Office of the Revisor of Statutes
Minnesota Session Laws - 1998, Regular Session
Key: (1) language to be deleted (2) new language
CHAPTER 299-S.F.No. 2266
An act relating to taxation; recodifying the tax on
petroleum and special fuels; providing civil and
criminal penalties; appropriating money; proposing
coding for new law as Minnesota Statutes, chapter
296A; repealing Minnesota Statutes 1996, sections
296.01; 296.02, subdivisions 1, 1a, 1b, 1c, 2, 3, 4,
6, and 8; 296.025; 296.0261; 296.035; 296.04; 296.041;
296.06; 296.11; 296.115; 296.12; 296.141, subdivisions
1, 2, 3, 5, 6, and 7; 296.15; 296.151; 296.152;
296.16, subdivisions 1a and 2; 296.165; 296.17,
subdivisions 1, 3, 5, 6, 7, 8, 9, 10, 11, 14, 15, 16,
17, 19, 20, 21, and 22; 296.171, subdivisions 1, 2, 3,
5, 6, 7, 8, 9, and 10; 296.18, subdivisions 2, 3, 4,
5, 6, and 8; 296.19; 296.20; 296.21; 296.23; 296.25;
296.26; 296.27; and 296.421; Minnesota Statutes 1997
Supplement, sections 296.141, subdivision 4; 296.16,
subdivision 1; 296.17, subdivision 18; 296.171,
subdivision 4; and 296.18, subdivision 1.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. [296A.01] [DEFINITIONS.]
Subdivision 1. [TERMS.] Unless the language or context
clearly indicates that a different meaning is intended, the
terms used in this chapter and sections 239.75 to 239.80 have
the meanings given them in this section. The petroleum product
definitions and specifications are intended to match the
definitions and specifications in sections 41A.09 and 239.761.
Subd. 2. [AGRICULTURAL ALCOHOL GASOLINE.] "Agricultural
alcohol gasoline" means a gasoline-ethanol blend of up to ten
percent agriculturally derived fermentation ethanol derived from
agricultural products, such as potatoes, cereal, grains, cheese
whey, sugar beets, forest products, or other renewable
resources, that:
(1) meets the specifications in ASTM specification D
4806-95b; and
(2) is denatured as specified in Code of Federal
Regulations, title 27, parts 20 and 21.
Subd. 3. [AIRCRAFT.] "Aircraft" means any contrivance, now
or hereafter invented, used or designed for navigation of or
flight in the air.
Subd. 4. [ALTERNATIVE FUEL.] "Alternative fuel" means
natural gas; liquefied petroleum gas; hydrogen; coal-derived
liquefied fuels; electricity; methanol, denatured ethanol, and
other alcohols; mixtures containing 85 percent or more, or other
percentage as may be set by regulation by Secretary of the
United States Department of Energy, by volume of methanol,
denatured ethanol, and other alcohols with gasoline or other
fuels; fuels other than alcohol that are derived from biological
materials; and other fuels that the Secretary of the United
States Department of Energy determines by regulation to be an
alternative fuel within the meaning of section 301(2) of the
National Energy Policy Act of 1992 and intended for use in motor
vehicles.
Subd. 5. [ALTERNATIVE FUEL VEHICLE.] "Alternative fuel
vehicle" means a dedicated, flexible, or dual-fuel vehicle
operated primarily on alternative fuel.
Subd. 6. [ASTM.] "ASTM" means the American Society for
Testing and Materials, which is a private organization that
utilizes committees of industry representatives and regulators
to develop product quality standards and test methods to be used
by industries, regulatory agencies, and purchasing agents.
Subd. 7. [AVIATION GASOLINE.] "Aviation gasoline" means
any gasoline that is capable of use for the purpose of producing
or generating power for propelling internal combustion engine
aircraft, that meets the specifications in ASTM specification D
910-96, and that either:
(1) is invoiced and billed by a producer, manufacturer,
refiner, or blender to a distributor or dealer, by a distributor
to a dealer or consumer, or by a dealer to consumer, as
"aviation gasoline"; or
(2) whether or not invoiced and billed as provided in
clause (1), is received, sold, stored, or withdrawn from storage
by any person, to be used for the purpose of producing or
generating power for propelling internal combustion engine
aircraft.
Subd. 8. [AVIATION TURBINE FUEL AND JET FUEL.] "Aviation
turbine fuel" and "jet fuel" mean blends of hydrocarbons derived
from crude petroleum, natural gasoline, and synthetic
hydrocarbons, intended for use in aviation turbine engines, and
that meet the specifications in ASTM specification D 1655-96c.
Subd. 9. [BULK PURCHASER.] "Bulk purchaser" means any
person not principally engaged in buying and selling petroleum
products or combustible gases who receives special fuel for
storage and subsequent delivery into the supply tank of an
aircraft or a licensed motor vehicle operated by the person.
Subd. 10. [CASINGHEAD, ABSORPTION, CONDENSATION, DRIP, OR
NATURAL GASOLINE.] "Casinghead gasoline," "absorption gasoline,"
"condensation gasoline," "drip gasoline," and "natural gasoline"
mean a low-octane, high-volatility, liquid hydrocarbon
by-product of crude oil extraction and pumping, coal
gasification, or shipping of natural gas through a pipeline.
Subd. 11. [COMMISSIONER.] "Commissioner" means the
commissioner of revenue.
Subd. 12. [COMPRESSED NATURAL GAS OR CNG.] "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 1,000 BTUs per cubic foot.
Subd. 13. [DEALER.] "Dealer" means any person, except a
distributor, engaged in the business of buying and selling
gasoline and other petroleum products in this state.
Subd. 14. [DIESEL FUEL OIL.] "Diesel fuel oil" means a
petroleum distillate or blend of petroleum distillate and
residual fuels, intended for use as a motor fuel in internal
combustion diesel engines, that meets the specifications in ASTM
specification D 975-96a. Diesel fuel includes number 1 and
number 2 fuel oils. K-1 kerosene is not diesel fuel unless it
is blended with diesel fuel for use in motor vehicles.
Subd. 15. [DISTRIBUTOR.] "Distributor" means any person
who (1) receives petroleum products in this state for storage
and subsequent distribution by tank car or tank truck or both,
(2) produces, manufactures, or refines petroleum products in
this state, or (3) imports petroleum products into this state
via boat, barge, or pipeline for storage and subsequent delivery
at or further transportation from boat, barge, or pipe line
terminals in this state.
Subd. 16. [DYED FUEL.] "Dyed fuel" means diesel fuel to
which indelible dye has been added, either before or upon
withdrawal at a terminal or refinery rack, and which may be sold
for exempt purposes. The dye may be either dye required to be
added per the EPA or dye that meets other specifications
required by the Internal Revenue Service or the commissioner.
Subd. 17. [EPA.] "EPA" means the United States
Environmental Protection Agency.
Subd. 18. [ETBE.] "ETBE" means ethyl tertiary butyl ether,
or the equivalent term tert-butyl ethyl ether. ETBE is a
hydrocarbon compound approved by the EPA for use as an oxygenate
in gasoline. ETBE is a liquid at normal atmospheric pressure
and temperature. The chemical composition of ETBE is C2 H5 OC(CH3 )
3 .
Subd. 19. [E85.] "E85" means a petroleum product that is a
blend of agriculturally derived denatured ethanol and gasoline
that typically contains 85 percent ethanol by volume, but at a
minimum must contain 60 percent ethanol by volume. For the
purposes of this chapter, the energy content of E85 will be
considered to be 82,000 BTUs per gallon. E85 produced for use
as a motor fuel in alternative fuel vehicles as defined in
section 296A.01, subdivision 5, must comply with ASTM
specification D 5798-96.
Subd. 20. [ETHANOL, DENATURED.] "Ethanol, denatured" means
ethanol that is to be blended with gasoline, has been
agriculturally derived, and complies with ASTM specification D
4806-95b. This includes the requirement that ethanol may be
denatured only as specified in Code of Federal Regulations,
title 27, parts 20 and 21.
Subd. 21. [FOR USE IN MOTOR VEHICLES.] "For use in motor
vehicles" means for use in producing or generating power for
propelling motor vehicles on the public highways of this state
or in machinery operated on the public highways of this state
for the purpose of constructing, reconstructing, or maintaining
those public highways. For purposes of this subdivision,
"public highways" includes bridges.
Subd. 22. [GAS TURBINE FUEL OIL.] "Gas turbine fuel oil"
means fuel that contains mixtures of hydrocarbon oils free of
inorganic acid and excessive amounts of solid or fibrous foreign
matter, intended for use in nonaviation gas turbine engines, and
that meets the specifications in ASTM specification D 2880-96a.
Subd. 23. [GASOLINE.] (a) "Gasoline" means:
(1) all products commonly or commercially known or sold as
gasoline regardless of their classification or uses, except
casinghead gasoline, absorption gasoline, condensation gasoline,
drip gasoline, or natural gasoline that under the requirements
of section 239.761, subdivision 3, must not be blended with
gasoline that has been sold, transferred, or otherwise removed
from a refinery or terminal; and
(2) any liquid prepared, advertised, offered for sale or
sold for use as, or commonly and commercially used as, a fuel in
spark-ignition, internal combustion engines, and that when
tested by the weights and measures division meets the
specifications in ASTM specification D 4814-96.
(b) Gasoline that is not blended with ethanol must not be
contaminated with water or other impurities and must comply with
both ASTM specification D 4814-96 and the volatility
requirements in Code of Federal Regulations, title 40, part 80.
(c) After gasoline is sold, transferred, or otherwise
removed from a refinery or terminal, a person responsible for
the product:
(1) may blend the gasoline with agriculturally derived
ethanol, as provided in subdivision 24;
(2) must not blend the gasoline with any oxygenate other
than denatured, agriculturally derived ethanol;
(3) must not blend the gasoline with other petroleum
products that are not gasoline or denatured, agriculturally
derived ethanol;
(4) must not blend the gasoline with products commonly and
commercially known as casinghead gasoline, absorption gasoline,
condensation gasoline, drip gasoline, or natural gasoline; and
(5) may blend the gasoline with a detergent additive, an
antiknock additive, or an additive designed to replace
tetra-ethyl lead, that is registered by the EPA.
Subd. 24. [GASOLINE BLENDED WITH A NONETHANOL
OXYGENATE.] "Gasoline blended with a nonethanol oxygenate" means
gasoline blended with ETBE, MTBE, or other alcohol or ether,
except denatured ethanol, that is approved as an oxygenate by
the EPA, and that complies with ASTM specification D 4814-96.
Oxygenates, other than denatured ethanol, must not be blended
into gasoline after the gasoline has been sold, transferred, or
otherwise removed from a refinery or terminal.
Subd. 25. [GASOLINE BLENDED WITH ETHANOL.] "Gasoline
blended with ethanol" means gasoline blended with up to ten
percent, by volume, agriculturally derived, denatured ethanol.
The blend must comply with the volatility requirements in Code
of Federal Regulations, title 40, part 80. The blend must also
comply with ASTM specification D 4814-96, or the gasoline base
stock from which a gasoline-ethanol blend was produced must
comply with ASTM specification D 4814-96; and the
gasoline-ethanol blend must not be blended with casing head
gasoline, absorption gasoline, condensation gasoline, drip
gasoline, or natural gasoline after the gasoline-ethanol blend
has been sold, transferred, or otherwise removed from a refinery
or terminal. The blend need not comply with ASTM specification
D 4814-96 if it is subjected to a standard distillation test.
For a distillation test, a gasoline-ethanol blend is not
required to comply with the temperature specification at the 50
percent liquid recovery point, if the gasoline from which the
gasoline-ethanol blend was produced complies with all of the
distillation specifications.
Subd. 26. [HEATING FUEL OIL.] "Heating fuel oil" means a
petroleum distillate, blend of petroleum distillates and
residuals, or petroleum residual heating fuel that meets the
specifications in ASTM specification D 396-96.
Subd. 27. [HIGHWAY.] "Highway" means the entire width
between the boundary lines of every way publicly maintained when
part of the way is open for the public.
Subd. 28. [KEROSENE.] "Kerosene" means a refined petroleum
distillate consisting of a homogeneous mixture of hydrocarbons
essentially free of water, inorganic acidic and basic compounds,
and excessive amounts of particulate contaminants and that meets
the specifications in ASTM specification D 3699-96a.
Subd. 29. [LICENSED MOTOR VEHICLE.] "Licensed motor
vehicle" means (1) any vehicle subject to a motor vehicle
registration in which the power is produced with any fuel in an
internal combustion engine, and (2) any motor vehicle not
subject to a motor vehicle registration on which is mounted a
corn shelling, feed grinding, well drilling, or sawing machine.
Subd. 30. [LIQUEFIED NATURAL GAS OR LNG.] "Liquefied
natural gas" or "LNG" means natural gas, primarily methane,
which has been condensed through a cryogenic cooling process and
is stored in special pressurized and insulated storage tanks.
For purposes of this chapter, the energy content of LNG will be
considered to be 69,000 BTUs per gallon.
Subd. 31. [LIQUEFIED PETROLEUM GAS, LPG, OR
PROPANE.] "Liquefied petroleum gas," "LPG," or "propane" means a
product made of short hydrocarbon chains and containing
primarily propane and butane that is stored in specialized tanks
at moderate pressure. For purposes of this chapter, the energy
content of LPG or propane will be considered to be 86,000 BTUs
per gallon.
