2001 Minnesota Statutes

     298.75 Aggregate material removal; production tax. 

    Subdivision 1.    Definitions.  Except as may otherwise 
 be provided, the following words, when used in this section, 
 shall have the meanings herein ascribed to them.  

    (1) "Aggregate material" shall mean nonmetallic natural 
 mineral aggregate including, but not limited to sand, silica 
 sand, gravel, crushed rock, limestone, granite, and borrow, but 
 only if the borrow is transported on a public road, street, or 
 highway.  Aggregate material shall not include dimension stone 
 and dimension granite.  Aggregate material must be measured or 
 weighed after it has been extracted from the pit, quarry, or 
 deposit.  

    (2) "Person" shall mean any individual, firm, partnership, 
 corporation, organization, trustee, association, or other entity.

    (3) "Operator" shall mean any person engaged in the 
 business of removing aggregate material from the surface or 
 subsurface of the soil, for the purpose of sale, either directly 
 or indirectly, through the use of the aggregate material in a 
 marketable product or service.  

    (4) "Extraction site" shall mean a pit, quarry, or deposit 
 containing aggregate material and any contiguous property to the 
 pit, quarry, or deposit which is used by the operator for 
 stockpiling the aggregate material.  

    (5) "Importer" shall mean any person who buys aggregate 
 material produced from a county not listed in paragraph (6) or 
 another state and causes the aggregate material to be imported 
 into a county in this state which imposes a tax on aggregate 
 material.  

    (6) "County" shall mean the counties of Pope, Stearns, 
 Benton, Sherburne, Carver, Scott, Dakota, Le Sueur, Kittson, 
 Marshall, Pennington, Red Lake, Polk, Norman, Mahnomen, Clay, 
 Becker, Carlton, St. Louis, Rock, Murray, Wilkin, Big Stone, 
 Sibley, Hennepin, Washington, Chisago, and Ramsey.  County also 
 means any other county whose board has voted after a public 
 hearing to impose the tax under this section and has notified 
 the commissioner of revenue of the imposition of the tax. 

    Subd. 2.    Tax imposed.  A county shall impose upon every 
 importer and 
 operator a production tax up to ten cents per cubic yard or up 
 to seven cents per ton of aggregate material removed except that 
 the county board may decide not to impose this tax if it 
 determines that in the previous year operators removed less than 
 20,000 tons or 14,000 cubic yards of aggregate material from 
 that county.  The tax shall be imposed on aggregate material 
 produced in the county when the aggregate material is 
 transported from the extraction site or sold.  When aggregate 
 material is stored in a stockpile within the state of Minnesota 
 and a public highway, road or street is not used for 
 transporting the aggregate material, the tax shall be imposed 
 either when the aggregate material is sold, or when it is 
 transported from the stockpile site, or when it is used from the 
 stockpile, whichever occurs first.  The tax shall be imposed on 
 an importer when the aggregate material is imported into the 
 county that imposes the tax.  

    If the aggregate material is transported directly from the 
 extraction site to a waterway, railway, or another mode of 
 transportation other than a highway, road or street, the tax 
 imposed by this section shall be apportioned equally between the 
 county where the aggregate material is extracted and the county 
 to which the aggregate material is originally transported.  If 
 that destination is not located in Minnesota, then the county 
 where the aggregate material was extracted shall receive all of 
 the proceeds of the tax.  

    Subd. 3.  By the 14th day following the last day of each 
 calendar quarter, every operator or importer shall make and file 
 with the county auditor of the county in which the aggregate 
 material is removed or imported, a correct report under oath, in 
 such form and containing such information as the auditor shall 
 require relative to the quantity of aggregate material removed 
 or imported during the preceding calendar quarter.  The report 
 shall be accompanied by a remittance of the amount of tax due. 

    If any of the proceeds of the tax is to be apportioned as 
 provided in subdivision 2, the operator or importer shall also 
 include on the report any relevant information concerning the 
 amount of aggregate material transported, the tax and the county 
 of destination.  The county auditor shall notify the county 
 treasurer of the amount of such tax and the county to which it 
 is due.  The county treasurer shall remit the tax to the 
 appropriate county within 30 days.  

