1997 Minnesota Statutes

CHAPTER 296. Motor fuels

     296.01 Definitions. 

    Subdivision 1.    Terms.  Unless the language or context 
 clearly indicates that a different meaning is intended, the 
 terms used in this chapter and sections 239.75 to 239.80 have 
 the meanings given them in this section.  The petroleum product 
 definitions and specifications in this section are intended to 
 match the definitions and specifications in sections 41A.09 and 
 239.761. 

    Subd. 1a.  MS 1990 Renumbered subd 6 

    Subd. 1b.  MS 1990 Renumbered subd 29 

    Subd. 1c.  MS 1990 Renumbered subd 31 

    Subd. 1d.  MS 1990 Renumbered subd 33 

    Subd. 2.  MS 1990 Renumbered subd 30 

    Subd. 2.    Agricultural alcohol gasoline.  
 "Agricultural alcohol gasoline" means a gasoline-ethanol blend 
 of up to ten percent agriculturally derived fermentation ethanol 
 derived from agricultural products, such as potatoes, cereal, 
 grains, cheese whey, sugar beets, or forest products or other 
 renewable resources, that: 

    (1) meets the specifications in ASTM specification D 
 4806-88; and 

    (2) is denatured as specified in Code of Federal 
 Regulations, title 27, parts 20 and 21. 

    Subd. 2a.  MS 1990 Repealed, 1992 c 575 s 54 

    Subd. 3.  MS 1990 Renumbered subd 18 

    Subd. 3.    Aircraft.  "Aircraft" means any 
 contrivance, now or hereafter invented, used or designed for 
 navigation of or flight in the air.  

    Subd. 3a.  MS 1990 Renumbered subd 20 

    Subd. 3b.  MS 1990 Renumbered subd 13 

    Subd. 3c.  MS 1990 Renumbered subd 19 

    Subd. 3d.  MS 1990 Renumbered subd 10 

    Subd. 4.  MS 1990 Renumbered subd 21 

    Subd. 4. MS 1992 Repealed, 1993 c 266 s 34 

    Subd. 5.    Alternative fuel vehicle.  "Alternative fuel 
 vehicle" means a dedicated, flexible, or dual-fuel vehicle 
 operated primarily on alternative transportation fuel. 

    Subd. 6.    ASTM.  "ASTM" means the American Society for 
 Testing and Materials, a private organization that utilizes 
 committees of industry representatives and regulators to develop 
 product quality standards and test methods to be used by 
 industries, regulatory agencies, and purchasing agents. 

    Subd. 7.  MS 1990 Renumbered subd 15 

    Subd. 7.    Aviation gasoline.  "Aviation gasoline" 
 means any gasoline that is capable of use for the purpose of 
 producing or generating power for propelling internal combustion 
 engine aircraft, that meets the specifications in ASTM 
 specification D 910-90, and that either:  

    (1) is invoiced and billed by a producer, manufacturer, 
 refiner, or blender to a distributor or dealer, by a distributor 
 to a dealer or consumer, or by a dealer to a consumer, as 
 "aviation gasoline"; or 

    (2) whether or not invoiced and billed as provided in 
 clause (1), is received, sold, stored, or withdrawn from storage 
 by any person, to be used for the purpose of producing or 
 generating power for propelling internal combustion engine 
 aircraft. 

    Subd. 8.  MS 1990 Renumbered subd 28 

    Subd. 8.    Aviation turbine fuel, jet fuel.  "Aviation 
 turbine fuel" and "jet fuel" mean blends of hydrocarbons derived 
 from crude petroleum, natural gasoline, and synthetic 
 hydrocarbons, intended for use in aviation turbine engines, and 
 that meet the specifications in ASTM specification D 1655-90. 

    Subd. 9.  MS 1990 Renumbered subd 12 

    Subd. 9.    Bulk purchaser.  "Bulk purchaser" means any 
 person not principally engaged in buying and selling petroleum 
 products or combustible gases who receives special fuel for 
 storage and subsequent delivery into the supply tank of an 
 aircraft or a licensed motor vehicle operated by the person.  

    Subd. 10.  MS 1990 Renumbered subd 26 

    Subd. 10.    Casinghead, absorption, condensation, drip, 
 or natural gasoline.  "Casinghead gasoline," "absorption 
 gasoline," "condensation gasoline," "drip gasoline," and 
 "natural gasoline" mean a low-octane, high-volatility, liquid 
 hydrocarbon by-product of crude oil extraction and pumping, coal 
 gasification, or shipping of natural gas through a pipeline. 

    Subd. 11.  MS 1990 Renumbered subd 16 

    Subd. 11.    Commissioner.  "Commissioner" means the 
 commissioner of revenue of the state of Minnesota.  

    Subd. 11a.    Compressed natural gas.  "Compressed 
 natural gas" or CNG means natural gas, primarily methane, 
 condensed under high pressure and stored in specially designed 
 storage tanks at between 2,000 and 3,600 pounds per square 
 inch.  For purposes of this chapter, the energy content of CNG 
 will be considered to be 1,000 BTUs per cubic foot. 

    Subd. 12.  MS 1990 Renumbered subd 11 

    Subd. 12.    Dealer.  "Dealer" means any person, except 
 a distributor, engaged in the business of buying and selling 
 gasoline and other petroleum products in this state. 

    Subd. 13.  MS 1990 Renumbered subd 32 

    Subd. 13.    Denatured ethanol.  "Denatured ethanol" 
 means ethanol that is to be blended with gasoline, has been 
 agriculturally derived, and complies with ASTM specification D 
 4806-88.  This includes the requirement that ethanol may be 
 denatured only as specified in Code of Federal Regulations, 
 title 27, parts 20 and 21. 

    Subd. 14.  MS 1990 Renumbered subd 3 

    Subd. 14.    Diesel fuel oil.  "Diesel fuel oil" means a 
 petroleum distillate or blend of petroleum distillate and 
 residual fuels, intended for use as a motor fuel in internal 
 combustion diesel engines, that meets the specifications in ASTM 
 specification D 975-90.  Diesel fuel includes number 1 and 
 number 2 fuel oils.  K-1 kerosene is not diesel fuel unless it 
 is blended with diesel fuel for use in motor vehicles.  

    Subd. 15.    Distributor.  "Distributor" means any 
 person (1) who receives petroleum products in this state for 
 storage and subsequent distribution by tank car or tank truck or 
 both, or (2) who produces, manufactures or refines petroleum 
 products in this state, or (3) who imports petroleum products 
 into this state via boat, barge or pipe line for storage and 
 subsequent delivery at or further transportation from boat, 
 barge or pipe line terminals in this state.  

    Subd. 15a.    Dyed fuel.  "Dyed fuel" means diesel fuel 
 that indelible dye has been added to either before or upon 
 withdrawal at a terminal or refinery rack, and which may be sold 
 for exempt purposes.  The dye may be either dye required to be 
 added per the Environmental Protection Agency or dye that meets 
 other specifications required by the Internal Revenue Service or 
 the department. 

    Subd. 15b.    ETBE.  "ETBE" means "ethyl tertiary butyl 
 ether," or the equivalent term "tert-butyl ethyl ether."  ETBE 
 is a hydrocarbon compound approved by the United States 
 Environmental Protection Agency for use as an oxygenate in 
 gasoline.  ETBE is a liquid at normal atmospheric pressure and 
 temperature.  The chemical composition of ETBE is C2H5OC(CH3)3.. 

    Subd. 15c.    E85.  "E85" means a petroleum product that 
 is a blend of agriculturally derived denatured ethanol and 
 gasoline that typically contains 85 percent ethanol by volume, 
 but at a minimum must contain at least 60 percent ethanol by 
 volume.  For the purposes of this chapter, the energy content of 
 E85 will be considered to be 82,000 BTUs per gallon. 

    Subd. 16.  MS 1990 Renumbered subd 25 

    Subd. 16.    For use in motor vehicles.  "For use in 
 motor vehicles" means for use in producing or generating power 
 for propelling motor vehicles on the public highways of this 
 state or in machinery operated on the public highways of this 
 state for the purpose of constructing, reconstructing, or 
 maintaining such public highways.  For purposes of this 
 subdivision "public highways" shall include bridges.  

    Subd. 17.  MS 1990 Renumbered subd 35 

    Subd. 17.    Gas turbine fuel oil.  "Gas turbine fuel 
 oil" means fuel that contains mixtures of hydrocarbon oils free 
 of inorganic acid and excessive amounts of solid or fibrous 
 foreign matter, that is intended for use in nonaviation gas 
 turbine engines, and that meets the specifications in ASTM 
 specification D 2880-90a. 

    Subd. 18.  MS 1990 Renumbered subd 23 

    Subd. 18.    Gasoline.  "Gasoline" means:  

    (a) all products commonly or commercially known or sold as 
 gasoline regardless of their classification or uses, except 
 casinghead gasoline, absorption gasoline, condensation gasoline, 
 drip gasoline, or natural gasoline that under the requirements 
 of section 239.761, subdivision 3, must not be blended with 
 gasoline that has been sold, transferred, or otherwise removed 
 from a refinery or terminal; and 

    (b) any liquid prepared, advertised, offered for sale or 
 sold for use as, or commonly and commercially used as, a fuel in 
 spark-ignition, internal combustion engines, and that when 
 tested by the weights and measures division meets the 
 specifications in ASTM specification D 4814-92c. 

    (c) Gasoline that is not blended with ethanol must not be 
 contaminated with water or other impurities and must comply with 
 both ASTM specification D 439-89 and the volatility requirements 
 in Code of Federal Regulations, title 40, part 80. 

    (d) After gasoline is sold, transferred, or otherwise 
 removed from a refinery or terminal, a person responsible for 
 the product: 

    (1) may blend the gasoline with agriculturally derived 
 ethanol, as provided in subdivision 20; 

    (2) must not blend the gasoline with any oxygenate other 
 than denatured, agriculturally derived ethanol; 

    (3) must not blend the gasoline with other petroleum 
 products that are not gasoline or denatured, agriculturally 
 derived ethanol; 

    (4) must not blend the gasoline with products commonly and 
 commercially known as casinghead gasoline, absorption gasoline, 
 condensation gasoline, drip gasoline, or natural gasoline; and 

    (5) may blend the gasoline with a detergent additive, an 
 antiknock additive, or an additive designed to replace 
 tetra-ethyl lead, that is registered by the United States 
 Environmental Protection Agency. 

    Subd. 19.    Gasoline blended with a nonethanol oxygenate. 
  "Gasoline blended with a nonethanol oxygenate" means gasoline 
 blended with ETBE, MTBE, or other alcohol or ether, except 
 denatured ethanol, that is approved as an oxygenate by the 
 United States Environmental Protection Agency, and that complies 
 with ASTM specification D 4814-90a.  Oxygenates, other than 
 denatured ethanol, must not be blended into gasoline after the 
 gasoline has been sold, transferred, or otherwise removed from a 
 refinery or terminal. 

    Subd. 20.    Gasoline blended with ethanol.  "Gasoline 
 blended with ethanol" means gasoline blended with up to ten 
 percent, by volume, agriculturally derived, denatured ethanol.  
 The blend must comply with the volatility requirements in Code 
 of Federal Regulations, title 40, part 80.  The blend must also 
 comply with ASTM specification D 4814-90a, or the gasoline base 
 stock from which a gasoline-ethanol blend was produced must 
 comply with ASTM specification D 4814-90a; and the 
 gasoline-ethanol blend must not be blended with casing head 
 gasoline, absorption gasoline, condensation gasoline, drip 
 gasoline, or natural gasoline after the gasoline-ethanol blend 
 has been sold, transferred, or otherwise removed from a refinery 
 or terminal.  The blend need not comply with ASTM specification 
 D 4814-90a if it is subjected to a standard distillation test.  
 For a distillation test, a gasoline-ethanol blend is not 
 required to comply with the temperature specification at the 50 
 percent liquid recovery point, if the gasoline from which the 
 gasoline-ethanol blend was produced complies with all of the 
 distillation specifications. 

    Subd. 21.    Heating fuel oil.  "Heating fuel oil" means 
 a petroleum distillate, blend of petroleum distillates and 
 residuals, or petroleum residual heating fuel that meets the 
 specifications in ASTM specification D 396-90a. 

    Subd. 22.  MS 1990 Renumbered subd 24 

    Subd. 22.    Kerosene.  "Kerosene" means a refined 
 petroleum distillate consisting of a homogeneous mixture of 
 hydrocarbons essentially free of water, inorganic acidic and 
 basic compounds, and excessive amounts of particulate 
 contaminants and that meets the specifications in ASTM 
 specification D 3699-90.  

    Subd. 23.  MS 1990 Renumbered subd 36 

    Subd. 23.    Licensed motor vehicle.  "Licensed motor 
 vehicle" means (1) any vehicle subject to a motor vehicle 
 registration in which the power is produced with any fuel other 
 than gasoline in an internal combustion engine, and (2) any 
 motor vehicle not subject to a motor vehicle registration on 
 which is mounted a corn shelling, feed grinding, well drilling, 
 or sawing machine.  

    Subd. 23a.    Liquefied natural gas.  "Liquefied natural 
 gas" or LNG means natural gas, primarily methane, which has been 
 condensed through a cryogenic cooling process and is stored in 
 special pressurized and insulated storage tanks.  For purposes 
 of this chapter, the energy content of LNG will be considered to 
 be 69,000 BTUs per gallon. 

