Minnesota Session Laws - 1985, Regular Session

  

                         Laws of Minnesota 1985 

                        CHAPTER 128-S.F.No. 352 
           An act relating to taxation; providing for an annual 
          compressed natural gas user permit; establishing 
          compressed natural gas user permit fees in lieu of gas 
          taxes; requiring a report to the legislature; 
          providing a penalty; amending Minnesota Statutes 1984, 
          sections 296.01, by adding a subdivision; 296.02, 
          subdivision 1a; and 296.025, subdivision 1a; proposing 
          coding for new law in Minnesota Statutes, chapter 296. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1984, section 296.01, is 
amended by adding a subdivision to read: 
    Subd. 25.  [ANNUAL COMPRESSED NATURAL GAS USER 
PERMIT.] "Annual compressed natural gas user permit" means a 
permit issued annually to a person owning a motor vehicle 
propelled by compressed natural gas for a fee imposed in lieu of 
payment of the gasoline excise tax imposed by sections 296.02 
and 296.025. 
    Sec. 2.  Minnesota Statutes 1984, section 296.02, 
subdivision 1a, is amended to read: 
    Subd. 1a.  [EXCEPTION EXCEPTIONS.] The provisions of 
subdivision 1 do not apply to gasoline purchased by a transit 
system owned by one or more statutory or home rule charter 
cities or towns or to sales of special fuel for use in vehicles 
propelled by compressed natural gas and displaying a valid 
annual compressed natural gas user permit. 
    Sec. 3.  Minnesota Statutes 1984, section 296.025, 
subdivision 1a, is amended to read: 
    Subd. 1a.  [EXCEPTION EXCEPTIONS.] The provisions of 
subdivision 1 do not apply to special fuel purchased by a 
transit system owned by one or more statutory or home rule 
charter cities or towns or to sales of special fuel for use in 
vehicles propelled by compressed natural gas and displaying a 
valid annual compressed natural gas user permit. 
    Sec. 4.  [296.026] [SPECIAL FUEL; ANNUAL COMPRESSED NATURAL 
GAS USER PERMIT.] 
     Subdivision 1.  [COMPRESSED NATURAL GAS ANNUAL USER 
PERMIT.] Any person owning a motor vehicle propelled by 
compressed natural gas shall obtain an annual compressed natural 
gas user permit for each such vehicle.  The period for which a 
compressed natural gas user permit is valid must coincide with 
the motor vehicle registration period of the vehicle.  A person 
shall obtain all required compressed natural gas user permits 
within 30 days of becoming a compressed natural gas user.  
    Subd. 2.  [PERMIT FEES IMPOSED.] The fees for annual 
compressed natural gas user permits are based on each vehicle's 
mileage in the preceding year and are as follows: 
               Gross Vehicle Weight       Fee 
               Under 12,000 pounds        $ 9 per 1,000 miles 
               12,00l - 18,000 pounds     $16 per 1,000 miles 
               18,001 - 26,000 pounds     $23 per 1,000 miles 
               26,001 - 36,000 pounds     $27 per 1,000 miles 
               Over 36,000 pounds         $34 per 1,000 miles 
    The maximum fee for an annual compressed natural gas user 
permit for vehicles in all gross vehicle weight classes shall 
not exceed the fee charged for 22,000 actual miles driven.  If 
no true cumulative mileage figures are available for the 
preceding year, the fee charged under this section shall be 
based on 15,000 miles driven. 
    The fee for a permit required by this section must be 
calculated based on the number of unexpired months remaining in 
the registration year of the vehicle as measured from the date 
of the occurrence of the event requiring the permit. 
    Subd. 3.  [PERMIT APPLICATIONS.] A person shall apply for a 
compressed natural gas user permit for each motor vehicle 
specified in this section each time the vehicle is registered. 
The commissioner of public safety shall prescribe the form of 
the application.  The form must require the applicant to provide 
the following information: 
     (1) the name and address of the owner or person licensing 
the vehicle; 
    (2) a description of the vehicle, including the mileage on 
the vehicle as of the date of registration; 
    (3) the true cumulative mileage registered on the odometer; 
and 
    (4) other information necessary for the proper 
implementation of this section. 
    A completed application must be submitted to the department 
of public safety.  The department of public safety shall issue a 
compressed natural gas user permit and collect the fee provided 
in this section. 
    Subd. 4.  [PERMIT STICKERS.] The compressed natural gas 
user permit required by this section must be a gummed sticker 
prepared by the department of public safety.  The permit must be 
attached to the lower left corner of the windshield of the motor 
vehicle for which it was issued.  The permit must provide a 
space to enter the license number of the motor vehicle for which 
the permit is issued.  The permit must show the year for which 
it is issued and the date of expiration of the permit. 
    Subd. 5.  [PERMIT NOT TRANSFERABLE.] A compressed natural 
gas user permit is not transferable, either to a new vehicle or 
to a new owner.  Upon the transfer of ownership of any motor 
vehicle having a compressed natural gas user permit, the 
department of public safety shall credit the transferor with the 
number of unexpired months remaining in the registration period, 
except that when such a vehicle is transferred within the same 
month in which acquired, no credit for the month is allowed.  If 
such a transferor acquires another motor vehicle for which a 
special fuel user permit is required at the time of transfer, 
the credit provided by this section must be applied toward 
payment of the compressed natural gas user permit fee then due. 
Otherwise the transferor may file a claim for the amount of the 
credit with the commissioner upon a form prescribed by the 
commissioner.  The department shall make payment of the claim 
from the undistributed compressed natural gas user permit fees. 
    Subd. 6.  [MOTOR VEHICLE CONVERSION REPORT.] Any person who 
installs equipment in a motor vehicle to permit it to be powered 
by compressed natural gas shall report the installation to the 
department of public safety within 30 days.  The report must 
include the name and address of the owner of the vehicle, the 
make, model, and serial number of the vehicle, the type of fuel 
that the vehicle was equipped to use prior to the installation, 
the true cumulative mileage registered on the odometer, and, if 
the vehicle is registered, the license plate number of the 
vehicle. 
    Subd. 7.  [FEES IN LIEU OF GAS TAX.] The permit fees 
collected under subdivision 2 are in lieu of the gasoline excise 
tax imposed by sections 296.02 and 296.025.  Compressed natural 
gas sold as a fuel for motor vehicles displaying valid annual 
compressed natural gas permit stickers is not subject to any 
additional tax at the time of sale.  All compressed natural gas 
user fees collected by the department of public safety must be 
deposited in state treasury and credited to the highway user tax 
distribution fund. 
    Sec. 5.  [296.027] [PENALTY.] 
    Any person who provides false information, including but 
not limited to false odometer readings, or who otherwise fails 
to comply with the provisions of section 4, subdivisions 3 and 
6, is guilty of a misdemeanor. 
    Sec. 6.  [296.028] [REPORT TO THE LEGISLATURE.] 
    The commissioner of public safety, in cooperation with the 
commissioner of revenue, the commissioner of transportation, and 
the director of the department of public service, shall report 
to the legislature by October 1, 1988, on the number of annual 
compressed natural gas user permits issued; the impact of fees 
collected under section 4 on the highway user tax distribution 
fund; the percentage of usage of compressed natural gas and 
gasoline by vehicles utilizing both fuels; the impact of 
consumption of compressed natural gas on natural gas rates 
charged by regulated public utilities; and the costs to 
utilities of expenses incurred for equipment and marketing 
compressed natural gas as a motor vehicle fuel. 
    Sec. 7.  [EFFECTIVE DATE.] 
    Sections 1 to 6 are effective October 1, 1985. 
    Approved May 17, 1985