Subd. 32. [MARINE GASOLINE.] "Marine gasoline" means
gasoline used in producing and generating power for propelling
motorboats used on the waters of this state.
Subd. 33. [MOTOR FUEL.] "Motor fuel" means a liquid,
regardless of its composition or properties, used to propel a
motor vehicle.
Subd. 34. [MTBE.] "MTBE" means methyl tertiary butyl
ether, or the equivalent term tert-butyl methyl ether. MTBE is
a hydrocarbon compound approved by the United States
Environmental Protection Agency for use as an oxygenate in
gasoline. MTBE is a liquid at normal atmospheric pressure and
temperature. The chemical composition of MTBE is (CH3 )3 COCH3 .
Subd. 35. [M85.] "M85" means a petroleum product that is a
liquid fuel blend of methanol and gasoline that contains at
least 85 percent methanol by volume. For the purposes of this
chapter, the energy content of M85 will be considered to be
65,000 BTUs per gallon. M85 produced for use as a motor fuel in
alternative fuel vehicles, as defined in subdivision 5, must
comply with ASTM specification D 5797-96.
Subd. 36. [MOTOR VEHICLE GASOLINE EXCISE TAX.] "Motor
vehicle gasoline excise tax" means the tax imposed on gasoline
used in producing and generating power for propelling motor
vehicles used on the public highways of this state.
Subd. 37. [MOTOR VEHICLES USED ON PUBLIC HIGHWAYS OF THIS
STATE.] "Motor vehicles used on public highways of this state"
means every vehicle operated upon the highways of this state the
power for the operation of which is produced or generated in an
internal combustion engine, but does not include tractors used
solely for agricultural purposes.
Subd. 38. [MOTORBOAT.] "Motorboat" means any contrivance
used or designed for navigation on water other than a seaplane,
propelled in any respect by machinery, including detachable
motors.
Subd. 39. [PASSENGER SNOWMOBILE.] "Passenger snowmobile"
means a self-propelled vehicle designed for travel on snow or
ice, steered by skis or runners, with an enclosed passenger
section that provides seating for not less than four nor more
than 12 passengers.
Subd. 40. [PERSON.] "Person" means any individual, firm,
trust, estate, partnership, association, cooperative
association, joint stock company or corporation, public or
private, or any representative appointed by order of any court;
or an officer or employee of a corporation, or a member or
employee of a partnership, who as such officer, employee, or
member is under a duty to perform any act prescribed by this
chapter.
Subd. 41. [PETROLEUM DISTILLATE.] "Petroleum distillate"
means a hydrocarbon or group of hydrocarbon compounds that have
been extracted from petroleum crude oil by a distillation
process involving evaporation by heating, and subsequent
condensation by cooling.
Subd. 42. [PETROLEUM PRODUCTS.] "Petroleum products" means
all of the products defined in subdivisions 2, 7, 8, 10, 14, 16,
19, 20, 22 to 26, 28, 32, and 35.
Subd. 43. [PETROLEUM RESIDUAL.] "Petroleum residual" means
a heavy hydrocarbon or group of heavy hydrocarbon compounds that
do not evaporate during a distillation process.
Subd. 44. [RECEIVED.] (a) Except as otherwise provided in
this subdivision, petroleum products brought into this state
shall be deemed to be "received" in this state at the time and
place they are unloaded in this state. When so unloaded such
products shall be deemed to be received in this state by the
person who is the owner immediately after such unloading;
provided, however, that if such owner is not licensed as a
distributor in this state and if such products were shipped or
delivered into this state by a person who is licensed as a
distributor, then such products shall be deemed to be received
in this state by the licensed distributor by whom the same were
so shipped or delivered.
(b) Petroleum products produced, manufactured, or refined,
at a refinery in this state and stored there, or brought into
the state by boat or barge or like form of transportation and
delivered at a marine terminal in this state and stored there,
or brought into the state by pipeline and delivered at a
pipeline terminal in this state and stored there, shall not be
considered received until they are withdrawn from such refinery
or terminal for sale or use in this state or for delivery or
shipment to points within this state.
(c) When withdrawn such products shall be deemed received
by the person who was the owner immediately prior to withdrawal;
unless (1) such products are withdrawn for shipment or delivery
to another licensed distributor, in which case the licensed
distributor to whom such shipment or delivery is made shall be
deemed to have received such products in this state, or (2) such
products are withdrawn for shipment or delivery to a person not
licensed as a distributor, under one or more sale or exchange
agreements by or between persons one or more of whom is a
licensed distributor, in which case the last purchaser or
exchangee under such agreement or agreements, who is licensed as
a distributor, shall be deemed to have received such products in
this state.
(d) Petroleum products produced in this state in any manner
other than as covered in this subdivision shall be considered
received by the producer at the time and place produced.
Subd. 45. [REFINERY OR TERMINAL.] "Refinery" or "terminal"
means any petroleum refinery, pipeline terminal, river terminal,
storage facility, or other point of origin where petroleum
products are manufactured, or imported by rail, truck, barge, or
pipe; and held, stored, transferred, offered for distribution,
distributed, offered for sale, or sold. For the purpose of
restricting petroleum product blending, this definition includes
all refineries and terminals within and outside of Minnesota.
For the purpose of assessing fees, this definition does not
include a licensed distributor's bulk storage facility that is
used to store petroleum products for which the petroleum
inspection fee charged under chapter 239 is either not due or
has been paid.
Subd. 46. [SPECIAL FUEL.] "Special fuel" means:
(1) all combustible gases and liquid petroleum products or
substitutes including undyed diesel fuel, except gasoline,
gasoline blended with ethanol, and agricultural alcohol gasoline
which are delivered into the supply tank of a licensed motor
vehicle or into storage tanks maintained by an owner or operator
of a licensed motor vehicle as a source of supply for such
vehicle;
(2) all combustible gases and liquid petroleum products or
substitutes, except gasoline, gasoline blended with ethanol, and
agricultural alcohol gasoline, when delivered to a licensed
special fuel dealer or to the retail service station storage of
a distributor who has elected to pay the special fuel excise tax
as provided in this chapter;
(3) all combustible gases and liquid petroleum products or
substitutes, except gasoline, which are used as aviation fuel;
or
(4) dyed fuel that is being used illegally in a licensed
motor vehicle.
Subd. 47. [SPECIAL FUEL DEALER.] "Special fuel dealer"
means any person engaged in the business of selling and
delivering special fuel into the supply tank of an aircraft or a
licensed motor vehicle.
Subd. 48. [USE IN LICENSED MOTOR VEHICLES.] "Use in
licensed motor vehicles" means use in producing or generating
power for propelling licensed motor vehicles on the public
highways of this state.
Subd. 49. [WATERS OF THIS STATE.] "Waters of this state"
means any waters capable of substantial beneficial public use
and any waters to which the public has access, which are within
the territorial limits of this state including boundary waters.
Subd. 50. [WET ALCOHOL.] "Wet alcohol" means
agriculturally derived fermentation ethyl alcohol having a
purity of at least 50 percent but less than 99 percent.
Sec. 2. [296A.02] [ADMINISTRATION.]
Subdivision 1. [ENFORCEMENT RESPONSIBILITY.] The
commissioner of revenue shall enforce and administer the
provisions of this chapter with the assistance of the
commissioners of public safety, public service, and
transportation.
Subd. 2. [POWERS OF COMMISSIONER OF REVENUE.] The
commissioner, or duly authorized agents, may conduct
investigations, inquiries, and hearings under this chapter. In
connection with such investigations, inquiries, and hearings,
the commissioner and the duly authorized agents have all the
powers conferred upon the commissioner and the commissioner's
examiners by section 270.06, and the provisions of that section
apply to all such investigations, inquiries, and hearings.
Subd. 3. [RULES; ADMINISTRATION AND ENFORCEMENT.] The
commissioner may adopt rules relating to the administration and
enforcement of laws regulating the sale, distribution, and use
of petroleum products and special fuel. The rules shall be
reasonable and consistent with the law.
Subd. 4. [APPLICATION TO FOREIGN OR INTERSTATE
COMMERCE.] No provision of this chapter shall apply to, or be
construed to apply to, foreign or interstate commerce, except
insofar as the same may be permitted under the constitution and
the laws of the United States.
Sec. 3. [296A.03] [DISTRIBUTOR'S LICENSE.]
Subdivision 1. [GENERAL RULE.] No person shall produce,
manufacture, or refine petroleum products in this state, or
receive, distribute, sell, or use in this state petroleum
products which have not been received in this state by a
licensed distributor, or in any manner act as a distributor as
defined in section 296A.01 without having been licensed by the
commissioner as a distributor.
Subd. 2. [QUALIFICATIONS.] (a) A distributor's license
shall be issued to any responsible person who applies and
qualifies as a distributor.
(b) Upon application to the commissioner, the commissioner
must issue a distributor's license to any person who:
(1) receives petroleum products in this state for bulk
storage and subsequent distribution by tank truck;
(2) produces, manufactures, or refines petroleum products
in this state;
(3) holds an unrevoked license as a distributor as of July
1, 1994;
(4) imports petroleum products into this state via boat,
barge, or pipeline for storage and subsequent delivery at or
further transportation from boat, barge, or pipeline terminals
in this state; or
(5) holds a license and performs a function under the motor
fuel tax law of an adjoining state equivalent to that of a
distributor under this chapter, who desires to ship or deliver
petroleum products from that state to persons in this state not
licensed as distributors in this state and who agrees to assume
with respect to all petroleum products so shipped or delivered
the liabilities of a distributor receiving petroleum products in
this state provided, however, that any such license shall be
issued only for the purpose of permitting such person to receive
in this state the petroleum products so shipped or delivered.
Except as herein provided, all persons licensed as distributors
under this clause shall have the same rights and privileges and
be subject to the same duties, requirements, and penalties as
other licensed distributors.
Subd. 3. [LICENSE FEE.] An application for a distributor's
license must be accompanied by an initial fee of $25. Once
licensed, a distributor must remit a $25 fee annually to
maintain the license.
Subd. 4. [LICENSING PERIOD; EXPIRATION.] Each license
period shall be for one year ending each June 30.
Subd. 5. [FORM OF APPLICATION; BOND.] (a) A written
application shall be made in the form and manner prescribed by
the commissioner.
(b) The commissioner shall also require the applicant or
licensee to deposit with the state treasurer securities of the
United States government or the state of Minnesota or to execute
and file a bond, with a corporate surety approved by the
commissioner, to the state of Minnesota in an amount to be
determined by the commissioner and in a form to be fixed by the
commissioner and approved by the attorney general, and which
shall be conditioned for the payment when due of all excise
taxes, inspection fees, penalties, and accrued interest arising
in the ordinary course of business or by reason of any
delinquent money which may be due the state. The bond shall
cover all places of business within the state where petroleum
products are received by the licensee. The applicant or
licensee shall designate and maintain an agent in this state
upon whom service may be made for all purposes of this section.
(c) An initial applicant for a distributor's license shall
furnish a bond in a minimum sum of $3,000 for the first year.
(d) The commissioner, on reaching the opinion that the bond
given by a licensee is inadequate in amount to fully protect the
state, shall require an additional bond in such amount as the
commissioner deems sufficient.
(e) A licensee who desires to be exempt from depositing
securities or furnishing such bond shall furnish to the
commissioner an itemized financial statement showing the assets
and the liabilities of the applicant. If it appears to the
commissioner, from the financial statement or otherwise, that
the applicant is financially responsible, then the commissioner
may exempt the applicant from depositing such securities or
furnishing such bond until the commissioner otherwise orders.
(f) When the surety upon any bond issued under the
provisions of this chapter have fulfilled the conditions of such
bond and compensated the state for any loss occasioned by any
act or omission of any licensee under this chapter, such surety
shall be subrogated to all the rights of the state in connection
with the transaction where such loss occurred.
Subd. 6. [SURRENDER OF LICENSE.] When the licensee shall
voluntarily or involuntarily sell, dispose of, or discontinue
business during the term of a license, the licensee shall
immediately notify the commissioner in writing and shall within
ten days surrender the license at the commissioner's office in
St. Paul, Minnesota.
Sec. 4. [296A.04] [SPECIAL FUEL DEALER'S LICENSE.]
Subdivision 1. [REQUIREMENTS; APPLICATION AND FEE.] No
person, except a licensed distributor, shall engage in the
business of selling or delivering special fuel, upon which no
tax has been imposed, as a special fuel dealer without having
applied for and secured from the commissioner a special fuel
dealer's license. The application shall be made in a form and
manner prescribed by the commissioner and shall be accompanied
by the payment of a $25 license fee. A special fuel dealer's
license shall be issued to any responsible person qualifying as
a special fuel dealer who makes proper application. The license
shall be displayed in a conspicuous manner in the place of
business and shall expire annually on November 30.
Subd. 2. [BONDS.] The provisions of section 296A.03,
subdivision 5, paragraphs (b), (d), (e), and (f), relating to
bonds apply to special fuel dealers.
Subd. 3. [SALES TICKETS.] A sales ticket shall be issued
for each delivery of special fuel to a special fuel dealer or
bulk purchaser. A sales ticket shall also be issued for each
delivery into the supply tank of an aircraft or a licensed motor
vehicle, if so requested by the purchaser. The person who
delivers the special fuel shall issue the sales ticket and shall
show on the ticket the name and address of the purchaser, date
of sale, number of gallons, price per gallon, amount of tax, and
total amount of sale.
