2006 Minnesota Statutes

CHAPTER 296A. TAX ON PETROLEUM AND OTHER FUELS

296A.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 are
intended to match the definitions and specifications in sections 41A.09 and 239.761.
    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, forest
products, or other renewable resources, that:
(1) meets the specifications in ASTM specification D4806-04a; and
(2) is denatured as specified in Code of Federal Regulations, title 27, parts 20 and 21.
    Subd. 3. Aircraft. "Aircraft" means any contrivance, now or hereafter invented, used or
designed for navigation of or flight in the air.
    Subd. 4. Alternative fuel. "Alternative fuel" means natural gas; liquefied petroleum gas;
hydrogen; coal-derived liquefied fuels; electricity; methanol, denatured ethanol, and other
alcohols; mixtures containing 85 percent or more, or other percentage as may be set by regulation
by Secretary of the United States Department of Energy, by volume of methanol, denatured
ethanol, and other alcohols with gasoline or other fuels; fuels other than alcohol that are derived
from biological materials; and other fuels that the Secretary of the United States Department of
Energy determines by regulation to be an alternative fuel within the meaning of section 301(2) of
the National Energy Policy Act of 1992 and intended for use in motor vehicles.
    Subd. 5. Alternative fuel vehicle. "Alternative fuel vehicle" means a dedicated, flexible, or
dual-fuel vehicle operated primarily on alternative fuel.
    Subd. 6. ASTM. "ASTM" means the American Society for Testing and Materials, which
is 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. 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 D910-04, 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 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. Aviation turbine fuel and 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 D1655.04.
    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. 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. Commissioner. "Commissioner" means the commissioner of revenue.
    Subd. 12. Compressed natural gas or CNG. "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 is considered to be 1,000 BTUs per cubic foot.
    Subd. 13. 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. 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 D975-04b, except that diesel fuel oil is not
required to meet the diesel lubricity standard until the date that the biodiesel fuel requirement in
section 239.77, subdivision 2, becomes effective or December 31, 2005, whichever comes first.
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 who (1) receives petroleum products
in this state for storage and subsequent distribution by tank car or tank truck or both, (2) produces,
manufactures, or refines petroleum products in this state, or (3) imports petroleum products
into this state via boat, barge, or pipeline for storage and subsequent delivery at or further
transportation from boat, barge, or pipe line terminals in this state.
    Subd. 16. Dyed fuel. "Dyed fuel" means diesel fuel to which indelible dye has been added,
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 EPA or dye that meets other
specifications required by the Internal Revenue Service or the commissioner.
    Subd. 17. EPA. "EPA" means the United States Environmental Protection Agency.
    Subd. 18. ETBE. "ETBE" means ethyl tertiary butyl ether, or the equivalent term tert-butyl
ethyl ether. ETBE is a hydrocarbon compound approved by the EPA 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).
    Subd. 19. E85. "E85" means a petroleum product that is a blend of agriculturally derived
denatured ethanol and gasoline or natural gasoline that typically contains 85 percent ethanol by
volume, but at a minimum must contain 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. E85
produced for use as a motor fuel in alternative fuel vehicles as defined in subdivision 5 must
comply with ASTM specification D5798-99 (2004).
    Subd. 20. Ethanol, denatured. "Ethanol, denatured" means ethanol that is to be blended
with gasoline, has been agriculturally derived, and complies with ASTM specification D4806-04a.
This includes the requirement that ethanol may be denatured only as specified in Code of Federal
Regulations, title 27, parts 20 and 21.
    Subd. 21. 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 those public highways. For purposes of this subdivision, "public
highways" includes bridges.
    Subd. 22. 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,
intended for use in nonaviation gas turbine engines, and that meets the specifications in ASTM
specification D2880-03.
    Subd. 23. Gasoline. (a) "Gasoline" means:
(1) 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
(2) 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 D4814-04a.
(b) Gasoline that is not blended with ethanol must not be contaminated with water or
other impurities and must comply with both ASTM specification D4814-04a and the volatility
requirements in Code of Federal Regulations, title 40, part 80.
(c) 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 24;
(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 EPA.
    Subd. 24. Gasoline blended with nonethanol oxygenate. "Gasoline blended with
nonethanol oxygenate" means gasoline blended with ETBE, MTBE, or other alcohol or ether,
except denatured ethanol, that is approved as an oxygenate by the EPA, and that complies with
ASTM specification D4814-04a. 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. 25. 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 D4814-04a, or the gasoline
base stock from which a gasoline-ethanol blend was produced must comply with ASTM
specification D4814-04a; and the gasoline-ethanol blend must not be blended with casinghead
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 D4814-04a 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. 26. 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 D396-02a.
    Subd. 27. Highway. "Highway" means the entire width between the boundary lines of every
way publicly maintained when part of the way is open for the public.
    Subd. 28. 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 D3699-03.
    Subd. 29. 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 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. 30. Liquefied natural gas or LNG. "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. 31. Liquefied petroleum gas, LPG, or propane. "Liquefied petroleum gas," "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. 32. Marine gasoline. "Marine gasoline" means gasoline used in producing and
generating power for propelling motorboats used on the waters of this state.
    Subd. 33. Motor fuel. "Motor fuel" means a liquid, regardless of its composition or
properties, used to propel a motor vehicle.
    Subd. 34. 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)3COCH3.
    Subd. 35. 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. M85 produced for
use as a motor fuel in alternative fuel vehicles, as defined in subdivision 5, must comply with
ASTM specification D 5797-96.
    Subd. 36. 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. 37. Motor vehicles used on public highways of this state. "Motor vehicles used on
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. 38. 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. 38a. Nonethanol oxygenate. "Nonethanol oxygenate" means ETBE or MTBE, as
defined in this section, or other alcohol or ether, except denatured ethanol, that is approved as
an oxygenate by the EPA.
    Subd. 39. 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. 40. 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. 41. 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. 42. Petroleum products. "Petroleum products" means all of the products defined in
subdivisions 2, 7, 8, 10, 14, 16, 19, 20, 22 to 26, 28, 32, and 35.
    Subd. 43. Petroleum residual. "Petroleum residual" means a heavy hydrocarbon or group of
heavy hydrocarbon compounds that do not evaporate during a distillation process.
    Subd. 44. 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 they 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 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 there, 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 there, or brought into the state by pipeline and
delivered at a pipeline terminal in this state and stored there, shall not be considered received until
they 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 withdrawn such products shall be deemed received by the person who was the
owner 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,
under 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 in this
subdivision shall be considered received by the producer at the time and place produced.
    Subd. 45. Refinery or 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. 46. Special fuel. "Special fuel" means:
(1) all combustible gases and liquid petroleum products or substitutes 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, 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 this chapter;
(3) all combustible gases and liquid petroleum products or substitutes, except gasoline,
which are used as aviation fuel; or
(4) dyed fuel that is being used illegally in a licensed motor vehicle.
    Subd. 47. 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. 48. 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. 49. 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. 50. Wet alcohol. "Wet alcohol" means agriculturally derived fermentation ethyl
alcohol having a purity of at least 50 percent but less than 99 percent.
History: 1998 c 299 s 1; 1Sp2001 c 2 s 145; 1Sp2003 c 14 art 7 s 69-81; 1Sp2005 c 1 art
4 s 76-87