    Subd. 4.  If the county auditor has not received the report 
 by the 15th day after the last day of each calendar quarter from 
 the operator or importer as required by subdivision 3 or has 
 received an erroneous report, the county auditor shall estimate 
 the amount of tax due and notify the operator or importer by 
 registered mail of the amount of tax so estimated within the 
 next 14 days.  An operator or importer may, within 30 days from 
 the date of mailing the notice, and upon payment of the amount 
 of tax determined to be due, file in the office of the county 
 auditor a written statement of objections to the amount of taxes 
 determined to be due.  The statement of objections shall be 
 deemed to be a petition within the meaning of chapter 278, and 
 shall be governed by sections 278.02 to 278.13. 

    Subd. 5.  Failure to file the report and submit payment 
 shall result in a penalty of $5 for each of the first 30 days, 
 beginning on the 15th day after the last day of each calendar 
 quarter, for which the report and payment is due and no 
 statement of objection has been filed as provided in subdivision 
 4, and a penalty of $10 for each subsequent day shall be 
 assessed against the operator or importer who is required to 
 file the report.  The penalties imposed by this subdivision 
 shall be collected as part of the tax and credited to the county 
 revenue fund.  If neither the report nor a statement of 
 objection has been filed after more than 60 days have elapsed 
 from the date when the notice was sent, the operator or importer 
 who is required to file the report is guilty of a misdemeanor. 

    Subd. 6.  It is a misdemeanor for any operator or importer 
 to remove aggregate material from a pit, quarry, or deposit or 
 for any importer to import aggregate material unless all taxes 
 due under this section for the previous reporting period have 
 been paid or objections thereto have been filed pursuant to 
 subdivision 4. 

    It is a misdemeanor for the operator or importer who is 
 required to file a report to file a false report with intent to 
 evade the tax. 

    Subd. 7.  All money collected as taxes under this section 
 shall be deposited in the county treasury and credited as 
 follows, for expenditure by the county board: 

    (a) Sixty percent to the county road and bridge fund for 
 expenditure for the maintenance, construction and reconstruction 
 of roads, highways and bridges; 

    (b) Thirty percent to the road and bridge fund of those 
 towns as determined by the county board and to the general fund 
 or other designated fund of those cities as determined by the 
 county board, to be expended for maintenance, construction and 
 reconstruction of roads, highways and bridges; and 

    (c) Ten percent to a special reserve fund which is hereby 
 established, for expenditure for the restoration of abandoned 
 pits, quarries, or deposits located upon public and tax 
 forfeited lands within the county. 

    If there are no abandoned pits, quarries or 
 deposits located upon public or tax forfeited lands within the 
 county, this portion of the tax shall be deposited in the county 
 road and bridge fund for expenditure for the maintenance, 
 construction and reconstruction of roads, highways and bridges.  

    Subd. 8.  The county auditor or its duly authorized agent 
 may examine records, including computer records, maintained by 
 an importer or operator.  The term "record" includes, but is not 
 limited to, all accounts of an importer or operator.  The county 
 auditor must have access at all reasonable times to inspect and 
 copy all business records related to an importer's or operator's 
 collection, transportation, and disposal of aggregate to the 
 extent necessary to ensure that all aggregate material 
 production taxes required to be paid have been remitted to the 
 county.  The records must be maintained by the importer or 
 operator for no less than six years. 

    HIST: 1980 c 607 art 19 s 5; 1Sp1981 c 1 art 10 s 17-19; 1982 
 c 523 art 13 s 1; 1983 c 342 art 14 s 1; 1984 c 652 s 1; 1986 c 
 403 s 1,2; 1993 c 375 art 9 s 41,42; 1995 c 264 art 16 s 15; 
 1996 c 471 art 13 s 15; 1997 c 231 art 8 s 12-14; 1Sp2001 c 5 
 art 6 s 35,36 

*   NOTE:  The amendment to subdivision 1 by Laws 1997, chapter 
*231, article 8, section 12, adding St. Louis, Pope, and Carlton 
*counties is effective only upon local approval by that county.  
*If the St. Louis county board does not approve the amendment, 
*each of the following towns in St. Louis county may impose the 
*aggregate materials tax under this section subject to local 
*approval by that town:  the towns of Alden, Brevator, Canosia, 
*Duluth, Fredenberg, Gnesen, Grand Lake, Industrial, Lakewood, 
*Midway, Normanna, North Star, Rice Lake, and Solway.  Laws 1997, 
*chapter 231, article 8, sections 15 and 18.