Minnesota Legislature
SF 269
1st Engrossment - 89th Legislature (2015 - 2016) Posted on 04/22/2015 09:27am
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A bill for an act
relating to taxation; petroleum; dedicating revenues from the aviation taxes
on gasoline used as substitute for aviation gasoline to the state airports fund;
amending Minnesota Statutes 2014, sections 296A.01, by adding a subdivision;
296A.07, subdivision 4; 296A.09, subdivisions 1, 3, 5, 6; 296A.15, subdivisions
1, 4; 296A.17, subdivisions 1, 2, 3; 296A.18, subdivisions 1, 8; 296A.19,
subdivision 1; repealing Minnesota Rules, part 8125.1300, subpart 3.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2014, section 296A.01, is amended by adding a
subdivision to read:
new text begin Subd. 13a. new text end
new text begin Dealer of gasoline used as a substitute for aviation gasoline. new text end
new text begin
"Dealer
of gasoline used as a substitute for aviation gasoline" means any person who sells gasoline
on the premises of an airport as defined under section 360.013, subdivision 39, to be
dispensed directly into the fuel tank of an aircraft.
new text end
Sec. 2.
Minnesota Statutes 2014, section 296A.07, subdivision 4, is amended to read:
Subd. 4.
Exemptions.
The provisions of subdivision 1 do not apply to gasoline or
denatured ethanol purchased by:
(1) a transit system or transit provider receiving financial assistance or
reimbursement under section 174.24, 256B.0625, subdivision 17, or 473.384;
(2) providers of transportation to recipients of medical assistance home and
community-based services waivers enrolled in day programs, including adult day care,
family adult day care, day treatment and habilitation, prevocational services, and
structured day services;
(3) an ambulance service licensed under chapter 144E;
(4) providers of medical or dental services by a federally qualified health center,
as defined under title 19 of the Social Security Act, as amended by Section 4161 of the
Omnibus Budget Reconciliation Act of 1990, with a motor vehicle used exclusively as a
mobile medical unit; deleted text begin or
deleted text end
(5) a licensed distributor to be delivered to a terminal for use in blendingnew text begin ; or
new text end
new text begin (6) a dealer of gasoline used as a substitute for aviation gasolinenew text end .
Sec. 3.
Minnesota Statutes 2014, section 296A.09, subdivision 1, is amended to read:
Subdivision 1.
Gasoline tax imposed.
Subject to any refunds or credits there is
imposed an excise tax, at the rate of five cents per gallon on all aviation gasoline received,
sold, stored, or withdrawn from storage in this statenew text begin and on all gasoline used as a substitute
for aviation gasolinenew text end . Aviation gasoline is defined in section 296A.01, subdivision 7.
Sec. 4.
Minnesota Statutes 2014, section 296A.09, subdivision 3, is amended to read:
Subd. 3.
Exception to tax for aviation use.
The provisions of subdivisions 1 and
2 do not apply to new text begin gasoline, new text end aviation gasoline or special fuel purchased and placed in the
fuel tanks of an aircraft outside the state, even though the gasoline may be consumed
within this state.
Sec. 5.
Minnesota Statutes 2014, section 296A.09, subdivision 5, is amended to read:
Subd. 5.
Tax not on consumption.
The taxes imposed by subdivisions 1 and 2 are
expressly declared not to be a tax upon consumption of new text begin gasoline, new text end aviation gasoline or
special fuel by an aircraft.
Sec. 6.
Minnesota Statutes 2014, section 296A.09, subdivision 6, is amended to read:
Subd. 6.
Exemptions.
The provisions of subdivisions 1 and 2 do not apply to
new text begin gasoline used as a substitute for aviation gasoline, new text end aviation gasoline or jet fuel purchased
by an ambulance service licensed under chapter 144E.
Sec. 7.
Minnesota Statutes 2014, section 296A.15, subdivision 1, is amended to read:
Subdivision 1.
Monthly gasoline report; shrinkage allowance.
(a) Except
as provided in paragraph (e), on or before the 23rd day of each month, every person
who is required to pay a gasoline tax shall file with the commissioner a report, in the
form and manner prescribed by the commissioner, showing the number of gallons of
petroleum products received by the reporter during the preceding calendar month, and
other information the commissioner may require. A written report is deemed to have
been filed as required in this subdivision if postmarked on or before the 23rd day of the
month in which the tax is payable.
