowingly sells such gasoline to any person to be used for the 25.21 purpose of producing or generating power for propelling 25.22 aircraft, or who receives, stores, or withdraws from storage 25.23 gasoline to be used for that purpose, shall, on or before the 25.24 23rd day of the month following that in which such gasoline was 25.25 so sold, stored, or withdrawn from storage, report the fact of 25.26 the sale, storage, or withdrawal from storage to the 25.27 commissioner in the form and manner prescribed by the 25.28 commissioner. 25.29 Subd. 5. [ON FARM BULK STORAGE OF GASOLINE OR SPECIAL 25.30 FUEL; ETHANOL FOR PERSONAL USE.] Notwithstanding the provisions 25.31 of this chapter, a farmer who uses gasoline or any special fuel 25.32 on which a tax has not been paid shall report and pay the tax on 25.33 all gasoline or special fuel delivered into the supply tank of a 25.34 licensed motor vehicle during the preceding calendar year. The 25.35 tax must be reported and paid in the form and manner prescribed 25.36 by the commissioner together with any refund claim filed by the 26.1 taxpayer under section 296A.16. If no refund claim is filed, 26.2 the tax must be reported and paid annually by March 15 or more 26.3 frequently, as the commissioner may prescribe. Any producer 26.4 qualifying under this subdivision is exempt from the licensing 26.5 requirements in section 296A.03, subdivision 1. 26.6 Subd. 6. [INSPECTION FEES.] Persons required to pay an 26.7 inspection fee under section 239.101 must file a report with the 26.8 commissioner of revenue. Each report must include the amount of 26.9 inspection fees due on petroleum products. Reports must be 26.10 filed in the form and manner prescribed by the commissioner. A 26.11 written report is considered filed as required if postmarked on 26.12 or before the 23rd day of the month in which the fee is payable. 26.13 Subd. 7. [ELECTRONIC FUNDS TRANSFER REQUIRED.] All 26.14 remittances must be made by means of electronic funds transfer 26.15 as defined in section 336.4A-104, paragraph (a). The funds 26.16 transfer payment date, as defined in section 336.4A-401, must be 26.17 on or before the date the remittance is due. If the date the 26.18 remittance is due is not a funds transfer business day, as 26.19 defined in section 336.4A-105, paragraph (a), clause (4), the 26.20 payment date must be on or before the funds transfer business 26.21 day next following the date the remittance is due. 26.22 Subd. 8. [ELECTRONICALLY FILED RETURNS OR REPORTS; 26.23 SIGNATURES.] The commissioner may require that returns or 26.24 reports be filed electronically. For purposes of this chapter, 26.25 the name of the taxpayer, the name of the taxpayer's authorized 26.26 agent, or the taxpayer's identification number constitutes a 26.27 signature when transmitted as part of the information on returns 26.28 or reports filed by electronic means by the taxpayer or at the 26.29 taxpayer's direction. "Electronic means" includes, but is not 26.30 limited to, the use of a touch-tone telephone to transmit return 26.31 or report information in a manner prescribed by the commissioner. 26.32 Sec. 16. [296A.16] [REFUNDS OR CREDITS.] 26.33 Subdivision 1. [CREDIT OR REFUND OF GASOLINE OR SPECIAL 26.34 FUEL TAX PAID.] The commissioner shall allow the distributor 26.35 credit or refund of the tax paid on gasoline and special fuel: 26.36 (1) exported or sold for export from the state, other than 27.1 in the supply tank of a motor vehicle or of an aircraft; 27.2 (2) sold to the United States government to be used 27.3 exclusively in performing its governmental functions and 27.4 activities or to any "cost plus a fixed fee" contractor employed 27.5 by the United States government on any national defense project; 27.6 (3) if the fuel is placed in a tank used exclusively for 27.7 residential heating; 27.8 (4) destroyed by accident while in the possession of the 27.9 distributor; 27.10 (5) in error; 27.11 (6) in the case of gasoline only, sold for storage in an 27.12 on-farm bulk storage tank, if the tax was not collected on the 27.13 sale; and 27.14 (7) in such other cases as the commissioner may permit, 27.15 consistent with the provisions of this chapter and other laws 27.16 relating to the gasoline and special fuel excise taxes. 27.17 Subd. 2. [FUEL USED IN OTHER VEHICLES; REFUND.] Any person 27.18 who shall buy and use gasoline for a qualifying purpose other 27.19 than use in motor vehicles, snowmobiles except as provided in 27.20 clause (2), or motorboats, or special fuel for a qualifying 27.21 purpose other than use in licensed motor vehicles, and who shall 27.22 have paid the tax directly or indirectly through the amount of 27.23 the tax being included in the price of the gasoline or special 27.24 fuel, or otherwise, shall be reimbursed and repaid the amount of 27.25 the tax paid upon filing with the commissioner a claim in the 27.26 form and manner prescribed by the commissioner, and containing 27.27 the information the commissioner shall require. By signing any 27.28 such claim which is false or fraudulent, the applicant shall be 27.29 subject to the penalties provided in this chapter for knowingly 27.30 making a false claim. The claim shall set forth the total 27.31 amount of the gasoline so purchased and used by the applicant 27.32 other than in motor vehicles, or special fuel purchased and used 27.33 by the applicant other than in licensed motor vehicles, and 27.34 shall state when and for what purpose it was used. When a claim 27.35 contains an error in computation or preparation, the 27.36 commissioner is authorized to adjust the claim in accordance 28.1 with the evidence shown on the claim or other information 28.2 available to the commissioner. The commissioner, on being 28.3 satisfied that the claimant is entitled to the payments, shall 28.4 approve the claim and transmit it to the commissioner of 28.5 finance. The words "gasoline" or "special fuel" as used in this 28.6 subdivision do not include aviation gasoline or special fuel for 28.7 aircraft. Gasoline or special fuel bought and used for a 28.8 "qualifying purpose" means: 28.9 (1) Gasoline or special fuel used in carrying on a trade or 28.10 business, used on a farm situated in Minnesota, and used for a 28.11 farming purpose. "Farm" and "farming purpose" have the meanings 28.12 given them in section 6420(c)(2), (3), and (4) of the Internal 28.13 Revenue Code of 1986, as amended through December 31, 1997. 28.14 (2) Gasoline or special fuel used for off-highway business 28.15 use. "Off-highway business use" means any use off the public 28.16 highway by a person in that person's trade, business, or 28.17 activity for the production of income. Off-highway business use 28.18 includes 28.19 (i) use of a passenger snowmobile off the public highways 28.20 as part of the operations of a resort as defined in section 28.21 157.15, subdivision 11; and 28.22 (ii) use of gasoline or special fuel to operate a power 28.23 takeoff unit on a vehicle, but not including fuel consumed 28.24 during idling time. 28.25 Off-highway business use does not include use as a fuel in a 28.26 motor vehicle which, at the time of use, is registered or is 28.27 required to be registered for highway use under the laws of any 28.28 state or foreign country. 28.29 (3) Gasoline or special fuel placed in the fuel tanks of 28.30 new motor vehicles, manufactured in Minnesota, and shipped by 28.31 interstate carrier to destinations in other states or foreign 28.32 countries. 28.33 By July 1, 1998, the commissioner shall adopt rules that 28.34 determine the rates and percentages necessary to develop 28.35 formulas for calculating the refund under clause (2), item (ii). 28.36 Subd. 3. [DESTRUCTION BY ACCIDENT; REFUND TO DEALER.] 29.1 Notwithstanding the provisions of subdivision 1, the 29.2 commissioner shall allow a dealer a refund of: 29.3 (1) the tax paid by the distributor on gasoline, undyed 29.4 diesel fuel, or undyed kerosene destroyed by accident while in 29.5 the possession of the dealer; or 29.6 (2) the tax paid by a distributor or special fuels dealer 29.7 on other special fuels destroyed by accident while in the 29.8 possession of the dealer. 29.9 Subd. 4. [REFRIGERATOR UNITS; REFUNDS.] Notwithstanding 29.10 the provisions of subdivision 1, the commissioner shall allow a 29.11 special fuel dealer a refund of the tax paid on fuel sold 29.12 directly into a supply tank of a refrigeration unit with a 29.13 separate engine and used exclusively by that refrigeration unit. 29.14 A claim for refund may be filed as provided in this section. 29.15 Subd. 5. [QUALIFYING SERVICE STATIONS CREDIT.] 29.16 Notwithstanding any other provision of law to the contrary, the 29.17 tax imposed on gasoline, undyed diesel fuel, or undyed kerosene 29.18 delivered to a qualified service station may not exceed, or must 29.19 be reduced to, a rate not more than three cents per gallon above 29.20 the state tax rate imposed on such products sold by a service 29.21 station in a contiguous state located within the distance 29.22 indicated in this subdivision. A distributor shall be allowed a 29.23 credit or refund for the amount of reduction computed in 29.24 accordance with this subdivision. For purposes of this 29.25 subdivision, a "qualifying service station" means a service 29.26 station located within 7.5 miles, measured by the shortest route 29.27 by public road, from a service station selling like product in 29.28 the contiguous state. 