296A.02 ADMINISTRATION.
    Subdivision 1. Enforcement responsibility. The commissioner of revenue shall enforce
and administer the provisions of this chapter with the assistance of the commissioners of public
safety, commerce, and transportation.
    Subd. 2. Powers of commissioner. The commissioner, or duly authorized agents, may
conduct investigations, inquiries, and hearings under this chapter. In connection with such
investigations, inquiries, and hearings, the commissioner and the duly authorized agents have all
the powers conferred upon the commissioner and the commissioner's examiners by chapter 270C,
and the provisions of that chapter apply to all such investigations, inquiries, and hearings.
    Subd. 3. Rules; administration and enforcement. The commissioner may adopt 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 consistent with the law.
    Subd. 4. Application to foreign or interstate commerce. No provision of this chapter 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.
History: 1998 c 299 s 2; 1Sp2001 c 4 art 6 s 77; 2005 c 151 art 2 s 17

296A.03 DISTRIBUTOR'S LICENSE.
    Subdivision 1. General rule. 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 been received in this state by a licensed distributor, or in any manner act as a distributor
as defined in section 296A.01 without having been licensed by the commissioner as a distributor.
    Subd. 2. Qualifications. (a) A distributor's license shall be issued to any responsible person
who applies and qualifies as a distributor.
(b) Upon application to the commissioner, the commissioner must issue a distributor's
license to any person who:
(1) receives petroleum products in this state for bulk storage and subsequent distribution
by tank truck;
(2) produces, manufactures, or refines petroleum products in this state;
(3) holds an unrevoked license as a distributor as of July 1, 1994;
(4) imports petroleum products into this state via boat, barge, or pipeline for storage and
subsequent delivery at or further transportation from boat, barge, or pipeline terminals in this
state; or
(5) holds a license and performs 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. License fee. An application for a distributor's license must be accompanied by an
initial fee of $25. Once licensed, a distributor must remit a $25 fee annually to maintain the license.
    Subd. 4. Licensing period; expiration. Each license period shall be for one year ending
each June 30.
    Subd. 5. Form of application; bond. (a) A written application shall be made in the form
and manner prescribed by the commissioner.
(b) The commissioner shall also require the applicant or licensee to deposit with the
commissioner of finance 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, 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. The bond
shall cover all places of business within the state where petroleum products are received by the
licensee. The applicant or licensee shall designate and maintain an agent in this state upon whom
service may be made for all purposes of this section.
(c) An initial applicant for a distributor's license shall furnish a bond in a minimum sum
of $3,000 for the first year.
(d) 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.
(e) A licensee who desires to be exempt from depositing securities or furnishing such
bond shall furnish to the commissioner an itemized financial statement showing the assets and
the liabilities of the applicant. If it appears to the commissioner, from the financial statement
or otherwise, that the applicant is financially responsible, then the commissioner may exempt
the applicant from depositing such securities or furnishing such bond until the commissioner
otherwise orders.
(f) When the surety upon any bond issued under the provisions of this chapter 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 where such loss occurred.
    Subd. 6. 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 ten days surrender the license at the
commissioner's office in St. Paul, Minnesota.
History: 1998 c 299 s 3; 2000 c 490 art 13 s 13; 2003 c 112 art 2 s 50