Subd. 4. [ACCUMULATING METERS.] Every special fuel dealer
shall make all withdrawals of special fuel, except liquefied
petroleum gas, through an accumulating meter in working order,
which shall be provided by such dealer. Whenever a licensed
special fuel dealer fails to comply with the provisions of this
subdivision or any rules of the commissioner pertinent thereto,
the license issued to such dealer under subdivision 1 may be
revoked by the commissioner.
Subd. 5. [SURRENDER OF LICENSE.] A special fuel dealer who
discontinues, sells, or disposes of the business in any manner,
at any time, shall surrender the special fuel dealer's license
at the commissioner's office in St. Paul, Minnesota.
Sec. 5. [296A.05] [BULK PURCHASER'S LICENSE.]
Subdivision 1. [REQUIREMENTS; APPLICATION AND FEE.] No
person shall receive special fuel, upon which no tax has been
imposed, as a bulk purchaser without having applied for and
secured from the commissioner a bulk purchaser's license. The
application shall be made in a form and manner prescribed by the
commissioner and shall be accompanied by the payment of a $25
license fee. A bulk purchaser's license shall be issued to any
responsible person qualifying as a bulk purchaser who makes
proper application. The license shall be displayed in a
conspicuous manner in the place of business and shall expire
annually on November 30.
Subd. 2. [BONDS.] The provisions of section 296A.03,
subdivision 5, paragraphs (b), (d), (e), and (f), relating to
bonds apply to bulk purchasers.
Subd. 3. [SURRENDER OF LICENSE.] A bulk purchaser who
discontinues, sells, or disposes of the business in any manner,
at any time, shall surrender the bulk purchaser's license at the
commissioner's office in St. Paul, Minnesota.
Sec. 6. [296A.06] [REVOCATION OF LICENSES, PERMITS, AND
CERTIFICATES.]
If any person fails to comply with this chapter or the
rules adopted under this chapter, without reasonable cause, the
commissioner may give the person 30 days' notice in writing,
specifying the violations, and stating that based upon such
violations the commissioner intends to revoke the person's
license, permit, or certificate. The notice shall also advise
the person of the person's right to contest the revocation under
this section and the general procedures for a contested case
hearing under chapter 14. The notice may be served personally
or by mail in the manner prescribed for service of an order of
assessment. A license, permit, or certificate is revoked when
the commissioner serves a notice of revocation upon the person
after 30 days have passed following the date of the notice of
intent to revoke without the person requesting a hearing. If a
hearing is timely requested and held, the license, permit, or
certificate is revoked after the commissioner serves an order of
revocation under section 14.62, subdivision 1.
Sec. 7. [296A.07] [GASOLINE TAX.]
Subdivision 1. [TAX IMPOSED.] There is imposed an excise
tax on gasoline, gasoline blended with ethanol, and agricultural
alcohol gasoline used in producing and generating power for
propelling motor vehicles used on the public highways of this
state. The tax is imposed on the first licensed distributor who
received the product in Minnesota. For purposes of this
section, gasoline is defined in section 296A.01, subdivisions
10, 18, 20, 23, 24, 25, 32, and 34. The tax is payable at the
time and in the form and manner prescribed by the commissioner.
The tax is payable at the rates specified in subdivision 3,
subject to the exceptions and reductions specified in section
296A.17.
Subd. 2. [TAX IMPOSED FOR MARINE USE.] Subject to the
provisions of section 296A.16, subdivision 2, there is imposed
an excise tax, at the same rate per gallon as the gasoline
excise tax, on all marine gasoline received, sold, stored, or
withdrawn from storage in this state. This tax is payable at
the times, in the manner, and by persons specified in this
chapter.
Subd. 3. [RATE OF TAX.] The gasoline excise tax is imposed
at the following rates:
(1) E85 is taxed at the rate of 14.2 cents per gallon;
(2) M85 is taxed at the rate of 11.4 cents per gallon; and
(3) all other gasoline is taxed at the rate of 20 cents per
gallon.
Subd. 4. [TRANSIT SYSTEMS EXEMPT.] The provisions of
subdivision 1 do not apply to gasoline purchased by a transit
system or transit provider receiving financial assistance or
reimbursement under section 174.24, 256B.0625, subdivision 17,
or 473.384.
Sec. 8. [296A.08] [SPECIAL FUEL TAX.]
Subdivision 1. [TAX IMPOSED.] There is imposed an excise
tax on all special fuel at the rates specified in subdivision
2. For purposes of this section, "owner or operator" means the
operation of licensed motor vehicles, whether loaded or empty,
whether for compensation or not for compensation, and whether
owned by or leased to the motor carrier who operates them or
causes them to operated.
(a) For undyed diesel fuel and undyed kerosene, the tax is
imposed on the first licensed distributor who received the
product in Minnesota.
(b) For dyed fuel being used illegally in a licensed motor
vehicle, the tax is imposed on the owner or operator of the
motor vehicle.
(c) For dyed fuel used in a motor vehicle but subject to a
federal exemption, although no federal tax may be imposed, the
owner or operator of the vehicle is liable for the state tax.
(d) For other fuels, including jet fuel, propane, and
compressed natural gas, the tax is imposed on the distributor,
special fuel dealer, or bulk purchaser.
(e) Any person delivering special fuel on which the excise
tax has not previously been paid, into the supply tank of an
aircraft or a licensed motor vehicle shall report such delivery
and shall pay, or collect and pay the excise tax on the special
fuel so delivered to the commissioner.
Subd. 2. [RATE OF TAX.] The special fuel excise tax is
imposed at the following rates:
(1) Liquefied petroleum gas or propane is taxed at the rate
of 15 cents per gallon.
(2) Liquefied natural gas is taxed at the rate of 12 cents
per gallon.
(3) Compressed natural gas is taxed at the rate of $1.739
per thousand cubic feet; or 20 cents per gasoline equivalent, as
defined by the National Conference on Weights and Measures,
which is 5.66 pounds of natural gas.
(4) 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.
Subd. 3. [TRANSIT SYSTEMS EXEMPT.] The provisions of
subdivisions 1 and 2 do not apply to special fuel or alternative
fuels purchased by a transit system or transit provider
receiving financial assistance or reimbursement under section
174.24, 256B.0625, subdivision 17, or 473.384.
Subd. 4. [TAX IMPOSED ON USE.] If it is determined by the
commissioner from an examination of any records pertaining to
the operation of any licensed motor vehicle which uses special
fuel, that the special fuel tax on the special fuel used in this
state has not been paid to this state, or to any other state if
purchased in such other state, there is hereby imposed an excise
tax at the same rate per gallon as the gasoline tax, on all such
special fuel. All assessments of tax made under this
subdivision shall be paid by the user to the commissioner upon
demand. For purposes of this subdivision, "special fuel" means
any fuel other than gasoline used in a licensed motor vehicle in
this state.
Subd. 5. [INTENDED USE.] All special fuel except that used
for aviation fuel shall be deemed to be intended for use in a
licensed motor vehicle in this state at the time of sale or
delivery.
Subd. 6. [LIABILITY FOR FAILURE TO KEEP ADEQUATE RECORDS.]
If adequate records are not kept, or if the sales are not
adequately accounted for, then all sales of combustible gases
and liquid petroleum products, except gasoline, are deemed to be
sales of special fuel. In such cases, there is imposed an
excise tax of the same rate per gallon as the gasoline excise
tax on all such products, and the vendor is liable for the tax.
Sec. 9. [296A.09] [AVIATION TAX.]
Subdivision 1. [GASOLINE TAX IMPOSED.] Subject to any
refunds or credits there is imposed an excise tax, at the rate
of five cents per gallon on all aviation gasoline received,
sold, stored, or withdrawn from storage in this state. Aviation
gasoline is defined in section 296A.01, subdivision 7.
Subd. 2. [SPECIAL FUEL TAX IMPOSED.] There is imposed an
excise tax of the same rate per gallon as the aviation gasoline
on all jet fuel or special fuel received, sold, stored, or
withdrawn from storage in this state, for use as substitutes for
aviation gasoline and not otherwise taxed as gasoline. Jet fuel
is defined in section 296A.01, subdivision 8.
Subd. 3. [EXCEPTION TO TAX FOR AVIATION USE.] The
provisions of subdivisions 1 and 2 do not apply to aviation
gasoline or special fuel purchased and placed in the fuel tanks
of an aircraft outside the state, even though the gasoline may
be consumed within this state.
Subd. 4. [MANNER OF PAYMENT.] These taxes are payable in
the form and manner prescribed by the commissioner.
Subd. 5. [TAX NOT ON CONSUMPTION.] The taxes imposed by
subdivisions 1 and 2 are expressly declared not to be a tax upon
consumption of aviation gasoline or special fuel by an aircraft.
Sec. 10. [296A.10] [LIABILITY FOR UNPAID TAX.]
Subdivision 1. [UNREPORTED FUEL.] It is the duty of every
distributor, dealer, and person who sells or uses gasoline
manufactured, produced, received, or stored by the distributor,
dealer, or person, and of every person using gasoline in motor
vehicles or special fuel in licensed motor vehicles to know
whether the tax has been paid on the fuel. If the tax has not
been reported or if the tax has not been paid, it is that
person's duty to report to the commissioner the quantity of the
gasoline or special fuel sold or used and to pay the tax as
provided in this chapter. All provisions of this chapter
relating to the calculation, collections, and payment of the tax
shall be applicable to any such person, dealer, or distributor.
Subd. 2. [UNREPORTED AVIATION GASOLINE.] The provisions of
subdivision 1 do not apply to aviation gasoline. It is the duty
of every distributor, dealer, and person who receives, sells,
stores, or withdraws from storage in this state aviation
gasoline manufactured, produced, received, or stored by the
distributor, dealer, or person to know whether the tax has been
paid on the aviation gasoline. If the fuel has not been
reported, or if the tax has not been paid to the commissioner,
it is that person's duty to report to the commissioner the
quantity of such gasoline so received, sold, stored, or
withdrawn from storage. That person is also liable for the
payment of the tax. All provisions of this chapter relating to
the calculation, collections, and payment of the tax apply to
any such person, dealer, or distributor.
Sec. 11. [296A.11] [SELLER MAY COLLECT TAX.]
A person who directly or indirectly pays a gasoline or
special fuel tax as provided in this chapter and who does not in
fact use the gasoline or special fuel in motor vehicles in this
state or receive, store, or withdraw it from storage to be used
personally for the purpose of producing or generating power for
propelling aircraft, but sells or otherwise disposes of the
same, except as provided in section 296A.16, subdivision 3, is
hereby authorized to collect, from the person to whom the
gasoline or special fuel is so sold or disposed of, the tax so
paid, and is hereby required, upon request, to make, sign, and
deliver to such person an invoice of such sale or disposition.
The sums collected must be held as a special fund in trust for
the state of Minnesota.
Sec. 12. [296A.12] [GASOLINE AND SPECIAL FUEL TAX IN LIEU
OF OTHER TAXES.]
Gasoline and special fuel excise taxes shall be in lieu of
all other taxes imposed upon the business of selling or dealing
in gasoline or special fuel, whether imposed by the state or by
any of its political subdivisions, but are in addition to all ad
valorem taxes now imposed by law. Nothing in this chapter is
construed as prohibiting the governing body of any city of this
state from licensing and regulating such business where its
authority is conferred by state law or city charter.
Sec. 13. [296A.13] [PERSONAL LIABILITY FOR TAX.]
Liability for payment of taxes under this chapter includes
a responsible person or entity described in the personal
liability provisions of section 270.101.
Sec. 14. [296A.14] [TAX AS PERSONAL DEBT OF FIDUCIARY.]
The tax imposed by this chapter, and interest and
penalties, is a personal debt of the taxpayer from the time the
liability arises, regardless of when the time for discharging
the liability by payment occurs. The debt is, in the case of
any fiduciary, that of the individual in the individual's
official or fiduciary capacity only, unless the individual has
voluntarily distributed the assets held in that capacity without
reserving sufficient assets to pay the tax, interest, and
penalties, in which event the individual is personally liable
for the deficiency.
Sec. 15. [296A.15] [PAYMENT OF TAX.]
Subdivision 1. [MONTHLY GASOLINE REPORTS; SHRINKAGE
ALLOWANCE.] (a) Except as provided in paragraph (e), on or
before the 23rd day of each month, every person who is required
to pay a gasoline tax shall file with the commissioner a report,
in the form and manner prescribed by the commissioner, showing
the number of gallons of petroleum products received by the
reporter during the preceding calendar month, and other
information the commissioner may require. A written report is
deemed to have been filed as required in this subdivision if
postmarked on or before the 23rd day of the month in which the
tax is payable.
(b) The number of gallons of gasoline must be reported in
United States standard liquid gallons, 231 cubic inches, except
that the commissioner may upon written application and for cause
shown permit the distributor to report the number of gallons of
gasoline as corrected to a temperature of 60-degrees
Fahrenheit. If the application is granted, all gasoline covered
in the application and allowed by the commissioner must continue
to be reported by the distributor on the adjusted basis for a
period of one from the date of the granting of the application.