29.29 Subd. 6. [SALES TO GOVERNMENTS AND SCHOOLS; CREDIT.] Until 29.30 October 1, 1999, a distributor shall be allowed a credit on each 29.31 gallon of fuel grade alcohol blended with gasoline to produce 29.32 agricultural alcohol gasoline which is sold to the state, local 29.33 units of government, or for use in the transportation of pupils 29.34 to and from school-related events in vehicles owned by or under 29.35 contract to a school district. The amount of the credit for 29.36 every gallon is: 30.1 (1) until October 1, 1997, 60 cents; 30.2 (2) until October 1, 1998, 40 cents; and 30.3 (3) until October 1, 1999, 20 cents. 30.4 Subd. 7. [CIVIL PENALTY FOR FILING FALSE CLAIM.] A person 30.5 who violates section 296A.23, subdivision 1, shall forfeit the 30.6 full amount of the claim. In addition, a person who is 30.7 convicted under section 296A.23 for filing a false statement or 30.8 claim shall, in addition to any criminal penalties imposed, be 30.9 prohibited from filing with the commissioner any claim for 30.10 refund upon gasoline purchased within six months after such 30.11 conviction. 30.12 Subd. 8. [APPROPRIATION.] There is appropriated to the 30.13 persons entitled to refund or credit under this section, from 30.14 the fund or account in the state treasury to which the money was 30.15 credited, an amount sufficient to make the credit or refund. 30.16 Sec. 17. [296A.17] [AVIATION REFUNDS.] 30.17 Subdivision 1. [AVIATION REFUND REQUIREMENTS.] Any person 30.18 claiming to be entitled to any refund or credit provided for in 30.19 subdivision 3 shall receive the refund or credit upon filing 30.20 with the commissioner a claim in such form and manner prescribed 30.21 by the commissioner. The claim shall set forth, among other 30.22 things, the total number of gallons of aviation gasoline or 30.23 special fuel for aircraft use upon which the claimant has 30.24 directly or indirectly paid the excise tax provided for in this 30.25 chapter, during the calendar year, which has been received, 30.26 stored, or withdrawn from storage by the claimant in this state 30.27 and not sold or otherwise disposed of to others. All claims for 30.28 refunds under this subdivision shall be made on or before April 30.29 30 following the end of the calendar year for which the refund 30.30 is claimed. 30.31 Subd. 2. [CLAIMS FOR REFUND; AVIATION TAX.] (a) Any person 30.32 who buys aviation gasoline or special fuel for aircraft use and 30.33 who has paid the excise taxes directly or indirectly through the 30.34 amount of the tax being included in the price, or otherwise, who 30.35 does not use it in motor vehicles or receive, sell, store, or 30.36 withdraw it from storage for the purpose of producing or 31.1 generating power for propelling aircraft, shall be reimbursed 31.2 and repaid the amount of the tax paid upon filing with the 31.3 commissioner a claim in the form and manner prescribed by the 31.4 commissioner. The claim shall state the total amount of the 31.5 aviation gasoline or special fuel for aircraft use purchased and 31.6 used by the applicant, and shall state when and for what purpose 31.7 it was used. On being satisfied that the claimant is entitled 31.8 to payment, the commissioner shall approve the claim and 31.9 transmit it to the commissioner of finance. The postmark on the 31.10 envelope in which a written claim is mailed determines the date 31.11 of filing. 31.12 (b) If a claim contains an error in preparation in 31.13 computation or preparation, the commissioner is authorized to 31.14 adjust the claim in accordance with the evidence shown on the 31.15 claim or other information available to the commissioner. 31.16 (c) An applicant who files a claim that is false or 31.17 fraudulent, is subject to the penalties provided in section 31.18 296A.23 for knowingly and willfully making a false claim. 31.19 Subd. 3. [REFUNDS ON GRADUATED BASIS.] Any person who has 31.20 directly or indirectly paid the excise tax on aviation gasoline 31.21 or special fuel for aircraft use provided for by this chapter, 31.22 shall, as to all such aviation gasoline and special fuel 31.23 received, stored, or withdrawn from storage by the person in 31.24 this state in any calendar year and not sold or otherwise 31.25 disposed of to others, or intended for sale or other disposition 31.26 to others, on which such tax has been so paid, be entitled to 31.27 the following graduated reductions in such tax for that calendar 31.28 year, to be obtained by means of the following refunds: 31.29 (1) on each gallon of such aviation gasoline or special 31.30 fuel up to 50,000 gallons, all but five cents per gallon; 31.31 (2) on each gallon of such aviation gasoline or special 31.32 fuel above 50,000 gallons and not more than 150,000 gallons, all 31.33 but two cents per gallon; 31.34 (3) on each gallon of such aviation gasoline or special 31.35 fuel above 150,000 gallons and not more than 200,000 gallons, 31.36 all but one cent per gallon; 32.1 (4) on each gallon of such aviation gasoline or special 32.2 fuel above 200,000, all but one-half cent per gallon. 32.3 Subd. 4. [AVIATION GASOLINE TAX REFUND CLAIM; CIVIL 32.4 PENALTY.] If any distributor or other person, with intent to 32.5 unlawfully secure any refund provided for in subdivision 3, 32.6 shall knowingly file a false or fraudulent claim, there is 32.7 imposed upon the person a penalty in an amount equal to 50 32.8 percent of the amount of the refund unlawfully secured, in 32.9 addition to that amount. The penalty imposed by this 32.10 subdivision shall be collected as part of the tax. 32.11 Subd. 5. [APPROPRIATION.] There is appropriated to the 32.12 persons entitled to refund under this section, from the fund or 32.13 account in the state treasury to which the money was credited, 32.14 an amount sufficient to make the credit or refund. All money in 32.15 excess of the amount the commissioner certifies is reasonably 32.16 required for the refunds must be transferred by the commissioner 32.17 of finance to the state airports fund. 32.18 Sec. 18. [296A.18] [APPORTIONMENT OF TAX; DEPOSIT OF 32.19 PROCEEDS.] 32.20 Subdivision 1. [INTENT; GASOLINE USE.] All gasoline 32.21 received in this state and all gasoline produced in or brought 32.22 into this state except aviation gasoline and marine gasoline 32.23 shall be determined to be intended for use in motor vehicles in 32.24 this state. 32.25 Subd. 2. [MOTORBOATS.] Approximately 1-1/2 percent of all 32.26 gasoline received in this state and 1-1/2 percent of all 32.27 gasoline produced or brought into this state, except gasoline 32.28 used for aviation purposes, is being used as fuel for the 32.29 operation of motorboats on the waters of this state and of the 32.30 total revenue derived from the imposition of the gasoline fuel 32.31 tax for uses other than for aviation purposes, 1-1/2 percent of 32.32 such revenues is the amount of tax on fuel used in motorboats 32.33 operated on the waters of this state. The amount of unrefunded 32.34 tax paid on gasoline used for motor boat purposes as computed in 32.35 this chapter shall be paid into the state treasury and credited 32.36 to a water recreation account in the special revenue fund for 33.1 acquisition, development, maintenance, and rehabilitation of 33.2 sites for public access and boating facilities on public waters; 33.3 lake and river improvement; state park development; and boat and 33.4 water safety. 33.5 Subd. 3. [SNOWMOBILES.] Approximately one percent in 33.6 fiscal years 1998 and 1999, and three-fourths of one percent 33.7 thereafter, of all gasoline received in and produced or brought 33.8 into this state, except gasoline used for aviation purposes, is 33.9 being used as fuel for the operation of snowmobiles in this 33.10 state, and of the total revenue derived from the imposition of 33.11 the gasoline fuel tax for uses other than for aviation purposes, 33.12 one percent in fiscal years 1998 and 1999, and three-fourths of 33.13 one percent thereafter, of such revenues is the amount of tax on 33.14 fuel used in snowmobiles operated in this state. 33.15 Subd. 4. [ALL-TERRAIN VEHICLES.] Approximately 0.15 of one 33.16 percent of all gasoline received in or produced or brought into 33.17 this state, except gasoline used for aviation purposes, is being 33.18 used for the operation of all-terrain vehicles in this state, 33.19 and of the total revenue derived from the imposition of the 33.20 gasoline fuel tax, 0.15 of one percent is the amount of tax on 33.21 fuel used in all-terrain vehicles operated in this state. 33.22 Subd. 5. [OFF-HIGHWAY MOTORCYCLES.] Approximately 0.046 of 33.23 one percent of all gasoline received or produced in or brought 33.24 into this state, except gasoline used for aviation purposes, is 33.25 being used for the operation of off-highway motorcycles in this 33.26 state, and of the total revenue derived from the imposition of 33.27 the gasoline fuel tax for uses other than for aviation purposes, 33.28 0.046 of one percent is the amount of tax on fuel used in 33.29 off-highway motorcycles operated in this state. 33.30 Subd. 6. [OFF-ROAD VEHICLES.] Approximately 0.164 of one 33.31 percent of all gasoline received or produced in or brought into 33.32 this state, except gasoline used for aviation purposes, is being 33.33 used for the off-road operation of off-road vehicles, as defined 33.34 in section 84.797, in this state, and of the total revenue 33.35 derived from the imposition of the gasoline fuel tax for uses 33.36 other than aviation purposes, 0.164 of one percent is the amount 34.1 of tax on fuel used for off-road operation of off-road vehicles 34.2 in this state. 