296A.04 SPECIAL FUEL DEALER'S LICENSE; REQUIREMENTS.
    Subdivision 1. Application and fee. 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 form and manner prescribed by the
commissioner and shall be accompanied by the payment of a $25 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. The license shall be displayed in a conspicuous manner in the place of
business and shall expire annually on November 30.
    Subd. 2. Bond. The provisions of section 296A.03, subdivision 5, paragraphs (b), (d), (e),
and (f), relating to bonds apply to special fuel dealers.
    Subd. 3. Sales ticket. 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 on the ticket 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. 4. Accumulating meter. 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 any rules of the commissioner pertinent thereto, the
license issued to such dealer under subdivision 1 may be revoked by the commissioner.
    Subd. 5. Surrender of license. A special fuel dealer who discontinues, sells, or disposes of
the business in any manner, at any time, shall surrender the special fuel dealer's license at the
commissioner's office in St. Paul, Minnesota.
History: 1998 c 299 s 4

296A.05 BULK PURCHASER'S LICENSE; REQUIREMENTS.
    Subdivision 1. Application and fee. 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 form and manner
prescribed by the commissioner and shall be accompanied by the payment of a $25 license fee. A
bulk purchaser's license shall be issued to any responsible person qualifying as a bulk purchaser
who makes proper application. The license shall be displayed in a conspicuous manner in the
place of business and shall expire annually on November 30.
    Subd. 2. Bond. The provisions of section 296A.03, subdivision 5, paragraphs (b), (d), (e),
and (f), relating to bonds apply to bulk purchasers.
    Subd. 3. Surrender of license. 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.
History: 1998 c 299 s 5

296A.06 REVOCATION OF LICENSE, PERMIT, OR CERTIFICATE.
If any person fails to comply with this chapter or the rules adopted under this chapter,
without reasonable cause, the commissioner may give the person 30 days' notice in writing,
specifying the violations, and stating that based upon such violations the commissioner intends
to revoke the person's license, permit, or certificate. The notice shall also advise the person of
the person's right to contest the revocation under this section and the general procedures for a
contested case hearing under chapter 14. The notice may be served personally or by mail in
the manner prescribed for service of an order of assessment. A license, permit, or certificate is
revoked when the commissioner serves a notice of revocation upon the person after 30 days have
passed following the date of the notice of intent to revoke without the person requesting a hearing.
If a hearing is timely requested and held, the license, permit, or certificate is revoked after the
commissioner serves an order of revocation under section 14.62, subdivision 1.
History: 1998 c 299 s 6

296A.07 GASOLINE 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 licensed distributor who received the product in Minnesota. For purposes of this section,
gasoline is defined in section 296A.01, subdivisions 10, 18, 20, 23, 24, 25, 32, and 34. The tax
is payable at the time and in the form and manner prescribed by the commissioner. The tax is
payable at the rates specified in subdivision 3, subject to the exceptions and reductions specified
in section 296A.17.
    Subd. 2. Tax imposed for marine use. Subject to the provisions of section 296A.16,
subdivision 2 , 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 this chapter.
    Subd. 3. Rate of tax. 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. 4. Exemptions. The provisions of subdivision 1 do not apply to gasoline purchased by:
(1) a transit system or transit provider receiving financial assistance or reimbursement under
section 174.24, 256B.0625, subdivision 17, or 473.384; or
(2) an ambulance service licensed under chapter 144E.
History: 1998 c 299 s 7; 1Sp2001 c 5 art 13 s 5

