1997 Minnesota Statutes

     296.02 Gasoline, excise tax. 

    Subdivision 1.    Tax imposed.  There is imposed an 
 excise tax on gasoline, gasoline blended with ethanol, and 
 agricultural alcohol gasoline, used in producing and generating 
 power for propelling motor vehicles used on the public highways 
 of this state.  The tax is imposed on the first distributor who 
 received the product in Minnesota.  For purposes of this 
 section, gasoline is defined in section 296.01, subdivisions 10, 
 15b, 18, 19, 20, and 24a.  This tax is payable at the times, in 
 the manner, and by persons specified in this chapter.  The tax 
 is payable at the rate specified in subdivision 1b, subject to 
 the exceptions and reductions specified in this section.  

    Subd. 1a.    Transit systems and alternative fuels exempt. 
  The provisions of subdivision 1 do not apply to gasoline 
 purchased by a transit system or transit provider receiving 
 financial assistance or reimbursement under section 174.24, 
 256B.0625, subdivision 17, or 473.384.  

    Subd. 1b.    Rates imposed.  The gasoline excise tax is 
 imposed at the following rates: 

    (1) E85 is taxed at the rate of 14.2 cents per gallon; 

    (2) M85 is taxed at the rate of 11.4 cents per gallon; and 

    (3) all other gasoline is taxed at the rate of 20 cents per 
 gallon.  

    Subd. 1c.    Qualifying service stations.  
 Notwithstanding any other provision of law to the contrary, the 
 tax imposed on gasoline or undyed diesel fuel delivered to a 
 qualified service station may not exceed, or must be reduced to, 
 a rate not more than three cents per gallon above the state tax 
 rate imposed on such products sold by a service station in a 
 contiguous state located within the distance indicated in this 
 subdivision. 

    A distributor shall be allowed a credit or refund for the 
 amount of reduction computed in accordance with this subdivision.

    For purposes of this subdivision, a "qualifying service 
 station" means a service station located within 7.5 miles, 
 measured by the shortest route by public road, from a service 
 station selling like product in the contiguous state. 

    Subd. 2.    Gasoline tax imposed for aviation use.  
 Subject to the provisions of section 296.18, subdivision 4, 
 there is imposed an excise tax, at the rate of five cents per 
 gallon on all aviation gasoline received, sold, stored, or 
 withdrawn from storage in this state.  Aviation gasoline is 
 defined in section 296.01, subdivision 7.  This tax is payable 
 at the times, in the manner, and by persons specified in 
 sections 296.01 to 296.27. 

    Subd. 2a. Repealed, 1988 c 719 art 19 s 37 

    Subd. 2b. Repealed, 1988 c 719 art 19 s 37 

    Subd. 3.    Exception to tax for aviation use.  The 
 provisions of subdivision 2 do not apply to aviation gasoline 
 purchased and placed in the fuel tanks of an aircraft outside 
 this state, even though the gasoline may be consumed within this 
 state. 

    Subd. 4.    Tax not on consumption.  The tax imposed by 
 subdivision 2 is expressly declared not to be a tax upon 
 consumption of aviation gasoline by an aircraft. 

    Subd. 5.  Repealed, 1963 c 66 s 24; 1965 c 49 s 1 

    Subd. 6.    Tax imposed for marine use.  Subject to the 
 provisions of section 296.18, subdivision 1, there is imposed an 
 excise tax, at the same rate per gallon as the gasoline excise 
 tax, on all marine gasoline received, sold, stored, or withdrawn 
 from storage in this state.  This tax is payable at the times, 
 in the manner, and by persons specified in sections 296.01 to 
 296.27. 

    Subd. 7. Repealed, 1995 c 220 s 141 

    Subd. 7a. Repealed, 1997 c 216 s 160 

    Subd. 8.    Credits for sales to governments and schools. 
  Until October 1, 1999, a distributor shall be allowed a 
 credit on each gallon of fuel grade alcohol blended with 
 gasoline to produce agricultural alcohol gasoline which is sold 
 to the state, local units of government, or for use in the 
 transportation of pupils to and from school-related events in 
 vehicles owned by or under contract to a school district.  This 
 reduction is in lieu of the reductions provided in subdivision 7.

    The amount of the credit for every gallon is: 

    (1) until October 1, 1996, 80 cents; 

    (2) until October 1, 1997, 60 cents; 

    (3) until October 1, 1998, 40 cents; and 

    (4) until October 1, 1999, 20 cents. 

    HIST: (2720-71) 1925 c 297 s 2; 1929 c 310 s 1; 1937 c 383 s 
 1; 1939 c 350 s 1; 1941 c 162 s 1; 1945 c 412 s 3; 1949 c 678 s 
 1,2; 1951 c 287 s 1; 1963 c 681 s 1,2; 1963 c 686 s 1; 1965 c 
 122 s 1,2; 1967 c 874 s 1; 1975 c 203 s 1; 1977 c 339 s 1; 1980 
 c 607 art 18 s 2; 1980 c 608 s 1; 1981 c 363 s 46; 1983 c 17 s 
 7; 1983 c 326 s 3; 1985 c 128 s 2; 1Sp1985 c 14 art 2 s 2,3; 
 1Sp1986 c 1 art 8 s 10; 1987 c 268 art 14 s 17,18; 1988 c 450 s 
 2; 1988 c 603 s 1; 1990 c 604 art 10 s 12; 1991 c 302 s 3; 1992 
 c 575 s 50-53; 1993 c 266 s 30; 1993 c 375 art 9 s 19; 1994 c 
 510 art 5 s 13; 1994 c 587 art 12 s 7; 1994 c 632 art 2 s 39; 
 1995 c 220 s 117; 1995 c 264 art 2 s 15-17; 1996 c 471 art 5 s 
 5-7