34.3 Subd. 7. [FOREST ROADS.] Approximately 0.116 percent of 34.4 the total annual unrefunded revenue from the gasoline fuel tax 34.5 on all gasoline and special fuel received in, produced, or 34.6 brought into this state, except gasoline and special fuel used 34.7 for aviation purposes, is derived from the operation of motor 34.8 vehicles on state forest roads and county forest access roads. 34.9 This revenue is appropriated from the highway user tax 34.10 distribution fund and must be transferred and credited in equal 34.11 installments on July 1 and January 1 to the state forest road 34.12 account established in section 89.70. Of this amount, 0.0605 34.13 percent is annually derived from motor vehicles operated on 34.14 state forest roads and 0.0555 percent is annually derived from 34.15 motor vehicles operated on county forest access roads in this 34.16 state. An amount equal to 0.0555 percent of the unrefunded 34.17 revenue must be annually transferred to counties for the 34.18 management and maintenance of county forest roads. 34.19 Subd. 8. [AVIATION FUEL TAX FUND.] The revenues derived 34.20 from the excise taxes on aviation gasoline and on special fuel 34.21 received, sold, stored, or withdrawn from storage as substitutes 34.22 for aviation gasoline, shall be paid into the state treasury and 34.23 credited to the aviation fuel tax fund. There is hereby 34.24 appropriated such sums as are needed to carry out the provisions 34.25 of this subdivision. 34.26 Subd. 9. [COMPUTATION OF UNREFUNDED TAX.] The amount of 34.27 unrefunded tax shall be a sum equal to 1-1/2 percent of all 34.28 revenues derived from the excise taxes on gasoline, except on 34.29 gasoline used for aviation purposes, together with interest 34.30 thereon and penalties for delinquency in payment, paid or 34.31 collected pursuant to the provisions of this chapter. The 34.32 amount of such tax shall be computed for each six-month period 34.33 and shall be paid into the state treasury on November 1 and June 34.34 1 following each six-month period. 34.35 Sec. 19. [296A.19] [REQUIRED RECORDS.] 34.36 Subdivision 1. [RETAINING RECORDS.] All distributors, 35.1 dealers, special fuel dealers, bulk purchasers, and all users of 35.2 special fuel shall keep a true and accurate record of all 35.3 purchases, transfers, sales, and use of petroleum products and 35.4 special fuel, including copies of all sales tickets issued, in a 35.5 form and manner approved by the commissioner, and shall retain 35.6 all such records for 3-1/2 years. 35.7 Subd. 2. [MAKING ACCESSIBLE.] The books and records of all 35.8 carriers of petroleum products, distributors, dealers, and 35.9 persons selling or using special fuel shall be made accessible 35.10 to the commissioner or an authorized representative. 35.11 Subd. 3. [RECORDS EXAMINED.] The commissioner shall make 35.12 periodic examinations of all records kept by distributors, 35.13 special fuel dealers, bulk purchasers, or other persons selling 35.14 or using gasoline or special fuel. 35.15 Sec. 20. [296A.20] [EXAMINATIONS AND AUDITS.] 35.16 Subdivision 1. [EXAMINATION OF TAXPAYER.] To determine the 35.17 accuracy of a return or a report, or for the purpose of 35.18 collection, or in fixing liability or verifying information 35.19 under state tax law, the commissioner may make reasonable 35.20 examinations or investigations of a taxpayer's place of 35.21 business, tangible personal property, equipment, computer 35.22 systems and facilities, pertinent books, records, papers, 35.23 vouchers, computer printouts, accounts, and documents. 35.24 Subd. 2. [ACCESS TO RECORDS.] When conducting an 35.25 investigation or an audit of a taxpayer, or for the purpose of 35.26 collection, or in fixing liability or verifying information 35.27 under state tax law, the commissioner or the commissioner's 35.28 agent may examine, except where privileged by law, the relevant 35.29 records and files of any person, business, institution, 35.30 financial institution, state agency, agency of the United States 35.31 government, or agency of any other state where permitted by 35.32 statute, agreement, or reciprocity. The commissioner may compel 35.33 production of these records by subpoena. A subpoena may be 35.34 served directly by the commissioner. 35.35 Subd. 3. [POWER TO COMPEL TESTIMONY.] In the 35.36 administration of state tax law the commissioner may: 36.1 (1) administer oaths or affirmations and compel by subpoena 36.2 the attendance of witnesses, testimony, and the production of a 36.3 person's pertinent books, records, papers, and other data for 36.4 inspection and copying; 36.5 (2) examine under oath or affirmation any person regarding 36.6 the business of any taxpayer concerning any relevant matter 36.7 incident to the administration of state tax law. The fees of 36.8 witnesses required by the commissioner to attend a hearing are 36.9 equal to those allowed to witnesses appearing before courts of 36.10 this state. The fees must be paid in the manner provided for 36.11 the payment of other expenses incident to the administration of 36.12 state tax law; and 36.13 (3) in addition to other remedies that may be available, 36.14 bring an action in equity by the state against a taxpayer for an 36.15 injunction ordering the taxpayer to file a complete and proper 36.16 return or amended return. The district courts of this state 36.17 have jurisdiction over the action and disobedience of an 36.18 injunction issued under this clause will be punished as a 36.19 contempt of district court. 36.20 Subd. 4. [THIRD-PARTY SUBPOENA WHERE TAXPAYER'S IDENTITY 36.21 IS KNOWN.] An investigation may extend to a person that the 36.22 commissioner determines has access to information that may be 36.23 relevant to the examination or investigation. When a subpoena 36.24 requiring the production of records as described in subdivision 36.25 4 is served on a third-party recordkeeper, written notice of the 36.26 subpoena must be mailed to the taxpayer and to any other person 36.27 who is identified in the subpoena. The notices must be given 36.28 within three days of the day on which the subpoena is served. 36.29 Notice to the taxpayer required by this section is sufficient if 36.30 it is mailed to the last address on record with the 36.31 commissioner. The provisions of this subdivision relating to 36.32 notice to the taxpayer or other parties identified in the 36.33 subpoena do not apply if there is reasonable cause to believe 36.34 that the giving of notice may lead to attempts to conceal, 36.35 destroy, or alter records relevant to the examination, to 36.36 prevent the communication of information from other persons 37.1 through intimidation, bribery, or collusion, or to flee to avoid 37.2 prosecution, testifying, or production of records. 37.3 Subd. 5. [THIRD-PARTY SUBPOENA WHERE TAXPAYER'S IDENTITY 37.4 IS NOT KNOWN.] A subpoena that does not identify the person or 37.5 persons whose tax liability is investigated may be served only 37.6 if: 37.7 (1) the subpoena relates to the investigation of a 37.8 particular person or an ascertainable group or class of persons; 37.9 (2) there is reasonable basis for believing that the person 37.10 or group or class of persons may fail or may have failed to 37.11 comply with the tax laws administered by the commissioner; 37.12 (3) the information sought to be obtained from the 37.13 examination of the records, and the identity of the person or 37.14 persons with respect to whose liability the subpoena is issued, 37.15 is not readily available from other sources; 37.16 (4) the subpoena is clear and specific concerning the 37.17 information sought to be obtained; and 37.18 (5) the information sought to be obtained is limited solely 37.19 to the scope of the investigation. 37.20 The party served with a subpoena that does not identify the 37.21 person or persons with respect to whose tax liability the 37.22 subpoena is issued may, within 20 days after service of the 37.23 subpoena, petition the district court in the judicial district 37.24 in which that party is located for a determination concerning 37.25 whether the commissioner has complied with all the requirements 37.26 in clauses (1) to (5), and thus, whether the subpoena is 37.27 enforceable. If no petition is made by the party served within 37.28 the time prescribed, the subpoena has the effect of a court 37.29 order. 37.30 Subd. 6. [REQUEST BY TAXPAYER FOR SUBPOENA.] When the 37.31 commissioner has the power to issue a subpoena for investigative 37.32 or auditing purposes, the commissioner shall honor a reasonable 37.33 request by the taxpayer to issue a subpoena on the taxpayer's 37.34 behalf, if in connection with the investigation or audit. 37.35 Subd. 7. [APPLICATION TO COURT FOR ENFORCEMENT OF 37.36 SUBPOENA.] Disobedience of subpoenas issued under this section 38.1 shall be punished by the district court of the district in which 38.2 the party served with the subpoena is located, in the same 38.3 manner as contempt of the district court. 38.4 Subd. 8. [COST OF PRODUCTION OF RECORDS.] The cost of 38.5 producing records of a third-party required by a subpoena must 38.6 be paid by the taxpayer, if the taxpayer requests the subpoena 38.7 to be issued, or if the taxpayer has the records available but 38.8 has refused to provide them to the commissioner. In other cases 38.9 where the taxpayer cannot produce records and the commissioner 38.10 then initiates a subpoena for third-party records, the 38.11 commissioner shall pay the reasonable costs of producing the 38.12 records. The commissioner may later assess the reasonable costs 38.13 against the taxpayer if the records contribute to the 38.14 determination of an assessment of tax against the taxpayer. 