296A.08 SPECIAL FUEL TAX.
    Subdivision 1. Tax imposed. (a) There is imposed an excise tax on all special fuel at the
rates specified in subdivision 2. 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.
(b) For undyed diesel fuel and undyed kerosene, the tax is imposed on the first licensed
distributor who received the product in Minnesota.
(c) For dyed fuel being used illegally in a licensed motor vehicle, the tax is imposed on
the owner or operator of the motor vehicle.
(d) 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.
(e) For other fuels, including jet fuel, propane, and compressed natural gas, the tax is
imposed on the distributor, special fuel dealer, or bulk purchaser.
(f) 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. 2. Rate of tax. The special fuel excise tax is imposed at the following rates:
(a) Liquefied petroleum gas or propane is taxed at the rate of 15 cents per gallon.
(b) Liquefied natural gas is taxed at the rate of 12 cents per gallon.
(c) 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.
(d) All other special fuel is taxed at the same rate as the gasoline excise tax as specified in
section 296A.07, subdivision 2. The tax is payable in the form and manner prescribed by the
commissioner.
    Subd. 3. Exemptions. The provisions of subdivisions 1 and 2 do not apply to special fuel
or alternative fuels purchased by:
(1) a transit system or transit provider receiving financial assistance or reimbursement under
section 174.24, 256B.0625, subdivision 17, or 473.384; or
(2) an ambulance service licensed under chapter 144E.
    Subd. 4. 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 upon demand. For purposes
of this subdivision, "special fuel" means any fuel other than gasoline used in a licensed motor
vehicle in this state.
    Subd. 5. 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. 6. Liability for failure to keep adequate records. If adequate records are not kept,
or if the sales are not adequately accounted for, then all sales of combustible gases and liquid
petroleum products, except gasoline, are deemed to be sales of special fuel. In such cases, there is
imposed an excise tax of the same rate per gallon as the gasoline excise tax on all such products,
and the vendor is liable for the tax.
History: 1998 c 299 s 8; 1Sp2001 c 5 art 13 s 6

296A.09 AVIATION TAX.
    Subdivision 1. Gasoline tax imposed. Subject to any refunds or credits 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 296A.01, subdivision
7 .
    Subd. 2. Special fuel tax imposed. There is imposed an excise tax of the same rate per
gallon as the aviation gasoline on all jet fuel or 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. Jet fuel is defined in section 296A.01, subdivision 8.
    Subd. 3. Exception to tax for aviation use. The provisions of subdivisions 1 and 2 do not
apply to aviation gasoline or special fuel purchased and placed in the fuel tanks of an aircraft
outside the state, even though the gasoline may be consumed within this state.
    Subd. 4. Manner of payment. These taxes are payable in the form and manner prescribed
by the commissioner.
    Subd. 5. Tax not on consumption. The taxes imposed by subdivisions 1 and 2 are expressly
declared not to be a tax upon consumption of aviation gasoline or special fuel by an aircraft.
    Subd. 6. Exemptions. The provisions of subdivisions 1 and 2 do not apply to aviation
gasoline or jet fuel purchased by an ambulance service licensed under chapter 144E.
History: 1998 c 299 s 9; 1Sp2005 c 3 art 6 s 10

296A.10 LIABILITY FOR UNPAID TAX.
    Subdivision 1. Unreported fuel. It is 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 to know whether the tax has been paid on the fuel. If the tax has not been reported or if
the tax has not been paid, it is that person's duty to report to the commissioner the quantity of the
gasoline or special fuel sold or used and to pay the tax as provided in this chapter. All provisions
of this chapter relating to the calculation, collections, and payment of the tax shall be applicable
to any such person, dealer, or distributor.
    Subd. 2. Unreported aviation gasoline. The provisions of subdivision 1 do not apply to
aviation gasoline. It is 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 to know whether the tax has been paid on the aviation
gasoline. If the fuel has not been reported, or if the tax has not been paid to the commissioner,
it is that person's duty to report to the commissioner the quantity of such gasoline so received,
sold, stored, or withdrawn from storage. That person is also liable for the payment of the tax.
All provisions of this chapter relating to the calculation, collections, and payment of the tax
apply to any such person, dealer, or distributor.
History: 1998 c 299 s 10

296A.11 SELLER MAY COLLECT TAX.
A person who directly or indirectly pays a gasoline or special fuel tax as provided in this
chapter and who 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 296A.16, subdivision 3, 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.
History: 1998 c 299 s 11

296A.12 GASOLINE AND SPECIAL FUEL TAX IN LIEU OF OTHER TAXES.
Gasoline and special fuel excise taxes shall be in lieu of all other taxes imposed upon the
business of selling or dealing in gasoline or special fuel, whether imposed by the state or by any of
its political subdivisions, but are in addition to all ad valorem taxes now imposed by law. Nothing
in this chapter is construed as prohibiting the governing body of any city of this state from
licensing and regulating such business where its authority is conferred by state law or city charter.
History: 1998 c 299 s 12

296A.13 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 270C.56.
History: 1998 c 299 s 13; 2005 c 151 art 2 s 17

296A.14 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.
History: 1998 c 299 s 14

