Minnesota Session Laws - 1988, Regular Session

  

                         Laws of Minnesota 1988 

                        CHAPTER 450-S.F.No. 852 
           An act relating to taxes; exempting from gasoline 
          excise tax propane fuel for vehicles operating under 
          permit; amending Minnesota Statutes 1986, sections 
          296.01, subdivision 25; 296.02, subdivision 1a; 
          296.025, subdivision 1a; 296.026; and 296.028. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1986, section 296.01, 
subdivision 25, is amended to read:  
    Subd. 25.  [ANNUAL COMPRESSED NATURAL GAS USER ALTERNATE 
FUEL PERMIT.] "Annual compressed natural gas user Alternate fuel 
permit" means a permit issued annually to a person owning a 
motor vehicle propelled by compressed natural gas or propane 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 1986, section 296.02, 
subdivision 1a, is amended to read:  
    Subd. 1a.  [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 compressed natural gas or propane for use 
in vehicles propelled by compressed natural gas and displaying a 
valid annual compressed natural gas user alternate fuel permit. 
    Sec. 3.  Minnesota Statutes 1986, section 296.025, 
subdivision 1a, is amended to read:  
    Subd. 1a.  [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 compressed natural gas or propane for use 
in vehicles propelled by compressed natural gas and displaying a 
valid annual compressed natural gas user alternate fuel permit. 
    Sec. 4.  Minnesota Statutes 1986, section 296.026, is 
amended to read:  
    296.026 [SPECIAL FUEL; ANNUAL COMPRESSED NATURAL GAS USER 
PERMIT FOR VEHICLES USING COMPRESSED NATURAL GAS OR PROPANE.] 
    Subdivision 1.  [COMPRESSED NATURAL GAS ANNUAL USER 
ALTERNATE FUEL PERMIT.] Any person owning a motor vehicle 
propelled by compressed natural gas or propane shall obtain an 
annual compressed natural gas user permit for each such 
vehicle.  The period for which a compressed natural gas user the 
alternate fuel 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 of compressed 
natural gas or propane.  
    Subd. 2.  [PERMIT FEES IMPOSED.] The fees for annual 
compressed natural gas user alternate fuel permits are based on 
each vehicle's mileage in the preceding year and are as follows: 
               Gross Vehicle Weight             Fee 
               Under 6,000 pounds         $7.50 per 1,000 miles
               6,001  - 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.  A 
log with validating receipts pertaining to the vehicle's out of 
state mileage may be supplied to the commissioner of public 
safety at the time of permit application to be subtracted from 
the actual mileage for the purpose of calculating the permit 
fee.  If no true cumulative mileage figures are available for 
the preceding year, the fee charged under this section shall 
must be based on 15,000 miles driven within the state. 
    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 an annual alternate fuel 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, and the type of fuel 
used; 
    (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 an alternate fuel permit and collect 
the fee provided in this section. 
    Subd. 4.  [PERMIT STICKERS.] The compressed natural gas 
user alternate fuel 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 An alternate fuel 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 with a 
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 an alternate 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 alternate fuel 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 alternate fuel permit 
fees. 
    Subd. 6.  [MOTOR VEHICLE CONVERSION REPORT.] Any A person 
who installs equipment in a motor vehicle to permit it to be 
powered by compressed natural gas or propane 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 or propane sold as a fuel for motor vehicles displaying 
valid annual compressed natural gas alternate fuel permit 
stickers is not subject to any additional tax at the time of 
sale.  All compressed natural gas user alternate fuel permit 
fees collected by the department of public safety must be 
deposited in the state treasury and credited to the highway user 
tax distribution fund. 
    Sec. 5.  Minnesota Statutes 1986, section 296.028, is 
amended to read:  
    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 alternate fuel permits 
issued; the impact of fees collected under section 296.026 on 
the highway user tax distribution fund; the percentage of usage 
of compressed natural gas and gasoline or propane used by 
vehicles utilizing fueled by both gasoline and one of the 
alternate 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 or propane as a motor 
vehicle fuel. 
    Approved April 4, 1988