38.15 Sec. 21. [296A.21] [STATUTE OF LIMITATIONS.] 38.16 Subdivision 1. [GENERAL RULE.] The commissioner shall make 38.17 determinations, corrections, and assessments with respect to 38.18 taxes and fees under this chapter, including interest, additions 38.19 to taxes, and assessable penalties. Except as otherwise 38.20 provided in this section, the amount of taxes assessable must be 38.21 assessed within 3-1/2 years after the date the return is filed. 38.22 Subd. 2. [COLLECTIONS.] No action shall be brought for the 38.23 collection of delinquent taxes and inspection fees under section 38.24 270.68 unless commenced within five years after the date of 38.25 assessment of the taxes and fees. 38.26 Subd. 3. [FALSE OR FRAUDULENT REPORT.] In the case of a 38.27 false or fraudulent report with intent to evade tax or 38.28 inspection fee or of a failure to file a report, the taxes or 38.29 fees may be assessed at any time, and a proceeding in court for 38.30 their collection must be begun within five years after the 38.31 assessment. 38.32 Subd. 4. [TIME LIMIT FOR GASOLINE, SPECIAL FUEL, OR 38.33 AVIATION GASOLINE REFUND.] No repayment shall be made unless the 38.34 claim and invoice shall be filed with the commissioner within 38.35 one year from the date of purchase. The postmark on the 38.36 envelope in which a written claim is mailed shall determine its 39.1 date of filing. 39.2 Subd. 5. [SUSPENSION OF TIME; BANKRUPTCY.] The period of 39.3 time during which a tax or fee must be assessed under this 39.4 chapter or collection proceedings commenced under subdivision 2 39.5 or 3 is suspended during the period from the date of filing of a 39.6 petition in bankruptcy until 30 days after the commissioner of 39.7 revenue receives notice that the bankruptcy proceedings have 39.8 been closed or dismissed or the automatic stay has been 39.9 terminated or has expired. The suspension of the statute of 39.10 limitations under this subdivision applies to the person against 39.11 whom the petition in bankruptcy is filed and all other persons 39.12 who may also be wholly or partially liable for the tax under 39.13 this chapter. 39.14 Sec. 22. [296A.22] [NONPAYMENT OF TAX; CIVIL PENALTIES.] 39.15 Subdivision 1. [PENALTY FOR FAILURE TO PAY TAX, GENERAL 39.16 RULE.] Upon the failure of any person to pay any tax or fee when 39.17 due, a penalty of one percent per day for the first ten days of 39.18 delinquency shall accrue, and thereafter the tax, fees, and 39.19 penalty shall bear interest at the rate specified in section 39.20 270.75. 39.21 Subd. 2. [COLLECTION AUTHORITY.] Upon such a failure to 39.22 pay any tax or fees within the time provided by this chapter, 39.23 all taxes and fees imposed by this chapter shall become 39.24 immediately due and payable, and may be collected as provided in 39.25 chapter 270. 39.26 Subd. 3. [OPERATING WITHOUT A LICENSE.] If any person 39.27 operates as a distributor, special fuel dealer, bulk purchaser, 39.28 or motor carrier without first securing the license required 39.29 under this chapter, any tax or fee imposed by this chapter shall 39.30 become immediately due and payable. A penalty of 25 percent is 39.31 imposed upon the tax and fee due. The tax, fees, and penalty 39.32 shall bear interest at the rate specified in section 270.75. 39.33 Subd. 4. [UNLAWFUL USE OF DYED FUEL.] (a) If any dyed fuel 39.34 is sold or held for sale by a person for any use which the 39.35 person knows or has reason to know is not a nontaxable use of 39.36 the fuel; or if any dyed fuel is held for use or used in a 40.1 licensed motor vehicle or for any other use by a person for a 40.2 use other than a nontaxable use and the person knew, or had 40.3 reason to know, that the fuel was so dyed; or if a person 40.4 willfully alters, or attempts to alter, the strength or 40.5 composition of any dye or marking in any dyed fuel, then the 40.6 person shall pay a penalty in addition to the tax, if any. 40.7 (b) Except as provided in paragraph (c), the amount of 40.8 penalty under paragraph (a) for each act is the greater of 40.9 $1,000, or $10 for each gallon of dyed fuel involved. 40.10 (c) With regard to a multiple violation under paragraph 40.11 (a), the penalty shall be applied by increasing the amount in 40.12 paragraph (b) by the product of (1) such amount, and (2) the 40.13 number of prior penalties, if any, imposed by this section on 40.14 the person, or a related person, or any predecessor of the 40.15 person or related person. 40.16 (d) If a penalty is imposed under this subdivision on a 40.17 business entity, each officer, employee, or agent of the entity 40.18 who willfully participated in any act giving rise to the penalty 40.19 is jointly and severally liable with the entity for the penalty. 40.20 Subd. 5. [RECEIVER APPOINTED.] In the event a suit is 40.21 instituted as provided in subdivision 2, the court shall, upon 40.22 application, appoint a receiver of the property and business of 40.23 the delinquent defendant for the purpose of impounding the same 40.24 as security for any judgment which has been or may be recovered. 40.25 Subd. 6. [SALE PROHIBITED UNDER CERTAIN CONDITIONS.] No 40.26 petroleum product shall be unloaded or sold by any person or 40.27 distributor whose tax and inspection fees are the basis for 40.28 collection action under subdivision 2. 40.29 Subd. 7. [PAYMENT OF PENALTIES.] The penalties imposed by 40.30 this section are collected and paid in the same manner as taxes. 40.31 Subd. 8. [PENALTIES ARE ADDITIONAL.] The civil penalties 40.32 imposed by this section are in addition to the criminal 40.33 penalties imposed by this chapter. 40.34 Sec. 23. [296A.23] [CRIMINAL PENALTIES.] 40.35 Subdivision 1. [PROVIDING FALSE INFORMATION.] A person who 40.36 knowingly provides false information, including, but not limited 41.1 to, false odometer readings, or who knowingly makes a false 41.2 statement in a report, record, claim, or sales ticket required 41.3 by this chapter, is guilty of a gross misdemeanor. 41.4 Subd. 2. [WILLFUL EVASION.] A person who willfully 41.5 attempts in any manner to evade or defeat any tax imposed by 41.6 this chapter, including, but not limited to, making and 41.7 subscribing any false statement in any report, record, claim, or 41.8 sales ticket required by this chapter; or making a false claim 41.9 for a refund under section 296A.16, subdivision 2, is guilty of 41.10 a felony. 41.11 Subd. 3. [OPERATION OF VEHICLE WITHOUT PAYMENT OF TAX.] A 41.12 person who operates, or causes to be operated, a licensed motor 41.13 vehicle on the public highways of this state on special fuel on 41.14 which the excise tax provided by this chapter has not been paid, 41.15 or the liability assumed by another person licensed under this 41.16 chapter, is guilty of a misdemeanor. 41.17 Subd. 4. [USE OF UNTAXED FUEL IN MOTOR VEHICLE.] A person 41.18 who uses gasoline, which has been delivered into an on-farm bulk 41.19 storage tank, and on which no tax has been paid as provided in 41.20 section 296A.15, subdivision 5, and who uses this gasoline for 41.21 propelling a motor vehicle on the public highways of this state 41.22 is guilty of a misdemeanor. 41.23 Subd. 5. [STATE EMPLOYEES; PROHIBITION AGAINST ENGAGING IN 41.24 BUSINESS AS DISTRIBUTOR.] An officer or employee of the state of 41.25 Minnesota charged with the enforcement of a provision of this 41.26 chapter who is employed by or who engages in business as a 41.27 distributor or dealer in petroleum products is guilty of a 41.28 misdemeanor. 41.29 Subd. 6. [FIDUCIARY RELATIONSHIP ESTABLISHED.] A person 41.30 other than the commissioner who is authorized to collect excise 41.31 taxes on behalf of the state of Minnesota, establishes a 41.32 fiduciary relationship, and whoever violates that relationship 41.33 is guilty of a violation of this chapter, and of section 609.54, 41.34 and may be punished accordingly. 41.35 Subd. 7. [FAILURE TO OBTAIN PROPER PERMIT.] A minimum fine 41.36 of $200 shall be imposed on a person who fails to obtain a 42.1 license or trip permit required under section 296A.27, 42.2 subdivisions 6 and 12. 42.3 Subd. 8. [CERTAIN BLENDING OF GASOLINE PROHIBITED.] The 42.4 blending of gasoline on which the tax has been paid or the 42.5 liability accrued, with any substance on which the tax has not 42.6 been paid or the liability thereafter accrued, is prohibited. 42.7 This section does not preclude the addition of any of the 42.8 various inhibitors which in total do not exceed one-half of one 42.9 percent by volume of the product treated, nor the addition to 42.10 fuel for two-cycle gasoline engines of a lubricant not exceeding 42.11 five percent by volume or the product treated; nor does this 42.12 subdivision preclude the addition of fuel oil to gasoline for 42.13 the purpose of generating power for the propulsion of farm 42.14 tractors. 42.15 Subd. 9. [OTHER VIOLATIONS.] Any violation of this 42.16 chapter, unless otherwise specified, is a gross misdemeanor. 42.17 Subd. 10. [PROSECUTION OF VIOLATIONS.] Prosecutions under 42.18 this section may be brought in the county in which the defendant 42.19 resides or in Ramsey county. On request of the commissioner of 42.20 revenue, the county attorney of a county in which the action is 42.21 commenced shall prosecute violations of this chapter. Costs, 42.22 fees, and expenses incurred by any county attorney in litigation 42.23 in connection with the action may be paid from appropriations to 42.24 the commissioner of revenue for the administration of this 42.25 chapter. 