The number of gallons of petroleum products other than gasoline
must be reported as originally invoiced. Each report must show
separately the number of gallons of aviation gasoline received
by the reporter during each calendar month.
(c) Each report must also include the amount of gasoline
tax on gasoline received by the reporter during the preceding
month. In computing the tax a deduction of three percent of the
quantity of gasoline received by a distributor shall be made for
evaporation and loss. At the time of reporting, the reporter
shall submit satisfactory evidence that one-third of the three
percent deduction has been credited or paid to dealers on
quantities sold to them.
(d) Each report shall contain a confession of judgment for
the amount of the tax shown due to the extent not timely paid.
(e) Under certain circumstances and with the approval of
the commissioner, taxpayers may be allowed to file reports
annually.
Subd. 2. [PETROLEUM TANK RELEASE CLEANUP FEE.] Persons
required to pay a petroleum tank release cleanup fee under
section 115C.08, subdivision 3, must file a report with the
commissioner of revenue. Each report must include the amount of
fees due on petroleum products. Reports must be filed in the
form and manner prescribed by the commissioner. A written
report is considered filed as required if postmarked on or
before the 23rd day of the month in which the fee is payable.
Subd. 3. [MONTHLY SPECIAL FUEL REPORTS; SHRINKAGE
ALLOWANCE.] On or before the 23rd day of each month,
distributors, special fuel dealers, and bulk purchasers shall
file a report in the form and manner prescribed by the
commissioner. Reports shall contain information as follows:
(a) Distributors of undyed diesel fuel and undyed kerosene
must file a monthly tax return with the department listing all
purchases or receipts of undyed diesel fuel and undyed
kerosene. Distributors may be allowed to take a credit or
credits under section 296A.16, subdivision 1.
(b) Distributors and dealers of special fuel other than
undyed diesel fuel or undyed kerosene shall report the total
number of gallons delivered to them during the preceding
calendar month and shall pay the special fuel excise tax due to
the commissioner. The invoice must show the true and correct
name and address of the purchaser, and the purchaser's
signature. The report shall contain other information as the
commissioner may require.
(c) Distributors and dealers of special fuel other than
undyed diesel fuel or undyed kerosene must pay the special fuel
excise tax on all special fuel delivered or sold into the supply
tank of an aircraft or licensed motor vehicle and shall file a
report with the commissioner. The report shall show the total
number of gallons delivered or sold into the supply tank of an
aircraft or licensed motor vehicle during the preceding calendar
month and the special fuel excise tax due shall be paid to the
commissioner. Any person delivering special fuel on which the
excise tax has not previously been paid into the supply tank of
an aircraft or a licensed motor vehicle shall report such
delivery and shall pay or collect and pay to the commissioner
the excise tax on the special fuel so delivered.
(d) Distributors and special fuel dealers may, subject to
the approval of the commissioner, elect to pay to the
commissioner the special fuel excise tax on all special fuel
delivered or sold into the supply tank of an aircraft or
licensed motor vehicle. Under this option, an invoice must be
issued at the time of each delivery showing the name and address
of the purchaser, date of sale, number of gallons, price per
gallon, and total amount of sale. A separate sales ticket book
shall be maintained for special fuel sales. The tax is also
imposed on all special fuel held in storage on the effective
date of this election.
(e) Bulk purchasers shall report and pay the special fuel
excise tax on all special fuel, including alternative fuels,
except undyed diesel fuel or undyed kerosene purchased by them
for storage during the preceding calendar month. In such cases
as the commissioner may permit, credit for the excise tax due or
previously paid on special fuel not used in aircraft or licensed
motor vehicles may be allowed in computing tax liability. The
report shall contain other information as the commissioner may
require.
(f) In computing the special fuel excise tax due, a
deduction of one percent of the quantity of special fuel on
which tax is due shall be made for evaporation and loss.
(g) Each report shall contain a confession of judgment for
the amount of the tax shown due to the extent not timely paid.
Subd. 4. [FAILURE TO USE OR SELL FOR INTENDED PURPOSE;
REPORTS REQUIRED.] (a) Any person who buys aviation gasoline or
special fuel for aircraft use and who has paid the excise taxes
due directly or indirectly through the amount of the tax being
included in the price, or otherwise, and uses said gasoline or
special fuel in motor vehicles or knowingly sells it to any
person for use in motor vehicles shall, on or before the 23rd
day of the month following that in which such gasoline or
special fuel was so used or sold, report the fact of the use or
sale to the commissioner in the form and manner prescribed by
the commissioner.
(b) Any person who buys gasoline other than aviation
gasoline and who has paid the motor vehicle gasoline excise tax
directly or indirectly through the amount of the tax being
included in the price of the gasoline, or otherwise, who
knowingly sells such gasoline to any person to be used for the
purpose of producing or generating power for propelling
aircraft, or who receives, stores, or withdraws from storage
gasoline to be used for that purpose, shall, on or before the
23rd day of the month following that in which such gasoline was
so sold, stored, or withdrawn from storage, report the fact of
the sale, storage, or withdrawal from storage to the
commissioner in the form and manner prescribed by the
commissioner.
Subd. 5. [ON FARM BULK STORAGE OF GASOLINE OR SPECIAL
FUEL; ETHANOL FOR PERSONAL USE.] Notwithstanding the provisions
of this chapter, a farmer who uses gasoline or any special fuel
on which a tax has not been paid shall report and pay the tax on
all gasoline or special fuel delivered into the supply tank of a
licensed motor vehicle during the preceding calendar year. The
tax must be reported and paid in the form and manner prescribed
by the commissioner together with any refund claim filed by the
taxpayer under section 296A.16. If no refund claim is filed,
the tax must be reported and paid annually by March 15 or more
frequently, as the commissioner may prescribe. Any producer
qualifying under this subdivision is exempt from the licensing
requirements in section 296A.03, subdivision 1.
Subd. 6. [INSPECTION FEES.] Persons required to pay an
inspection fee under section 239.101 must file a report with the
commissioner of revenue. Each report must include the amount of
inspection fees due on petroleum products. Reports must be
filed in the form and manner prescribed by the commissioner. A
written report is considered filed as required if postmarked on
or before the 23rd day of the month in which the fee is payable.
Subd. 7. [ELECTRONIC FUNDS TRANSFER REQUIRED.] All
remittances must be made by means of electronic funds transfer
as defined in section 336.4A-104, paragraph (a). The funds
transfer payment date, as defined in section 336.4A-401, must be
on or before the date the remittance is due. If the date the
remittance is due is not a funds transfer business day, as
defined in section 336.4A-105, paragraph (a), clause (4), the
payment date must be on or before the funds transfer business
day next following the date the remittance is due.
Subd. 8. [ELECTRONICALLY FILED RETURNS OR REPORTS;
SIGNATURES.] The commissioner may require that returns or
reports be filed electronically. For purposes of this chapter,
the name of the taxpayer, the name of the taxpayer's authorized
agent, or the taxpayer's identification number constitutes a
signature when transmitted as part of the information on returns
or reports filed by electronic means by the taxpayer or at the
taxpayer's direction. "Electronic means" includes, but is not
limited to, the use of a touch-tone telephone to transmit return
or report information in a manner prescribed by the commissioner.
Sec. 16. [296A.16] [REFUNDS OR CREDITS.]
Subdivision 1. [CREDIT OR REFUND OF GASOLINE OR SPECIAL
FUEL TAX PAID.] The commissioner shall allow the distributor
credit or refund of the tax paid on gasoline and special fuel:
(1) exported or sold for export from the state, other than
in the supply tank of a motor vehicle or of an aircraft;
(2) sold to the United States government to be used
exclusively in performing its governmental functions and
activities or to any "cost plus a fixed fee" contractor employed
by the United States government on any national defense project;
(3) if the fuel is placed in a tank used exclusively for
residential heating;
(4) destroyed by accident while in the possession of the
distributor;
(5) in error;
(6) in the case of gasoline only, sold for storage in an
on-farm bulk storage tank, if the tax was not collected on the
sale; and
(7) in such other cases as the commissioner may permit,
consistent with the provisions of this chapter and other laws
relating to the gasoline and special fuel excise taxes.
Subd. 2. [FUEL USED IN OTHER VEHICLES; REFUND.] Any person
who shall buy and use gasoline for a qualifying purpose other
than use in motor vehicles, snowmobiles except as provided in
clause (2), or motorboats, or special fuel for a qualifying
purpose other than use in licensed motor vehicles, and who shall
have paid the tax directly or indirectly through the amount of
the tax being included in the price of the gasoline or special
fuel, or otherwise, shall be reimbursed and repaid the amount of
the tax paid upon filing with the commissioner a claim in the
form and manner prescribed by the commissioner, and containing
the information the commissioner shall require. By signing any
such claim which is false or fraudulent, the applicant shall be
subject to the penalties provided in this chapter for knowingly
making a false claim. The claim shall set forth the total
amount of the gasoline so purchased and used by the applicant
other than in motor vehicles, or special fuel purchased and used
by the applicant other than in licensed motor vehicles, and
shall state when and for what purpose it was used. When a claim
contains an error in computation or preparation, the
commissioner is authorized to adjust the claim in accordance
with the evidence shown on the claim or other information
available to the commissioner. The commissioner, on being
satisfied that the claimant is entitled to the payments, shall
approve the claim and transmit it to the commissioner of
finance. The words "gasoline" or "special fuel" as used in this
subdivision do not include aviation gasoline or special fuel for
aircraft. Gasoline or special fuel bought and used for a
"qualifying purpose" means:
(1) Gasoline or special fuel used in carrying on a trade or
business, used on a farm situated in Minnesota, and used for a
farming purpose. "Farm" and "farming purpose" have the meanings
given them in section 6420(c)(2), (3), and (4) of the Internal
Revenue Code of 1986, as amended through December 31, 1997.
(2) Gasoline or special fuel used for off-highway business
use. "Off-highway business use" means any use off the public
highway by a person in that person's trade, business, or
activity for the production of income. Off-highway business use
includes
(i) use of a passenger snowmobile off the public highways
as part of the operations of a resort as defined in section
157.15, subdivision 11; and
(ii) use of gasoline or special fuel to operate a power
takeoff unit on a vehicle, but not including fuel consumed
during idling time.
Off-highway business use does not include use as a fuel in a
motor vehicle which, at the time of use, is registered or is
required to be registered for highway use under the laws of any
state or foreign country.
(3) Gasoline or special fuel placed in the fuel tanks of
new motor vehicles, manufactured in Minnesota, and shipped by
interstate carrier to destinations in other states or foreign
countries.
By July 1, 1998, the commissioner shall adopt rules that
determine the rates and percentages necessary to develop
formulas for calculating the refund under clause (2), item (ii).
Subd. 3. [DESTRUCTION BY ACCIDENT; REFUND TO DEALER.]
Notwithstanding the provisions of subdivision 1, the
commissioner shall allow a dealer a refund of:
(1) the tax paid by the distributor on gasoline, undyed
diesel fuel, or undyed kerosene destroyed by accident while in
the possession of the dealer; or
(2) the tax paid by a distributor or special fuels dealer
on other special fuels destroyed by accident while in the
possession of the dealer.
Subd. 4. [REFRIGERATOR UNITS; REFUNDS.] Notwithstanding
the provisions of subdivision 1, the commissioner shall allow a
special fuel dealer a refund of the tax paid on fuel sold
directly into a supply tank of a refrigeration unit with a
separate engine and used exclusively by that refrigeration unit.
A claim for refund may be filed as provided in this section.
Subd. 5. [QUALIFYING SERVICE STATIONS CREDIT.]
Notwithstanding any other provision of law to the contrary, the
tax imposed on gasoline, undyed diesel fuel, or undyed kerosene
delivered to a qualified service station may not exceed, or must
be reduced to, a rate not more than three cents per gallon above
the state tax rate imposed on such products sold by a service
station in a contiguous state located within the distance
indicated in this subdivision. A distributor shall be allowed a
credit or refund for the amount of reduction computed in
accordance with this subdivision. For purposes of this
subdivision, a "qualifying service station" means a service
station located within 7.5 miles, measured by the shortest route
by public road, from a service station selling like product in
the contiguous state.
Subd. 6. [SALES TO GOVERNMENTS AND SCHOOLS; CREDIT.] Until
October 1, 1999, a distributor shall be allowed a credit on each
gallon of fuel grade alcohol blended with gasoline to produce
agricultural alcohol gasoline which is sold to the state, local
units of government, or for use in the transportation of pupils
to and from school-related events in vehicles owned by or under
contract to a school district. The amount of the credit for
every gallon is:
(1) until October 1, 1997, 60 cents;
(2) until October 1, 1998, 40 cents; and
(3) until October 1, 1999, 20 cents.
Subd. 7. [CIVIL PENALTY FOR FILING FALSE CLAIM.] A person
who violates section 296A.23, subdivision 1, shall forfeit the
full amount of the claim. In addition, a person who is
convicted under section 296A.23 for filing a false statement or
claim shall, in addition to any criminal penalties imposed, be
prohibited from filing with the commissioner any claim for
refund upon gasoline purchased within six months after such
conviction.
Subd. 8. [APPROPRIATION.] There is appropriated to the
persons entitled to refund or credit under this section, from
the fund or account in the state treasury to which the money was
credited, an amount sufficient to make the credit or refund.