    Subd. 23b.    Liquefied petroleum gas.  "Liquefied 
 petroleum gas" or LPG or propane means a product made of short 
 hydrocarbon chains and containing primarily propane and butane 
 that is stored in specialized tanks at moderate pressure.  For 
 purposes of this chapter, the energy content of LPG or propane 
 will be considered to be 86,000 BTUs per gallon. 

    Subd. 24.  MS 1990 Renumbered subd 2 

    Subd. 24.    Marine gasoline.  "Marine gasoline" means 
 gasoline used in producing and generating power for propelling 
 motorboats used on the waters of this state.  

    Subd. 24a.    MTBE.  "MTBE" means "methyl tertiary butyl 
 ether," or the equivalent term "tert-butyl methyl ether."  MTBE 
 is a hydrocarbon compound approved by the United States 
 Environmental Protection Agency for use as an oxygenate in 
 gasoline.  MTBE is a liquid at normal atmospheric pressure and 
 temperature.  The chemical composition of MTBE is (CH3)3COCH3t. 

    Subd. 24b.    M85.  "M85" means a petroleum product that 
 is a liquid fuel blend of methanol and gasoline that contains at 
 least 85 percent methanol by volume.  For the purposes of this 
 chapter, the energy content of M85 will be considered to be 
 65,000 BTUs per gallon. 

    Subd. 25.  MS 1991 Supp Renumbered subd 4 

    Subd. 25.    Motor vehicle gasoline excise tax.  "Motor 
 vehicle gasoline excise tax" means the tax imposed on gasoline 
 used in producing and generating power for propelling motor 
 vehicles used on the public highways of this state.  

    Subd. 26.    Motor vehicles used on the public highways of 
 this state.  "Motor vehicles used on the public highways of 
 this state" means every vehicle operated upon the highways of 
 this state the power for the operation of which is produced or 
 generated in an internal combustion engine, but does not include 
 tractors used solely for agricultural purposes.  

    Subd. 27.    Motorboat.  "Motorboat" means any 
 contrivance used or designed for navigation on water other than 
 a seaplane, propelled in any respect by machinery, including 
 detachable motors.  

    Subd. 27a.    Passenger snowmobile.  "Passenger 
 snowmobile" means a self-propelled vehicle designed for travel 
 on snow or ice, steered by skis or runners, with an enclosed 
 passenger section that provides seating for not less than four 
 nor more than 12 passengers. 

    Subd. 28.    Person.  "Person" means any individual, 
 firm, trust, estate, partnership, association, cooperative 
 association, joint stock company or corporation, public or 
 private, or any representative appointed by order of any court; 
 or an officer or employee of a corporation, or a member or 
 employee of a partnership, who as such officer, employee or 
 member is under a duty to perform any act prescribed by this 
 chapter. 

    Subd. 29.    Petroleum distillate.  "Petroleum 
 distillate" means a hydrocarbon or group of hydrocarbon 
 compounds that have been extracted from petroleum crude oil by a 
 distillation process involving evaporation by heating, and 
 subsequent condensation by cooling. 

    Subd. 30.    Petroleum products.  "Petroleum products" 
 means all of the products defined in subdivisions 2, 7, 8, 10, 
 13, 14, 15c, 17 to 22, and 24b. 

    Subd. 31.    Petroleum residual.  "Petroleum residual" 
 means a heavy hydrocarbon or group of heavy hydrocarbon 
 compounds that do not evaporate during a distillation process. 

    Subd. 32.    Received.  (a) Except as otherwise provided 
 in this subdivision, petroleum products brought into this state 
 shall be deemed to be "received" in this state at the time and 
 place the same are unloaded in this state.  When so unloaded 
 such products shall be deemed to be "received" in this state by 
 the person who is the owner thereof immediately after such 
 unloading; provided, however, that if such owner is not licensed 
 as a distributor in this state and if such products were shipped 
 or delivered into this state by a person who is licensed as a 
 distributor, then such products shall be deemed to be "received" 
 in this state by the licensed distributor by whom the same were 
 so shipped or delivered. 

    (b) Petroleum products produced, manufactured, or refined, 
 at a refinery in this state and stored thereat, or brought into 
 the state by boat or barge or like form of transportation and 
 delivered at a marine terminal in this state and stored thereat, 
 or brought into the state by pipeline and delivered at a 
 pipeline terminal in this state and stored thereat, shall not be 
 considered "received" until the same are withdrawn from such 
 refinery or terminal for sale or use in this state or for 
 delivery or shipment to points within this state.  

    (c) When so withdrawn such products shall be deemed 
 "received" by the person who was the owner thereof immediately 
 prior to withdrawal; unless (1) such products are withdrawn for 
 shipment or delivery to another licensed distributor, in which 
 case the licensed distributor to whom such shipment or delivery 
 is made shall be deemed to have "received" such products in this 
 state, or (2) such products are withdrawn for shipment or 
 delivery to a person not licensed as a distributor, pursuant to 
 one or more sale or exchange agreements by or between persons 
 one or more of whom is a licensed distributor, in which case the 
 last purchaser or exchangee under such agreement or agreements, 
 who is licensed as a distributor, shall be deemed to have 
 "received" such products in this state. 

    (d) Petroleum products produced in this state in any manner 
 other than as covered heretofore in this subdivision shall be 
 considered "received" by the producer thereof at the time and 
 place produced.  

    Subd. 33.    Refinery, terminal.  "Refinery" or 
 "terminal" means any petroleum refinery, pipeline terminal, 
 river terminal, storage facility, or other point of origin where 
 petroleum products are manufactured, or imported by rail, truck, 
 barge, or pipe; and held, stored, transferred, offered for 
 distribution, distributed, offered for sale, or sold.  For the 
 purpose of restricting petroleum product blending, this 
 definition includes all refineries and terminals within and 
 outside of Minnesota.  For the purpose of assessing fees, this 
 definition does not include a licensed distributor's bulk 
 storage facility that is used to store petroleum products for 
 which the petroleum inspection fee charged under chapter 239 is 
 either not due or has been paid. 

    Subd. 33a.    Rerefined waste oil.  "Rerefined waste oil"
 means waste lubrication oils that have been cracked and 
 distilled to produce a petroleum distillate intended for use as 
 a motor fuel in internal combustion diesel engines.  

    Subd. 34.    Special fuel.  "Special fuel" means (1) all 
 combustible gases and liquid petroleum products or substitutes 
 therefor including undyed diesel fuel, except gasoline, gasoline 
 blended with ethanol, and agricultural alcohol gasoline which 
 are delivered into the supply tank of a licensed motor vehicle 
 or into storage tanks maintained by an owner or operator of a 
 licensed motor vehicle as a source of supply for such vehicle; 
 (2) all combustible gases and liquid petroleum products or 
 substitutes therefor, except gasoline, gasoline blended with 
 ethanol, and agricultural alcohol gasoline, when delivered to a 
 licensed special fuel dealer or to the retail service station 
 storage of a distributor who has elected to pay the special fuel 
 excise tax as provided in section 296.12, subdivision 3; (3) all 
 combustible gases and liquid petroleum products or substitutes 
 therefor, except gasoline, which are used as aviation fuel; or 
 (4) dyed fuel that is being used illegally in a licensed motor 
 vehicle.  

    Subd. 35.    Special fuel dealer.  "Special fuel 
 dealer" means any person engaged in the business of selling and 
 delivering special fuel into the supply tank of an aircraft or a 
 licensed motor vehicle.  

    Subd. 36.    Use in licensed motor vehicles.  "Use in 
 licensed motor vehicles" means use in producing or generating 
 power for propelling licensed motor vehicles on the public 
 highways of this state. 

    Subd. 37.    Waters of this state.  "Waters of this 
 state" means any waters capable of substantial beneficial public 
 use and any waters to which the public has access, which are 
 within the territorial limits of this state, including boundary 
 waters.  

    Subd. 38.    Wet alcohol.  "Wet alcohol" means 
 agriculturally derived fermentation ethyl alcohol having a 
 purity of at least 50 percent but less than 99 percent. 

    HIST: (2720-70, 3787-1) 1925 c 297 s 1; 1929 c 425 s 1; 1933 c 
 365 s 1; 1933 c 417 s 1; Ex1934 c 51 s 1; 1941 c 495 s 1; 1943 c 
 320 s 1-3; 1945 c 412 s 1,2; 1947 c 412 s 1-4; 1949 c 143 s 1; 
 1951 c 87 s 1-4; 1953 c 41 s 1,2; 1957 c 203 s 1,2; 1961 c 585 s 
 1; 1963 c 66 s 1-5; 1965 c 101 s 1; 1973 c 108 s 1; 1973 c 582 s 
 3; 1980 c 509 s 115; 1980 c 607 art 18 s 1; 1982 c 523 art 2 s 
 39; 1983 c 17 s 6; 1984 c 459 s 1,2; 1985 c 71 s 1-3; 1985 c 128 
 s 1; 1Sp1985 c 14 art 2 s 1; 1986 c 444; 1988 c 450 s 1; 1991 c 
 291 art 9 s 8; 1992 c 575 s 32-49,53; 1993 c 375 art 9 s 17,18; 
 1994 c 510 art 5 s 3-12; 1995 c 264 art 2 s 7-14; art 19 s 6; 
 1996 c 471 art 5 s 3,4 

     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 

  296.023 Repealed, 1963 c 748 s 8 

     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 

  296.026 Repealed, 1993 c 266 s 34 

     296.0261 Permit for alternate fuel vehicles. 

    Subdivision 1. Repealed, 1995 c 264 art 2 s 43 

    Subd. 2. Repealed, 1995 c 264 art 2 s 43 

    Subd. 3. Repealed, 1995 c 264 art 2 s 43 

    Subd. 4. Repealed, 1995 c 264 art 2 s 43 

    Subd. 5. Repealed, 1995 c 264 art 2 s 43 

    Subd. 6. Repealed, 1995 c 264 art 2 s 43 

    Subd. 7. Repealed, 1995 c 264 art 2 s 43 

    Subd. 8. Repealed, 1995 c 264 art 2 s 43 

    Subd. 9. Repealed, 1995 c 264 art 2 s 43 

    Subd. 10.    Credit; refunds.  (a) A purchaser of an 
 alternative fuel vehicle permit under subdivisions 1 to 9, prior 
 to July 1, 1995, shall receive a credit for the unused portion 
 of the permit fee.  The amount of the credit shall be equal to 
 the original permit fee and prorated to the number of months 
 from July 1, 1995, until the expiration date of the permit.  The 
 credit shall reduce the amount of the vehicle's annual motor 
 vehicle registration tax as calculated under section 168.013.  
 The credit shall be applied to the first motor vehicle 
 registration tax payable after July 1, 1995. 

    (b) If the amount of the credit calculated under paragraph 
 (a) exceeds the amount of motor vehicle registration tax due, 
 the registrar shall pay to the vehicle owner a cash refund equal 
 to the difference between the motor vehicle registration tax and 
 the credit due.  The amount necessary to pay the refunds under 
 this paragraph is appropriated for fiscal year 1996 to the 
 commissioner of public safety from the highway user tax 
 distribution fund.  The appropriation is available until the 
 refunds have been paid. 

    HIST: 1994 c 587 art 12 s 9; 1995 c 264 art 2 s 21 

  296.027 Repealed, 1990 c 480 art 3 s 4 

  296.028 Repealed, 1991 c 291 art 9 s 46 

  296.03 Repealed, 1994 c 510 art 5 s 36 

     296.035 Credit for rerefined waste oil. 

    A licensed distributor or a special fuel dealer, either of 
 which elects to pay the tax under section 296.12, subdivision 3, 
 at the time special fuel is sold or delivered into the supply 
 tank of a licensed motor vehicle, is allowed a credit of ten 
 cents per gallon for each gallon of rerefined waste oil sold or 
 delivered into the supply tank of a licensed motor vehicle.  A 
 credit of ten cents per gallon is allowed a licensed distributor 
 or special fuel dealer for each gallon of rerefined waste oil 
 delivered into the storage tank of a retail service station 
 operated by the distributor or a special fuel dealer, if either 
 the distributor or special fuel dealer does not elect to pay the 
 tax under section 296.12, subdivision 3, at the time special 
 fuel is sold or delivered into the supply tank of a licensed 
 motor vehicle.  Bulk purchasers are allowed a credit of ten 
 cents per gallon for each gallon of rerefined waste oil that is 
 purchased by them and used in a licensed motor vehicle. 

    HIST: 1993 c 375 art 9 s 20; 1994 c 465 art 1 s 35 

     296.04 Inspection of petroleum records. 

    Subdivision 1. Repealed, 1987 c 268 art 14 s 25 

    Subd. 2. Repealed, 1987 c 268 art 14 s 25 

    Subd. 3. Repealed, 1987 c 268 art 14 s 25 

    Subd. 4. Repealed, 1987 c 268 art 14 s 25 

    Subd. 5.    Records examined.  The commissioner shall 
 make periodic examinations of all records kept by distributors, 
 special fuel dealers, bulk purchasers, or other persons 
 collecting the gasoline or special fuel tax.  

    HIST: 1941 c 495 s 2; 1943 c 320 s 4; 1961 c 510 s 1; 1963 c 
 66 s 6-8; 1986 c 444 

     296.041 Electronically filed returns or reports; 
  signatures. 

    For purposes of this chapter, the name of the taxpayer, the 
 name of the taxpayer's authorized agent, or the taxpayer's 
 identification number constitutes a signature when transmitted 
 as part of the information on returns or reports filed by 
 electronic means by the taxpayer or at the taxpayer's 
 direction.  "Electronic means" includes, but is not limited to, 
 the use of a touch-tone telephone to transmit return or report 
 information in a manner prescribed by the commissioner. 

