1.1                          A bill for an act 
  1.2             relating to taxation; providing that sales of diesel 
  1.3             fuel used to operate commuter rail systems are exempt 
  1.4             from the sales tax; appropriating money; amending 
  1.5             Minnesota Statutes 1998, sections 297A.15, by adding a 
  1.6             subdivision; and 297A.25, subdivision 7. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1998, section 297A.15, is 
  1.9   amended by adding a subdivision to read: 
  1.10     Subd. 8.  [REFUND; APPROPRIATION; COMMUTER RAIL FUEL.] If 
  1.11  fuel described in section 297A.25, subdivision 7, clause (6), is 
  1.12  purchased by the operator of the commuter rail system, a refund 
  1.13  equal to the taxes paid on the fuel must be paid to the operator 
  1.14  of the commuter rail system.  The tax must be imposed and 
  1.15  collected as if the sales were taxable and the rate under 
  1.16  section 297A.02, subdivision 1, applied.  An application for 
  1.17  refund must be submitted by the operator of the commuter rail 
  1.18  system and must include sufficient information to permit the 
  1.19  commissioner to verify the sales taxes paid.  The amount 
  1.20  required to make the refunds is annually appropriated to the 
  1.21  commissioner.  Interest must be paid on the refund at the rate 
  1.22  in section 270.76 from 60 days after the date the refund claim 
  1.23  is filed with the commissioner. 
  1.24     Sec. 2.  Minnesota Statutes 1998, section 297A.25, 
  1.25  subdivision 7, is amended to read: 
  1.26     Subd. 7.  [PETROLEUM PRODUCTS.] The gross receipts from the 
  2.1   sale of and storage, use or consumption of the following 
  2.2   petroleum products are exempt:  
  2.3      (1) products upon which a tax has been imposed and paid 
  2.4   under the provisions of chapter 296A, and no refund has been or 
  2.5   will be allowed because the buyer used the fuel for nonhighway 
  2.6   use; 
  2.7      (2) products which are used in the improvement of 
  2.8   agricultural land by constructing, maintaining, and repairing 
  2.9   drainage ditches, tile drainage systems, grass waterways, water 
  2.10  impoundment, and other erosion control structures; 
  2.11     (3) products purchased by a transit system receiving 
  2.12  financial assistance under section 174.24 or 473.384; 
  2.13     (4) products used in a passenger snowmobile, as defined in 
  2.14  section 296A.01, subdivision 39, for off-highway business use as 
  2.15  part of the operations of a resort as provided under section 
  2.16  296A.16, subdivision 2, clause (2); or 
  2.17     (5) products purchased by a state or a political 
  2.18  subdivision of a state for use in motor vehicles exempt from 
  2.19  registration under section 168.012, subdivision 1, paragraph 
  2.20  (b); or 
  2.21     (6) products purchased for use as fuel for a commuter rail 
  2.22  system operating under sections 174.80 to 174.90, provided that 
  2.23  the tax must be paid on these purchases and a refund of the tax 
  2.24  applied for as provided in section 297A.15, subdivision 8. 
  2.25     Sec. 3.  [EFFECTIVE DATE.] 
  2.26     Sections 1 and 2 are effective for purchases after June 30, 
  2.27  2000.