Sec. 17. [296A.17] [AVIATION REFUNDS.]
Subdivision 1. [AVIATION REFUND REQUIREMENTS.] Any person
claiming to be entitled to any refund or credit provided for in
subdivision 3 shall receive the refund or credit upon filing
with the commissioner a claim in such form and manner prescribed
by the commissioner. The claim shall set forth, among other
things, the total number of gallons of aviation gasoline or
special fuel for aircraft use upon which the claimant has
directly or indirectly paid the excise tax provided for in this
chapter, during the calendar year, which has been received,
stored, or withdrawn from storage by the claimant in this state
and not sold or otherwise disposed of to others. All claims for
refunds under this subdivision shall be made on or before April
30 following the end of the calendar year for which the refund
is claimed.
Subd. 2. [CLAIMS FOR REFUND; AVIATION TAX.] (a) Any person
who buys aviation gasoline or special fuel for aircraft use and
who has paid the excise taxes directly or indirectly through the
amount of the tax being included in the price, or otherwise, who
does not use it in motor vehicles or receive, sell, store, or
withdraw it from storage for the purpose of producing or
generating power for propelling aircraft, shall be reimbursed
and repaid the amount of the tax paid upon filing with the
commissioner a claim in the form and manner prescribed by the
commissioner. The claim shall state the total amount of the
aviation gasoline or special fuel for aircraft use purchased and
used by the applicant, and shall state when and for what purpose
it was used. On being satisfied that the claimant is entitled
to payment, the commissioner shall approve the claim and
transmit it to the commissioner of finance. The postmark on the
envelope in which a written claim is mailed determines the date
of filing.
(b) If a claim contains an error in preparation in
computation or preparation, the commissioner is authorized to
adjust the claim in accordance with the evidence shown on the
claim or other information available to the commissioner.
(c) An applicant who files a claim that is false or
fraudulent, is subject to the penalties provided in section
296A.23 for knowingly and willfully making a false claim.
Subd. 3. [REFUNDS ON GRADUATED BASIS.] Any person who has
directly or indirectly paid the excise tax on aviation gasoline
or special fuel for aircraft use provided for by this chapter,
shall, as to all such aviation gasoline and special fuel
received, stored, or withdrawn from storage by the person in
this state in any calendar year and not sold or otherwise
disposed of to others, or intended for sale or other disposition
to others, on which such tax has been so paid, be entitled to
the following graduated reductions in such tax for that calendar
year, to be obtained by means of the following refunds:
(1) on each gallon of such aviation gasoline or special
fuel up to 50,000 gallons, all but five cents per gallon;
(2) on each gallon of such aviation gasoline or special
fuel above 50,000 gallons and not more than 150,000 gallons, all
but two cents per gallon;
(3) on each gallon of such aviation gasoline or special
fuel above 150,000 gallons and not more than 200,000 gallons,
all but one cent per gallon;
(4) on each gallon of such aviation gasoline or special
fuel above 200,000, all but one-half cent per gallon.
Subd. 4. [AVIATION GASOLINE TAX REFUND CLAIM; CIVIL
PENALTY.] If any distributor or other person, with intent to
unlawfully secure any refund provided for in subdivision 3,
shall knowingly file a false or fraudulent claim, there is
imposed upon the person a penalty in an amount equal to 50
percent of the amount of the refund unlawfully secured, in
addition to that amount. The penalty imposed by this
subdivision shall be collected as part of the tax.
Subd. 5. [APPROPRIATION.] There is appropriated to the
persons entitled to refund under this section, from the fund or
account in the state treasury to which the money was credited,
an amount sufficient to make the credit or refund. All money in
excess of the amount the commissioner certifies is reasonably
required for the refunds must be transferred by the commissioner
of finance to the state airports fund.
Sec. 18. [296A.18] [APPORTIONMENT OF TAX; DEPOSIT OF
PROCEEDS.]
Subdivision 1. [INTENT; GASOLINE USE.] All gasoline
received in this state and all gasoline produced in or brought
into this state except aviation gasoline and marine gasoline
shall be determined to be intended for use in motor vehicles in
this state.
Subd. 2. [MOTORBOATS.] Approximately 1-1/2 percent of all
gasoline received in this state and 1-1/2 percent of all
gasoline produced or brought into this state, except gasoline
used for aviation purposes, is being used as fuel for the
operation of motorboats on the waters of this state and of the
total revenue derived from the imposition of the gasoline fuel
tax for uses other than for aviation purposes, 1-1/2 percent of
such revenues is the amount of tax on fuel used in motorboats
operated on the waters of this state. The amount of unrefunded
tax paid on gasoline used for motor boat purposes as computed in
this chapter shall be paid into the state treasury and credited
to a water recreation account in the special revenue fund for
acquisition, development, maintenance, and rehabilitation of
sites for public access and boating facilities on public waters;
lake and river improvement; state park development; and boat and
water safety.
Subd. 3. [SNOWMOBILES.] Approximately one percent in
fiscal years 1998 and 1999, and three-fourths of one percent
thereafter, of all gasoline received in and produced or brought
into this state, except gasoline used for aviation purposes, is
being used as fuel for the operation of snowmobiles in this
state, and of the total revenue derived from the imposition of
the gasoline fuel tax for uses other than for aviation purposes,
one percent in fiscal years 1998 and 1999, and three-fourths of
one percent thereafter, of such revenues is the amount of tax on
fuel used in snowmobiles operated in this state.
Subd. 4. [ALL-TERRAIN VEHICLES.] Approximately 0.15 of one
percent of all gasoline received in or produced or brought into
this state, except gasoline used for aviation purposes, is being
used for the operation of all-terrain vehicles in this state,
and of the total revenue derived from the imposition of the
gasoline fuel tax, 0.15 of one percent is the amount of tax on
fuel used in all-terrain vehicles operated in this state.
Subd. 5. [OFF-HIGHWAY MOTORCYCLES.] Approximately 0.046 of
one percent of all gasoline received or produced in or brought
into this state, except gasoline used for aviation purposes, is
being used for the operation of off-highway motorcycles in this
state, and of the total revenue derived from the imposition of
the gasoline fuel tax for uses other than for aviation purposes,
0.046 of one percent is the amount of tax on fuel used in
off-highway motorcycles operated in this state.
Subd. 6. [OFF-ROAD VEHICLES.] Approximately 0.164 of one
percent of all gasoline received or produced in or brought into
this state, except gasoline used for aviation purposes, is being
used for the off-road operation of off-road vehicles, as defined
in section 84.797, in this state, and of the total revenue
derived from the imposition of the gasoline fuel tax for uses
other than aviation purposes, 0.164 of one percent is the amount
of tax on fuel used for off-road operation of off-road vehicles
in this state.
Subd. 7. [FOREST ROADS.] Approximately 0.116 percent of
the total annual unrefunded revenue from the gasoline fuel tax
on all gasoline and special fuel received in, produced, or
brought into this state, except gasoline and special fuel used
for aviation purposes, is derived from the operation of motor
vehicles on state forest roads and county forest access roads.
This revenue is appropriated from the highway user tax
distribution fund and must be transferred and credited in equal
installments on July 1 and January 1 to the state forest road
account established in section 89.70. Of this amount, 0.0605
percent is annually derived from motor vehicles operated on
state forest roads and 0.0555 percent is annually derived from
motor vehicles operated on county forest access roads in this
state. An amount equal to 0.0555 percent of the unrefunded
revenue must be annually transferred to counties for the
management and maintenance of county forest roads.
Subd. 8. [AVIATION FUEL TAX FUND.] The revenues derived
from the excise taxes on aviation gasoline and on special fuel
received, sold, stored, or withdrawn from storage as substitutes
for aviation gasoline, shall be paid into the state treasury and
credited to the aviation fuel tax fund. There is hereby
appropriated such sums as are needed to carry out the provisions
of this subdivision.
Subd. 9. [COMPUTATION OF UNREFUNDED TAX.] The amount of
unrefunded tax shall be a sum equal to 1-1/2 percent of all
revenues derived from the excise taxes on gasoline, except on
gasoline used for aviation purposes, together with interest
thereon and penalties for delinquency in payment, paid or
collected pursuant to the provisions of this chapter. The
amount of such tax shall be computed for each six-month period
and shall be paid into the state treasury on November 1 and June
1 following each six-month period.
Sec. 19. [296A.19] [REQUIRED RECORDS.]
Subdivision 1. [RETAINING RECORDS.] All distributors,
dealers, special fuel dealers, bulk purchasers, and all users of
special fuel shall keep a true and accurate record of all
purchases, transfers, sales, and use of petroleum products and
special fuel, including copies of all sales tickets issued, in a
form and manner approved by the commissioner, and shall retain
all such records for 3-1/2 years.
Subd. 2. [MAKING ACCESSIBLE.] The books and records of all
carriers of petroleum products, distributors, dealers, and
persons selling or using special fuel shall be made accessible
to the commissioner or an authorized representative.
Subd. 3. [RECORDS EXAMINED.] The commissioner shall make
periodic examinations of all records kept by distributors,
special fuel dealers, bulk purchasers, or other persons selling
or using gasoline or special fuel.
Sec. 20. [296A.20] [EXAMINATIONS AND AUDITS.]
Subdivision 1. [EXAMINATION OF TAXPAYER.] To determine the
accuracy of a return or a report, or for the purpose of
collection, or in fixing liability or verifying information
under state tax law, the commissioner may make reasonable
examinations or investigations of a taxpayer's place of
business, tangible personal property, equipment, computer
systems and facilities, pertinent books, records, papers,
vouchers, computer printouts, accounts, and documents.
Subd. 2. [ACCESS TO RECORDS.] When conducting an
investigation or an audit of a taxpayer, or for the purpose of
collection, or in fixing liability or verifying information
under state tax law, the commissioner or the commissioner's
agent may examine, except where privileged by law, the relevant
records and files of any person, business, institution,
financial institution, state agency, agency of the United States
government, or agency of any other state where permitted by
statute, agreement, or reciprocity. The commissioner may compel
production of these records by subpoena. A subpoena may be
served directly by the commissioner.
Subd. 3. [POWER TO COMPEL TESTIMONY.] In the
administration of state tax law the commissioner may:
(1) administer oaths or affirmations and compel by subpoena
the attendance of witnesses, testimony, and the production of a
person's pertinent books, records, papers, and other data for
inspection and copying;
(2) examine under oath or affirmation any person regarding
the business of any taxpayer concerning any relevant matter
incident to the administration of state tax law. The fees of
witnesses required by the commissioner to attend a hearing are
equal to those allowed to witnesses appearing before courts of
this state. The fees must be paid in the manner provided for
the payment of other expenses incident to the administration of
state tax law; and
(3) in addition to other remedies that may be available,
bring an action in equity by the state against a taxpayer for an
injunction ordering the taxpayer to file a complete and proper
return or amended return. The district courts of this state
have jurisdiction over the action and disobedience of an
injunction issued under this clause will be punished as a
contempt of district court.
Subd. 4. [THIRD-PARTY SUBPOENA WHERE TAXPAYER'S IDENTITY
IS KNOWN.] An investigation may extend to a person that the
commissioner determines has access to information that may be
relevant to the examination or investigation. When a subpoena
requiring the production of records as described in subdivision
4 is served on a third-party recordkeeper, written notice of the
subpoena must be mailed to the taxpayer and to any other person
who is identified in the subpoena. The notices must be given
within three days of the day on which the subpoena is served.
Notice to the taxpayer required by this section is sufficient if
it is mailed to the last address on record with the
commissioner. The provisions of this subdivision relating to
notice to the taxpayer or other parties identified in the
subpoena do not apply if there is reasonable cause to believe
that the giving of notice may lead to attempts to conceal,
destroy, or alter records relevant to the examination, to
prevent the communication of information from other persons
through intimidation, bribery, or collusion, or to flee to avoid
prosecution, testifying, or production of records.
Subd. 5. [THIRD-PARTY SUBPOENA WHERE TAXPAYER'S IDENTITY
IS NOT KNOWN.] A subpoena that does not identify the person or
persons whose tax liability is investigated may be served only
if:
(1) the subpoena relates to the investigation of a
particular person or an ascertainable group or class of persons;
(2) there is reasonable basis for believing that the person
or group or class of persons may fail or may have failed to
comply with the tax laws administered by the commissioner;
(3) the information sought to be obtained from the
examination of the records, and the identity of the person or
persons with respect to whose liability the subpoena is issued,
is not readily available from other sources;
(4) the subpoena is clear and specific concerning the
information sought to be obtained; and
(5) the information sought to be obtained is limited solely
to the scope of the investigation.
The party served with a subpoena that does not identify the
person or persons with respect to whose tax liability the
subpoena is issued may, within 20 days after service of the
subpoena, petition the district court in the judicial district
in which that party is located for a determination concerning
whether the commissioner has complied with all the requirements
in clauses (1) to (5), and thus, whether the subpoena is
enforceable. If no petition is made by the party served within
the time prescribed, the subpoena has the effect of a court
order.
Subd. 6. [REQUEST BY TAXPAYER FOR SUBPOENA.] When the
commissioner has the power to issue a subpoena for investigative
or auditing purposes, the commissioner shall honor a reasonable
request by the taxpayer to issue a subpoena on the taxpayer's
behalf, if in connection with the investigation or audit.