(b) The number of gallons of gasoline must be reported in United States standard
liquid gallons, 231 cubic inches, except that the commissioner may upon written
application and for cause shown permit the distributor to report the number of gallons of
gasoline as corrected to a temperature of 60-degrees Fahrenheit. If the application is
granted, all gasoline covered in the application and allowed by the commissioner must
continue to be reported by the distributor on the adjusted basis for a period of one year
from the date of the granting of the application. The number of gallons of petroleum
products other than gasoline must be reported as originally invoiced. Each report must
show separately the number of gallons of aviation gasoline received by the reporter during
each calendar monthnew text begin and the number of gallons of gasoline sold to a dealer of gasoline
used as a substitute for aviation fuel during each calendar monthnew text end .
(c) Each report must also include the amount of gasoline tax on gasolinenew text begin , and the
amount of aviation tax on gasoline used as a substitute for aviation gasoline,new text end received by
the reporter during the preceding month. In computing the tax a deduction of 2.5 percent
of the quantity of gasoline received by a distributor shall be made for evaporation and loss.
At the time of reporting, the reporter shall submit satisfactory evidence that one-third of
the 2.5 percent deduction has been credited or paid to dealers on quantities sold to them.
(d) Each report shall contain a confession of judgment for the amount of the tax
shown due to the extent not timely paid.
(e) Under certain circumstances and with the approval of the commissioner,
taxpayers may be allowed to file reports annually.
Sec. 8.
Minnesota Statutes 2014, section 296A.15, subdivision 4, is amended to read:
Subd. 4.
Failure to use or sell for intended purpose; report required.
(a) Any
person who buys new text begin gasoline from a dealer of gasoline used as a substitute for aviation
gasoline, or buys new text end aviation gasoline or special fuel for aircraft use and who has paid the
excise taxes due directly or indirectly through the amount of the tax being included in the
price, or otherwise, and uses said gasoline or special fuel in motor vehicles or knowingly
sells it to any person for use in motor vehicles shall, on or before the 23rd day of the month
following that in which such gasoline or special fuel was so used or sold, report the fact of
the use or sale to the commissioner in the form and manner prescribed by the commissioner.
(b) Any person who buys gasoline other than aviation gasoline and who has paid the
motor vehicle gasoline excise tax directly or indirectly through the amount of the tax being
included in the price of the gasoline, or otherwise, who knowingly sells such gasoline to any
person to be used for the purpose of producing or generating power for propelling aircraft,
or who receives, stores, or withdraws from storage gasoline to be used for that purpose,
shall, on or before the 23rd day of the month following that in which such gasoline was so
sold, stored, or withdrawn from storage, report the fact of the sale, storage, or withdrawal
from storage to the commissioner in the form and manner prescribed by the commissioner.
Sec. 9.
Minnesota Statutes 2014, section 296A.17, subdivision 1, is amended to read:
Subdivision 1.
Aviation refund requirements.
Any person claiming to be entitled
to any refund or credit provided for in subdivision 3 shall receive the refund or credit
upon filing with the commissioner a claim in such form and manner prescribed by the
commissioner. The claim shall set forth, among other things, the total number of gallons
of new text begin gasoline used as a substitute for aviation gasoline, new text end aviation gasoline or special fuel
for aircraft use upon which the claimant has directly or indirectly paid the excise tax
provided for in this chapter, during the calendar year, which has been received, stored, or
withdrawn from storage by the claimant in this state and not sold or otherwise disposed of
to others. All claims for refunds under this subdivision shall be made on or before April
30 following the end of the calendar year for which the refund is claimed.
Sec. 10.
Minnesota Statutes 2014, section 296A.17, subdivision 2, is amended to read:
Subd. 2.
Claim for refund; aviation tax.
(a) Any person who buys new text begin gasoline used
as a substitute for aviation gasoline, new text end aviation gasoline or special fuel for aircraft use and
who has paid the excise taxes directly or indirectly through the amount of the tax being
included in the price, or otherwise, who does not use it in motor vehicles or receive, sell,
store, or withdraw it from storage for the purpose of producing or generating power for
propelling aircraft, shall be reimbursed and repaid the amount of the tax paid upon filing
with the commissioner a claim in the form and manner prescribed by the commissioner.
