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SF 3691

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/04/2022 08:27am

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to taxation; sales and use; providing an exemption for fees related to certain
sales and purchases of natural gas.

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

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

new text begin Subdivision 1. new text end

new text begin Exemption. new text end

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

new text begin (1) the fee for the natural gas is subject to a cost recovery plan for the price increase in
natural gas during the period February 13, 2021, to February 17, 2021, identified in docket
G-199/CI-21-135 before the Minnesota Public Utilities Commission; and
new text end

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

new text begin Subd. 2. new text end

new text begin Application; refund. new text end

new text begin (a) By October 1, 2022, each utility must apply to the
commissioner of revenue for a refund of sales taxes collected and remitted pursuant to
Minnesota Statutes, section 297A.77, on fees for sales and purchases of natural gas subject
to a cost recovery plan under subdivision 1, clause (1), that were added to residential
customers' bills for the period beginning September 1, 2021, and ending June 30, 2022.
new text end

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

new text begin (1) the utility must provide a plan to the Minnesota Public Utilities Commission for
crediting taxes exempt under subdivision 1 to residential customers; and
new text end

new text begin (2) any amount not refunded or credited to a residential customer by a utility must be
returned to the commissioner by the utility.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for fees applied to sales
and purchases of natural gas made after February 12, 2021, and before February 18, 2021,
that are billed from September 1, 2021, to December 31, 2026.
new text end