296A.15 PAYMENT OF TAX.
    Subdivision 1. Monthly gasoline report; shrinkage allowance. (a) Except as provided in
paragraph (e), 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 prescribed 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. 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 the tax is payable.
(b) 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
temperature of 60-degrees Fahrenheit. 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 each calendar month.
(c) Each report must also include the amount of gasoline tax on gasoline received by the
reporter during the preceding month. In computing the tax a deduction of 2.5 percent of the
quantity of gasoline received by a distributor shall be made for evaporation and loss. At the time
of reporting, the reporter shall submit satisfactory evidence that one-third of the 2.5 percent
deduction has been credited or paid to dealers on quantities sold to them.
(d) Each report shall contain a confession of judgment for the amount of the tax shown
due to the extent not timely paid.
(e) Under certain circumstances and with the approval of the commissioner, taxpayers may
be allowed to file reports annually.
    Subd. 2. Petroleum tank release cleanup fee. Persons required to pay a petroleum tank
release cleanup fee under section 115C.08, subdivision 3, must file a report with the commissioner
of revenue. Each report must include the amount of fees due on petroleum products. Reports must
be filed in the form and manner prescribed by the commissioner. A written report is considered
filed as required if postmarked on or before the 23rd day of the month in which the fee is payable.
    Subd. 3. Monthly special fuel report; shrinkage allowance. On or before the 23rd day of
each month, distributors, special fuel dealers, and bulk purchasers shall file a report in the form
and manner prescribed by the commissioner. Reports shall contain information as follows:
(a) Distributors of undyed diesel fuel and undyed kerosene must file a monthly tax return
with the department listing all purchases or receipts of undyed diesel fuel and undyed kerosene.
Distributors may be allowed to take a credit or credits under section 296A.16, subdivision 1.
(b) Distributors and dealers of special fuel other than undyed diesel fuel or undyed kerosene
shall report the total number of gallons delivered to them during the preceding calendar month
and shall pay the special fuel excise tax due 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 other information as the commissioner may require.
(c) Distributors and dealers of special fuel other than undyed diesel fuel or undyed kerosene
must pay the special fuel excise tax on all special fuel delivered or sold into the supply tank of
an aircraft or licensed motor vehicle and shall file a report with the commissioner. The report
shall show the total number of gallons delivered or sold into the supply tank of an aircraft or
licensed motor vehicle during the preceding calendar month and the special fuel excise tax due
shall be paid to the commissioner. 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 to the commissioner the excise tax on
the special fuel so delivered.
(d) 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 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. The tax is also imposed on all special fuel held in
storage on the effective date of this election.
(e) Bulk purchasers shall report and pay the special fuel excise tax on all special fuel,
including alternative fuels, except undyed diesel fuel or undyed kerosene 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 other
information as the commissioner may require.
(f) 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.
(g) Each report shall contain a confession of judgment for the amount of the tax shown
due to the extent not timely paid.
    Subd. 4. Failure to use or sell for intended purpose; report required. (a) Any person who
buys aviation gasoline or special fuel for aircraft use and who has paid the excise taxes due
directly or indirectly through the amount of the tax being included in the price, or otherwise, and
uses said gasoline or special fuel in motor vehicles or knowingly sells it to any person for use in
motor vehicles shall, on or before the 23rd day of the month following that in which such gasoline
or special fuel was so used or sold, report the fact of the use or sale to the commissioner in the
form and manner prescribed by the commissioner.
(b) Any person who buys gasoline other than aviation gasoline and who has 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 knowingly sells such gasoline to any person to be
used for the purpose of producing or generating power for propelling aircraft, or who receives,
stores, or withdraws from storage 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 the sale, storage, or withdrawal from storage to the commissioner in the
form and manner prescribed by the commissioner.
    Subd. 5. On-farm bulk storage of gasoline or special fuel; ethanol for personal use.
Notwithstanding the provisions of this chapter, 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 gasoline or special fuel
delivered into the supply tank of a licensed motor vehicle during the preceding calendar year. The
tax must be reported and paid in the form and manner prescribed by the commissioner together
with any refund claim filed by the taxpayer under section 296A.16. 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 in section 296A.03, subdivision 1.
    Subd. 6. Inspection fee. Persons required to pay an inspection fee under section 239.101
must file a report with the commissioner of revenue. Each report must include the amount
of inspection fees due on petroleum products. Reports must be filed in the form and manner
prescribed by the commissioner. A written report is considered filed as required if postmarked on
or before the 23rd day of the month in which the fee is payable.
    Subd. 7. Electronic payment required. All remittances must be made by electronic means.
    Subd. 8. Electronically filed return or report; signature. The commissioner may require
that returns or reports be filed electronically. 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.
History: 1998 c 299 s 15; 1998 c 408 s 10; 1Sp2001 c 5 art 13 s 7; art 17 s 15