The claim shall state the total amount of the new text begin gasoline used as a substitute for aviation
gasoline, new text end aviation gasoline or special fuel for aircraft use purchased and used by the
applicant, and shall state when and for what purpose it was used. On being satisfied that
the claimant is entitled to payment, the commissioner shall approve the claim and transmit
it to the commissioner of management and budget. The postmark on the envelope in
which a written claim is mailed determines the date of filing.
(b) If a claim contains an error in preparation in computation or preparation, the
commissioner is authorized to adjust the claim in accordance with the evidence shown on
the claim or other information available to the commissioner.
(c) An applicant who files a claim that is false or fraudulent, is subject to the
penalties provided in section 296A.23 for knowingly and willfully making a false claim.
Sec. 11.
Minnesota Statutes 2014, section 296A.17, subdivision 3, is amended to read:
Subd. 3.
Refund on graduated basis.
Any person who has directly or indirectly
paid the excise tax on new text begin gasoline used as a substitute for aviation gasoline, new text end aviation gasoline
or special fuel for aircraft use provided for by this chapter and the airflight property tax
under section 270.072 shall, as to all such new text begin gasoline used as a substitute for aviation
gasoline, new text end aviation gasoline and special fuel received, stored, or withdrawn from storage
by the person in this state in any calendar year and not sold or otherwise disposed of to
others, or intended for sale or other disposition to others, on which such tax has been so
paid, be entitled to the following graduated reductions in such tax for that calendar year, to
be obtained by means of the following refunds:
(1) on each gallon of deleted text begin suchdeleted text end new text begin gasoline used as a substitute for aviation gasoline, new text end aviation
gasoline or special fuel up to 50,000 gallons, all but five cents per gallon;
(2) on each gallon of deleted text begin suchdeleted text end new text begin gasoline used as a substitute for aviation gasoline, new text end aviation
gasoline or special fuel above 50,000 gallons and not more than 150,000 gallons, all
but two cents per gallon;
(3) on each gallon of deleted text begin suchdeleted text end new text begin gasoline used as a substitute for aviation gasoline, new text end aviation
gasoline or special fuel above 150,000 gallons and not more than 200,000 gallons, all
but one cent per gallon;
(4) on each gallon of deleted text begin suchdeleted text end new text begin gasoline used as a substitute for aviation gasoline, new text end aviation
gasoline or special fuel above 200,000, all but one-half cent per gallon.
Sec. 12.
Minnesota Statutes 2014, section 296A.18, subdivision 1, is amended to read:
Subdivision 1.
Intent; gasoline use.
All gasoline received in this state and all
gasoline produced in or brought into this state except aviation gasolinenew text begin , gasoline sold to a
dealer of gasoline used as a substitute for aviation gasoline,new text end and marine gasoline shall be
determined to be intended for use in motor vehicles in this state.
Sec. 13.
Minnesota Statutes 2014, section 296A.18, subdivision 8, is amended to read:
Subd. 8.
Airports.
The revenues derived from the excise taxes on new text begin gasoline used
as a substitute for aviation gasoline, new text end aviation gasoline and on special fuel received, sold,
stored, or withdrawn from storage as substitutes for aviation gasoline, shall be paid into
the state treasury and credited to the state airports fund. There is hereby appropriated such
sums as are needed to carry out the provisions of this subdivision.
Sec. 14.
Minnesota Statutes 2014, section 296A.19, subdivision 1, is amended to read:
Subdivision 1.
Retention.
All distributors, dealers, special fuel dealers, bulk
purchasersnew text begin , dealers of gasoline used as a substitute for aviation gasolinenew text end , and all users of
special fuel shall keep a true and accurate record of all purchases, transfers, sales, and use
of petroleum products and special fuel, including copies of all sales tickets issued, in a form
and manner approved by the commissioner, and shall retain all such records for 3-1/2 years.
Sec. 15. new text begin REPEALER.
new text end
new text begin
Minnesota Rules, part 8125.1300, subpart 3,
new text end
new text begin
is repealed.
new text end
Sec. 16. new text begin EFFECTIVE DATE.
new text end
new text begin
Sections 1 to 14 are effective for sales and purchases made after June 30, 2015.
Section 15 is effective the day following final enactment.
new text end