42.26 Subd. 11. [ACTIONS FOR RECOVERY; NO BAR TO CRIMINAL 42.27 PROSECUTIONS.] No action or suit for recovery of one penalty 42.28 shall be a bar to or affect the recovery of any other penalty or 42.29 be a bar to any criminal prosecution against any licensee or any 42.30 other person under the provisions of this chapter. 42.31 Subd. 12. [STATUTE OF LIMITATIONS.] Notwithstanding 42.32 section 628.26, or any other provision of the criminal laws of 42.33 this state, an indictment may be found and filed, or a complaint 42.34 filed, upon a criminal offense named in this section, in the 42.35 proper court within six years after the offense is committed. 42.36 Sec. 24. [296A.24] [CONTRABAND.] 43.1 Subdivision 1. [SEIZURE.] The commissioner or authorized 43.2 agents may seize gasoline or special fuel being transported for 43.3 delivery in violation of section 296A.03, subdivision 1, and any 43.4 vehicle or other method of conveyance used for transporting the 43.5 gasoline or special fuel. Any untaxed motor vehicle fuel that 43.6 is received by a person other than a licensee is subject to 43.7 seizure along with the vehicle or other means of transportation 43.8 used to transport the motor vehicle fuel. Any motor vehicle 43.9 fuel, along with the transporting vehicle, brought into the 43.10 state of Minnesota by a transporter for use, distribution, 43.11 storage, or sale that is not supported by a manifest, bill of 43.12 lading, or invoice, reflecting the licensed distributor 43.13 responsible for the tax and/or fees is subject to seizure by the 43.14 Minnesota department of revenue. Property seized under this 43.15 subdivision is subject to forfeiture as provided in subdivisions 43.16 2 and 3. 43.17 Subd. 2. [DISPOSITION OF SEIZED PROPERTY.] (a) Within ten 43.18 days after the seizure of gasoline or special fuel, the person 43.19 making the seizure shall deliver an inventory of the property 43.20 seized to the person from whom the seizure was made, if known, 43.21 and file a copy with the office of the commissioner. Within ten 43.22 days after the date of service of the inventory, the person from 43.23 whom the property was seized or any person claiming an interest 43.24 in the property may file with the commissioner a demand for a 43.25 judicial determination of whether the property was lawfully 43.26 subject to seizure and forfeiture. The commissioner, within 60 43.27 days of demand for a judicial determination, shall begin an 43.28 action in the district court of the county where the seizure was 43.29 made to determine the issue of forfeiture. 43.30 (b) The action must be brought in the name of the state and 43.31 prosecuted by the county attorney or by the attorney general. 43.32 The court shall hear the action without a jury and shall try and 43.33 determine the issues of fact and law involved. 43.34 (c) When a judgment of forfeiture is entered, the 43.35 commissioner may, unless the judgment is stayed pending an 43.36 appeal, either: 44.1 (1) cause the forfeited property to be destroyed; or 44.2 (2) cause it to be sold at public auction as provided by 44.3 law. Proceeds of a sale, after deducting the expense of keeping 44.4 the gasoline or special fuel and costs of the sale, must be paid 44.5 into the state treasury. The commissioner shall reimburse 44.6 designees for costs incurred. 44.7 (d) If a demand for judicial determination is made and no 44.8 action is commenced as provided in this subdivision, the 44.9 property must be released by the commissioner and redelivered to 44.10 the person entitled to it. If no demand is made, the property 44.11 seized must be considered forfeited to the state by operation of 44.12 law and may be disposed of by the commissioner as provided where 44.13 there has been a judgment of forfeiture. When the commissioner 44.14 is satisfied that a person from whom property is seized under 44.15 this chapter was acting in good faith and without intent to 44.16 evade the tax, the commissioner shall release the property 44.17 seized, without further legal proceedings. 44.18 Subd. 3. [DISPOSAL.] (a) The commissioner or authorized 44.19 designees shall file with the court a separate complaint against 44.20 the vehicle or conveyance, describing it and charging its use in 44.21 the specified violation, and specifying substantially the time 44.22 and place of the unlawful use. A copy of the complaint must be 44.23 served on the defendant or person in charge of the vehicle or 44.24 conveyance at the time of seizure, if any. The court shall 44.25 issue an order directed to any person known or believed to have 44.26 a right or title to, interest in, or lien on the vehicle or 44.27 conveyance and to persons unknown claiming a right, title, 44.28 interest, or lien: 44.29 (1) describing the vehicle or conveyance and stating that 44.30 it was seized and that a complaint against it, charging the 44.31 specified violation, has been filed with the court; 44.32 (2) requiring the persons to file with the court 44.33 administrator of the court their answer to the complaint, 44.34 setting forth any claim they may have to a right or title to, 44.35 interest in, or lien on the vehicle or conveyance, within 30 44.36 days after the service of the order; and 45.1 (3) notifying them in substance that if they fail to file 45.2 their answer within that time, the vehicle or conveyance will be 45.3 ordered sold by the commissioner. 45.4 (b) The court shall cause the order to be served on: 45.5 (1) the registered owner; 45.6 (2) any person who has duly filed a conditional sales 45.7 contract, mortgage, or other lien instrument covering the 45.8 property unless it has been released or satisfied; 45.9 (3) any other person known or believed to have a right, 45.10 title, interest in, or lien upon, the vehicle or conveyance as 45.11 in the case of a summons in a civil action; and 45.12 (4) on unknown persons by publication, as provided for 45.13 service of summons in a civil action. 45.14 (c) If no answer is filed within the time prescribed, the 45.15 court shall, on affidavit by the court administrator of the 45.16 court setting forth that fact, order the vehicle or conveyance 45.17 forfeited and direct that it be sold by the commissioner or the 45.18 commissioner's agents. The proceeds of the sale, after 45.19 deducting the expense of keeping the vehicle or conveyance and 45.20 costs of the sale, including any costs incurred under paragraph 45.21 (f), must be paid into the state treasury. The commissioner 45.22 shall reimburse designees for costs incurred. 45.23 (d) If an answer is filed within the time provided, the 45.24 court shall fix a time for hearing at least ten days but no more 45.25 than 30 days after the time for filing the answer expires. At 45.26 the hearing, the matter must be heard and determined by the 45.27 court, without a jury, as in other civil actions. If the court 45.28 finds that the vehicle or conveyance, or any part of it, was 45.29 used in a violation as specified in the complaint, it shall 45.30 order the vehicle or conveyance forfeited and direct that it be 45.31 sold, as provided in this section, unless the owner shows to the 45.32 satisfaction of the court that the vehicle was being used 45.33 without the owner's consent or that, when giving the consent, 45.34 the owner had no notice or knowledge or reason to believe that 45.35 the vehicle or conveyance was intended to be used in a 45.36 violation. After deducting the expense of keeping the vehicle 46.1 or conveyance and costs of the sale, the officer making the sale 46.2 shall pay, according to their priority, all liens established at 46.3 the hearing as being bona fide and existing without the lienor 46.4 having any notice or knowledge at the time the lien was created 46.5 that the vehicle or conveyance was being used or was intended to 46.6 be used in connection with any violation, and shall pay the 46.7 balance of the proceeds into the state treasury. The 46.8 commissioner shall reimburse designees for costs incurred. A 46.9 sale under this section frees the conveyance sold from all liens. 46.10 (e) At any time after seizure and before the hearing, the 46.11 vehicle or conveyance must be returned to the owner or person 46.12 having a legal right to its possession on execution by that 46.13 person of a valid bond to the state of Minnesota, with corporate 46.14 surety, of at least $100, but not more than double the value of 46.15 the vehicle or conveyance seized, to be approved by the court in 46.16 which the case is triable, or a judge of that court. The bond 46.17 must guarantee compliance with the order and judgment of the 46.18 court, and, if ordered by the court, payment of the full value 46.19 of the vehicle or conveyance at the time of seizure. 46.20 (f) If the seized vehicle or conveyance is owned or 46.21 operated by a for-hire common or contract motor carrier, and was 46.22 being used without knowledge of the violation, the commissioner 46.23 shall return the vehicle or conveyance to its owner or operator 46.24 as soon as possible without need for court order, and shall 46.25 provide to such owner or operator reasonable compensation for 46.26 the time during which the vehicle or conveyance is held under 46.27 seizure. 46.28 Sec. 25. [296A.25] [ADMINISTRATIVE REVIEW.] 46.29 Subdivision 1. [TAXPAYER RIGHT TO RECONSIDERATION.] A 46.30 taxpayer may obtain reconsideration by the commissioner of an 46.31 order assessing tax, a denial of a request for abatement of 46.32 penalty, or a denial of a claim for refund by filing an 46.33 administrative appeal under subdivision 3. A taxpayer cannot 46.34 obtain reconsideration under this section if the action taken by 46.35 the commissioner is the outcome of an administrative appeal. 