296A.16 REFUND OR CREDIT.
    Subdivision 1. Credit or refund of gasoline or special fuel 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, consistent with the provisions of
this chapter and other laws relating to the gasoline and special fuel excise taxes.
    Subd. 2. Fuel used in other vehicle; claim for refund. Any person who buys and uses
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 paid the 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 for refund 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 chapter 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 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. 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, 1997.
(2) Gasoline or special fuel used for off-highway business use.
(i) "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.
(ii) Off-highway business use includes use of a passenger snowmobile off the public
highways as part of the operations of a resort as defined in section 157.15, subdivision 11; and
use of gasoline or special fuel to operate a power takeoff unit on a vehicle, but not including
fuel consumed during idling time.
(iii) 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; or use of a licensed motor vehicle fuel tank in lieu of a separate storage
tank for storing fuel to be used for a qualifying purpose, as defined in this section. Fuel purchased
to be used for a qualifying purpose cannot be placed in the fuel tank of a licensed motor vehicle
and must be stored in a separate supply tank.
(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.
    Subd. 3. Destruction by accident; refund to dealer. Notwithstanding the provisions of
subdivision 1, the commissioner shall allow a dealer a refund of:
(1) the tax paid by the distributor on gasoline, undyed diesel fuel, or undyed kerosene
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. 4. Refrigerator units; refunds. Notwithstanding the provisions of subdivision 1, 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 this section.
    Subd. 4a. Undyed kerosene; refunds. Notwithstanding subdivision 1, the commissioner
shall allow a refund of the tax paid on undyed kerosene used exclusively for a purpose other than
as fuel for a motor vehicle using the streets and highways. To obtain a refund, the person making
the sale to an end user must meet the Internal Revenue Service requirements for sales from a
blocked pump. A claim for a refund may be filed as provided in this section.
    Subd. 4b. Racing gasoline; refunds. Notwithstanding subdivision 1, the commissioner shall
allow a licensed distributor a refund of the tax paid on leaded gasoline of 110 octane or more
that does not meet ASTM specification D4814 for gasoline and that is sold in bulk for use in
nonregistered motor vehicles. A claim for a refund may be filed as provided for in this section.
    Subd. 5. Qualifying service station credit. Notwithstanding any other provision of law to
the contrary, the tax imposed on gasoline, undyed diesel fuel, or undyed kerosene 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. 6.[Repealed, 1Sp2001 c 5 art 7 s 66]
    Subd. 7. Civil penalty for filing false claim. A person who violates section 296A.23,
subdivision 1 , shall forfeit the full amount of the claim. In addition, a person who is convicted
under section 296A.23 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. 8. Appropriation. There is appropriated to the persons entitled to refund or credit
under this section, from the fund or account in the state treasury to which the money was credited,
an amount sufficient to make the credit or refund.
History: 1998 c 299 s 16; 1999 c 243 art 7 s 2,3; 1Sp2001 c 5 art 7 s 46

296A.17 AVIATION REFUND.
    Subdivision 1. Aviation refund requirements. Any person claiming to be entitled to any
refund or credit provided for in subdivision 3 shall receive the refund or credit upon filing with
the commissioner a claim in such form and manner prescribed by the commissioner. 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 this chapter, 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. All claims
for refunds under this subdivision shall be made on or before April 30 following the end of the
calendar year for which the refund is claimed.
    Subd. 2. Claim for refund; aviation tax. (a) Any person who buys aviation gasoline or
special fuel for aircraft use and who has paid the excise taxes directly or indirectly through the
amount of the tax being included in the price, or otherwise, who does 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 the form and manner prescribed by the commissioner.
The claim shall state the total amount of the aviation gasoline or special fuel for aircraft use
purchased and used by the applicant, and shall state when and for what purpose it was used. On
being satisfied that the claimant is entitled to payment, the commissioner shall approve the claim
and transmit it to the commissioner of finance. The postmark on the envelope in which a written
claim is mailed determines the date of filing.
(b) If a claim contains an error in preparation 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.
(c) An applicant who files a claim that is false or fraudulent, is subject to the penalties
provided in section 296A.23 for knowingly and willfully making a false claim.
    Subd. 3. Refund on graduated basis. Any person who has directly or indirectly paid the
excise tax on aviation gasoline or special fuel for aircraft use provided for by this chapter, 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 gallons and not
more than 150,000 gallons, all but two cents per gallon;
(3) on each gallon of such aviation gasoline or special fuel above 150,000 gallons and not
more than 200,000 gallons, 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. 4. Aviation gasoline tax refund claim; civil penalty. If any distributor or other
person, with intent to unlawfully secure any refund provided for in subdivision 3, shall knowingly
file a false or fraudulent claim, there is imposed upon the person a penalty in 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. 5. Appropriation. There is appropriated to the persons entitled to 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 credit or refund. All money in excess of the amount the commissioner
certifies is reasonably required for the refunds must be transferred by the commissioner of finance
to the state airports fund.
History: 1998 c 299 s 17

