1.1                          A bill for an act 
  1.2             relating to taxation; providing for a municipal 
  1.3             aggregate material removal tax; proposing coding for 
  1.4             new law in Minnesota Statutes, chapters 298; 366; 394; 
  1.5             462. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [298.77] [AGGREGATE MATERIAL REMOVAL TAX.] 
  1.8      Subdivision 1.  [DEFINITIONS.] The following definitions 
  1.9   apply to this section. 
  1.10     (1) "Aggregate material" means nonmetallic natural mineral 
  1.11  aggregate including, without limitation, sand, silica sand, 
  1.12  gravel, crushed rock, limestone, and granite.  Aggregate 
  1.13  material does not include dimension stone and dimension granite. 
  1.14     (2) "Person" means any individual, firm, partnership, 
  1.15  corporation, organization, trustee, association, or other entity.
  1.16     (3) "Operator" means any person engaged in the business of 
  1.17  removing aggregate material from the surface or subsurface of 
  1.18  the soil, for the purpose of sale, either directly or 
  1.19  indirectly, through the use of the aggregate material in a 
  1.20  marketable product or service. 
  1.21     (4) "Extraction site" means a pit, quarry, or deposit 
  1.22  containing aggregate material and any contiguous property to the 
  1.23  pit, quarry, or deposit which is used by the operator for 
  1.24  stockpiling the aggregate material. 
  1.25     (5) "Municipality" means a statutory or home rule charter 
  2.1   city or town.  
  2.2      Subd. 2.  [REMOVAL TAX.] A municipality shall impose a tax, 
  2.3   not to exceed ten cents per ton or an equivalent amount per 
  2.4   cubic yard of aggregate material removed, on operators.  The tax 
  2.5   must be imposed on aggregate material produced in the 
  2.6   municipality when the aggregate material is transported from the 
  2.7   extraction site or sold.  When aggregate material is stored in a 
  2.8   stockpile within the municipality and a public highway, road, or 
  2.9   street is not used for transporting the aggregate material, the 
  2.10  tax must be imposed either when the aggregate material is sold, 
  2.11  or when it is transported from the stockpile site, or when it is 
  2.12  used from the stockpile, whichever occurs first.  When, as of 
  2.13  the effective date of this act, a situation exists in which 
  2.14  aggregate material is removed from an extraction site in one 
  2.15  municipality and processed or stockpiled on an adjacent site 
  2.16  located in another municipality, each municipality may impose a 
  2.17  tax of an equal amount, the sum of which may not exceed the 
  2.18  maximum amount permitted in this section.  
  2.19     Subd. 3.  [REPORT AND REMITTANCE OF TAX.] Aggregate 
  2.20  material must be weighed by the operator after it has been 
  2.21  extracted from the pit, quarry, or deposit.  By the 14th day 
  2.22  following the last day of each calendar quarter, every operator 
  2.23  must make and file with the municipality in which the aggregate 
  2.24  material is removed, a correct report under oath, in such form 
  2.25  and containing such information as the municipality may require 
  2.26  relative to the quantity of aggregate material removed during 
  2.27  the preceding calendar quarter.  The report must be accompanied 
  2.28  by a remittance of the amount of tax due. 
  2.29     Subd. 4.  [USE OF TAX REVENUE.] The revenue from the 
  2.30  aggregate material removal tax must be credited to the general 
  2.31  fund of the municipality and may be used by the municipality for 
  2.32  any general fund purpose. 
  2.33     Subd. 5.  [ACCESS TO RECORDS.] The municipality or its duly 
  2.34  authorized agent may examine records, including computer 
  2.35  records, maintained by an operator.  The term "records" 
  2.36  includes, without limitation, all accounts of an operator.  The 
  3.1   municipality must have access at all reasonable times to inspect 
  3.2   and copy all business records related to an operator's 
  3.3   collection, transportation, and disposal of aggregate to the 
  3.4   extent necessary to ensure that all aggregate material 
  3.5   production taxes required to be paid have been remitted to the 
  3.6   municipality.  The records must be maintained by the operator 
  3.7   for not less than six years after removal of the aggregate 
  3.8   material which is the subject of the records. 
  3.9      Subd. 6.  [EXEMPTIONS.] The taxes authorized under this 
  3.10  section do not apply to aggregate material that is (1) sold 
  3.11  under a contract entered into before August 1, 2003, or (2) not 
  3.12  transported on a public highway or navigable waterway. 
  3.13     Sec. 2.  [366.135] [PERMITTING AUTHORITY AFFIRMED.] 
  3.14     Land use permits or approvals issued in accordance with 
  3.15  sections 366.10 to 366.18 shall continue to be administered and 
  3.16  enforced by the town. 
  3.17     Sec. 3.  [394.363] [PERMITTING AUTHORITY AFFIRMED.] 
  3.18     Land use permits or approvals issued in accordance with 
  3.19  sections 394.21 to 394.37 shall continue to be administered and 
  3.20  enforced by the county. 
  3.21     Sec. 4.  [462.366] [PERMITTING AUTHORITY AFFIRMED.] 
  3.22     Land use permits or approvals issued in accordance with 
  3.23  sections 462.351 to 462.364 shall continue to be administered 
  3.24  and enforced by the municipality. 
  3.25     Sec. 5.  [EXPIRATION.] 
  3.26     Section 1 expires April 1, 2006.