    HIST: 1995 c 264 art 14 s 3 

  296.05 Repealed, 1987 c 268 art 14 s 25 

     296.06 Distributors' licenses. 

    Subdivision 1.    Of whom required.  No person shall 
 produce, manufacture or refine petroleum products in this state, 
 or receive, distribute, sell or use in this state petroleum 
 products which have not theretofore been received in this state 
 by a licensed distributor, or in any manner act as a distributor 
 as defined in section 296.01, subdivision 15, without having 
 been licensed by the commissioner as a distributor.  

    Subd. 2.    Requirements for issuance; fee.  A 
 distributor's license shall be issued to any responsible person 
 qualifying as a distributor who makes application therefor, and 
 who shall pay to the commissioner at the time thereof and 
 annually thereafter a license fee of $25, and who shall further 
 comply with the following conditions: 

    (1) A written application shall be made in a manner 
 approved by the commissioner, who shall require the applicant or 
 licensee to deposit with the state treasurer securities of the 
 United States government or the state of Minnesota or to execute 
 and file a bond, with a corporate surety approved by the 
 commissioner, to the state of Minnesota in an amount to be 
 determined by the commissioner and in a form to be fixed by the 
 commissioner and approved by the attorney general, and which 
 shall be conditioned for the payment when due of all excise 
 taxes, inspection fees, penalties, and accrued interest arising 
 in the ordinary course of business or by reason of any 
 delinquent money which may be due the state of Minnesota; the 
 bond shall cover all places of business within the state where 
 petroleum products are received by the licensee; and the 
 applicant or licensee shall designate and maintain an agent in 
 this state upon whom service may be had for all purposes of this 
 section.  

    (2) An initial applicant for a distributor's license shall 
 furnish a bond in a minimum sum of $3,000 for the first year; 

    (3) The commissioner, on reaching the opinion that the bond 
 given by a licensee is inadequate in amount to fully protect the 
 state, shall require an additional bond in such amount as the 
 commissioner deems sufficient; 

    (4) A licensee who desires to be exempt from depositing 
 securities or furnishing such bond, as hereinbefore provided 
 shall furnish an itemized financial statement showing the assets 
 and the liabilities of the applicant and if it shall appear to 
 the commissioner, from the financial statement or otherwise, 
 that the applicant is financially responsible, then the 
 commissioner may exempt such applicant from depositing such 
 securities or furnishing such bond until the commissioner 
 otherwise orders.  

    (5) Each license period shall be for one year ending each 
 June 30.  

    (6) Upon application to the commissioner and compliance by 
 the applicant with the provisions of this subdivision, the 
 commissioner also shall issue a distributor's license to (a) any 
 person engaged in this state in the bulk storage of petroleum 
 products and the distribution thereof by tank car or tank truck 
 or both, and (b) any person holding an unrevoked license as a 
 distributor from January 1, 1947, to July 1, 1994, and (c) any 
 person holding a license and performing a function under the 
 motor fuel tax law of an adjoining state equivalent to that of a 
 distributor under this chapter, who desires to ship or deliver 
 petroleum products from that state to persons in this state not 
 licensed as distributors in this state and who agrees to assume 
 with respect to all petroleum products so shipped or delivered 
 the liabilities of a distributor receiving petroleum products in 
 this state, provided, however, that any such license shall be 
 issued only for the purpose of permitting such person to receive 
 in this state the petroleum products so shipped or delivered.  
 Except as herein provided, all persons licensed as distributors 
 under this clause shall have the same rights and privileges and 
 be subject to the same duties, requirements and penalties as 
 other licensed distributors. 

    Subd. 3.    Surrender of license.  When the licensee 
 shall voluntarily or involuntarily sell, dispose of or 
 discontinue business during the term of a license, the licensee 
 shall immediately notify the commissioner in writing and shall 
 within 10 days surrender the license.  

    Subd. 4.    Rights of surety, subrogation.  When the 
 surety upon any bond issued pursuant to the provisions of this 
 chapter shall have fulfilled the conditions of such bond and 
 compensated the state for any loss occasioned by any act or 
 omission of any licensee under this chapter, such surety shall 
 be subrogated to all the rights of the state in connection with 
 the transaction wherein such loss occurred. 

    HIST: 1941 c 495 s 4; 1943 c 320 s 6; 1945 c 154 s 1; 1947 c 
 412 s 5,6; 1949 c 143 s 4,5; 1953 c 41 s 4; 1963 c 66 s 9; 1969 
 c 1148 s 40; 1983 c 222 s 31; 1986 c 444; 1990 c 480 art 4 s 2; 
 1990 c 594 art 1 s 65; 1992 c 575 s 53; 1994 c 510 art 5 s 16 

  296.07 Repealed, 1987 c 268 art 14 s 25 

  296.08 Repealed, 1947 c 412 s 14 

  296.09 Repealed, 1947 c 412 s 14 

  296.10 Repealed, 1Sp1985 c 13 s 376 subd 1 

     296.11 Revocation of licenses, permits and certificates. 

    The commissioner may, after hearing, revoke any license, 
 permit or certificate if the holder has directly or indirectly 
 violated any of the provisions of sections 296.01 to 296.421 or 
 has failed to comply with any rule that may be issued.  Notice 
 containing a statement of the alleged violation and the time and 
 place of hearing shall be served upon the holder by certified 
 mail at least ten days prior to the day set for hearing.  
 Certification to the attorney general of delinquent tax or fees 
 shall be sufficient cause for immediate revocation without 
 hearing.  

    HIST: 1941 c 495 s 9; 1949 c 143 s 6; 1963 c 66 s 11; 1978 c 
 674 s 60; 1980 c 509 s 116; 1985 c 248 s 70 

     296.115 Revocation of motor carrier licenses. 

    Notwithstanding the provisions of section 296.11, if a 
 motor carrier fails to file three consecutive road tax reports, 
 the commissioner, by certified mail sent to the address on the 
 latest report, shall notify the motor carrier of the 
 commissioner's intention to revoke the license and of the motor 
 carrier's right to request a hearing pursuant to section 
 296.11.  If no request for a hearing is received within 30 days 
 of the notice, the license may be revoked by the commissioner. 

    HIST: 1977 c 45 s 1 

     296.12 Special fuels; licenses, tax administration. 

    Subdivision 1.    Special fuel dealers' license 
 requirements.  No person except a licensed distributor shall 
 engage in the business of selling or delivering special fuel, 
 upon which no tax has been imposed, as a special fuel dealer 
 without having applied for and secured from the commissioner a 
 special fuel dealer's license.  The application shall be made in 
 a manner approved by the commissioner and shall be accompanied 
 by the payment of $25, which shall be the license fee.  A 
 special fuel dealer's license shall be issued to any responsible 
 person qualifying as a special fuel dealer who makes proper 
 application therefor.  The license shall be displayed in a 
 conspicuous manner in the place of business and shall expire 
 annually on November 30.  

    A special fuel dealer who discontinues, sells or disposes 
 of the business in any manner, at any time, shall surrender the 
 dealer's special fuel dealer's license at the commissioner's 
 office in St. Paul, Minnesota.  

    Subd. 2.    Bulk purchasers' license requirements.  No 
 person shall receive special fuel, upon which no tax has been 
 imposed, as a bulk purchaser without having applied for and 
 secured from the commissioner a bulk purchaser's license.  The 
 application shall be made in a manner approved by the 
 commissioner and shall be accompanied by the payment of $25, 
 which shall be the license fee.  A bulk purchaser's license 
 shall be issued to any responsible person qualifying as a bulk 
 purchaser who makes proper application therefor.  The license 
 shall be displayed in a conspicuous manner in the place of 
 business and shall expire annually on November 30.  

    A bulk purchaser who discontinues, sells or disposes of the 
 business in any manner, at any time, shall surrender the bulk 
 purchaser's license at the commissioner's office in St. Paul, 
 Minnesota. 

    Subd. 3.    Tax collection, reporting and payment.  (a) 
 For undyed diesel fuel, the tax is imposed on the distributor 
 who receives the fuel. 

    (b) For all other special fuels, the tax is imposed on the 
 distributor, bulk purchaser, or special fuel dealer.  The tax 
 may be paid upon receipt or sale as follows:  

    (1) Distributors and special fuel dealers may, subject to 
 the approval of the commissioner, elect to pay to the 
 commissioner the special fuel excise tax on all special fuel 
 delivered or sold into the supply tank of an aircraft or a 
 licensed motor vehicle.  Under this option an invoice must be 
 issued at the time of each delivery showing the name and address 
 of the purchaser, date of sale, number of gallons, price per 
 gallon and total amount of sale.  A separate sales ticket book 
 shall be maintained for special fuel sales; and 

    (2) Bulk purchasers shall report and pay the excise tax on 
 all special fuel purchased by them for storage, to the 
 commissioner in the form and manner prescribed by the 
 commissioner. 

    (c) Any person delivering special fuel on which the excise 
 tax has not previously been paid, into the supply tank of an 
 aircraft or a licensed motor vehicle shall report such delivery 
 and shall pay, or collect and pay the excise tax on the special 
 fuel so delivered, to the commissioner. 

    Subd. 4.    Monthly reports; shrinkage allowance.  On or 
 before the 23rd day of each month, the persons subject to the 
 provisions of this section shall file a report in the form and 
 manner prescribed by the commissioner.  Reports shall contain 
 information as follows: 

    (1) Distributors of undyed diesel fuel must file a monthly 
 tax return with the department listing all purchases or receipts 
 of undyed diesel fuel.  Distributors may be allowed to take a 
 credit or credits under section 296.141, subdivision 4.  

    (2) Distributors and dealers of special fuel other than 
 undyed diesel fuel shall report the total number of gallons 
 delivered to them during the preceding calendar month and shall 
 pay the special fuel excise tax due thereon to the commissioner. 
 The invoice must show the true and correct name and address of 
 the purchaser, and the purchaser's signature.  The report shall 
 contain such other information as the commissioner may require.  

    (3) Distributors and dealers of special fuel other than 
 undyed diesel fuel who have elected to pay the special fuel 
 excise tax on all special fuel delivered into the supply tank of 
 an aircraft or licensed motor vehicle as provided in subdivision 
 3, shall report the total number of gallons delivered into the 
 supply tank of an aircraft or licensed motor vehicle during the 
 preceding calendar month and shall pay the special fuel excise 
 tax due thereon to the commissioner.  

    (4) Bulk purchasers shall report and pay the special fuel 
 excise tax on all special fuel except undyed diesel fuel 
 purchased by them for storage, during the preceding calendar 
 month.  In such cases as the commissioner may permit, credit for 
 the excise tax due or previously paid on special fuel not used 
 in aircraft or licensed motor vehicles, may be allowed in 
 computing tax liability.  The report shall contain such other 
 information as the commissioner may require. 

    (5) In computing the special fuel excise tax due, a 
 deduction of one percent of the quantity of special fuel on 
 which tax is due shall be made for evaporation and loss.  

    (6) Each report shall contain a confession of judgment for 
 the amount of the tax shown due thereon to the extent not timely 
 paid.  

    Subd. 5.    Sales tickets.  A sales ticket shall be 
 issued for each delivery of special fuel to a special fuel 
 dealer or bulk purchaser.  A sales ticket shall also be issued 
 for each delivery into the supply tank of an aircraft or a 
 licensed motor vehicle, if so requested by the purchaser.  The 
 person who delivers the special fuel shall issue the sales 
 ticket and shall show thereon the name and address of the 
 purchaser, date of sale, number of gallons, price per gallon, 
 amount of tax, and total amount of sale.  

    Subd. 6.    Intended use.  All special fuel except that 
 used for aviation fuel shall be deemed to be intended for use in 
 a licensed motor vehicle in this state at the time of sale or 
 delivery.  

    Subd. 7.    Bonds.  The provisions of section 296.06, 
 subdivision 2, clauses (1), (3), (4) and (5), relating to bonds 
 shall apply to special fuel dealers and bulk purchasers.  

    Subd. 8.    Registrar shall notify commissioner.  When 
 an application for registration of a motor vehicle discloses 
 that such motor vehicle uses special fuel, the registrar of 
 motor vehicles shall notify the commissioner in written form, on 
 an annual basis, by June 30 of each year, of the name and 
 address of the owner and the make, model, year and license 
 number of the vehicle.  

    Subd. 9.    Tax imposed on use.  If it is determined by 
 the commissioner from an examination of any records pertaining 
 to the operation of any licensed motor vehicle which uses 
 special fuel, that the special fuel tax on the special fuel used 
 in this state has not been paid to this state, or to any other 
 state if purchased in such other state, there is hereby imposed 
 an excise tax at the same rate per gallon as the gasoline tax, 
 on all such special fuel.  All assessments of tax made under 
 this subdivision shall be paid by the user to the commissioner 
 on demand.  

    For purposes of this subdivision, the words "special fuel" 
 mean any fuel other than gasoline, used in a licensed motor 
 vehicle in this state.  

    Subd. 10.    Accumulating meters required.  Every 
 special fuel dealer shall make all withdrawals of special fuel 
 except liquefied petroleum gas through an accumulating meter in 
 working order, which shall be provided by such dealer.  Whenever 
 a licensed special fuel dealer fails to comply with the 
 provisions of this subdivision or of any rules of the 
 commissioner pertinent thereto, the license issued to such 
 dealer pursuant to subdivision 1 may be revoked by the 
 commissioner.  