296A.18 APPORTIONMENT OF TAX; DEPOSIT OF PROCEEDS.
    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.
    Subd. 2. Motorboat. 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 the revenue is the amount of tax on fuel used in motorboats
operated on the waters of this state. The amount of unrefunded tax paid on gasoline used for motor
boat purposes as computed in this chapter 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; and boat and water safety.
    Subd. 3. Snowmobile. Approximately one percent 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 of such revenues is the
amount of tax on fuel used in snowmobiles operated in this state.
    Subd. 4. All-terrain vehicle. 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.
    Subd. 5. Off-highway motorcycles. 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.
    Subd. 6. Off-road vehicle. Approximately 0.164 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, 0.164 of one percent is the amount of tax on fuel used for off-road operation of off-road
vehicles in this state.
    Subd. 7. Forest road. 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. 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. 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. An amount equal to 0.0555 percent of the unrefunded revenue must be
annually transferred to counties for the management and maintenance of county forest roads.
    Subd. 8. Airports. 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,
shall be paid into the state treasury and credited to the state airports fund. There is hereby
appropriated such sums as are needed to carry out the provisions of this subdivision.
    Subd. 9. 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 this chapter. The amount of such tax
shall be computed for each six-month period and shall be paid into the state treasury on November
1 and June 1 following each six-month period.
History: 1998 c 299 s 18; 1999 c 238 art 2 s 68; 1Sp2001 c 8 art 2 s 62; 2002 c 377 art 10 s
23; 1Sp2005 c 1 art 2 s 144

296A.19 REQUIRED RECORDS.
    Subdivision 1. Retention. 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, including copies of all sales tickets issued, in a form
and manner approved by the commissioner, and shall retain all such records for 3-1/2 years.
    Subd. 2. Accessibility. 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. Examination. The commissioner shall make periodic examinations of all records
kept by distributors, special fuel dealers, bulk purchasers, or other persons selling or using
gasoline or special fuel.
History: 1998 c 299 s 19

296A.20 [Repealed, 2005 c 151 art 1 s 117]

296A.201 [Repealed, 2005 c 151 art 1 s 117]

296A.21 STATUTE OF LIMITATIONS.
    Subdivision 1. General rules. (a) The commissioner shall make determinations, corrections,
assessments, and refunds with respect to taxes and fees under this chapter, including interest,
additions to taxes, and assessable penalties. Except as otherwise provided in this section, the
amount of taxes assessable must be assessed within 3-1/2 years after the date the return is filed.
(b) A claim for a refund of an overpayment of state tax or fees must be filed within 3-1/2
years from the date prescribed for filing the return, plus any extension of time granted for filing
the return, but only if filed within the extended time; or the claim must be filed within one
year from the date of an order assessing tax or fees, or from the date of a return filed by the
commissioner, upon payment in full of the tax, fees, penalties, and interest shown on the order or
return, whichever period expires later.
    Subd. 2. Collection. No action shall be brought for the collection of delinquent taxes and
fees under section 270C.61 unless commenced within five years after the date of assessment
of the taxes and fees.
    Subd. 3. False or fraudulent report. In the case of a false or fraudulent report with intent to
evade taxes or fees 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.
    Subd. 4. Time limit for certain refunds. Notwithstanding subdivision 1, paragraph (b),
no refund under section 296A.16, subdivision 2, shall be made unless the claim for refund and
invoice are filed with the commissioner within one year from the date of purchase.
    Subd. 5. Suspension of time; bankruptcy. The period of time during which a tax or fee
must be assessed under this chapter or collection proceedings commenced under subdivision 2 or
3 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.
History: 1998 c 299 s 21; 2000 c 490 art 13 s 14,15; 1Sp2001 c 5 art 7 s 48,49; 2005 c
151 art 2 s 17

296A.22 NONPAYMENT OF TAX; CIVIL PENALTIES.
    Subdivision 1. Penalty for failure to pay tax, general rule. Upon the failure of any
person to pay any tax or 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 270C.40.
    Subd. 2. Collection authority. Upon such a failure to pay any tax or fees within the time
provided by this chapter, all taxes and fees imposed by this chapter shall become immediately due
and payable, and may be collected as provided in chapter 270C.
    Subd. 3. Operating without license. 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 fee imposed by this chapter shall become immediately due and payable. A
penalty of 25 percent is imposed upon the tax and fee due. The tax, fees, and penalty shall bear
interest at the rate specified in section 270C.40.
    Subd. 4. Unlawful use of 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 subdivision 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. 5. Receiver appointed. In the event a 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. 6. Sale prohibited under certain conditions. No petroleum product shall be unloaded
or sold by any person or distributor whose tax and fees are the basis for collection action under
subdivision 2.
    Subd. 7. Payment of penalties. The penalties imposed by this section are collected and
paid in the same manner as taxes.
    Subd. 8. Penalties are additional. The civil penalties imposed by this section are in addition
to the criminal penalties imposed by this chapter.
    Subd. 9. Abatement of penalty. (a) The commissioner may by written order abate any
penalty imposed under this section, if in the commissioner's opinion there is reasonable cause to
do so.
(b) A request for abatement of penalty must be filed with the commissioner within 60 days
of the date the notice stating that a penalty has been imposed was mailed to the taxpayer's last
known address.
(c) If the commissioner issues an order denying a request for abatement of penalty, the
taxpayer may file an administrative appeal as provided in section 270C.35 or appeal to Tax Court
as provided in section 271.06. If the commissioner does not issue an order on the abatement
request within 60 days from the date the request is received, the taxpayer may appeal to Tax
Court as provided in section 271.06.
History: 1998 c 299 s 22; 2000 c 490 art 13 s 16; 2005 c 151 art 2 s 17; art 8 s 3; 2006 c
212 art 3 s 28

