1st Engrossment - 90th Legislature (2017 - 2018) Posted on 11/09/2017 11:33am
A bill for an act
relating to taxation; special fuels; modifying the tax rate on compressed natural
gas; amending Minnesota Statutes 2016, sections 296A.01, subdivision 12;
296A.08, subdivision 2.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Minnesota Statutes 2016, section 296A.01, subdivision 12, is amended to read:
"Compressed natural gas" or "CNG"
means natural gas, primarily methane, condensed under high pressure and stored in specially
designed storage tanks at between 2,000 and 3,600 pounds per square inch. For purposes
of this chapter, the energy content of CNG is considered to be deleted text begin 1,000deleted text end new text begin 900new text end BTUs per cubic
foot.
new text begin
This section is effective for sales and purchases made after June
30, 2017.
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Minnesota Statutes 2016, section 296A.08, subdivision 2, is amended to read:
The special fuel excise tax is imposed at the following rates:
(a) Liquefied petroleum gas or propane is taxed at the rate of 18.75 cents per gallon.
(b) Liquefied natural gas is taxed at the rate of 15 cents per gallon.
(c) Compressed natural gas is taxed at the rate of deleted text begin $2.174deleted text end new text begin $1.974new text end per thousand cubic feet;
or 25 cents per gasoline equivalent. For purposes of this paragraph, "gasoline equivalent,"
as defined by the National Conference on Weights and Measures, is 5.66 pounds of natural
gasnew text begin or 126.67 cubic feetnew text end .
(d) All other special fuel is taxed at the same rate as the gasoline excise tax as specified
in section 296A.07, subdivision 2. The tax is payable in the form and manner prescribed
by the commissioner.
new text begin
This section is effective for sales and purchases made after June
30, 2017.
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