    Subd. 11.    Qualified bulk purchasers.  Notwithstanding 
 any other provision of law to the contrary, the commissioner of 
 revenue may allow any bulk purchaser who receives special fuel 
 other than clear diesel fuel in bulk storage for subsequent 
 delivery into the supply tank of licensed motor vehicles or 
 aircraft operated by the bulk purchaser to purchase bulk special 
 fuel on a tax paid basis from any consenting supplier licensed 
 as a distributor or special fuel dealer under this section or 
 section 296.06.  Bulk purchasers qualifying under this provision 
 must become registered in a manner approved by the commissioner 
 but shall be exempt from the bulk purchaser license 
 requirements.  Every licensed distributor or special fuel dealer 
 who sells or delivers special fuel other than clear diesel fuel 
 on a tax paid basis to persons registered under this provision 
 must report on or before the 23rd day of each month sales made 
 during the preceding calendar month and shall pay the special 
 fuel excise tax due thereon to the commissioner.  The report 
 shall be in the form and manner prescribed by the commissioner, 
 and shall contain information as the commissioner may require.  

    HIST: 1941 c 495 s 10; 1943 c 320 s 8; 1945 c 412 s 8; 1949 c 
 143 s 7; 1951 c 87 s 8; 1953 c 41 s 6,7; 1955 c 338 s 2-4; 1957 
 c 203 s 3-5; 1961 c 503 s 2,3; 1963 c 66 s 12; 1965 c 103 s 1,2; 
 1969 c 1148 s 41,66; 1973 c 106 s 1; 1974 c 13 s 1; 1981 c 164 s 
 3-6; 1982 c 523 art 2 s 40; 1983 c 222 s 32,33; 1985 c 248 s 70; 
 1986 c 444; 1990 c 594 art 1 s 66,67; 1994 c 510 art 5 s 17-24; 
 1995 c 186 s 119; 1995 c 264 art 14 s 4-6; art 19 s 8,9; 1996 c 
 471 art 5 s 10 

  296.13 Repealed, 1987 c 268 art 14 s 25 

  296.14 Repealed, 1994 c 510 art 5 s 36 

     296.141 Gasoline tax; special fuel tax; petroleum tank 
  release cleanup fee; and inspection fee monthly reports. 

    Subdivision 1.    Payment of gasoline tax and petroleum 
 tank release cleanup fee; shrinkage allowance.  On or before 
 the 23rd day of each month, every person who is required to pay 
 a gasoline tax shall file with the commissioner a report, in the 
 form and manner approved by the commissioner, showing the number 
 of gallons of petroleum products received by the reporter during 
 the preceding calendar month, and other information the 
 commissioner may require.  The number of gallons of gasoline 
 must be reported in United States standard liquid gallons (231 
 cubic inches), except that the commissioner may upon written 
 application and for cause shown permit the distributor to report 
 the number of gallons of gasoline as corrected to a 60-degree 
 Fahrenheit temperature.  If the application is granted, all 
 gasoline covered in the application and allowed by the 
 commissioner must continue to be reported by the distributor on 
 the adjusted basis for a period of one year from the date of the 
 granting of the application.  The number of gallons of petroleum 
 products other than gasoline must be reported as originally 
 invoiced. 

    Each report must show separately the number of gallons of 
 aviation gasoline received by the reporter during such calendar 
 month. 

    Each report must include the amount of gasoline tax on 
 gasoline received by the reporter during the preceding month; 
 provided that in computing the tax a deduction of three percent 
 of the quantity of gasoline received by a distributor shall be 
 made for evaporation and loss; provided further that at the time 
 of reporting, the distributor shall submit satisfactory evidence 
 that one-third of the three percent deduction has been credited 
 or paid to dealers on quantities sold to them.  A written report 
 is deemed to have been filed as required in this subdivision if 
 postmarked on or before the 23rd day of the month in which 
 payable. 

    Subd. 2.    Inspection fees.  Persons required to pay an 
 inspection fee under section 239.101 must file a report.  Each 
 report must include the amount of inspection fees due on 
 petroleum products.  Reports must be filed with the commissioner 
 in the form and manner the commissioner prescribes.  A written 
 report is considered filed as required if postmarked on or 
 before the 23rd day of the month in which payable. 

    Subd. 3.    Electronic funds transfer required.  All 
 remittances must be made by means of electronic funds transfer 
 as defined in section 336.4A-104, paragraph (a).  The funds 
 transfer payment date, as defined in section 336.4A-401, must be 
 on or before the date the remittance is due.  If the date the 
 remittance is due is not a funds transfer business day, as 
 defined in section 336.4A-105, paragraph (a), clause (4), the 
 payment date must be on or before the funds transfer business 
 day next following the date the remittance is due. 

    Subd. 4.    Credit or refund of tax paid.  The 
 commissioner shall allow the distributor credit or refund of the 
 tax paid on gasoline and special fuel: 

    (1) exported or sold for export from the state, other than 
 in the supply tank of a motor vehicle or of an aircraft; 

    (2) sold to the United States government to be used 
 exclusively in performing its governmental functions and 
 activities or to any "cost plus a fixed fee" contractor employed 
 by the United States government on any national defense project; 

    (3) if the fuel is placed in a tank used exclusively for 
 residential heating; 

    (4) destroyed by accident while in the possession of the 
 distributor; 

    (5) in error; 

    (6) in the case of gasoline only, sold for storage in an 
 on-farm bulk storage tank, if the tax was not collected on the 
 sale; and 

    (7) in such other cases as the commissioner may permit, not 
 inconsistent with the provisions of this chapter and other laws 
 relating to the gasoline and special fuel excise taxes. 

    Subd. 5.    Refund to dealer; destruction by accident.  
 Notwithstanding the provisions of subdivision 4, the 
 commissioner shall allow a dealer a refund of: 

    (1) the tax paid by the distributor on gasoline or undyed 
 diesel fuel destroyed by accident while in the possession of the 
 dealer; or 

    (2) the tax paid by a distributor or special fuels dealer 
 on other special fuels destroyed by accident while in the 
 possession of the dealer. 

    Subd. 6.    On-farm bulk storage of gasoline or special 
 fuel; ethyl alcohol for personal use.  Notwithstanding the 
 provisions of this section, the producer of ethyl alcohol which 
 is produced for personal use and not for sale in the usual 
 course of business and a farmer who uses gasoline or any special 
 fuel on which a tax has not been paid shall report and pay the 
 tax on all ethyl alcohol, gasoline, or special fuel delivered 
 into the supply tank of a licensed motor vehicle during the 
 preceding calendar year.  The tax must be reported in the form 
 and manner prescribed by the commissioner and paid together with 
 any refund claim filed by the taxpayer under section 296.18.  If 
 no refund claim is filed, the tax must be reported and paid 
 annually by March 15 or more frequently, as the commissioner may 
 prescribe.  Any producer qualifying under this subdivision is 
 exempt from the licensing requirements contained in section 
 296.06, subdivision 1. 

    Subd. 7.    Refunds; refrigerator units.  
 Notwithstanding the provisions of subdivision 4, the 
 commissioner shall allow a special fuel dealer a refund of the 
 tax paid on fuel sold directly into a supply tank of a 
 refrigeration unit with a separate engine and used exclusively 
 by that refrigeration unit.  A claim for refund may be filed as 
 provided in section 296.18, subdivision 1. 

    HIST: 1994 c 510 art 5 s 25; 1995 c 264 art 14 s 7-9; 1996 c 
 471 art 5 s 11,12; 1997 c 231 art 7 s 2 

     296.15 Nonpayment of tax, penalties. 

    Subdivision 1.    Penalty, interest.  (a) In case a 
 properly licensed distributor, special fuel dealer, bulk 
 purchaser or motor carrier does not pay any tax or inspection 
 fee when due, a penalty of one percent per day for the first ten 
 days of delinquency shall accrue, and thereafter the tax, fees 
 and penalty shall bear interest at the rate specified in section 
 270.75.  

    (b) If any person operates as a distributor, special fuel 
 dealer, bulk purchaser or motor carrier without first securing 
 the license required under this chapter, any tax or inspection 
 fee imposed by this chapter shall become immediately due and 
 payable.  A penalty of 25 percent shall be imposed upon the tax 
 and fee due thereon.  The tax, fees and penalty shall bear 
 interest at the rate specified in section 270.75.  

    Subd. 2.    Failure to pay taxes; proceedings.  Upon the 
 failure of any person to pay any tax or inspection fees within 
 the time provided by sections 296.01 to 296.421, all taxes and 
 inspection fees imposed by this chapter shall become immediately 
 due and payable, and may be collected as provided in chapter 270.

    Subd. 2a.    Imposition of civil penalty; dyed fuel.  
 (a) If any dyed fuel is sold or held for sale by a person for 
 any use which the person knows or has reason to know is not a 
 nontaxable use of the fuel; or if any dyed fuel is held for use 
 or used in a licensed motor vehicle or for any other use by a 
 person for a use other than a nontaxable use and the person 
 knew, or had reason to know, that the fuel was so dyed; or if a 
 person willfully alters, or attempts to alter, the strength or 
 composition of any dye or marking in any dyed fuel, then the 
 person shall pay a penalty in addition to the tax, if any. 

    (b) Except as provided in paragraph (c), the amount of 
 penalty under paragraph (a) for each act is the greater of 
 $1,000, or $10 for each gallon of dyed fuel involved. 

    (c) With regard to a multiple violation under paragraph 
 (a), the penalty shall be applied by increasing the amount in 
 paragraph (b) by the product of (1) such amount, and (2) the 
 number of prior penalties, if any, imposed by this section on 
 the person, or a related person, or any predecessor of the 
 person or related person. 

    (d) If a penalty is imposed under this section on a 
 business entity, each officer, employee, or agent of the entity 
 who willfully participated in any act giving rise to the penalty 
 is jointly and severally liable with the entity for the penalty. 

    Subd. 3. Repealed, 1994 c 510 art 5 s 36 

    Subd. 4.    Receiver, appointment.  In the event suit is 
 instituted as provided in subdivision 2, the court shall, upon 
 application, appoint a receiver of the property and business of 
 the delinquent defendant for the purpose of impounding the same 
 as security for any judgment which has been or may be recovered. 

    Subd. 5.    Sale prohibited under certain conditions.  
 No petroleum product shall be unloaded or sold by any person or 
 distributor whose tax and inspection fees are the basis for 
 collection action under subdivision 2.  

    Subd. 6.    Limitation of actions.  No action shall be 
 brought for the collection of delinquent excise taxes and 
 inspection fees under section 270.68 unless commenced within 
 five years after the date of assessment of the taxes and fees.  
 In the case of a false or fraudulent report with intent to evade 
 tax or inspection fee or of a failure to file a report, the 
 taxes or fees may be assessed at any time, and a proceeding in 
 court for their collection must be begun within five years after 
 the assessment.  

    The period of time during which a tax or fee must be 
 assessed under this chapter or collection proceedings commenced 
 under this subdivision is suspended during the period from the 
 date of filing of a petition in bankruptcy until 30 days after 
 the commissioner of revenue receives notice that the bankruptcy 
 proceedings have been closed or dismissed or the automatic stay 
 has been terminated or has expired. 

    The suspension of the statute of limitations under this 
 subdivision applies to the person against whom the petition in 
 bankruptcy is filed and all other persons who may also be wholly 
 or partially liable for the tax under this chapter. 

    HIST: 1941 c 495 s 13; 1943 c 320 s 11; 1949 c 143 s 8; 1951 c 
 87 s 9; 1953 c 41 s 9; 1963 c 66 s 15; 1971 c 673 s 1; 1973 c 
 105 s 1; 1975 c 377 s 32,33; 1980 c 509 s 117; 1985 c 101 s 15; 
 1994 c 510 art 5 s 26-29; 1996 c 471 art 5 s 13 

     296.151 Personal liability for tax. 

    Liability for payment of taxes under this chapter includes 
 a responsible person or entity described in the personal 
 liability provisions of section 270.101. 

    HIST: 1994 c 510 art 5 s 30 

     296.152 Tax as personal debt of fiduciary. 

    The tax imposed by this chapter, and interest and 
 penalties, is a personal debt of the taxpayer from the time the 
 liability arises, regardless of when the time for discharging 
 the liability by payment occurs.  The debt is, in the case of 
 any fiduciary, that of the individual in the individual's 
 official or fiduciary capacity only, unless the individual has 
 voluntarily distributed the assets held in that capacity without 
 reserving sufficient assets to pay the tax, interest, and 
 penalties, in which event the individual is personally liable 
 for the deficiency. 

    HIST: 1994 c 510 art 5 s 31 

     296.16 Use in various motor vehicles. 

    Subdivision 1.    Intent; gasoline use.  All gasoline 
 received in this state and all gasoline produced in or brought 
 into this state except aviation gasoline and marine gasoline 
 shall be determined to be intended for use in motor vehicles in 
 this state. 

    Approximately 1-1/2 percent of all gasoline received in 
 this state and 1-1/2 percent of all gasoline produced or brought 
 into this state, except gasoline used for aviation purposes, is 
 being used as fuel for the operation of motorboats on the waters 
 of this state and of the total revenue derived from the 
 imposition of the gasoline fuel tax for uses other than for 
 aviation purposes, 1-1/2 percent of such revenues is the amount 
 of tax on fuel used in motorboats operated on the waters of this 
 state.  

    Approximately one percent in fiscal years 1998 and 1999, 
 and three-fourths of one percent thereafter, of all gasoline 
 received in and produced or brought into this state, except 
 gasoline used for aviation purposes, is being used as fuel for 
 the operation of snowmobiles in this state, and of the total 
 revenue derived from the imposition of the gasoline fuel tax for 
 uses other than for aviation purposes, one percent in fiscal 
 years 1998 and 1999, and three-fourths of one percent 
 thereafter, of such revenues is the amount of tax on fuel used 
 in snowmobiles operated in this state. 

