1.1 	A bill for an act
1.2 	relating to motor fuels; increasing rates of motor
1.3 	fuel taxes; appropriating money for highways 53 and
1.4 	169; amending Minnesota Statutes 2004, sections
1.5 	296A.07, subdivision 3; 296A.08, subdivision 2.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2004, section 296A.07,
1.8 	subdivision 3, is amended to read:
1.9 		Subd. 3.Rate of tax.  The gasoline excise tax is imposed
1.10 	at the following rates:
1.11 	(1) E85 is taxed at the rate of ~~14.2~~ 18.46 cents per
1.12 	gallon;
1.13 	(2) M85 is taxed at the rate of ~~11.4~~ 14.82 cents per
1.14 	gallon; and
1.15 	(3) all other gasoline is taxed at the rate of ~~20~~ 26 cents
1.16 	per gallon.

1.17 	Sec. 2. Minnesota Statutes 2004, section 296A.08,
1.18 	subdivision 2, is amended to read:
1.19 		Subd. 2.Rate of tax.  The special fuel excise tax is
1.20 	imposed at the following rates:
1.21 	(a) Liquefied petroleum gas or propane is taxed at the rate
1.22 	of ~~15~~ 19.5 cents per gallon.
1.23 	(b) Liquefied natural gas is taxed at the rate of ~~12~~ 15.6 
1.24 	cents per gallon.
1.25 	(c) Compressed natural gas is taxed at the rate
2.1 	of ~~$1.739~~ $2.261 per thousand cubic feet; or ~~20~~ 26 cents per
2.2 	gasoline equivalent, as defined by the National Conference on
2.3 	Weights and Measures, which is 5.66 pounds of natural gas.
2.4 	(d) All other special fuel is taxed at the same rate as the
2.5 	gasoline excise tax as specified in section 296A.07, subdivision
2.6 	2.  The tax is payable in the form and manner prescribed by the
2.7 	commissioner.

2.8 	Sec. 3. APPROPRIATIONS FOR HIGHWAYS 53 AND 169.
 2.9 		Subdivision 1.Highway 53. (a) $15,000,000 is
2.10 	appropriated from the trunk highway fund to the commissioner of
2.11 	transportation in fiscal year 2006 for completion of the Falls
2.12 	to Falls Corridor, marked Trunk Highway 53, from International
2.13 	Falls to Cook as a four-lane highway.
2.14 	(b) $15,000,000 is appropriated from the trunk highway fund
2.15 	to the commissioner of transportation on the first day of each
2.16 	fiscal year after fiscal year 2006 until the commissioner
2.17 	certifies to the commissioner of finance that the highway
2.18 	project described in paragraph (a) has been completed.  Any
2.19 	money appropriated under this paragraph that is not required to
2.20 	complete the highway project cancels to the trunk highway fund.
2.21 		Subd. 2.Highway 169. $15,000,000 is appropriated from
2.22 	the trunk highway fund to the commissioner of transportation for
2.23 	completing the project for marked Trunk Highway 169 from
2.24 	Coleraine to its intersection with marked Trunk Highway 65 in or
2.25 	near Pengilly.

2.26 	Sec. 4. EFFECTIVE DATE.
 2.27 	Sections 1 and 2 are effective June 1, 2005.  Section 1
2.28 	applies to all gasoline in distributor storage on that date.
2.29 	Section 3 is effective July 1, 2005.