46.36 Subd. 2. [NOTICE DATE.] For purposes of this section, the 47.1 term "notice date" means the date of the order adjusting the tax 47.2 or order denying a request for abatement, or, in the case of a 47.3 denied refund, the date of the notice of denial. 47.4 Subd. 3. [TIME AND CONTENT FOR ADMINISTRATIVE APPEAL.] 47.5 Within 60 days after the notice date, the taxpayer must file a 47.6 written appeal with the commissioner. The appeal need not be in 47.7 any particular form, but must contain the following information: 47.8 (1) the name and address of the taxpayer; 47.9 (2) if a corporation, the state of incorporation of the 47.10 taxpayer, and the principal place of business of the 47.11 corporation; 47.12 (3) the Minnesota identification number or social security 47.13 number of the taxpayer; 47.14 (4) the type of tax involved; 47.15 (5) the date; 47.16 (6) the tax years or periods involved and the amount of tax 47.17 involved for each year or period; 47.18 (7) the findings in the notice that the taxpayer disputes; 47.19 (8) a summary statement that the taxpayer relies on for 47.20 each exception; and 47.21 (9) the taxpayer's signature or signature of the taxpayer's 47.22 duly authorized agent. 47.23 Subd. 4. [EXTENSIONS.] When requested in writing and 47.24 within the time allowed for filing an administrative appeal, the 47.25 commissioner may extend the time for filing an appeal for a 47.26 period of not more than 30 days from the expiration of the 60 47.27 days from the notice date. 47.28 Subd. 5. [DETERMINATION OF APPEAL.] On the basis of 47.29 applicable law and available information, the commissioner shall 47.30 determine the validity, if any, in whole or part of the appeal 47.31 and notify the taxpayer of the decision. This notice must be in 47.32 writing and contain the basis for the determination. 47.33 Subd. 6. [AGREEMENT DETERMINING TAX LIABILITY.] When it 47.34 appears to be in the best interests of the state, the 47.35 commissioner may settle any taxes, penalties, or interest that 47.36 the commissioner has under consideration by virtue of an appeal 48.1 filed under this section. An agreement must be in writing and 48.2 signed by the commissioner and the taxpayer, or the taxpayer's 48.3 representative authorized by the taxpayer to enter into an 48.4 agreement. The agreement shall be final and conclusive and, 48.5 except upon a showing of fraud or malfeasance, or 48.6 misrepresentation of a material fact, the case shall not be 48.7 reopened as to the matters agreed upon. 48.8 Subd. 7. [APPEAL OF AN ADMINISTRATIVE DETERMINATION.] 48.9 Following the determination of an appeal and notwithstanding any 48.10 period of limitations for making assessments or other 48.11 determinations to the contrary, the commissioner must issue an 48.12 order reflecting that disposition. If the statute of 48.13 limitations for making assessments or other determinations would 48.14 have expired before the issuance of this order, except for this 48.15 section, the order is limited to issues or matters contained in 48.16 the appealed determination. The order is appealable to the 48.17 Minnesota tax court under section 271.06. 48.18 Subd. 8. [APPEAL WHERE NO DETERMINATION.] If the 48.19 commissioner does not make a determination within six months of 48.20 the filing of an administrative appeal, the taxpayer may elect 48.21 to appeal to tax court. 48.22 Subd. 9. [INAPPLICABILITY OF ADMINISTRATIVE PROCEDURE 48.23 ACT.] An appeal under this section is not a contested case 48.24 governed by chapter 14. 48.25 Sec. 26. [296A.26] [JUDICIAL REVIEW; APPEAL TO TAX COURT.] 48.26 In lieu of an administrative appeal under this chapter, any 48.27 person aggrieved by an order of the commissioner fixing a tax, 48.28 penalty, or interest under this chapter may, within 60 days from 48.29 the date of the notice of the order, appeal to the tax court in 48.30 the manner provided under section 271.06. 48.31 Sec. 27. [296A.27] [ROAD TAX; MOTOR CARRIERS; 48.32 RECIPROCITY.] 48.33 Subdivision 1. [DEFINITIONS.] As used in this section 48.34 (a) "Commercial motor vehicle" means a motor vehicle used, 48.35 designed, or maintained for transportation of persons or 48.36 property that: 49.1 (1) has two axles and a gross vehicle weight or registered 49.2 gross vehicle weight exceeding 26,000 pounds; 49.3 (2) has three or more axles regardless of weight; or 49.4 (3) is used in combination, when the weight of such 49.5 combination exceeds 26,000 pounds gross vehicle or registered 49.6 gross vehicle weight. "Commercial motor vehicle" does not 49.7 include recreational vehicles. 49.8 (b) "Highway" means the lines of every way publicly 49.9 maintained when part of the highway is open for the public to 49.10 travel on. 49.11 (c) "Motor carrier" means a person who operates or causes 49.12 to be operated a commercial motor vehicle on a highway in this 49.13 state. 49.14 (d) "Motor fuel" means a liquid, regardless of its 49.15 composition or properties, used to propel a motor vehicle. 49.16 (e) "Operation" means operation of commercial motor 49.17 vehicles whether loaded or empty, whether for compensation or 49.18 not for compensation, and whether owned by or leased to the 49.19 motor carrier who operates them or causes them to be operated. 49.20 Subd. 2. [REFUNDS ON FUEL USED IN OTHER STATES.] Every 49.21 person regularly or habitually operating motor vehicles upon the 49.22 public highways of any other state or states and using in said 49.23 motor vehicles gasoline or special fuel purchased or obtained in 49.24 this state, shall be allowed a credit or refund equal to the tax 49.25 on said gasoline or special fuel paid or special fuel actually 49.26 used in the other state or states. No credit or refund shall be 49.27 allowed under this subdivision for taxes paid to any state which 49.28 imposes a tax upon gasoline or special fuel purchased or 49.29 obtained in this state and used on the highways of such other 49.30 state, and which does not allow a similar credit or refund for 49.31 the tax paid to this state on gasoline or special fuel purchased 49.32 or acquired in such other state and used on the highways of this 49.33 state. Every person claiming a credit or refund under this 49.34 subdivision shall file a claim in the form and manner prescribed 49.35 by the commissioner or take the credit on a subsequent tax 49.36 return within one year of the last day of the month following 50.1 the end of the quarter when the overpayment occurred. 50.2 Subd. 3. [RECIPROCAL AGREEMENTS.] The commissioner of 50.3 public safety or the commissioner of revenue may enter into 50.4 reciprocal agreements with the appropriate officials of any 50.5 other state under which either commissioner may waive all or any 50.6 part of the requirements imposed by this section upon those who 50.7 use in Minnesota gasoline or other motor vehicle fuel upon which 50.8 the tax has been paid to such other state, provided that the 50.9 officials of such other state grant equivalent privileges with 50.10 respect to gasoline or other motor vehicle fuel used in such 50.11 other state but upon which the tax has been paid to the state of 50.12 Minnesota. The commissioner of public safety or the 50.13 commissioner of revenue may enter into reciprocal agreements 50.14 with the appropriate officials of other states, exempting 50.15 vehicles licensed in such other states from the license and use 50.16 tax provisions contained in this section, which otherwise would 50.17 apply to vehicles licensed by such other state, provided that 50.18 such other state grant equivalent privileges with respect to 50.19 vehicles licensed by the state of Minnesota. 50.20 Subd. 4. [ROAD TAX IMPOSED.] (a) Every motor carrier shall 50.21 pay a road tax calculated on the amount of motor fuel consumed 50.22 in the motor carrier's operations on highways within this 50.23 state. The tax shall be at the same rate as the tax applicable 50.24 to the purchase of the same motor fuel within this state. 50.25 (b) The amount of motor fuel consumed in the operations of 50.26 any motor carrier on highways within this state shall be 50.27 determined by dividing the miles traveled within the state of 50.28 Minnesota by the average miles per gallon. The average miles 50.29 per gallon shall be determined by dividing the miles traveled 50.30 within and without the state by the total motor fuel consumed 50.31 within and without the state. 50.32 Subd. 5. [EXEMPTIONS.] Nothing in this section shall apply 50.33 to: 50.34 (1) any commercial motor vehicle or vehicles operated by 50.35 this state, any subdivision thereof, the United States, or any 50.36 agency of two or more states or of states and the United States 51.1 in which this state participates; 51.2 (2) any school bus as defined by the laws of this state 51.3 operated by, for, or on behalf of a state or any subdivision 51.4 thereof; or 51.5 (3) any motor vehicle bearing Minnesota base license plates. 51.6 Subd. 6. [MOTOR CARRIER LICENSE.] (a) No motor carrier may 51.7 operate a commercial motor vehicle upon the highways of this 51.8 state unless and until issued a license under this section or 51.9 until the motor carrier has obtained a trip permit or temporary 51.10 authorization as provided in this section. 