    Approximately 0.15 of one percent of all gasoline received 
 in or produced or brought into this state, except gasoline used 
 for aviation purposes, is being used for the operation of 
 all-terrain vehicles in this state, and of the total revenue 
 derived from the imposition of the gasoline fuel tax, 0.15 of 
 one percent is the amount of tax on fuel used in all-terrain 
 vehicles operated in this state. 

    Approximately 0.046 of one percent of all gasoline received 
 or produced in or brought into this state, except gasoline used 
 for aviation purposes, is being used for the operation of 
 off-highway motorcycles in this state, and of the total revenue 
 derived from the imposition of the gasoline fuel tax for uses 
 other than for aviation purposes, 0.046 of one percent is the 
 amount of tax on fuel used in off-highway motorcycles operated 
 in this state. 

    Approximately .164 of one percent of all gasoline received 
 or produced in or brought into this state, except gasoline used 
 for aviation purposes, is being used for the off-road operation 
 of off-road vehicles, as defined in section 84.797, in this 
 state, and of the total revenue derived from the imposition of 
 the gasoline fuel tax for uses other than aviation purposes, 
 .164 of one percent is the amount of tax on fuel used for 
 off-road operation of off-road vehicles in this state. 

    Subd. 1a.    Intent; forest roads.  Approximately 0.116 
 percent of the total annual unrefunded revenue from the gasoline 
 fuel tax on all gasoline and special fuel received in, produced, 
 or brought into this state, except gasoline and special fuel 
 used for aviation purposes, is derived from the operation of 
 motor vehicles on state forest roads and county forest access 
 roads.  Of this amount, 0.0605 percent is annually derived from 
 motor vehicles operated on state forest roads and 0.0555 percent 
 is annually derived from motor vehicles operated on county 
 forest access roads in this state. 

    Subd. 2.    Seller may collect tax.  A person who 
 directly or indirectly pays either of the taxes provided for by 
 sections 296.02 and 296.025 and does not in fact use the 
 gasoline or special fuel in motor vehicles in this state or 
 receive, store, or withdraw it from storage to be used 
 personally for the purpose of producing or generating power for 
 propelling aircraft, but sells or otherwise disposes of the 
 same, except as provided in section 296.141, subdivision 4, is 
 hereby authorized to collect (from the person to whom the 
 gasoline or special fuel is so sold or disposed of) the tax so 
 paid, and is hereby required, upon request, to make, sign, and 
 deliver to such person an invoice of such sale or disposition.  
 The sums collected must be held as a special fund in trust for 
 the state of Minnesota. 

    Subd. 3. Repealed, 1990 c 480 art 3 s 4 

    HIST: 1941 c 495 s 14; 1945 c 412 s 10; 1949 c 143 s 9; 1951 c 
 87 s 10; 1953 c 41 s 10; 1961 c 585 s 2; 1969 c 9 s 75; 1973 c 
 648 s 1; 1976 c 319 s 1; 1986 c 444; 1986 c 452 s 21; 1Sp1986 c 
 1 art 4 s 40; 1987 c 404 s 160; 1988 c 686 art 4 s 7; 1991 c 298 
 art 5 s 3; 1994 c 510 art 5 s 32; 1994 c 587 art 12 s 10; 1995 c 
 186 s 119; 1997 c 159 art 2 s 39 

     296.165 Untaxed fuel; conveyances; seizure and 
  forfeiture. 

    Subdivision 1.    Seizure.  The commissioner or 
 authorized designees may seize gasoline or special fuel being 
 transported for delivery in violation of section 296.06, 
 subdivision 1, and any vehicle or other method of conveyance 
 used for transporting the gasoline or special fuel.  Any untaxed 
 motor vehicle fuel that is received by a person other than a 
 licensee is subject to seizure along with the vehicle or other 
 means of transportation used to transport the motor vehicle 
 fuel.  Any motor vehicle fuel, along with the transporting 
 vehicle, brought into Minnesota by a transporter for use, 
 distribution, storage, or sale that is not supported by a 
 manifest, bill of lading, or invoice, reflecting the licensed 
 distributor responsible for the tax and/or fees is subject to 
 seizure by the Minnesota department of revenue.  Property seized 
 under this subdivision is subject to forfeiture as provided in 
 subdivisions 2 and 3.  

    Subd. 2.    Motor fuel; inventory, judicial action, 
 forfeiture.  Within two days after the seizure of gasoline or 
 special fuel, the person making the seizure shall deliver an 
 inventory of the property seized to the person from whom the 
 seizure was made, if known, and file a copy with the office of 
 the commissioner.  Within ten days after the date of service of 
 the inventory, the person from whom the property was seized or 
 any person claiming an interest in the property may file with 
 the commissioner a demand for a judicial determination of 
 whether the property was lawfully subject to seizure and 
 forfeiture.  The commissioner, within 30 days of demand for a 
 judicial determination, shall begin an action in the district 
 court of the county where the seizure was made to determine the 
 issue of forfeiture.  The action must be brought in the name of 
 the state and prosecuted by the county attorney or by the 
 attorney general.  The court shall hear the action without a 
 jury and shall try and determine the issues of fact and law 
 involved.  When a judgment of forfeiture is entered, the 
 commissioner may, unless the judgment is stayed pending an 
 appeal, either (1) cause the forfeited property to be destroyed; 
 or (2) cause it to be sold at public auction as provided by 
 law.  Proceeds of a sale, after deducting the expense of keeping 
 the gasoline or special fuel and costs of the sale, must be paid 
 into the state treasury.  The commissioner shall reimburse 
 designees for costs incurred.  If a demand for judicial 
 determination is made and no action is commenced as provided in 
 this subdivision, the property must be released by the 
 commissioner and redelivered to the person entitled to it.  If 
 no demand is made, the property seized must be considered 
 forfeited to the state by operation of law and may be disposed 
 of by the commissioner as provided where there has been a 
 judgment of forfeiture.  When the commissioner is satisfied that 
 a person from whom property is seized under this chapter was 
 acting in good faith and without intent to evade the tax, the 
 commissioner shall release the property seized, without further 
 legal proceedings.  

    Subd. 3.    Conveyances; judicial action; forfeiture.  
 (a) The commissioner or authorized designees shall file with the 
 court a separate complaint against the vehicle or conveyance, 
 describing it and charging its use in the specified violation, 
 and specifying substantially the time and place of the unlawful 
 use.  A copy of the complaint must be served on the defendant or 
 person in charge of the vehicle or conveyance at the time of 
 seizure, if any.  The court shall issue an order directed to any 
 person known or believed to have a right or title to, interest 
 in, or lien on the vehicle or conveyance and to persons unknown 
 claiming a right, title, interest, or lien:  

    (1) describing the vehicle or conveyance and stating that 
 it was seized and that a complaint against it, charging the 
 specified violation, has been filed with the court; 

    (2) requiring the persons to file with the court 
 administrator of the court their answer to the complaint, 
 setting forth any claim they may have to a right or title to, 
 interest in, or lien on the vehicle or conveyance, within ten 
 days after the service of the order; and 

    (3) notifying them in substance that if they fail to file 
 their answer within that time the vehicle or conveyance will be 
 ordered sold by the commissioner.  

    (b) The court shall cause the order to be served on:  

    (1) the registered owner; 

    (2) any person who has duly filed a conditional sales 
 contract, mortgage, or other lien instrument covering the 
 property unless it has been released or satisfied; 

    (3) any other person known or believed to have a right, 
 title, interest in, or lien upon, the vehicle or conveyance as 
 in the case of a summons in a civil action; and 

    (4) on unknown persons by publication, as provided for 
 service of summons in a civil action.  

    (c) If no answer is filed within the time prescribed, the 
 court shall, on affidavit by the court administrator of the 
 court setting forth that fact, order the vehicle or conveyance 
 forfeited and direct that it be sold by the commissioner or the 
 commissioner's agents.  The proceeds of the sale, after 
 deducting the expense of keeping the vehicle or conveyance and 
 costs of the sale, including any costs incurred pursuant to 
 paragraph (f), must be paid into the state treasury.  The 
 commissioner shall reimburse designees for costs incurred.  

    (d) If an answer is filed within the time provided, the 
 court shall fix a time for hearing at least ten but no more than 
 30 days after the time for filing the answer expires.  At the 
 hearing, the matter must be heard and determined by the court, 
 without a jury, as in other civil actions.  If the court finds 
 that the vehicle or conveyance, or any part of it, was used in a 
 violation as specified in the complaint, it shall order the 
 vehicle or conveyance forfeited and direct that it be sold, as 
 provided in this section, unless the owner shows to the 
 satisfaction of the court that the vehicle was being used 
 without the owner's consent or that, when giving the consent, 
 the owner had no notice or knowledge or reason to believe that 
 the vehicle or conveyance was intended to be used in a 
 violation.  After deducting the expense of keeping the vehicle 
 or conveyance and costs of the sale, the officer making the sale 
 shall pay, according to their priority, all liens established at 
 the hearing as being bona fide and existing without the lienor 
 having any notice or knowledge at the time the lien was created 
 that the vehicle or conveyance was being used or was intended to 
 be used in connection with any violation, and shall pay the 
 balance of the proceeds into the state treasury.  The 
 commissioner shall reimburse designees for costs incurred.  A 
 sale under this section frees the conveyance sold from all liens.

    (e) At any time after seizure and before the hearing, the 
 vehicle or conveyance must be returned to the owner or person 
 having a legal right to its possession on execution by that 
 person of a valid bond to the state of Minnesota, with corporate 
 surety, of at least $100 but not more than double the value of 
 the vehicle or conveyance seized, to be approved by the court in 
 which the case is triable, or a judge of that court.  The bond 
 must guarantee compliance with the order and judgment of the 
 court, and, if ordered by the court, payment of the full value 
 of the vehicle or conveyance at the time of seizure.  

    (f) If the seized vehicle or conveyance is owned or 
 operated by a for-hire common or contract motor carrier, and was 
 being used without knowledge of the violation, the commissioner 
 shall return the vehicle or conveyance to its owner or operator 
 as soon as possible without need for court order, and shall 
 provide to such owner or operator reasonable compensation for 
 the time during which the vehicle or conveyance is held pursuant 
 to seizure. 

    HIST: 1991 c 291 art 9 s 14; 1994 c 510 art 5 s 33 

     296.17 Fuel unreported or used in other states; road 
  tax; motor carriers; reciprocity. 

    Subdivision 1.    Unreported fuel.  It shall be the duty 
 of every distributor, dealer, and person who sells or uses 
 gasoline manufactured, produced, received, or stored by the 
 distributor, dealer, or person, and of every person using 
 gasoline in motor vehicles or special fuel in licensed motor 
 vehicles, if the same has not been reported or if the tax on 
 account thereof has not been paid to the commissioner, to report 
 to the commissioner in the form and manner prescribed by the 
 commissioner, the quantity of such gasoline so sold or used or 
 such special fuel used, and such person shall become liable for 
 the payment of the tax.  All provisions of sections 296.01 to 
 296.421 relating to the calculation, collection and payment of 
 the tax shall be applicable to any such person, dealer or 
 distributor. 

    Subd. 2.  Repealed, 1967 c 802 s 2 

    Subd. 3.    Refunds on fuel used in other states.  Every 
 person regularly or habitually operating motor vehicles upon the 
 public highways of any other state or states and using in said 
 motor vehicles gasoline or special fuel purchased or obtained in 
 this state, shall be allowed a credit or refund equal to the tax 
 on said gasoline or special fuel paid to this state on the 
 gasoline or special fuel actually used in the other state or 
 states.  No credit or refund shall be allowed under this 
 subdivision for taxes paid to any state which imposes a tax upon 
 gasoline or special fuel purchased or obtained in this state and 
 used on the highways of such other state, and which does not 
 allow a similar credit or refund for the tax paid to this state 
 on gasoline or special fuel purchased or acquired in such other 
 state and used on the highways of this state.  Every person 
 claiming a credit or refund under this subdivision shall file a 
 claim in the form and manner prescribed by the commissioner or 
 take the credit on a subsequent tax return within one year of 
 the last day of the month following the end of the quarter when 
 the overpayment occurred.  

    Subd. 4.  Repealed, 1967 c 802 s 2 

    Subd. 5.    Unreported aviation gasoline.  The 
 provisions of subdivision 1 do not apply to aviation gasoline.  
 It shall be the duty of every distributor, dealer, and person 
 who receives, sells, stores, or withdraws from storage in this 
 state aviation gasoline manufactured, produced, received, or 
 stored by the distributor, dealer, or person, if the same has 
 not been reported or if a tax provided for in section 296.02 on 
 account thereof, has not been paid to the commissioner, to 
 report to the commissioner, in the form and manner prescribed by 
 the commissioner, the quantity of such gasoline so received, 
 sold, stored, or withdrawn from storage, and such person shall 
 become liable for the payment of the tax. 

    All provisions of sections 296.01 to 296.421 relating to 
 the calculation, collections, and payment of the tax shall be 
 applicable to any such person, dealer, or distributor. 