Subd. 7. [APPLICATION TO COURT FOR ENFORCEMENT OF
SUBPOENA.] Disobedience of subpoenas issued under this section
shall be punished by the district court of the district in which
the party served with the subpoena is located, in the same
manner as contempt of the district court.
Subd. 8. [COST OF PRODUCTION OF RECORDS.] The cost of
producing records of a third-party required by a subpoena must
be paid by the taxpayer, if the taxpayer requests the subpoena
to be issued, or if the taxpayer has the records available but
has refused to provide them to the commissioner. In other cases
where the taxpayer cannot produce records and the commissioner
then initiates a subpoena for third-party records, the
commissioner shall pay the reasonable costs of producing the
records. The commissioner may later assess the reasonable costs
against the taxpayer if the records contribute to the
determination of an assessment of tax against the taxpayer.
Sec. 21. [296A.21] [STATUTE OF LIMITATIONS.]
Subdivision 1. [GENERAL RULE.] The commissioner shall make
determinations, corrections, and assessments with respect to
taxes and fees under this chapter, including interest, additions
to taxes, and assessable penalties. Except as otherwise
provided in this section, the amount of taxes assessable must be
assessed within 3-1/2 years after the date the return is filed.
Subd. 2. [COLLECTIONS.] No action shall be brought for the
collection of delinquent taxes and inspection fees under section
270.68 unless commenced within five years after the date of
assessment of the taxes and fees.
Subd. 3. [FALSE OR FRAUDULENT REPORT.] In the case of a
false or fraudulent report with intent to evade tax or
inspection fee or of a failure to file a report, the taxes or
fees may be assessed at any time, and a proceeding in court for
their collection must be begun within five years after the
assessment.
Subd. 4. [TIME LIMIT FOR GASOLINE, SPECIAL FUEL, OR
AVIATION GASOLINE REFUND.] No repayment shall be made unless the
claim and invoice shall be filed with the commissioner within
one year from the date of purchase. The postmark on the
envelope in which a written claim is mailed shall determine its
date of filing.
Subd. 5. [SUSPENSION OF TIME; BANKRUPTCY.] The period of
time during which a tax or fee must be assessed under this
chapter or collection proceedings commenced under subdivision 2
or 3 is suspended during the period from the date of filing of a
petition in bankruptcy until 30 days after the commissioner of
revenue receives notice that the bankruptcy proceedings have
been closed or dismissed or the automatic stay has been
terminated or has expired. The suspension of the statute of
limitations under this subdivision applies to the person against
whom the petition in bankruptcy is filed and all other persons
who may also be wholly or partially liable for the tax under
this chapter.
Sec. 22. [296A.22] [NONPAYMENT OF TAX; CIVIL PENALTIES.]
Subdivision 1. [PENALTY FOR FAILURE TO PAY TAX, GENERAL
RULE.] Upon the failure of any person to pay any tax or fee when
due, a penalty of one percent per day for the first ten days of
delinquency shall accrue, and thereafter the tax, fees, and
penalty shall bear interest at the rate specified in section
270.75.
Subd. 2. [COLLECTION AUTHORITY.] Upon such a failure to
pay any tax or fees within the time provided by this chapter,
all taxes and fees imposed by this chapter shall become
immediately due and payable, and may be collected as provided in
chapter 270.
Subd. 3. [OPERATING WITHOUT A LICENSE.] If any person
operates as a distributor, special fuel dealer, bulk purchaser,
or motor carrier without first securing the license required
under this chapter, any tax or fee imposed by this chapter shall
become immediately due and payable. A penalty of 25 percent is
imposed upon the tax and fee due. The tax, fees, and penalty
shall bear interest at the rate specified in section 270.75.
Subd. 4. [UNLAWFUL USE OF DYED FUEL.] (a) If any dyed fuel
is sold or held for sale by a person for any use which the
person knows or has reason to know is not a nontaxable use of
the fuel; or if any dyed fuel is held for use or used in a
licensed motor vehicle or for any other use by a person for a
use other than a nontaxable use and the person knew, or had
reason to know, that the fuel was so dyed; or if a person
willfully alters, or attempts to alter, the strength or
composition of any dye or marking in any dyed fuel, then the
person shall pay a penalty in addition to the tax, if any.
(b) Except as provided in paragraph (c), the amount of
penalty under paragraph (a) for each act is the greater of
$1,000, or $10 for each gallon of dyed fuel involved.
(c) With regard to a multiple violation under paragraph
(a), the penalty shall be applied by increasing the amount in
paragraph (b) by the product of (1) such amount, and (2) the
number of prior penalties, if any, imposed by this section on
the person, or a related person, or any predecessor of the
person or related person.
(d) If a penalty is imposed under this subdivision on a
business entity, each officer, employee, or agent of the entity
who willfully participated in any act giving rise to the penalty
is jointly and severally liable with the entity for the penalty.
Subd. 5. [RECEIVER APPOINTED.] In the event a suit is
instituted as provided in subdivision 2, the court shall, upon
application, appoint a receiver of the property and business of
the delinquent defendant for the purpose of impounding the same
as security for any judgment which has been or may be recovered.
Subd. 6. [SALE PROHIBITED UNDER CERTAIN CONDITIONS.] No
petroleum product shall be unloaded or sold by any person or
distributor whose tax and inspection fees are the basis for
collection action under subdivision 2.
Subd. 7. [PAYMENT OF PENALTIES.] The penalties imposed by
this section are collected and paid in the same manner as taxes.
Subd. 8. [PENALTIES ARE ADDITIONAL.] The civil penalties
imposed by this section are in addition to the criminal
penalties imposed by this chapter.
Sec. 23. [296A.23] [CRIMINAL PENALTIES.]
Subdivision 1. [PROVIDING FALSE INFORMATION.] A person who
knowingly provides false information, including, but not limited
to, false odometer readings, or who knowingly makes a false
statement in a report, record, claim, or sales ticket required
by this chapter, is guilty of a gross misdemeanor.
Subd. 2. [WILLFUL EVASION.] A person who willfully
attempts in any manner to evade or defeat any tax imposed by
this chapter, including, but not limited to, making and
subscribing any false statement in any report, record, claim, or
sales ticket required by this chapter; or making a false claim
for a refund under section 296A.16, subdivision 2, is guilty of
a felony.
Subd. 3. [OPERATION OF VEHICLE WITHOUT PAYMENT OF TAX.] A
person who operates, or causes to be operated, a licensed motor
vehicle on the public highways of this state on special fuel on
which the excise tax provided by this chapter has not been paid,
or the liability assumed by another person licensed under this
chapter, is guilty of a misdemeanor.
Subd. 4. [USE OF UNTAXED FUEL IN MOTOR VEHICLE.] A person
who uses gasoline, which has been delivered into an on-farm bulk
storage tank, and on which no tax has been paid as provided in
section 296A.15, subdivision 5, and who uses this gasoline for
propelling a motor vehicle on the public highways of this state
is guilty of a misdemeanor.
Subd. 5. [STATE EMPLOYEES; PROHIBITION AGAINST ENGAGING IN
BUSINESS AS DISTRIBUTOR.] An officer or employee of the state of
Minnesota charged with the enforcement of a provision of this
chapter who is employed by or who engages in business as a
distributor or dealer in petroleum products is guilty of a
misdemeanor.
Subd. 6. [FIDUCIARY RELATIONSHIP ESTABLISHED.] A person
other than the commissioner who is authorized to collect excise
taxes on behalf of the state of Minnesota, establishes a
fiduciary relationship, and whoever violates that relationship
is guilty of a violation of this chapter, and of section 609.54,
and may be punished accordingly.
Subd. 7. [FAILURE TO OBTAIN PROPER PERMIT.] A minimum fine
of $200 shall be imposed on a person who fails to obtain a
license or trip permit required under section 296A.27,
subdivisions 6 and 12.
Subd. 8. [CERTAIN BLENDING OF GASOLINE PROHIBITED.] The
blending of gasoline on which the tax has been paid or the
liability accrued, with any substance on which the tax has not
been paid or the liability thereafter accrued, is prohibited.
This section does not preclude the addition of any of the
various inhibitors which in total do not exceed one-half of one
percent by volume of the product treated, nor the addition to
fuel for two-cycle gasoline engines of a lubricant not exceeding
five percent by volume or the product treated; nor does this
subdivision preclude the addition of fuel oil to gasoline for
the purpose of generating power for the propulsion of farm
tractors.
Subd. 9. [OTHER VIOLATIONS.] Any violation of this
chapter, unless otherwise specified, is a gross misdemeanor.
Subd. 10. [PROSECUTION OF VIOLATIONS.] Prosecutions under
this section may be brought in the county in which the defendant
resides or in Ramsey county. On request of the commissioner of
revenue, the county attorney of a county in which the action is
commenced shall prosecute violations of this chapter. Costs,
fees, and expenses incurred by any county attorney in litigation
in connection with the action may be paid from appropriations to
the commissioner of revenue for the administration of this
chapter.
Subd. 11. [ACTIONS FOR RECOVERY; NO BAR TO CRIMINAL
PROSECUTIONS.] No action or suit for recovery of one penalty
shall be a bar to or affect the recovery of any other penalty or
be a bar to any criminal prosecution against any licensee or any
other person under the provisions of this chapter.
Subd. 12. [STATUTE OF LIMITATIONS.] Notwithstanding
section 628.26, or any other provision of the criminal laws of
this state, an indictment may be found and filed, or a complaint
filed, upon a criminal offense named in this section, in the
proper court within six years after the offense is committed.
Sec. 24. [296A.24] [CONTRABAND.]
Subdivision 1. [SEIZURE.] The commissioner or authorized
agents may seize gasoline or special fuel being transported for
delivery in violation of section 296A.03, subdivision 1, and any
vehicle or other method of conveyance used for transporting the
gasoline or special fuel. Any untaxed motor vehicle fuel that
is received by a person other than a licensee is subject to
seizure along with the vehicle or other means of transportation
used to transport the motor vehicle fuel. Any motor vehicle
fuel, along with the transporting vehicle, brought into the
state of Minnesota by a transporter for use, distribution,
storage, or sale that is not supported by a manifest, bill of
lading, or invoice, reflecting the licensed distributor
responsible for the tax and/or fees is subject to seizure by the
Minnesota department of revenue. Property seized under this
subdivision is subject to forfeiture as provided in subdivisions
2 and 3.
Subd. 2. [DISPOSITION OF SEIZED PROPERTY.] (a) Within ten
days after the seizure of gasoline or special fuel, the person
making the seizure shall deliver an inventory of the property
seized to the person from whom the seizure was made, if known,
and file a copy with the office of the commissioner. Within ten
days after the date of service of the inventory, the person from
whom the property was seized or any person claiming an interest
in the property may file with the commissioner a demand for a
judicial determination of whether the property was lawfully
subject to seizure and forfeiture. The commissioner, within 60
days of demand for a judicial determination, shall begin an
action in the district court of the county where the seizure was
made to determine the issue of forfeiture.
(b) The action must be brought in the name of the state and
prosecuted by the county attorney or by the attorney general.
The court shall hear the action without a jury and shall try and
determine the issues of fact and law involved.
(c) When a judgment of forfeiture is entered, the
commissioner may, unless the judgment is stayed pending an
appeal, either:
(1) cause the forfeited property to be destroyed; or
(2) cause it to be sold at public auction as provided by
law. Proceeds of a sale, after deducting the expense of keeping
the gasoline or special fuel and costs of the sale, must be paid
into the state treasury. The commissioner shall reimburse
designees for costs incurred.
(d) If a demand for judicial determination is made and no
action is commenced as provided in this subdivision, the
property must be released by the commissioner and redelivered to
the person entitled to it. If no demand is made, the property
seized must be considered forfeited to the state by operation of
law and may be disposed of by the commissioner as provided where
there has been a judgment of forfeiture. When the commissioner
is satisfied that a person from whom property is seized under
this chapter was acting in good faith and without intent to
evade the tax, the commissioner shall release the property
seized, without further legal proceedings.
Subd. 3. [DISPOSAL.] (a) The commissioner or authorized
designees shall file with the court a separate complaint against
the vehicle or conveyance, describing it and charging its use in
the specified violation, and specifying substantially the time
and place of the unlawful use. A copy of the complaint must be
served on the defendant or person in charge of the vehicle or
conveyance at the time of seizure, if any. The court shall
issue an order directed to any person known or believed to have
a right or title to, interest in, or lien on the vehicle or
conveyance and to persons unknown claiming a right, title,
interest, or lien:
(1) describing the vehicle or conveyance and stating that
it was seized and that a complaint against it, charging the
specified violation, has been filed with the court;
(2) requiring the persons to file with the court
administrator of the court their answer to the complaint,
setting forth any claim they may have to a right or title to,
interest in, or lien on the vehicle or conveyance, within 30
days after the service of the order; and
(3) notifying them in substance that if they fail to file
their answer within that time, the vehicle or conveyance will be
ordered sold by the commissioner.
(b) The court shall cause the order to be served on:
(1) the registered owner;
(2) any person who has duly filed a conditional sales
contract, mortgage, or other lien instrument covering the
property unless it has been released or satisfied;
(3) any other person known or believed to have a right,
title, interest in, or lien upon, the vehicle or conveyance as
in the case of a summons in a civil action; and
(4) on unknown persons by publication, as provided for
service of summons in a civil action.
