1.1 	A bill for an act
1.2 	relating to transportation; changing terms "gasoline
1.3 	tax" and "special fuels tax" to "transportation fee";
1.4 	increasing transportation fee; amending Minnesota
1.5 	Statutes 2004, sections 296A.07, subdivision 3;
1.6 	296A.08, subdivision 2.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. Minnesota Statutes 2004, section 296A.07,
1.9 	subdivision 3, is amended to read:
1.10 		Subd. 3.~~rate of tax~~ amount of transportation fee. (a)
1.11 	On and after July 1, 2005, and before July 1, 2006,the ~~gasoline~~
1.12 	~~excise tax~~ transportation fee is imposed ~~at the following rates~~ 
1.13 	as follows:
1.14 	(1) ~~E85 is taxed at the rate of 14.2~~17.8 cents per gallon
1.15 	for E85;
1.16 	(2) ~~M85 is taxed at the rate of 11.4~~14.3 cents per gallon
1.17 	for M85; and
1.18 	(3) ~~all other gasoline is taxed at the rate of 20~~ 25 cents
1.19 	per gallon for all other gasoline.
1.20 	(b) On and after July 1, 2006, the transportation fee is
1.21 	imposed as follows:
1.22 	(1) 21.3 cents per gallon for E85;
1.23 	(2) 17.1 cents per gallon for M85; and 
1.24 	(3) 30 cents per gallon for all other gasoline.

1.25 	Sec. 2. Minnesota Statutes 2004, section 296A.08,
1.26 	subdivision 2, is amended to read:
2.1 		Subd. 2.~~rate of tax~~ amount of transportation fee. (a)
2.2 	On and after July 1, 2005, and before July 1, 2006,the special
2.3 	fuel ~~excise tax~~ transportation fee is imposed ~~at the following~~
2.4 	~~rates~~ as follows:
2.5 	~~(a)~~ (1) ~~Liquefied petroleum gas or propane is taxed at the~~
2.6 	~~rate of 15~~ 18.8 cents per gallon~~.~~for liquefied petroleum gas or
2.7 	propane;
2.8 	~~(b)~~ (2) ~~Liquefied natural gas is taxed at the rate of 12~~ 15 
2.9 	cents per gallon~~.~~for liquefied natural gas; and 
2.10 	~~(c)~~ (3) ~~Compressed natural gas is taxed at the rate of~~
2.11 	~~$1.739~~ $2.174 per thousand cubic feet for compressed natural
2.12 	gas; or ~~20~~ 25 cents per gasoline equivalent, as defined by the
2.13 	National Conference on Weights and Measures, which is 5.66
2.14 	pounds of natural gas.
2.15 	~~(d) All other special fuel is taxed at the same rate as the~~
2.16 	~~gasoline excise tax as specified in section 296A.07, subdivision~~
2.17 	~~2.  The tax is payable in the form and manner prescribed by the~~
2.18 	~~commissioner.~~
2.19 	(b) On and after July 1, 2006, the transportation fee is
2.20 	imposed on special fuels as follows:
2.21 	(1) 22.5 cents per gallon for liquefied petroleum gas or
2.22 	propane;
2.23 	(2) 18 cents per gallon for liquefied natural gas; and 
2.24 	(3) $2.609 per thousand cubic feet for compressed natural
2.25 	gas; or 30 cents per gasoline equivalent, as defined by the
2.26 	National Conference on Weights and Measures, which is 5.66
2.27 	pounds of natural gas.
2.28 	(c) The transportation fee for all other special fuel is
2.29 	the same amount as the gasoline transportation fee as specified
2.30 	in section 296A.07, subdivision 2.  The fee is payable in the
2.31 	form and manner prescribed by the commissioner.

2.32 	Sec. 3. REVISOR'S INSTRUCTION.
 2.33 	The revisor of statutes shall change the terms "gasoline
2.34 	tax," "motor fuels tax," "gasoline excise tax," "special fuel
2.35 	tax," and similar terms to "transportation fee" or similar terms
2.36 	wherever they appear in Minnesota Statutes and Minnesota Rules.
3.1 	The revisor shall also make grammatical changes related to the
3.2 	changes in terms.

3.3 	Sec. 4. EFFECTIVE DATE.
 3.4 	Sections 1 and 2 are effective July 1, 2005, and apply to
3.5 	motor fuels in distributor storage on and after that date.