    Subd. 6.    Reciprocal agreements.  The commissioner of 
 public safety or the commissioner of revenue may enter into 
 reciprocal agreements with the appropriate officials of any 
 other state under which either commissioner may waive all or any 
 part of the requirements imposed by this section upon those who 
 use in Minnesota gasoline or other motor vehicle fuel upon which 
 the tax has been paid to such other state, provided that the 
 officials of such other state grant equivalent privileges with 
 respect to gasoline or other motor vehicle fuel used in such 
 other state but upon which the tax has been paid to Minnesota. 

    The commissioner of public safety or the commissioner of 
 revenue may enter into reciprocal agreements with the 
 appropriate officials of other states, exempting vehicles 
 licensed in such other states from the license and use tax 
 provisions contained in this section, which otherwise would 
 apply to vehicles licensed by such other state, provided that 
 such other state grant equivalent privileges with respect to 
 vehicles licensed by Minnesota. 

    Subd. 7.    Definitions.  As used in subdivisions 7 to 
 22: 

    (a) "Motor fuel" means a liquid, regardless of its 
 composition or properties, used to propel a motor vehicle. 

    (b) "Commercial motor vehicle" means a motor vehicle used, 
 designed, or maintained for transportation of persons or 
 property that: 

    (1) has two axles and a gross vehicle weight or registered 
 gross vehicle weight exceeding 26,000 pounds; or 

    (2) has three or more axles regardless of weight; or 

    (3) is used in combination, when the weight of such 
 combination exceeds 26,000 pounds gross vehicle or registered 
 gross vehicle weight.  "Commercial motor vehicle" does not 
 include recreational vehicles. 

    (c) "Motor carrier" means a person who operates or causes 
 to be operated a commercial motor vehicle on a highway in this 
 state. 

    (d) "Operation" means operation of commercial 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. 

    (e) "Highway" means the entire width between the boundary 
 lines of every way publicly maintained when part of the highway 
 is open for the public to travel on. 

    Subd. 8.    Road tax imposed.  (a) Every motor carrier 
 shall pay a road tax calculated on the amount of motor fuel 
 consumed in the motor carrier's operations on highways within 
 this state.  The tax shall be at the same rate as the tax 
 applicable to the purchase of the same motor fuel within this 
 state. 

    (b) The amount of motor fuel consumed in the operations of 
 any motor carrier on highways within this state shall be 
 determined by dividing the miles traveled within Minnesota by 
 the average miles per gallon.  The average miles per gallon 
 shall be determined by dividing the miles traveled within and 
 without Minnesota by the total motor fuel consumed within and 
 without Minnesota. 

    Subd. 9.    Exemptions.  Nothing in subdivisions 7 to 
 22 shall apply to:  (a) any commercial motor vehicle or vehicles 
 operated by this state, any subdivision thereof, the United 
 States, or any agency of two or more states or of states and the 
 United States in which this state participates; (b) any school 
 bus as defined by the laws of this state operated by, for or on 
 behalf of a state or any subdivision thereof; or (c) any motor 
 vehicle bearing Minnesota base license plates. 

    Subd. 9a. Repealed, 1992 c 581 s 21 

    Subd. 10.    Motor carrier license.  (a) No motor 
 carrier may operate a commercial motor vehicle upon the highways 
 of this state unless and until issued a license pursuant to this 
 section or has obtained a trip permit or temporary authorization 
 as provided in this section. 

    (b) A license shall be issued to any responsible person 
 qualifying as a motor carrier who makes application therefor and 
 who pays to the commissioner, at the time thereof, a license fee 
 of $30.  The license is valid for a period of up to two years or 
 until revoked by the commissioner or until surrendered by the 
 motor carrier.  All outstanding licenses will expire on March 31 
 of each even-numbered year beginning with 1984 and may be 
 renewed upon application to the commissioner and payment of the 
 $30 fee.  The license, photocopy, or electrostatic copy of it, 
 shall be carried in the cab of every commercial motor vehicle 
 while it is being operated in Minnesota by a licensed motor 
 carrier. 

    Subd. 11.    Motor carrier reports.  Every motor carrier 
 subject to the road tax shall, on or before the last day of 
 April, July, October, and January, file with the commissioner in 
 the form and manner prescribed by the commissioner, reports of 
 operations during the previous three months, and such other 
 reports from time to time as the commissioner may deem 
 necessary.  The commissioner by rule may exempt from the 
 quarterly reporting requirements of this section those motor 
 carriers whose mileage is all or substantially all and those 
 motor carriers whose mileage is minimal within this state, or 
 states with which Minnesota has reciprocity and require in such 
 instances an annual report reflecting the operations of the 
 carrier during the previous year along with payment of any taxes 
 due. 

    Each report shall contain a confession of judgment for the 
 amount of the tax shown due thereon to the extent not timely 
 paid. 

    Subd. 12. Repealed, 1987 c 268 art 14 s 25 

    Subd. 13. Repealed, 1990 c 480 art 3 s 4 

    Subd. 14.    Motor carrier records.  (a) Every motor 
 carrier shall keep such records as may be necessary for the 
 administration of subdivisions 7 to 22 and for the reporting and 
 justification of the amount of tax liability pursuant hereto.  
 Such records shall be kept in such form as the commissioner 
 reasonably may prescribe.  All such records shall be safely 
 preserved for a period of three years in such manner as to 
 insure their security and availability for inspection by the 
 commissioner.  Upon application in writing stating the reasons 
 therefor, the commissioner may consent to the destruction of 
 such records at an earlier time if the commissioner has 
 completed an audit of the records in question. 

    (b) The commissioner or authorized agents or 
 representatives shall have the right at any reasonable time to 
 inspect the books and records of any motor carrier subject to 
 the tax imposed by this chapter. 

    Subd. 15.    Evidence.  In the absence of records 
 showing the number of miles actually operated per gallon of 
 motor fuel, it shall be presumed that one gallon of motor fuel 
 was consumed for every four miles traveled. 

    Subd. 16.    Leased commercial motor vehicles.  (a) 
 Except as otherwise provided in this section, every commercial 
 motor vehicle leased to a motor carrier shall be subject to the 
 provisions of subdivisions 7 to 22 and rules in force pursuant 
 hereto, to the same extent and in the same manner as commercial 
 motor vehicles owned by such carrier. 

    (b) A lessor of commercial motor vehicles may be deemed a 
 motor carrier with respect to such vehicles leased to others by 
 the lessor and motor fuel consumed thereby, if the lessor 
 supplies or pays for the motor fuel consumed by such vehicles or 
 makes rental or other charges calculated to include the cost of 
 such fuel.  Any lessee motor carrier may exclude the leased 
 commercial motor vehicles from reports and liabilities pursuant 
 to subdivisions 7 to 22, but only if the commercial motor 
 vehicles in question have been leased from a lessor who is a 
 motor carrier pursuant to this section. 

    (c) The provisions of clauses (a) and (b) of this 
 subdivision shall govern the primary liability pursuant to 
 subdivisions 7 to 22 of lessors and lessees of commercial motor 
 vehicles.  If a lessor or lessee primarily liable fails, in 
 whole or in part, to discharge liability, such failing party and 
 the other lessor or lessee party to the transaction shall be 
 jointly and severally responsible and liable for compliance with 
 the provisions of subdivisions 7 to 22 and for the payment of 
 any tax due pursuant hereto, provided that the aggregate of any 
 taxes collected by this state shall not exceed the total amount 
 or amounts of taxes due on account of the transactions in 
 question and such costs and penalties, if any, as may be imposed.

    Subd. 17.    Motor carrier trip permits; temporary 
 authorizations.  (a) A motor carrier may obtain a trip permit 
 which shall authorize an unlicensed motor carrier to operate a 
 commercial motor vehicle in Minnesota for a period of five 
 consecutive days beginning and ending on the dates specified on 
 the face of the permit.  The fee for the permit shall be $25.  
 Fees for trip permits shall be in lieu of the road tax otherwise 
 assessable against the motor carrier on account of the 
 commercial motor vehicle operating therewith, and no reports of 
 mileage shall be required with respect to the vehicle. 

    The above permit shall be issued in lieu of license if in 
 the course of operations a motor carrier operates on Minnesota 
 highways no more than three times in any one calendar year. 

    (b) Whenever the commissioner is satisfied that unforeseen 
 or uncertain circumstances have arisen which requires a motor 
 carrier to operate in this state a commercial motor vehicle for 
 which neither a trip permit pursuant to clause (a) nor a license 
 pursuant to subdivisions 7 to 22 has yet been obtained, and if 
 the commissioner is satisfied that prohibition of that operation 
 would cause undue hardship, the commissioner may provide the 
 motor carrier with temporary authorization for the operation of 
 the vehicle.  A motor carrier receiving temporary authorization 
 pursuant to this subdivision shall perfect the same either by 
 obtaining a trip permit or a license, as the case may be, for 
 the vehicle at the earliest practicable time. 

    Subd. 18.    Cooperative audits.  The commissioner may 
 make arrangements with the commissioner of transportation and 
 may enter into agreements with the appropriate authorities of 
 other states having statutes similar to this act for the 
 cooperative audit of motor carriers' reports and returns.  In 
 performing any such audit, or part thereof, the officers and 
 employees of the department of transportation and the other 
 state or states shall be deemed authorized agents of this state 
 for such purpose, and such audits, or parts thereof, shall have 
 the same effect as similar audits, or parts thereof, when made 
 by the commissioner. 

    Subd. 19.    Actions to avoid tax.  If the commissioner 
 ascertains that a person designs quickly to depart from this 
 state, or to remove therefrom the person's property, or any 
 property used by the person in operations subject to 
 subdivisions 7 to 22, or to discontinue business, or to do any 
 other act tending to prejudice or render wholly or partly 
 ineffectual proceedings to assess or collect the tax, whereby it 
 becomes important that such proceedings be brought without 
 delay, the commissioner may immediately make an assessment of 
 tax estimated to be due, whether or not any report is then due 
 by law, and may proceed under such assessment to collect the 
 tax, or compel security for the same, and thereupon shall cause 
 notice of such finding to be given to such motor carrier, 
 together with a demand for an immediate payment of such tax. 

    The commissioner or agents is also authorized to impound 
 motor vehicles of persons in violation of subdivisions 7 to 22.  
 Such vehicle shall be released either upon payment of all taxes, 
 penalties and interest that may be due, or depositing a bond or 
 security to assure the payment of said taxes, penalties and 
 interest. 

    Subd. 20.    Enforcement powers.  (a) The commissioner 
 is authorized and directed to enforce the provisions of 
 subdivisions 7 to 22.  In addition, the commissioner of public 
 safety is authorized and directed to use the Minnesota state 
 patrol to assist in the enforcement of the provisions of 
 subdivisions 7 to 22 and the commissioner of transportation is 
 authorized and directed to enforce the provisions of 
 subdivisions 10 and 17 as provided in section 221.221. 

    (b) The officers of the Minnesota state patrol shall in 
 addition to all other powers granted to them by Minnesota 
 Statutes have the power of making arrests, service process, and 
 appearing in court in all matters and things relating to 
 subdivisions 7 to 22 and the administration and enforcement 
 thereof. 

    Subd. 21.    Rules.  The commissioner may, from time to 
 time, issue, amend and revise such rules as may be necessary for 
 the effective enforcement of subdivisions 7 to 22. 

    Subd. 22.    Commissioner may waive requirements.  The 
 commissioner is hereby empowered to suspend the enforcement of 
 subdivisions 7 to 22 if the cost of administration thereof 
 exceeds the tax revenue produced therefrom. 

    HIST: 1941 c 495 s 15; 1943 c 320 s 12; 1945 c 412 s 11; 1945 
 c 480; 1949 c 143 s 10-12; 1957 c 203 s 6,7; 1961 c 506 s 1; 
 1963 c 66 s 16; 1967 c 802 s 1; 1969 c 102 s 1; 1973 c 107 s 1; 
 1977 c 45 s 2-4; 1980 c 509 s 118,119; 1981 c 37 s 2; 1982 c 523 
 art 2 s 42; 1983 c 222 s 34-36; 1983 c 293 s 87-89; 1983 c 311 s 
 12; 1985 c 248 s 70; 1986 c 444; 1Sp1986 c 1 art 4 s 41,42; 1987 
 c 268 art 14 s 21-23; 1987 c 358 s 109; 1990 c 594 art 1 s 
 68,69; 1995 c 264 art 14 s 10-13; 1996 c 471 art 5 s 14; 1997 c 
 230 s 20 

     296.171 Fuel tax compacts. 

    Subdivision 1.    Authority.  The commissioner of public 
 safety has the powers granted to the commissioner of revenue 
 under section 296.17.  The commissioner of public safety may 
 enter into an agreement or arrangement with the duly authorized 
 representative of another state or make an independent 
 declaration, granting to owners of vehicles properly registered 
 or licensed in another state, benefits, privileges, and 
 exemptions from paying, wholly or partially, fuel taxes, fees, 
 or other charges imposed for operating the vehicles under the 
 laws of Minnesota.  The agreement, arrangement, or declaration 
 may impose terms and conditions not inconsistent with Minnesota 
 laws. 

    Subd. 2.    Reciprocal privileges and treatment.  An 
 agreement or arrangement must be in writing and provide that 
 when a vehicle properly licensed for fuel in Minnesota is 
 operated on highways of the other state, it must receive 
 exemptions, benefits, and privileges of a similar kind or to a 
 similar degree as are extended to a vehicle properly licensed 
 for fuel in that state, when operated in Minnesota.  A 
 declaration must be in writing and must contemplate and provide 
 for mutual benefits, reciprocal privileges, or equitable 
 treatment of the owner of a vehicle registered for fuel in 
 Minnesota and the other state.  In the judgment of the 
 commissioner of public safety, an agreement, arrangement, or 
 declaration must be in the best interest of Minnesota and its 
 citizens and must be fair and equitable regarding the benefits 
 that the agreement brings to the economy of Minnesota. 