51.11 (b) A license shall be issued to any responsible person 51.12 qualifying as a motor carrier who makes application therefor and 51.13 who pays to the commissioner, at the time thereof, a license fee 51.14 of $30. The license is valid for a period of up to two years or 51.15 until revoked by the commissioner or until surrendered by the 51.16 motor carrier. All outstanding licenses will expire on March 31 51.17 of each even-numbered year and may be renewed upon application 51.18 to the commissioner and payment of the $30 fee. The license, 51.19 photocopy, or electrostatic copy of it, shall be carried in the 51.20 cab of every commercial motor vehicle while it is being operated 51.21 in Minnesota by a licensed motor carrier. 51.22 Subd. 7. [REVOCATION OF MOTOR CARRIER LICENSES.] 51.23 Notwithstanding the provisions of section 296A.06, if a motor 51.24 carrier fails to file three consecutive road tax reports, the 51.25 commissioner, by certified mail sent to the address on the last 51.26 report, shall notify the motor carrier of the commissioner's 51.27 intention to revoke the license and of the motor carrier's right 51.28 to request a hearing under section 296A.06. If no request for a 51.29 hearing is received within 30 days of the notice, the license 51.30 may be revoked by the commissioner. 51.31 Subd. 8. [MOTOR CARRIER REPORTS.] Every motor carrier 51.32 subject to the road tax shall, on or before the last day of 51.33 April, July, October, and January, file with the commissioner in 51.34 the form and manner prescribed by the commissioner, reports of 51.35 operations during the previous three months, and such other 51.36 reports as the commissioner may deem necessary. The 52.1 commissioner may exempt from the quarterly reporting 52.2 requirements of this section those motor carriers whose mileage 52.3 is all or substantially all and those motor carriers whose 52.4 mileage is minimal within this state, or states with which 52.5 Minnesota has reciprocity, and require in such instances an 52.6 annual report reflecting the operations of the carrier during 52.7 the previous year along with payment of any taxes due. Each 52.8 report shall contain a confession of judgment for the amount of 52.9 the tax shown due thereon to the extent not timely paid. 52.10 Subd. 9. [MOTOR CARRIER RECORDS.] (a) Every motor carrier 52.11 shall keep such records as may be necessary for the 52.12 administration of this section and for the reporting and 52.13 justification of the amount of tax liability pursuant hereto. 52.14 The records shall be kept in such form as the commissioner 52.15 reasonably may prescribe. All such records shall be safely 52.16 preserved for a period of three years in such manner as to 52.17 ensure their security and availability for inspection by the 52.18 commissioner. Upon application in writing stating the reasons 52.19 therefor, the commissioner may consent to the destruction of 52.20 such records at an earlier time if the commissioner has 52.21 completed an audit of the records in question. 52.22 (b) The commissioner or authorized agents or 52.23 representatives shall have the right at any reasonable time to 52.24 inspect the books and records of any motor carrier subject to 52.25 the tax imposed by this chapter. 52.26 Subd. 10. [EVIDENCE.] In the absence of records showing 52.27 the number of miles actually operated per gallon of motor fuel, 52.28 it shall be presumed that one gallon of motor fuel was consumed 52.29 for every four miles traveled. 52.30 Subd. 11. [LEASED COMMERCIAL MOTOR VEHICLES.] (a) Except 52.31 as otherwise provided in this section, every commercial motor 52.32 vehicle leased to a motor carrier shall be subject to the 52.33 provisions of this section and rules in force pursuant hereto, 52.34 to the same extent and in the same manner as commercial motor 52.35 vehicles owned by such carrier. 52.36 (b) A lessor of commercial motor vehicles may be deemed a 53.1 motor carrier with respect to such vehicles leased to others by 53.2 the lessor and motor fuel consumed thereby, if the lessor 53.3 supplies or pays for the motor fuel consumed by such vehicles or 53.4 makes rental or other charges calculated to include the cost of 53.5 such fuel. Any lessee motor carrier may exclude the leased 53.6 commercial motor vehicles from reports and liabilities under 53.7 this section, but only if the commercial motor vehicles in 53.8 question have been leased from a lessor who is a motor carrier 53.9 under this section. 53.10 (c) The provisions of paragraphs (a) and (b) of this 53.11 subdivision shall govern the primary liability under this 53.12 section of lessors and lessees of commercial motor vehicles. If 53.13 a lessor or lessee primarily liable fails, in whole or in part, 53.14 to discharge liability, such failing party and the other lessor 53.15 or lessee party to the transaction shall be jointly and 53.16 severally responsible and liable for compliance with the 53.17 provisions of this section and for the payment of any tax due, 53.18 provided that the aggregate of any taxes collected by this state 53.19 shall not exceed the total amount or amounts of taxes due on 53.20 account of the transactions in question and such costs and 53.21 penalties, if any, as may be imposed. 53.22 Subd. 12. [MOTOR CARRIER TRIP PERMITS; TEMPORARY 53.23 AUTHORIZATIONS.] (a) A motor carrier may obtain a trip permit 53.24 which authorizes an unlicensed motor carrier to operate a 53.25 commercial motor vehicle in Minnesota for a period of five 53.26 consecutive days beginning and ending on the dates specified on 53.27 the face of the permit. The fee for the permit is $25. Fees 53.28 for trip permits are in lieu of the road tax otherwise 53.29 assessable against the motor carrier on account of the 53.30 commercial motor vehicle operating therewith, and no reports of 53.31 mileage are required with respect to the vehicle. The above 53.32 permit shall be issued in lieu of license if in the course of 53.33 operations a motor carrier operates on Minnesota highways no 53.34 more than three times in any one calendar year. 53.35 (b) Whenever the commissioner is satisfied that unforeseen 53.36 or uncertain circumstances have arisen which requires a motor 54.1 carrier to operate in this state a commercial motor vehicle for 54.2 which neither a trip permit under paragraph (a) nor a license 54.3 under this section has yet been obtained, and if the 54.4 commissioner is satisfied that prohibition of that operation 54.5 would cause undue hardship, the commissioner may provide the 54.6 motor carrier with temporary authorization for the operation of 54.7 the vehicle. A motor carrier receiving temporary authorization 54.8 under this subdivision shall perfect the same either by 54.9 obtaining a trip permit or a license, as the case may be, for 54.10 the vehicle at the earliest practicable time. 54.11 Subd. 13. [COOPERATIVE AUDITS.] The commissioner may make 54.12 arrangements with the commissioner of transportation and may 54.13 enter into agreements with the appropriate authorities of other 54.14 states having statutes similar to this act for the cooperative 54.15 audit of motor carriers' reports and returns. In performing any 54.16 such audit, or part thereof, the officers and employees of the 54.17 other state or states shall be deemed authorized agents of this 54.18 state for such purpose, and such audits, or parts thereof, shall 54.19 have the same effect as similar audits, or parts thereof, when 54.20 made by the commissioner. 54.21 Subd. 14. [ACTIONS TO AVOID TAX.] If the commissioner 54.22 ascertains that a person designs quickly to depart from this 54.23 state, or to remove therefrom the person's property, or any 54.24 property used by the person in operations subject to this 54.25 section, or to discontinue business, or to do any other act 54.26 tending to prejudice or render wholly or partly ineffectual 54.27 proceedings to assess or collect the tax, whereby it becomes 54.28 important that such proceedings be brought without delay, the 54.29 commissioner may immediately make an assessment of tax estimated 54.30 to be due, whether or not any report is then due by law, and may 54.31 proceed under such assessment to collect the tax, or compel 54.32 security for the same, and thereupon shall cause notice of such 54.33 finding to be given to such motor carrier, together with a 54.34 demand for an immediate payment of such tax. The commissioner 54.35 or agents is also authorized to impound motor vehicles of 54.36 persons in violation of this section. Such vehicle shall be 55.1 released either upon payment of all taxes, penalties and 55.2 interest that may be due, or depositing a bond or security to 55.3 assure the payment of said taxes, penalties and interest. 55.4 Subd. 15. [ENFORCEMENT POWERS.] (a) The commissioner is 55.5 authorized and directed to enforce the provisions of this 55.6 section. In addition, the commissioner of public safety is 55.7 authorized and directed to use the Minnesota state patrol to 55.8 assist in the enforcement of the provisions of this section and 55.9 the commissioner of transportation is authorized and directed to 55.10 enforce the provisions of subdivisions 6 and 12 as provided in 55.11 section 221.221. 55.12 (b) The officers of the Minnesota state patrol shall in 55.13 addition to all other powers granted to them by Minnesota 55.14 Statutes have the power of making arrests, service of process, 55.15 and appearing in court in all matters and things relating to 55.16 this section and the administration and enforcement thereof. 55.17 Subd. 16. [RULES.] The commissioner may, from time to 55.18 time, issue, amend, and revise such rules as may be necessary 55.19 for the effective enforcement of this section. 55.20 Subd. 17. [COMMISSIONER MAY WAIVE REQUIREMENTS.] The 55.21 commissioner is empowered to suspend the enforcement of this 55.22 section if the cost of administration thereof exceeds the tax 55.23 revenue produced therefrom. 