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SF 988

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/26/2021 10:12am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to taxation; sales and use; authorizing political subdivisions to impose a
local sales tax on motor fuels to fund construction, reconstruction, and maintenance
of transportation infrastructure; amending Minnesota Statutes 2020, section
239.7511; proposing coding for new law in Minnesota Statutes, chapter 297A.

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

Section 1.

Minnesota Statutes 2020, section 239.7511, is amended to read:


239.7511 GAS TAX SIGN ON PETROLEUM DISPENSER.

(a) The director must ensure that signs having 12-point font or greater are affixed on
retail petroleum dispensers as follows:

(1) for regular or premium gasoline, a sign that reads: "The price for each gallon of
gasoline includes the current state gasoline tax of 28.5 cents per gallon and federal gasoline
tax of 18.4 cents per gallon. Revenue from the state fuel tax may be used only for roads and
bridges, according to the Minnesota Constitution."; and

(2) for diesel fuel, a sign that reads: "The price for each gallon of diesel fuel includes
the current state gasoline tax of 28.5 cents per gallon and federal gasoline tax of 24.4 cents
per gallon. Revenue from the state fuel tax may be used only for roads and bridges, according
to the Minnesota Constitution."

(b)new text begin A political subdivision imposing a local tax on motor fuels under section 297A.9935
must ensure that signs having 12-point font or greater are affixed on retail petroleum
dispensers that state the amount of tax attributable to taxes imposed by the political
subdivision and a statement that reads:
new text end

new text begin "Revenue from a local motor fuels tax may be used to fund construction, reconstruction,
and maintenance of transportation infrastructure, according to state law."
new text end

new text begin (c)new text end The director must distribute the signs under this section to the owner or operator of
retail petroleum dispensers. To the extent possible, the director must coordinate the
distribution of signs with other duties the director may have involving retail petroleum
dispensers.

deleted text begin (c)deleted text endnew text begin (d)new text end If the amount of the gasoline tax described in paragraph (a), clauses (1) and (2),new text begin
or (b)
new text end changes, the director new text beginor political subdivision new text endmust distribute revised signs to reflect
the updated gasoline tax amounts within 12 calendar months of the change.

deleted text begin (d)deleted text endnew text begin (e)new text end The director is prohibited from assessing any penalty, fine, or fee on the owner
or operator of a retail petroleum dispenser that has a missing, destroyed, defaced, or otherwise
damaged gas tax sign.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

new text begin [297A.9935] LOCAL TAXES ON MOTOR FUELS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Motor fuels" has the meaning given in section 296A.01, subdivision 33, and includes
fuel used for marine use.
new text end

new text begin (c) "Political subdivision" means any county, statutory or home rule charter city, or
township of this state.
new text end

new text begin (d) "Transportation infrastructure" includes but is not limited to any of the following
that are under the jurisdiction of the political subdivision imposing the tax: highways; streets
and bridges; transit vehicles; and transit facilities.
new text end

new text begin Subd. 2. new text end

new text begin Authorization. new text end

new text begin Notwithstanding sections 297A.99, subdivisions 1, 2, 3, 5, and
13; 297A.995, subdivision 6, paragraph (f), clause (1); or 477A.016, or any other law or
charter provision, a political subdivision of this state may impose a sales tax on the retail
sale of motor fuel used in producing and generating power for propelling motor vehicles
used on the public highways of this state.
new text end

new text begin Subd. 3. new text end

new text begin Approval by governing board required; rates. new text end

new text begin Following a public hearing,
a governing body of a political subdivision of this state may by resolution impose a tax
authorized under this section at a rate to be determined by the political subdivision.
new text end

new text begin Subd. 4. new text end

new text begin Use of revenue. new text end

new text begin The revenues derived from a tax authorized by this section
must be used by the political subdivision imposing the tax to pay (1) the capital costs of
construction, reconstruction, and maintenance of transportation infrastructure, (2) costs of
securing and paying debt service on the capital costs of construction, reconstruction, and
maintenance of transportation infrastructure, and (3) the costs of collecting and administering
the tax.
new text end

new text begin Subd. 5. new text end

new text begin Exemptions. new text end

new text begin (a) Entities exempt from the motor fuels excise taxes under
sections 296A.07, subdivision 4; and 296A.08, subdivision 3, are exempt from a tax imposed
under this section.
new text end

new text begin (b) The retail sale of dyed fuel is exempt from a tax imposed under this section.
new text end

new text begin Subd. 6. new text end

new text begin Limitation on other local sales taxes. new text end

new text begin (a) A political subdivision that imposes
a tax under section 297A.99, the proceeds of which are used to fund transportation-related
projects, is prohibited from imposing a tax under this section until the tax imposed under
section 297A.99 has expired.
new text end

new text begin (b) A political subdivision that imposes a tax under this section is prohibited from using
revenue derived from a new tax imposed under section 297A.99 for costs of improvements
to transportation infrastructure.
new text end

new text begin Subd. 7. new text end

new text begin Enforcement; collection; and administration. new text end

new text begin The administration, collection,
and enforcement provisions in section 297A.99, subdivisions 4, 9, 11, and 12, apply to all
taxes imposed under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end