    Subd. 3.    Compliance with Minnesota laws.  Agreements, 
 arrangements, and declarations made under authority of this 
 section must contain a provision specifying that no fuel 
 license, or exemption issued or accruing under the license, 
 excuses the operator or owner of a vehicle from compliance with 
 Minnesota laws. 

    Subd. 4.    Exchanges of information.  The commissioner 
 of public safety may make arrangements or agreements with the 
 commissioner of transportation and other states to exchange 
 information for audit and enforcement activities in connection 
 with fuel tax licensing.  The filing of fuel tax returns under 
 this section is subject to the rights, terms, and conditions 
 granted or contained in the applicable agreement or arrangement 
 made by the commissioner under the authority of this section. 

    Subd. 5.    Base state fuel compact.  The commissioner 
 of public safety may ratify and effectuate the international 
 fuel tax agreement or other fuel tax agreement.  The 
 commissioner's authority includes, but is not limited to, 
 collecting fuel taxes due, issuing fuel licenses, issuing 
 refunds, conducting audits, assessing penalties and interest, 
 issuing fuel trip permits, issuing decals, and suspending or 
 denying licensing. 

    Subd. 6.    Minnesota-based interstate carriers.  
 Notwithstanding the exemption contained in section 296.17, 
 subdivision 9, as the commissioner of public safety enters into 
 interstate fuel tax compacts requiring base state licensing and 
 filing and eliminating filing in the nonresident compact states, 
 the Minnesota-based motor vehicles registered under section 
 168.187 will be required to license under the fuel tax compact 
 in Minnesota. 

    Subd. 7.    Delinquent filing or payment.  If a fleet 
 owner licensed under this section is delinquent in either filing 
 or paying the international fuel tax agreement reports for more 
 than 30 days, or paying the international registration plan 
 billing under section 168.187 for more than 30 days, the fleet 
 owner, after ten days' written notice, is subject to suspension 
 of the apportioned license plates and the international fuel tax 
 agreement license. 

    Subd. 8.    Transferring funds to pay delinquent fees.  
 If a fleet owner licensed under this section is delinquent in 
 either filing or paying the international fuel tax agreement 
 reports for more than 30 days, or paying the international 
 registration plan billing under section 168.187 for more than 30 
 days, the commissioner may authorize any credit in either the 
 international fuel tax agreement account or the international 
 registration plan account to be used to offset the liability in 
 either the international registration plan account or the 
 international fuel tax agreement account. 

    Subd. 9.    Fuel compact fees.  License fees paid to the 
 commissioner of public safety under the international fuel tax 
 agreement must be deposited in the highway user tax distribution 
 fund.  The commissioner shall charge the fuel license fee of $30 
 established under section 296.17, subdivision 10, in annual 
 installments of $15 and an annual application filing fee of $13 
 for quarterly reporting of fuel tax.  

    Subd. 10.    Fuel decal fees.  The commissioner of 
 public safety may issue and require the display of a decal or 
 other identification to show compliance with subdivision 5.  The 
 commissioner may charge a fee to cover the cost of issuing the 
 decal or other identification.  Decal fees paid to the 
 commissioner under this subdivision must be deposited in the 
 highway user tax distribution fund. 

    HIST: 1992 c 581 s 20; 1997 c 230 s 21 

     296.18 Refunds. 

    Subdivision 1.    Claim; fuel used in other vehicles.  
 Any person who shall buy and use gasoline for a qualifying 
 purpose other than use in motor vehicles, snowmobiles except as 
 provided in clause (2), or motorboats, or special fuel for a 
 qualifying purpose other than use in licensed motor vehicles, 
 and who shall have paid the Minnesota excise tax directly or 
 indirectly through the amount of the tax being included in the 
 price of the gasoline or special fuel, or otherwise, shall be 
 reimbursed and repaid the amount of the tax paid upon filing 
 with the commissioner a claim in the form and manner prescribed 
 by the commissioner, and containing the information the 
 commissioner shall require.  By signing any such claim which is 
 false or fraudulent, the applicant shall be subject to the 
 penalties provided in this section for knowingly making a false 
 claim.  The claim shall set forth the total amount of the 
 gasoline so purchased and used by the applicant other than in 
 motor vehicles, or special fuel so purchased and used by the 
 applicant other than in licensed motor vehicles, and shall state 
 when and for what purpose it was used.  When a claim contains an 
 error in computation or preparation, the commissioner is 
 authorized to adjust the claim in accordance with the evidence 
 shown on the claim or other information available to the 
 commissioner.  The commissioner, on being satisfied that the 
 claimant is entitled to the payments, shall approve the claim 
 and transmit it to the commissioner of finance.  No repayment 
 shall be made unless the claim and invoice shall be filed with 
 the commissioner within one year from the date of the purchase.  
 The postmark on the envelope in which a written claim is mailed 
 shall determine its date of filing.  The words "gasoline" or 
 "special fuel" as used in this subdivision do not include 
 aviation gasoline or special fuel for aircraft.  Gasoline or 
 special fuel bought and used for a "qualifying purpose" means: 

    (1) Gasoline or special fuel used in carrying on a trade or 
 business, used on a farm situated in Minnesota, and used for a 
 farming purpose.  "Farm" and "farming purpose" have the meanings 
 given them in section 6420(c)(2), (3), and (4) of the Internal 
 Revenue Code of 1986, as amended through December 31, 1988.  

    (2) Gasoline or special fuel used for off-highway business 
 use.  "Off-highway business use" means any use off the public 
 highway by a person in that person's trade, business, or 
 activity for the production of income.  "Off-highway business 
 use" includes: 

    (a) use of a passenger snowmobile off the public highways 
 as part of the operations of a resort as defined in section 
 157.15; and 

    (b) use of gasoline or special fuel to operate a power 
 takeoff unit on a vehicle, but not including fuel consumed 
 during idling time. 

    "Off-highway business use" does not include use as a fuel 
 in a motor vehicle which, at the time of use, is registered or 
 is required to be registered for highway use under the laws of 
 any state or foreign country.  

    (3) Gasoline or special fuel placed in the fuel tanks of 
 new motor vehicles, manufactured in Minnesota, and shipped by 
 interstate carrier to destinations in other states or foreign 
 countries. 

    By July 1, 1998, the commissioner shall adopt rules that 
 determine the rates and percentages necessary to develop 
 formulas for calculating and administering the refund under 
 clause (2)(b). 

    Subd. 1a.  Repealed, 1977 c 45 s 5 

    Subd. 2.    Failure to use or sell for intended purpose; 
 reports required.  (1) Any person who shall buy aviation 
 gasoline or special fuel for aircraft use and who shall have 
 paid the excise taxes due thereon directly or indirectly through 
 the amount of the tax being included in the price thereof, or 
 otherwise, and shall use said gasoline or special fuel in motor 
 vehicles or shall knowingly sell it to any person for use in 
 motor vehicles shall, on or before the twenty-third day of the 
 month following that in which such gasoline or special fuel was 
 so used or sold, report the fact of such use or sale to the 
 commissioner in such form and manner as the commissioner may 
 prescribe. 

    (2) Any person who shall buy gasoline other than aviation 
 gasoline and who shall have paid the motor vehicle gasoline 
 excise tax directly or indirectly through the amount of the tax 
 being included in the price of the gasoline, or otherwise, who 
 shall knowingly sell such gasoline to any person to be used for 
 the purpose of producing or generating power for propelling 
 aircraft, or who shall receive, store, or withdraw from storage 
 such gasoline to be used for that purpose, shall, on or before 
 the 23rd day of the month following that in which such gasoline 
 was so sold, stored, or withdrawn from storage, report the fact 
 of such sale, storage, or withdrawal from storage to the 
 commissioner in such form and manner as the commissioner may 
 prescribe. 

    (3) Any person who shall buy aviation gasoline or special 
 fuel for aircraft use and who shall have paid the excise taxes 
 directly or indirectly through the amount of the tax being 
 included in the price thereof, or otherwise, who shall not use 
 it in motor vehicles or receive, sell, store, or withdraw it 
 from storage for the purpose of producing or generating power 
 for propelling aircraft, shall be reimbursed and repaid the 
 amount of the tax paid upon filing with the commissioner a claim 
 in such form and manner as the commissioner may prescribe.  By 
 filing a claim which is false or fraudulent, the applicant shall 
 be subject to the penalties provided in section 296.25 for 
 knowingly or willfully making a false claim.  The claim shall 
 set forth the total amount of the aviation gasoline or special 
 fuel for aircraft use so purchased and used by the applicant, 
 and shall state when and for what purpose it was used.  When a 
 claim contains an error in computation or preparation, the 
 commissioner is authorized to adjust the claim in accordance 
 with the evidence shown on the claim or other information 
 available to the commissioner.  The commissioner, on being 
 satisfied that the claimant is entitled to payment, shall 
 approve the claim and transmit it to the commissioner of 
 finance.  No repayment shall be made unless the claim and 
 invoice shall be filed with the commissioner within one year 
 from the date of the purchase.  The postmark on the envelope in 
 which a written claim is mailed shall determine its date of 
 filing. 

    Subd. 3.    Civil penalty for filing false claim.  A 
 person who violates section 296.25, subdivision 1, paragraph (a) 
 or (b), shall forfeit the full amount of the claim.  In 
 addition, a person who is convicted under section 296.25, 
 subdivision 1, paragraph (a) or (b), for filing a false 
 statement or claim shall, in addition to any criminal penalties 
 imposed, be prohibited from filing with the commissioner any 
 claim for refund upon gasoline purchased within six months after 
 such conviction. 

    Subd. 3a. Repealed, 1990 c 480 art 3 s 4 

    Subd. 4.    Refunds on graduated basis.  Any licensed 
 distributor or other person who shall have directly or 
 indirectly paid the excise tax on aviation gasoline or special 
 fuel for aircraft use provided for by section 296.02, 
 subdivision 2, or section 296.025, subdivision 2, shall, as to 
 all such aviation gasoline and special fuel received, stored, or 
 withdrawn from storage by the person in this state in any 
 calendar year and not sold or otherwise disposed of to others, 
 or intended for sale or other disposition to others, on which 
 such tax has been so paid, be entitled to the following 
 graduated reductions in such tax for that calendar year, to be 
 obtained by means of the following refunds: 

    (1) On each gallon of such aviation gasoline or special 
 fuel up to 50,000 gallons, all but five cents per gallon; 

    (2) On each gallon of such aviation gasoline or special 
 fuel above 50,000 and not more than 150,000, all but two cents 
 per gallon; 

    (3) On each gallon of such aviation gasoline or special 
 fuel above 150,000 and not more than 200,000, all but one cent 
 per gallon; 

    (4) On each gallon of such aviation gasoline or special 
 fuel above 200,000, all but one-half cent per gallon. 

    Subd. 5.    Graduated reduction-basis refund claim, 
 requirements.  Any distributor or other person claiming to be 
 entitled to any refund provided for in subdivision 4 shall 
 receive such refund upon filing with the commissioner a verified 
 claim in such form and manner, and, containing such information 
 as the commissioner shall require.  The claim shall set forth, 
 among other things, the total number of gallons of aviation 
 gasoline or special fuel for aircraft use upon which the 
 claimant has directly or indirectly paid the excise tax provided 
 for in section 296.02, subdivision 2, or 296.025, subdivision 2, 
 during the calendar year, which has been received, stored, or 
 withdrawn from storage by the claimant in this state and not 
 sold or otherwise disposed of to others.  The commissioner, on 
 being satisfied that the claimant is entitled to the refund, 
 shall approve the claim and transmit it to the commissioner of 
 finance, and it shall be paid as provided for in section 
 296.421, subdivision 2.  All claims for refunds under this 
 subdivision shall be made on or before April 15 following the 
 end of the calendar year for which the refund is claimed.  
 Claims for aviation gasoline and special fuel tax refund filed 
 within 15 days beyond the due date prescribed by this 
 subdivision shall be honored by the commissioner less a penalty 
 of 25 percent of the amount of the approved claim. 

    Subd. 6.    Aviation gasoline tax refund claim, civil 
 penalty.  If any distributor or other person, with intent to 
 unlawfully secure any refund provided for in subdivision 4, 
 shall knowingly file a false or fraudulent claim, there shall be 
 imposed upon the person as a penalty an amount equal to 50 
 percent of the amount of the refund unlawfully secured, in 
 addition to that amount.  The penalty imposed by this 
 subdivision shall be collected as part of the tax. 

    Subd. 7. Repealed, 1990 c 480 art 3 s 4 

    Subd. 8.    Appropriation.  There is hereby appropriated 
 to the persons entitled to such refund under this section, from 
 the fund or account in the state treasury to which the money was 
 credited, an amount sufficient to make the refund and payment.  