(c) If no answer is filed within the time prescribed, the
court shall, on affidavit by the court administrator of the
court setting forth that fact, order the vehicle or conveyance
forfeited and direct that it be sold by the commissioner or the
commissioner's agents. The proceeds of the sale, after
deducting the expense of keeping the vehicle or conveyance and
costs of the sale, including any costs incurred under paragraph
(f), must be paid into the state treasury. The commissioner
shall reimburse designees for costs incurred.
(d) If an answer is filed within the time provided, the
court shall fix a time for hearing at least ten days but no more
than 30 days after the time for filing the answer expires. At
the hearing, the matter must be heard and determined by the
court, without a jury, as in other civil actions. If the court
finds that the vehicle or conveyance, or any part of it, was
used in a violation as specified in the complaint, it shall
order the vehicle or conveyance forfeited and direct that it be
sold, as provided in this section, unless the owner shows to the
satisfaction of the court that the vehicle was being used
without the owner's consent or that, when giving the consent,
the owner had no notice or knowledge or reason to believe that
the vehicle or conveyance was intended to be used in a
violation. After deducting the expense of keeping the vehicle
or conveyance and costs of the sale, the officer making the sale
shall pay, according to their priority, all liens established at
the hearing as being bona fide and existing without the lienor
having any notice or knowledge at the time the lien was created
that the vehicle or conveyance was being used or was intended to
be used in connection with any violation, and shall pay the
balance of the proceeds into the state treasury. The
commissioner shall reimburse designees for costs incurred. A
sale under this section frees the conveyance sold from all liens.
(e) At any time after seizure and before the hearing, the
vehicle or conveyance must be returned to the owner or person
having a legal right to its possession on execution by that
person of a valid bond to the state of Minnesota, with corporate
surety, of at least $100, but not more than double the value of
the vehicle or conveyance seized, to be approved by the court in
which the case is triable, or a judge of that court. The bond
must guarantee compliance with the order and judgment of the
court, and, if ordered by the court, payment of the full value
of the vehicle or conveyance at the time of seizure.
(f) If the seized vehicle or conveyance is owned or
operated by a for-hire common or contract motor carrier, and was
being used without knowledge of the violation, the commissioner
shall return the vehicle or conveyance to its owner or operator
as soon as possible without need for court order, and shall
provide to such owner or operator reasonable compensation for
the time during which the vehicle or conveyance is held under
seizure.
Sec. 25. [296A.25] [ADMINISTRATIVE REVIEW.]
Subdivision 1. [TAXPAYER RIGHT TO RECONSIDERATION.] A
taxpayer may obtain reconsideration by the commissioner of an
order assessing tax, a denial of a request for abatement of
penalty, or a denial of a claim for refund by filing an
administrative appeal under subdivision 3. A taxpayer cannot
obtain reconsideration under this section if the action taken by
the commissioner is the outcome of an administrative appeal.
Subd. 2. [NOTICE DATE.] For purposes of this section, the
term "notice date" means the date of the order adjusting the tax
or order denying a request for abatement, or, in the case of a
denied refund, the date of the notice of denial.
Subd. 3. [TIME AND CONTENT FOR ADMINISTRATIVE APPEAL.]
Within 60 days after the notice date, the taxpayer must file a
written appeal with the commissioner. The appeal need not be in
any particular form, but must contain the following information:
(1) the name and address of the taxpayer;
(2) if a corporation, the state of incorporation of the
taxpayer, and the principal place of business of the
corporation;
(3) the Minnesota identification number or social security
number of the taxpayer;
(4) the type of tax involved;
(5) the date;
(6) the tax years or periods involved and the amount of tax
involved for each year or period;
(7) the findings in the notice that the taxpayer disputes;
(8) a summary statement that the taxpayer relies on for
each exception; and
(9) the taxpayer's signature or signature of the taxpayer's
duly authorized agent.
Subd. 4. [EXTENSIONS.] When requested in writing and
within the time allowed for filing an administrative appeal, the
commissioner may extend the time for filing an appeal for a
period of not more than 30 days from the expiration of the 60
days from the notice date.
Subd. 5. [DETERMINATION OF APPEAL.] On the basis of
applicable law and available information, the commissioner shall
determine the validity, if any, in whole or part of the appeal
and notify the taxpayer of the decision. This notice must be in
writing and contain the basis for the determination.
Subd. 6. [AGREEMENT DETERMINING TAX LIABILITY.] When it
appears to be in the best interests of the state, the
commissioner may settle any taxes, penalties, or interest that
the commissioner has under consideration by virtue of an appeal
filed under this section. An agreement must be in writing and
signed by the commissioner and the taxpayer, or the taxpayer's
representative authorized by the taxpayer to enter into an
agreement. The agreement shall be final and conclusive and,
except upon a showing of fraud or malfeasance, or
misrepresentation of a material fact, the case shall not be
reopened as to the matters agreed upon.
Subd. 7. [APPEAL OF AN ADMINISTRATIVE DETERMINATION.]
Following the determination of an appeal and notwithstanding any
period of limitations for making assessments or other
determinations to the contrary, the commissioner must issue an
order reflecting that disposition. If the statute of
limitations for making assessments or other determinations would
have expired before the issuance of this order, except for this
section, the order is limited to issues or matters contained in
the appealed determination. The order is appealable to the
Minnesota tax court under section 271.06.
Subd. 8. [APPEAL WHERE NO DETERMINATION.] If the
commissioner does not make a determination within six months of
the filing of an administrative appeal, the taxpayer may elect
to appeal to tax court.
Subd. 9. [INAPPLICABILITY OF ADMINISTRATIVE PROCEDURE
ACT.] An appeal under this section is not a contested case
governed by chapter 14.
Sec. 26. [296A.26] [JUDICIAL REVIEW; APPEAL TO TAX COURT.]
In lieu of an administrative appeal under this chapter, any
person aggrieved by an order of the commissioner fixing a tax,
penalty, or interest under this chapter may, within 60 days from
the date of the notice of the order, appeal to the tax court in
the manner provided under section 271.06.
Sec. 27. [296A.27] [ROAD TAX; MOTOR CARRIERS;
RECIPROCITY.]
Subdivision 1. [DEFINITIONS.] As used in this section
(a) "Commercial motor vehicle" means a motor vehicle used,
designed, or maintained for transportation of persons or
property that:
(1) has two axles and a gross vehicle weight or registered
gross vehicle weight exceeding 26,000 pounds;
(2) has three or more axles regardless of weight; or
(3) is used in combination, when the weight of such
combination exceeds 26,000 pounds gross vehicle or registered
gross vehicle weight. "Commercial motor vehicle" does not
include recreational vehicles.
(b) "Highway" means the lines of every way publicly
maintained when part of the highway is open for the public to
travel on.
(c) "Motor carrier" means a person who operates or causes
to be operated a commercial motor vehicle on a highway in this
state.
(d) "Motor fuel" means a liquid, regardless of its
composition or properties, used to propel a motor vehicle.
(e) "Operation" means operation of commercial motor
vehicles whether loaded or empty, whether for compensation or
not for compensation, and whether owned by or leased to the
motor carrier who operates them or causes them to be operated.
Subd. 2. [REFUNDS ON FUEL USED IN OTHER STATES.] Every
person regularly or habitually operating motor vehicles upon the
public highways of any other state or states and using in said
motor vehicles gasoline or special fuel purchased or obtained in
this state, shall be allowed a credit or refund equal to the tax
on said gasoline or special fuel paid or special fuel actually
used in the other state or states. No credit or refund shall be
allowed under this subdivision for taxes paid to any state which
imposes a tax upon gasoline or special fuel purchased or
obtained in this state and used on the highways of such other
state, and which does not allow a similar credit or refund for
the tax paid to this state on gasoline or special fuel purchased
or acquired in such other state and used on the highways of this
state. Every person claiming a credit or refund under this
subdivision shall file a claim in the form and manner prescribed
by the commissioner or take the credit on a subsequent tax
return within one year of the last day of the month following
the end of the quarter when the overpayment occurred.
Subd. 3. [RECIPROCAL AGREEMENTS.] The commissioner of
public safety or the commissioner of revenue may enter into
reciprocal agreements with the appropriate officials of any
other state under which either commissioner may waive all or any
part of the requirements imposed by this section upon those who
use in Minnesota gasoline or other motor vehicle fuel upon which
the tax has been paid to such other state, provided that the
officials of such other state grant equivalent privileges with
respect to gasoline or other motor vehicle fuel used in such
other state but upon which the tax has been paid to the state of
Minnesota. The commissioner of public safety or the
commissioner of revenue may enter into reciprocal agreements
with the appropriate officials of other states, exempting
vehicles licensed in such other states from the license and use
tax provisions contained in this section, which otherwise would
apply to vehicles licensed by such other state, provided that
such other state grant equivalent privileges with respect to
vehicles licensed by the state of Minnesota.
Subd. 4. [ROAD TAX IMPOSED.] (a) Every motor carrier shall
pay a road tax calculated on the amount of motor fuel consumed
in the motor carrier's operations on highways within this
state. The tax shall be at the same rate as the tax applicable
to the purchase of the same motor fuel within this state.
(b) The amount of motor fuel consumed in the operations of
any motor carrier on highways within this state shall be
determined by dividing the miles traveled within the state of
Minnesota by the average miles per gallon. The average miles
per gallon shall be determined by dividing the miles traveled
within and without the state by the total motor fuel consumed
within and without the state.
Subd. 5. [EXEMPTIONS.] Nothing in this section shall apply
to:
(1) any commercial motor vehicle or vehicles operated by
this state, any subdivision thereof, the United States, or any
agency of two or more states or of states and the United States
in which this state participates;
(2) any school bus as defined by the laws of this state
operated by, for, or on behalf of a state or any subdivision
thereof; or
(3) any motor vehicle bearing Minnesota base license plates.
Subd. 6. [MOTOR CARRIER LICENSE.] (a) No motor carrier may
operate a commercial motor vehicle upon the highways of this
state unless and until issued a license under this section or
until the motor carrier has obtained a trip permit or temporary
authorization as provided in this section.
(b) A license shall be issued to any responsible person
qualifying as a motor carrier who makes application therefor and
who pays to the commissioner, at the time thereof, a license fee
of $30. The license is valid for a period of up to two years or
until revoked by the commissioner or until surrendered by the
motor carrier. All outstanding licenses will expire on March 31
of each even-numbered year and may be renewed upon application
to the commissioner and payment of the $30 fee. The license,
photocopy, or electrostatic copy of it, shall be carried in the
cab of every commercial motor vehicle while it is being operated
in Minnesota by a licensed motor carrier.
Subd. 7. [REVOCATION OF MOTOR CARRIER LICENSES.]
Notwithstanding the provisions of section 296A.06, if a motor
carrier fails to file three consecutive road tax reports, the
commissioner, by certified mail sent to the address on the last
report, shall notify the motor carrier of the commissioner's
intention to revoke the license and of the motor carrier's right
to request a hearing under section 296A.06. If no request for a
hearing is received within 30 days of the notice, the license
may be revoked by the commissioner.
Subd. 8. [MOTOR CARRIER REPORTS.] Every motor carrier
subject to the road tax shall, on or before the last day of
April, July, October, and January, file with the commissioner in
the form and manner prescribed by the commissioner, reports of
operations during the previous three months, and such other
reports as the commissioner may deem necessary. The
commissioner may exempt from the quarterly reporting
requirements of this section those motor carriers whose mileage
is all or substantially all and those motor carriers whose
mileage is minimal within this state, or states with which
Minnesota has reciprocity, and require in such instances an
annual report reflecting the operations of the carrier during
the previous year along with payment of any taxes due. Each
report shall contain a confession of judgment for the amount of
the tax shown due thereon to the extent not timely paid.
Subd. 9. [MOTOR CARRIER RECORDS.] (a) Every motor carrier
shall keep such records as may be necessary for the
administration of this section and for the reporting and
justification of the amount of tax liability pursuant hereto.
The records shall be kept in such form as the commissioner
reasonably may prescribe. All such records shall be safely
preserved for a period of three years in such manner as to
ensure their security and availability for inspection by the
commissioner. Upon application in writing stating the reasons
therefor, the commissioner may consent to the destruction of
such records at an earlier time if the commissioner has
completed an audit of the records in question.
(b) The commissioner or authorized agents or
representatives shall have the right at any reasonable time to
inspect the books and records of any motor carrier subject to
the tax imposed by this chapter.
Subd. 10. [EVIDENCE.] In the absence of records showing
the number of miles actually operated per gallon of motor fuel,
it shall be presumed that one gallon of motor fuel was consumed
for every four miles traveled.
Subd. 11. [LEASED COMMERCIAL MOTOR VEHICLES.] (a) Except
as otherwise provided in this section, every commercial motor
vehicle leased to a motor carrier shall be subject to the
provisions of this section and rules in force pursuant hereto,
to the same extent and in the same manner as commercial motor
vehicles owned by such carrier.
(b) A lessor of commercial motor vehicles may be deemed a
motor carrier with respect to such vehicles leased to others by
the lessor and motor fuel consumed thereby, if the lessor
supplies or pays for the motor fuel consumed by such vehicles or
makes rental or other charges calculated to include the cost of
such fuel. Any lessee motor carrier may exclude the leased
commercial motor vehicles from reports and liabilities under
this section, but only if the commercial motor vehicles in
question have been leased from a lessor who is a motor carrier
under this section.
