1997 Minnesota Statutes

     296.025 Special fuel, excise tax. 

    Subdivision 1.    Tax imposed.  There is hereby imposed 
 an excise tax on all special fuel at the rates specified in 
 subdivision 1b.  For undyed diesel fuel, the tax is imposed on 
 the first distributor who received the product in Minnesota.  
 For dyed fuel being used illegally in a licensed motor vehicle, 
 the tax is imposed on the owner or operator of the motor 
 vehicle.  For dyed fuel used in a motor vehicle but subject to a 
 federal exemption, although no federal tax may be imposed, the 
 owner or operator of the vehicle is liable for the state tax.  
 For other fuels, including jet fuel, propane, and compressed 
 natural gas, the tax is imposed on the distributor, special fuel 
 dealer, or bulk purchaser.  This tax is payable at the time and 
 in the manner specified in this chapter.  For purposes of this 
 section, "owner or operator" means the operation of licensed 
 motor vehicles, whether loaded or empty, whether for 
 compensation or not for compensation, and whether owned by or 
 leased to the motor carrier who operates them or causes them to 
 be operated. 

    Subd. 1a.    Transit systems and alternative fuels exempt. 
  The provisions of subdivision 1 do not apply to special fuel 
 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.    Tax rates.  The special fuel excise tax is 
 imposed at the following rates: 

    (1) Liquefied petroleum gas or propane is taxed at the rate 
 of 15 cents per gallon. 

    (2) Liquefied natural gas is taxed at the rate of 12 cents 
 per gallon. 

    (3) Compressed natural gas is taxed at the rate of $1.739 
 per thousand cubic feet; or 20 cents per gasoline equivalent, as 
 defined by the National Conference on Weights and Measures, 
 which is 5.66 pounds of natural gas. 

    (4) All other special fuel is taxed at the same rate as the 
 gasoline excise tax. 

    Subd. 2.    Tax imposed for aviation use.  There is 
 hereby imposed an excise tax of the same rate per gallon as the 
 gasoline excise tax on all special fuel received, sold, stored 
 or withdrawn from storage in this state, for use as substitutes 
 for aviation gasoline and not otherwise taxed as gasoline. 

    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 Repealed, 1988 c 719 art 19 s 37 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 Repealed, 1988 c 719 art 19 s 37 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 special fuel 
 purchased and placed in the fuel tanks of an aircraft outside 
 this state, even though such special fuel 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 special fuel by an aircraft. 

    Subd. 5.    Tax applies to storage.  The special fuel 
 excise tax imposed by subdivision 1 shall apply to all special 
 fuel held in storage on the effective date of the election by a 
 distributor or special fuel dealer to pay the special fuel 
 excise tax as provided in section 296.12, subdivision 3. 

    Subd. 6.    When fuel deemed special fuel; tax.  All 
 sales of combustible gases and liquid petroleum products (except 
 gasoline) shall be deemed to be sales of special fuel if the 
 sales tickets, invoices, and records evidencing such sales fail 
 to show the true and correct names and addresses of the 
 purchasers.  In such cases, the vendor shall be liable for such 
 tax to the extent not previously paid. 

    Subd. 7.    Tax on inventory.  For dealers paying tax on 
 sales, all inventory as of 12:01 a.m. on September 1, 1994, 
 shall be reported on the dealer's final report. 

    HIST: 1941 c 494 s 1; 1945 c 412 s 4; 1949 c 143 s 2; 1951 c 
 87 s 5; 1953 c 41 s 3; 1955 c 338 s 1; 1977 c 339 s 2; 1985 c 
 128 s 3; 1987 c 268 art 14 s 19,20; 1988 c 450 s 3; 1988 c 603 s 
 2,3; 1990 c 604 art 10 s 13; 1993 c 266 s 31; 1994 c 510 art 5 s 
 14,15; 1994 c 587 art 12 s 8; 1995 c 264 art 2 s 18-20; art 19 s 
 7; 1996 c 471 art 5 s 8,9