    HIST: (2720-79) 1925 c 297 s 10; 1927 c 434 s 6; 1929 c 257 s 
 1; 1937 c 376 s 1; 1941 c 491 s 1; 1941 c 495 s 16; 1945 c 152 s 
 2; 1945 c 412 s 12; 1951 c 87 s 11; 1951 c 287 s 2; 1957 c 203 s 
 8-10; 1959 c 157 s 12; 1959 c 223 s 1; 1963 c 66 s 17,18; 1963 c 
 686 s 2,3; 1965 c 122 s 3; 1971 c 764 s 1; 1971 c 765 s 1-3; 
 1973 c 146 s 1; 1973 c 492 s 14; 1973 c 648 s 2; 1979 c 303 art 
 10 s 9-12; 1983 c 17 s 9; 1983 c 301 s 181; 1983 c 342 art 6 s 
 2; 1984 c 502 art 14 s 11-13; 1984 c 514 art 2 s 34; 1985 c 248 
 s 50; 1Sp1985 c 14 art 2 s 4; 1986 c 444; 1987 c 268 art 17 s 
 24; 1989 c 277 art 1 s 8; 1990 c 480 art 3 s 1,2; 1993 c 375 art 
 9 s 21; 1995 c 207 art 9 s 60; 1995 c 264 art 14 s 14-16; 1997 c 
 231 art 7 s 3 

     296.19 Application to foreign or interstate commerce. 

    No provision of sections 296.01 to 296.421 shall apply to, 
 or be construed to apply to, foreign or interstate commerce, 
 except insofar as the same may be permitted under the 
 constitution and the laws of the United States. 

    HIST: 1941 c 495 s 17; 1949 c 143 s 14; 1980 c 509 s 120 

     296.20 Gasoline taxes in lieu of other taxes. 

    Gasoline excise taxes shall be in lieu of all other taxes 
 imposed upon the business of selling or dealing in gasoline, 
 whether imposed by the state or by any of its political 
 subdivisions, but shall be in addition to all ad valorem taxes 
 now imposed by law.  Nothing in sections 296.01 to 296.421 shall 
 be construed as prohibiting the governing body of any city of 
 this state from licensing and regulating such business wherever 
 authority therefor is, or may hereafter be, conferred by state 
 law or city charter. 

    HIST: (2720-82) 1925 c 297 s 13; 1941 c 495 s 18; 1949 c 143 s 
 15; 1973 c 123 art 5 s 7; 1980 c 509 s 121 

     296.21 Records retained, made accessible.  

    Subdivision 1.    Retaining records.  All distributors, 
 dealers, special fuel dealers, bulk purchasers and all users of 
 special fuel shall keep a true and accurate record of all 
 purchases, transfers, sales and use of petroleum products and 
 special fuel in a manner approved by the commissioner, and shall 
 retain all such records for four years.  

    Subd. 2.    Making accessible.  The books and records 
 of all carriers of petroleum products, distributors, dealers, 
 and persons selling or using special fuel shall be made 
 accessible to the commissioner or an authorized representative. 

    Subd. 3.  Repealed, 1967 c 903 s 1 

    HIST: 1941 c 495 s 19; 1945 c 152 s 3; 1949 c 143 s 16; 1951 c 
 87 s 12; 1957 c 203 s 11; 1963 c 66 s 19; 1986 c 444 

  296.22 Repealed, 1987 c 268 art 14 s 25 

     296.23 Certain blending of gasoline prohibited.  

    The blending of gasoline on which the tax has been paid or 
 the liability accrued, with any substance on which the tax has 
 not been paid or the liability thereafter accrued, is prohibited.

    This section does not preclude the addition of any of the 
 various inhibitors which in total do not exceed one-half of one 
 percent by volume of the product treated, nor the addition to 
 fuel for two-cycle gasoline engines of a lubricant not exceeding 
 five percent by volume of the product treated; nor does this 
 section preclude the addition of fuel oil to gasoline for the 
 purpose of generating power for the propulsion of farm tractors. 

    HIST: 1941 c 495 s 21; 1947 c 412 s 9; 1963 c 66 s 22; 1965 c 
 100 s 1 

  296.24 Repealed, 1990 c 480 art 3 s 4 

     296.25 Criminal penalties. 

    Subdivision 1.    Penalties imposed.  (a) A person who 
 fails to comply with a provision of sections 296.01 to 296.421, 
 or who knowingly provides false information, including, but not 
 limited to, false odometer readings, or who knowingly makes a 
 false statement in a report, record, claim, or sales ticket 
 required by section 296.12; 296.141; 296.17, subdivisions 5, or 
 7 to 22; 296.18, subdivision 2; or 296.21, is guilty of a gross 
 misdemeanor. 

    (b) A person who willfully attempts in any manner to evade 
 or defeat any tax imposed by sections 296.01 to 296.421, 
 including, but not limited to, making and subscribing any false 
 statement in any report, record, claim, or sales ticket required 
 by sections 296.12; 296.141; 296.17, subdivisions 5, or 7 to 22; 
 296.18, subdivision 2; and 296.21; or making a false claim for a 
 refund under section 296.18, subdivision 4, is guilty of a 
 felony. 

    (c) It is a misdemeanor for a person to operate, or cause 
 to be operated, a licensed motor vehicle on the public highways 
 of this state on special fuel on which the excise tax provided 
 by this chapter has not been paid or the liability therefore 
 assumed by another person licensed under this chapter.  A person 
 who uses gasoline, delivered into an on-farm bulk storage tank 
 and on which no tax has been collected, for propelling a motor 
 vehicle on the public highways of this state is also guilty of a 
 misdemeanor. 

    (d) An officer or employee of the state of Minnesota 
 charged with the enforcement of a provision of sections 296.01 
 to 296.421 who is employed by or who engages in business as a 
 distributor or dealer in petroleum products is guilty of a 
 misdemeanor. 

    (e) The authorization in this chapter for the collection of 
 the excise taxes by persons other than the commissioner for and 
 in behalf of the state of Minnesota establishes a fiduciary 
 relationship, for the violation of which, in failure to make 
 payment when due and payable, the person so authorized to 
 collect these excise taxes shall be deemed guilty of a violation 
 of this chapter and of section 609.54, and punished accordingly. 

    (f) A minimum fine of $200 shall be imposed on a person who 
 fails to obtain a license or trip permit required under section 
 296.17, subdivisions 10 and 17. 

    Subd. 1a. Repealed, 1996 c 471 art 5 s 15 

    Subd. 2.    Prosecution of violations.  Prosecutions 
 under this section may be brought in the county in which the 
 defendant resides or in Ramsey county.  On request of the 
 commissioner of revenue, the county attorney of a county in 
 which the action is commenced shall prosecute violations of this 
 chapter.  Costs, fees, and expenses incurred by any county 
 attorney in litigation in connection with the action may be paid 
 from appropriations to the commissioner of revenue for the 
 administration of this chapter. 

    HIST: 1941 c 495 s 23; 1945 c 412 s 13; 1947 c 412 s 11; 1949 
 c 143 s 18; 1951 c 87 s 13; 1955 c 338 s 9; 1963 c 66 s 23; 1965 
 c 656 s 1; 1971 c 24 s 31; 1971 c 750 s 1,2; 1973 c 582 s 3; 
 1983 c 293 s 90; 1990 c 480 art 3 s 3; 1994 c 510 art 5 s 34,35; 
 1995 c 186 s 119 

     296.26 Actions for recovery no bar to criminal 
  prosecutions.  

    No action or suit for recovery of one penalty shall be a 
 bar to or affect the recovery of any other penalty or be a bar 
 to any criminal prosecution against any licensee or any other 
 person under the provisions of sections 296.01 to 296.27.  

    HIST: 1941 c 495 s 24 

     296.27 Rules; administration and enforcement.  

    The commissioner may make rules relating to the 
 administration and enforcement of laws regulating the sale, 
 distribution, and use of petroleum products and special fuel.  
 The rules shall be reasonable and not inconsistent with the law. 

    HIST: 1941 c 495 s 25; 1949 c 143 s 19; 1951 c 87 s 14; 1985 c 
 248 s 70 

  296.28 Repealed, 1987 c 268 art 14 s 25 

  296.30 Repealed, 1953 c 41 s 13 

  296.31 Repealed, 1953 c 41 s 14 

  296.32-296.42 Repealed, 1957 c 943 s 72 

     296.421 Revenue provisions. 

    Subdivision 1.  Repealed, 1961 c 561 s 17 

    Subd. 2.    Aviation fuel tax fund.  The revenues 
 derived from the excise taxes on aviation gasoline and on 
 special fuel received, sold, stored, or withdrawn from storage 
 as substitutes for aviation gasoline, and from interest thereon 
 and penalties for delinquency in payment, paid or collected 
 pursuant to the provisions of sections 296.02 to 296.17, shall 
 be paid into the state treasury by the commissioner and credited 
 to a special fund to be known as the aviation fuel tax fund, and 
 distributed as follows: 

    (1) There shall be paid from the aviation fuel tax fund all 
 refunds authorized by Minnesota Statutes, section 296.18, 
 subdivision 2(3), as amended by Laws 1945, chapter 412, 
 subdivision 4, as they may be approved by the commissioner of 
 revenue; 

    (2) There shall be transferred by the commissioner of 
 finance each year from the aviation fuel tax fund to the general 
 fund in the state treasury the amount expended from the latter 
 fund for expenses of administering the provisions of Laws 1945, 
 chapter 412; 

    (3) After meeting the requirements of clauses (1) and (2), 
 there shall be transferred, on the last day of September, 
 December, March and June of each fiscal year, by the 
 commissioner of finance to the state airports fund, all moneys 
 in the aviation fuel tax fund in excess of such amount as the 
 commissioner of revenue may certify is reasonably required for 
 refunds as provided in clause (1); 

    (4) There is hereby appropriated such sums as are needed to 
 carry out the provisions of this subdivision.  

    Subd. 3.    Reports.  On or before the last day of each 
 calendar month the commissioner shall report to the commissioner 
 of finance and the state treasurer the total amount of aviation 
 gasoline and special fuel excise taxes which have been paid on 
 gasoline and special fuel which were, after the payment of such 
 taxes, used or sold for use in motor vehicles, as determined by 
 the commissioner from the reports made during that month 
 pursuant to the provisions of section 296.18, subdivision 2(1).  
 The amount so reported shall then be transferred from the 
 aviation fuel tax fund to the fund in the state treasury in 
 which motor vehicle gasoline and special fuel taxes are 
 deposited.  The commissioner shall at the same time likewise 
 report the total amount of motor vehicle gasoline and special 
 fuel excise taxes which have been paid on gasoline and special 
 fuel which were, after the payment of such taxes, received, 
 sold, stored or withdrawn from storage to be used for the 
 purpose of producing or generating power for propelling 
 aircraft, as determined by the commissioner from the reports 
 made during that month pursuant to the provisions of section 
 296.18, subdivision 2(2).  The amount so reported shall then be 
 transferred from the fund in the state treasury in which motor 
 vehicle gasoline and special fuel excise taxes are deposited to 
 the aviation fuel tax fund.  The commissioner of finance and the 
 state treasurer shall, in the case of each transfer in this 
 subdivision provided for, make appropriate entries in the 
 accounts of the respective funds.  

    Subd. 4.  MS 1961 Repealed, 1963 c 840 s 45 

    Subd. 4.    Water recreation account.  The amount of 
 unrefunded tax paid on gasoline used for motor boat purposes as 
 computed in subdivision 5 shall be paid into the state treasury 
 and credited to a water recreation account in the special 
 revenue fund for acquisition, development, maintenance, and 
 rehabilitation of sites for public access and boating facilities 
 on public waters; lake and river improvement; state park 
 development; and boat and water safety. 

    Subd. 5.    Computation of unrefunded tax.  The amount 
 of unrefunded tax shall be a sum equal to 1-1/2 percent of all 
 revenues derived from the excise taxes on gasoline, except on 
 gasoline used for aviation purposes, together with interest 
 thereon and penalties for delinquency in payment, paid or 
 collected pursuant to the provisions of sections 296.02 to 
 296.17.  The amount of such tax shall be computed for each 
 six-month period commencing January 1, 1961, and shall be paid 
 into the state treasury on November 1 and June 1 following each 
 six-month period. 

    Subd. 5a. Repealed, 1987 c 404 s 191 

    Subd. 6.  Repealed, 1976 c 319 s 3 

    Subd. 7.  Repealed, 1976 c 319 s 3 

    Subd. 8.    State forest road account.  The amount of 
 unrefunded tax paid on gasoline and special fuel used to operate 
 motor vehicles on forest roads, except gasoline and special fuel 
 used for aviation purposes, is 0.116 percent of the total 
 unrefunded revenue from the tax on all gasoline and special fuel 
 received in, produced, or brought into the state, and this 
 revenue is appropriated from the highway user tax distribution 
 fund and must be transferred and credited in equal installments 
 on July 1 and January 1 to the state forest road account 
 established in section 89.70.  An amount equal to 0.0555 percent 
 of the unrefunded revenue must be annually transferred to 
 counties for management and maintenance of county forest roads. 

    HIST: 1945 c 412 s 14; 1949 c 117 s 1; 1957 c 203 s 12,13; 
 1959 c 158 s 24; 1961 c 585 s 3; 1963 c 840 s 42; 1969 c 399 s 
 35,36; 1969 c 1129 art 10 s 2; 1971 c 596 s 1; 1973 c 492 s 14; 
 1973 c 582 s 3; 1973 c 648 s 3,4; 1983 c 301 s 182; 1983 c 342 
 art 6 s 3; 1Sp1985 c 13 s 310,311; 1986 c 444; 1987 c 404 s 161; 
 1988 c 686 art 4 s 8; 1989 c 335 art 4 s 76; 1991 c 298 art 5 s 
 4 

  296.43 Repealed, 1949 c 143 s 22 

  296.44 Repealed, 1949 c 143 s 22 

  296.45 Repealed, 1949 c 143 s 22 

  296.46 Repealed, 1965 c 101 s 3 

  296.47 Repealed, 1965 c 101 s 3 

  296.48 Repealed, 1965 c 101 s 3 

  296.49 Repealed, 1965 c 101 s 3