(c) The provisions of paragraphs (a) and (b) of this
subdivision shall govern the primary liability under this
section of lessors and lessees of commercial motor vehicles. If
a lessor or lessee primarily liable fails, in whole or in part,
to discharge liability, such failing party and the other lessor
or lessee party to the transaction shall be jointly and
severally responsible and liable for compliance with the
provisions of this section and for the payment of any tax due,
provided that the aggregate of any taxes collected by this state
shall not exceed the total amount or amounts of taxes due on
account of the transactions in question and such costs and
penalties, if any, as may be imposed.
Subd. 12. [MOTOR CARRIER TRIP PERMITS; TEMPORARY
AUTHORIZATIONS.] (a) A motor carrier may obtain a trip permit
which authorizes an unlicensed motor carrier to operate a
commercial motor vehicle in Minnesota for a period of five
consecutive days beginning and ending on the dates specified on
the face of the permit. The fee for the permit is $25. Fees
for trip permits are in lieu of the road tax otherwise
assessable against the motor carrier on account of the
commercial motor vehicle operating therewith, and no reports of
mileage are required with respect to the vehicle. The above
permit shall be issued in lieu of license if in the course of
operations a motor carrier operates on Minnesota highways no
more than three times in any one calendar year.
(b) Whenever the commissioner is satisfied that unforeseen
or uncertain circumstances have arisen which requires a motor
carrier to operate in this state a commercial motor vehicle for
which neither a trip permit under paragraph (a) nor a license
under this section has yet been obtained, and if the
commissioner is satisfied that prohibition of that operation
would cause undue hardship, the commissioner may provide the
motor carrier with temporary authorization for the operation of
the vehicle. A motor carrier receiving temporary authorization
under this subdivision shall perfect the same either by
obtaining a trip permit or a license, as the case may be, for
the vehicle at the earliest practicable time.
Subd. 13. [COOPERATIVE AUDITS.] The commissioner may make
arrangements with the commissioner of transportation and may
enter into agreements with the appropriate authorities of other
states having statutes similar to this act for the cooperative
audit of motor carriers' reports and returns. In performing any
such audit, or part thereof, the officers and employees of the
other state or states shall be deemed authorized agents of this
state for such purpose, and such audits, or parts thereof, shall
have the same effect as similar audits, or parts thereof, when
made by the commissioner.
Subd. 14. [ACTIONS TO AVOID TAX.] If the commissioner
ascertains that a person designs quickly to depart from this
state, or to remove therefrom the person's property, or any
property used by the person in operations subject to this
section, or to discontinue business, or to do any other act
tending to prejudice or render wholly or partly ineffectual
proceedings to assess or collect the tax, whereby it becomes
important that such proceedings be brought without delay, the
commissioner may immediately make an assessment of tax estimated
to be due, whether or not any report is then due by law, and may
proceed under such assessment to collect the tax, or compel
security for the same, and thereupon shall cause notice of such
finding to be given to such motor carrier, together with a
demand for an immediate payment of such tax. The commissioner
or agents is also authorized to impound motor vehicles of
persons in violation of this section. Such vehicle shall be
released either upon payment of all taxes, penalties and
interest that may be due, or depositing a bond or security to
assure the payment of said taxes, penalties and interest.
Subd. 15. [ENFORCEMENT POWERS.] (a) The commissioner is
authorized and directed to enforce the provisions of this
section. In addition, the commissioner of public safety is
authorized and directed to use the Minnesota state patrol to
assist in the enforcement of the provisions of this section and
the commissioner of transportation is authorized and directed to
enforce the provisions of subdivisions 6 and 12 as provided in
section 221.221.
(b) The officers of the Minnesota state patrol shall in
addition to all other powers granted to them by Minnesota
Statutes have the power of making arrests, service of process,
and appearing in court in all matters and things relating to
this section and the administration and enforcement thereof.
Subd. 16. [RULES.] The commissioner may, from time to
time, issue, amend, and revise such rules as may be necessary
for the effective enforcement of this section.
Subd. 17. [COMMISSIONER MAY WAIVE REQUIREMENTS.] The
commissioner is empowered to suspend the enforcement of this
section if the cost of administration thereof exceeds the tax
revenue produced therefrom.
Sec. 28. [296A.28] [FUEL TAX COMPACTS.]
Subdivision 1. [AUTHORITY.] The commissioner of public
safety has the powers granted to the commissioner of revenue
under section 296A.27. The commissioner of public safety may
enter into an agreement or arrangement with the duly authorized
representative of another state or make an independent
declaration, granting to owners of vehicles properly registered
or licensed in another state, benefits, privileges, and
exemptions from paying, wholly or partially, fuel taxes, fees,
or other charges imposed for operating the vehicles under the
laws of Minnesota. The agreement, arrangement, or declaration
may impose terms and conditions consistent with Minnesota laws.
Subd. 2. [RECIPROCAL PRIVILEGES AND TREATMENT.] An
agreement or arrangement must be in writing and provide that
when a vehicle properly licensed for fuel in the state of
Minnesota is operated on highways of the other state, it must
receive exemptions, benefits, and privileges of a similar kind
or to a similar degree as are extended to a vehicle properly
licensed for fuel in that state, when operated in the state of
Minnesota. A declaration must be in writing and must
contemplate and provide for mutual benefits, reciprocal
privileges, or equitable treatment of the owner of a vehicle
registered for fuel in Minnesota and the other state. In the
judgment of the commissioner of public safety, an agreement,
arrangement, or declaration must be in the best interest of
Minnesota and its citizens and must be fair and equitable
regarding the benefits that the agreement brings to the economy
of Minnesota.
Subd. 3. [COMPLIANCE WITH MINNESOTA LAWS.] Agreements,
arrangements, and declarations made under authority of this
section must contain a provision specifying that no fuel
license, or exemption issued or accruing under the license,
excuses the operator or owner of a vehicle from compliance with
Minnesota laws.
Subd. 4. [EXCHANGES OF INFORMATION.] The commissioner of
public safety may make arrangements or agreements with the
commissioner of transportation and other states to exchange
information for audit and enforcement activities in connection
with fuel tax licensing. The filing of fuel tax returns under
this section is subject to the rights, terms, and conditions
granted or contained in the applicable agreement or arrangement
made by the commissioner under the authority of this section.
Subd. 5. [BASE STATE FUEL COMPACT.] The commissioner of
public safety may ratify and effectuate the international fuel
tax agreement or other fuel tax agreement. The commissioner's
authority includes, but is not limited to, collecting fuel taxes
due, issuing fuel licenses, issuing refunds, conducting audits,
assessing penalties and interest, issuing fuel trip permits,
issuing decals, and suspending or denying licensing.
Subd. 6. [MINNESOTA-BASED INTERSTATE CARRIERS.]
Notwithstanding the exemption contained in section 296A.27,
subdivision 5, as the commissioner of public safety enters into
interstate fuel tax compacts requiring base state licensing and
filing and eliminating filing in the nonresident compact states,
the Minnesota-based motor vehicles registered under section
168.187 will be required to license under the fuel tax compact
in Minnesota.
Subd. 7. [DELINQUENT FILING OR PAYMENT.] If a fleet owner
licensed under this section is delinquent in either filing or
paying the international fuel tax agreement reports for more
than 30 days, or paying the international registration plan
billing under section 168.187 for more than 30 days, the fleet
owner, after ten days' written notice, is subject to suspension
of the apportioned license plates and the international fuel tax
agreement license.
Subd. 8. [TRANSFERRING FUNDS TO PAY DELINQUENT FEES.] If a
fleet owner licensed under this section is delinquent in either
filing or paying the international fuel tax agreement reports
for more than 30 days, or paying the international registration
plan billing under section 168.187 for more than 30 days, the
commissioner may authorize any credit in either the
international fuel tax agreement account or the international
registration plan account to be used to offset the liability in
either the international registration plan account or the
international fuel tax agreement account.
Subd. 9. [FUEL COMPACT FEES.] License fees paid to the
commissioner of public safety under the international fuel tax
agreement must be deposited in the highway user tax distribution
fund. The commissioner shall charge the fuel license fee of $30
established under section 296A.27, subdivision 6, in annual
installments of $15, and an annual application filing fee of $13
for quarterly reporting of fuel tax.
Subd. 10. [FUEL DECAL FEES.] The commissioner of public
safety may issue and require the display of a decal or other
identification to show compliance with subdivision 5. The
commissioner may charge a fee to cover the cost of issuing the
decal or other identification. Decal fees paid to the
commissioner under this subdivision must be deposited in the
highway user tax distribution fund.
Sec. 29. [PURPOSE.]
It is the intent of the legislature to simplify Minnesota's
petroleum tax laws by consolidating and recodifying the tax
administration and compliance provisions now contained
throughout Minnesota Statutes, chapter 296. Due to the
complexity of the recodification, prior provisions are repealed
on the effective date of the new provisions. The repealed
provisions, however, continue to remain in effect until
superseded by the analogous provision in the new law.
Sec. 30. [INSTRUCTIONS TO REVISOR.]
In each section of Minnesota Statutes referred to in column
A, the revisor of statutes shall delete the reference in column
B and insert the reference in column C.
Column A Column B Column C
16A.6701, subd. 1 296.06 296A.03
16A.6701, subd. 1 296.12 296A.04
16A.6701, subd. 1 296.17 296A.27
41A.09, subd. 7 296.01 296A.01
84.794, subd. 1 296.16 296A.18
84.803, subd. 1 296.16 296A.18
84.83, subd. 2 296.16 296A.18
84.927, subd. 1 296.16 296A.18
89.70 296.421, subd. 8 296A.18, subd. 7
89.72 296.421, subd. 8 296A.18, subd. 7
115C.02, subd. 10 296.01 296A.01
115C.08, subd. 3 296.01, 1st ref. 296A.01
115C.08, subd. 3 296.141 296A.15
115C.08, subd. 3 296.01, 2nd ref. 296A.01
115C.08, subd. 3 296.15 296A.22
124.83, subd. 2 296.01 296A.01
124A.22, subd. 11 296.01 296A.01
168.187, subd. 26 296.171 296A.28
221.221, subd. 2 296.17, subds. 296A.27, subds. 6
10 and 17 and 12
221.221, subd. 2 chapter 296 chapter 296A
239.011, subd. 2 chapter 296 chapter 296A
239.05, subd. 8b 296.06 296A.03
239.05, subd. 8e 296.01, subd. 8 296A.01, subd. 23
239.05, subd. 12b 296.01, subds. 2, 296A.01, subds. 2,
7, 8, 10, 13, 14, 7, 8, 10, 14, 16,
and 17 to 22 19, 20, 22 to 26,
28, 32, and 35
239.101, subd. 3 chapter 296 chapter 296A
239.761, subd. 2 296.01 296A.01
239.785, subd. 3 296.15 296A.22
239.785, subd. 3 296.25 296A.23
239.785, subd. 4 chapter 296 chapter 296A
270.101, subd. 1 chapter 296 chapter 296A
282.322 chapter 296 chapter 296A
297A.25, subd. 7 chapter 296 chapter 296A
297A.25, subd. 7 296.01, subd. 27a 296A.01, subd. 39
297A.25, subd. 7 296.18, subd. 1, 296A.16, subd. 2,
clause (2) clause (2)
325E.35, subd. 9 296.01 296A.01
353A.01, subd. 2 chapter 296 chapter 296A
458A.30 chapter 296 chapter 296A
514.950, subd. 10 296.01 296A.01
Sec. 31. [REPEALER.]
Minnesota Statutes 1996, sections 296.01; 296.02,
subdivisions 1, 1a, 1b, 1c, 2, 3, 4, 6, and 8; 296.025;
296.0261; 296.035; 296.04; 296.041; 296.06; 296.11; 296.115;
296.12; 296.141, subdivisions 1, 2, 3, 5, 6, and 7; 296.15;
296.151; 296.152; 296.16, subdivisions 1a and 2; 296.165;
296.17, subdivisions 1, 3, 5, 6, 7, 8, 9, 10, 11, 14, 15, 16,
17, 19, 20, 21, and 22; 296.171, subdivisions 1, 2, 3, 5, 6, 7,
8, 9, and 10; 296.18, subdivisions 2, 3, 4, 5, 6, and 8; 296.19;
296.20; 296.21; 296.23; 296.25; 296.26; 296.27; and 296.421;
Minnesota Statutes 1997 Supplement, sections 296.141,
subdivision 4; 296.16, subdivision 1; 296.17, subdivision 18;
296.171, subdivision 4; and 296.18, subdivision 1, are repealed.
Sec. 32. [EFFECTIVE DATE.]
Sections 1, 2, 13, 14, 18, and 27 to 29 are effective the
day following final enactment. Sections 3 to 12, 15 to 17, 19,
21, 22, 25, and 26 are effective for returns, reports, refunds,
taxes, or other payments first becoming due on or after July 1,
1998. Section 20 is effective for audits or investigations
initiated on or after July 1, 1998. Section 23 is effective for
crimes committed on or after July 1, 1998. Sections 24 and 31
are effective July 1, 1998.
Presented to the governor March 17, 1998
Signed by the governor March 18, 1998, 4:34 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes