1.1 	A bill for an act
1.2 	relating to motor fuels; increasing rate of motor
1.3 	fuels taxes; amending Minnesota Statutes 2004,
1.4 	sections 296A.07, subdivision 3; 296A.08, subdivision
1.5 	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 17.75 cents per
1.12 	gallon;
1.13 	(2) M85 is taxed at the rate of 11.4 14.25 cents per
1.14 	gallon; and
1.15 	(3) all other gasoline is taxed at the rate of 20 25 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 18.75 cents per gallon.
1.23 	(b) Liquefied natural gas is taxed at the rate of 12 15 
1.24 	cents per gallon.
1.25 	(c) Compressed natural gas is taxed at the rate
2.1 	of $1.739 $2.174 per thousand cubic feet; or 20 25 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. EFFECTIVE DATE.
 2.9 	Sections 1 and 2 are effective July 1, 2005, and apply to
2.10 	gasoline and special fuel in distributor storage on and after
2.11 	that date.