55.24 Sec. 28. [296A.28] [FUEL TAX COMPACTS.] 55.25 Subdivision 1. [AUTHORITY.] The commissioner of public 55.26 safety has the powers granted to the commissioner of revenue 55.27 under section 296A.27. The commissioner of public safety may 55.28 enter into an agreement or arrangement with the duly authorized 55.29 representative of another state or make an independent 55.30 declaration, granting to owners of vehicles properly registered 55.31 or licensed in another state, benefits, privileges, and 55.32 exemptions from paying, wholly or partially, fuel taxes, fees, 55.33 or other charges imposed for operating the vehicles under the 55.34 laws of Minnesota. The agreement, arrangement, or declaration 55.35 may impose terms and conditions consistent with Minnesota laws. 55.36 Subd. 2. [RECIPROCAL PRIVILEGES AND TREATMENT.] An 56.1 agreement or arrangement must be in writing and provide that 56.2 when a vehicle properly licensed for fuel in the state of 56.3 Minnesota is operated on highways of the other state, it must 56.4 receive exemptions, benefits, and privileges of a similar kind 56.5 or to a similar degree as are extended to a vehicle properly 56.6 licensed for fuel in that state, when operated in the state of 56.7 Minnesota. A declaration must be in writing and must 56.8 contemplate and provide for mutual benefits, reciprocal 56.9 privileges, or equitable treatment of the owner of a vehicle 56.10 registered for fuel in Minnesota and the other state. In the 56.11 judgment of the commissioner of public safety, an agreement, 56.12 arrangement, or declaration must be in the best interest of 56.13 Minnesota and its citizens and must be fair and equitable 56.14 regarding the benefits that the agreement brings to the economy 56.15 of Minnesota. 56.16 Subd. 3. [COMPLIANCE WITH MINNESOTA LAWS.] Agreements, 56.17 arrangements, and declarations made under authority of this 56.18 section must contain a provision specifying that no fuel 56.19 license, or exemption issued or accruing under the license, 56.20 excuses the operator or owner of a vehicle from compliance with 56.21 Minnesota laws. 56.22 Subd. 4. [EXCHANGES OF INFORMATION.] The commissioner of 56.23 public safety may make arrangements or agreements with the 56.24 commissioner of transportation and other states to exchange 56.25 information for audit and enforcement activities in connection 56.26 with fuel tax licensing. The filing of fuel tax returns under 56.27 this section is subject to the rights, terms, and conditions 56.28 granted or contained in the applicable agreement or arrangement 56.29 made by the commissioner under the authority of this section. 56.30 Subd. 5. [BASE STATE FUEL COMPACT.] The commissioner of 56.31 public safety may ratify and effectuate the international fuel 56.32 tax agreement or other fuel tax agreement. The commissioner's 56.33 authority includes, but is not limited to, collecting fuel taxes 56.34 due, issuing fuel licenses, issuing refunds, conducting audits, 56.35 assessing penalties and interest, issuing fuel trip permits, 56.36 issuing decals, and suspending or denying licensing. 57.1 Subd. 6. [MINNESOTA-BASED INTERSTATE CARRIERS.] 57.2 Notwithstanding the exemption contained in section 296A.27, 57.3 subdivision 5, as the commissioner of public safety enters into 57.4 interstate fuel tax compacts requiring base state licensing and 57.5 filing and eliminating filing in the nonresident compact states, 57.6 the Minnesota-based motor vehicles registered under section 57.7 168.187 will be required to license under the fuel tax compact 57.8 in Minnesota. 57.9 Subd. 7. [DELINQUENT FILING OR PAYMENT.] If a fleet owner 57.10 licensed under this section is delinquent in either filing or 57.11 paying the international fuel tax agreement reports for more 57.12 than 30 days, or paying the international registration plan 57.13 billing under section 168.187 for more than 30 days, the fleet 57.14 owner, after ten days' written notice, is subject to suspension 57.15 of the apportioned license plates and the international fuel tax 57.16 agreement license. 57.17 Subd. 8. [TRANSFERRING FUNDS TO PAY DELINQUENT FEES.] If a 57.18 fleet owner licensed under this section is delinquent in either 57.19 filing or paying the international fuel tax agreement reports 57.20 for more than 30 days, or paying the international registration 57.21 plan billing under section 168.187 for more than 30 days, the 57.22 commissioner may authorize any credit in either the 57.23 international fuel tax agreement account or the international 57.24 registration plan account to be used to offset the liability in 57.25 either the international registration plan account or the 57.26 international fuel tax agreement account. 57.27 Subd. 9. [FUEL COMPACT FEES.] License fees paid to the 57.28 commissioner of public safety under the international fuel tax 57.29 agreement must be deposited in the highway user tax distribution 57.30 fund. The commissioner shall charge the fuel license fee of $30 57.31 established under section 296A.27, subdivision 6, in annual 57.32 installments of $15, and an annual application filing fee of $13 57.33 for quarterly reporting of fuel tax. 57.34 Subd. 10. [FUEL DECAL FEES.] The commissioner of public 57.35 safety may issue and require the display of a decal or other 57.36 identification to show compliance with subdivision 5. The 58.1 commissioner may charge a fee to cover the cost of issuing the 58.2 decal or other identification. Decal fees paid to the 58.3 commissioner under this subdivision must be deposited in the 58.4 highway user tax distribution fund. 58.5 Sec. 29. [PURPOSE.] 58.6 It is the intent of the legislature to simplify Minnesota's 58.7 petroleum tax laws by consolidating and recodifying the tax 58.8 administration and compliance provisions now contained 58.9 throughout Minnesota Statutes, chapter 296. Due to the 58.10 complexity of the recodification, prior provisions are repealed 58.11 on the effective date of the new provisions. The repealed 58.12 provisions, however, continue to remain in effect until 58.13 superseded by the analogous provision in the new law. 58.14 Sec. 30. [INSTRUCTIONS TO REVISOR.] 58.15 In each section of Minnesota Statutes referred to in column 58.16 A, the revisor of statutes shall delete the reference in column 58.17 B and insert the reference in column C. 58.18 Column A Column B Column C 58.19 16A.6701, subd. 1 296.06 296A.03 58.20 16A.6701, subd. 1 296.12 296A.04 58.21 16A.6701, subd. 1 296.17 296A.27 58.22 41A.09, subd. 7 296.01 296A.01 58.23 84.794, subd. 1 296.16 296A.18 58.24 84.803, subd. 1 296.16 296A.18 58.25 84.83, subd. 2 296.16 296A.18 58.26 84.927, subd. 1 296.16 296A.18 58.27 89.70 296.421, subd. 8 296A.18, subd. 7 58.28 89.72 296.421, subd. 8 296A.18, subd. 7 58.29 115C.02, subd. 10 296.01 296A.01 58.30 115C.08, subd. 3 296.01, 1st ref. 296A.01 58.31 115C.08, subd. 3 296.141 296A.15 58.32 115C.08, subd. 3 296.01, 2nd ref. 296A.01 58.33 115C.08, subd. 3 296.15 296A.22 58.34 124.83, subd. 2 296.01 296A.01 58.35 124A.22, subd. 11 296.01 296A.01 58.36 168.187, subd. 26 296.171 296A.28 59.1 221.221, subd. 2 296.17, subds. 296A.27, subds. 6 59.2 10 and 17 and 12 59.3 221.221, subd. 2 chapter 296 chapter 296A 59.4 239.011, subd. 2 chapter 296 chapter 296A 59.5 239.05, subd. 8b 296.06 296A.03 59.6 239.05, subd. 8e 296.01, subd. 8 296A.01, subd. 23 59.7 239.05, subd. 12b 296.01, subds. 2, 296A.01, subds. 2, 59.8 7, 8, 10, 13, 14, 7, 8, 10, 14, 16, 59.9 and 17 to 22 19, 20, 22 to 26, 59.10 28, 32, and 35 59.11 239.101, subd. 3 chapter 296 chapter 296A 59.12 239.761, subd. 2 296.01 296A.01 59.13 239.785, subd. 3 296.15 296A.22 59.14 239.785, subd. 3 296.25 296A.23 59.15 239.785, subd. 4 chapter 296 chapter 296A 59.16 270.101, subd. 1 chapter 296 chapter 296A 59.17 282.322 chapter 296 chapter 296A 59.18 297A.25, subd. 7 chapter 296 chapter 296A 59.19 297A.25, subd. 7 296.01, subd. 27a 296A.01, subd. 39 59.20 297A.25, subd. 7 296.18, subd. 1, 296A.16, subd. 2, 59.21 clause (2) clause (2) 59.22 325E.35, subd. 9 296.01 296A.01 59.23 353A.01, subd. 2 chapter 296 chapter 296A 59.24 458A.30 chapter 296 chapter 296A 59.25 514.950, subd. 10 296.01 296A.01 59.26 Sec. 31. [REPEALER.] 59.27 Minnesota Statutes 1996, sections 296.01; 296.02, 59.28 subdivisions 1, 1a, 1b, 1c, 2, 3, 4, 6, and 8; 296.025; 59.29 296.0261; 296.035; 296.04; 296.041; 296.06; 296.11; 296.115; 59.30 296.12; 296.141, subdivisions 1, 2, 3, 5, 6, and 7; 296.15; 59.31 296.151; 296.152; 296.16, subdivisions 1a and 2; 296.165; 59.32 296.17, subdivisions 1, 3, 5, 6, 7, 8, 9, 10, 11, 14, 15, 16, 59.33 17, 19, 20, 21, and 22; 296.171, subdivisions 1, 2, 3, 5, 6, 7, 59.34 8, 9, and 10; 296.18, subdivisions 2, 3, 4, 5, 6, and 8; 296.19; 59.35 296.20; 296.21; 296.23; 296.25; 296.26; 296.27; and 296.421; 59.36 Minnesota Statutes 1997 Supplement, sections 296.141, 60.1 subdivision 4; 296.16, subdivision 1; 296.17, subdivision 18; 60.2 296.171, subdivision 4; and 296.18, subdivision 1, are repealed. 60.3 Sec. 32. [EFFECTIVE DATE.] 60.4 Sections 1, 2, 13, 14, 18, and 27 to 29 are effective the 60.5 day following final enactment. Sections 3 to 12, 15 to 17, 19, 60.6 21, 22, 25, and 26 are effective for returns, reports, refunds, 60.7 taxes, or other payments first becoming due on or after July 1, 60.8 1998. Section 20 is effective for audits or investigations 60.9 initiated on or after July 1, 1998. Section 23 is effective for 60.10 crimes committed on or after July 1, 1998. Sections 24 and 31 60.11 are effective July 1, 1998.