296A.23 CRIMINAL PENALTIES.
    Subdivision 1. Providing false information. A person 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 this chapter, is guilty of a
gross misdemeanor.
    Subd. 2. Willful evasion. A person who willfully attempts in any manner to evade or defeat
any tax imposed by this chapter, including, but not limited to, making and subscribing any false
statement in any report, record, claim, or sales ticket required by this chapter; or making a false
claim for a refund under section 296A.16, subdivision 2, is guilty of a felony.
    Subd. 3. Operation of vehicle without payment of tax. A person who operates, or causes 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 assumed by another
person licensed under this chapter, is guilty of a misdemeanor.
    Subd. 4. Use of untaxed fuel in motor vehicle. A person who uses gasoline, which has been
delivered into an on-farm bulk storage tank, and on which no tax has been paid as provided in
section 296A.15, subdivision 5, and who uses this gasoline for propelling a motor vehicle on the
public highways of this state is guilty of a misdemeanor.
    Subd. 5. State employee; prohibition against acting as distributor. An officer or employee
of the state of Minnesota charged with the enforcement of a provision of this chapter who
is employed by or who engages in business as a distributor or dealer in petroleum products
is guilty of a misdemeanor.
    Subd. 6. Fiduciary relationship established. A person other than the commissioner who
is authorized to collect excise taxes on behalf of the state of Minnesota, establishes a fiduciary
relationship, and whoever violates that relationship is guilty of a violation of this chapter, and of
section 609.54, and may be punished accordingly.
    Subd. 7. Failure to obtain proper permit. A minimum fine of $200 shall be imposed on a
person who fails to obtain a license or trip permit required under section 168D.05 or 168D.12.
    Subd. 8. 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 or the product
treated; nor does this subdivision preclude the addition of fuel oil to gasoline for the purpose of
generating power for the propulsion of farm tractors.
    Subd. 9. Other violation. Any violation of this chapter, unless otherwise specified, is a
gross misdemeanor.
    Subd. 10. Prosecution of violation. 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.
    Subd. 11. Action for recovery; no bar to criminal prosecution. 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
this chapter.
    Subd. 12. Statute of limitations. Notwithstanding section 628.26, or any other provision
of the criminal laws of this state, an indictment may be found and filed, or a complaint filed,
upon a criminal offense named in this section, in the proper court within six years after the
offense is committed.
History: 1998 c 299 s 23; 2002 c 371 art 2 s 22

296A.24 CONTRABAND.
    Subdivision 1. Seizure. The commissioner or authorized agents may seize gasoline or special
fuel being transported for delivery in violation of section 296A.03, 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 the state of 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 subdivision 2.
    Subd. 2. Forfeiture. (a) Within ten days after the seizure, the person making the seizure shall
serve by certified mail an inventory of the vehicle or property seized on the person from whom the
seizure was made, if known, and on any person known or believed to have any right, title, interest,
or lien on the vehicle or property, at the last known address, and file a copy with the commissioner.
The notice must include an explanation of the right to demand a judicial forfeiture determination.
(b) Within 60 days after the date of service of the inventory, which is the date of mailing, the
person from whom the vehicle or property was seized or any person claiming an interest in it may
file a demand for a judicial determination of whether the vehicle or property was lawfully subject
to seizure and forfeiture. The demand must be in the form of a civil complaint and must be filed
with the court administrator in the county in which the seizure occurred, together with proof of
service of a copy of the complaint on the commissioner of revenue, and the standard filing fee for
civil actions unless the petitioner has the right to sue in forma pauperis under section 563.01. If
the value of the seized property or vehicle is $7,500 or less, the claimant may file an action in
conciliation court for its recovery. If the value of the seized property or vehicle is less than $500,
the claimant does not have to pay the conciliation court filing fee.
(c) The complaint must be captioned in the name of the claimant as plaintiff and the seized
property or vehicle as defendant, and must state with specificity the grounds on which the
claimant alleges the property or vehicle was improperly seized and the plaintiff's interest in
the property or vehicle seized. No responsive pleading is required of the commissioner and no
court fees may be charged for the commissioner's appearance in the matter. The proceedings are
governed by the Rules of Civil Procedure. Notwithstanding any law to the contrary, an action
for the return of property or a vehicle seized under this section may not be maintained by or on
behalf of any person who has been served with an inventory unless the person has complied
with this subdivision. The court shall hear the action without a jury and shall try and determine
the issues of fact and law involved.
(d) When a judgment of forfeiture is entered, the commissioner may, unless the judgment
is stayed pending an appeal, either:
(1) cause the forfeited gasoline or special fuel to be destroyed; or
(2) cause the forfeited property in clause (1) or vehicle to be sold at public auction as
provided by law. After deducting the expense of keeping the property and vehicle and the costs of
the sale, the commissioner shall pay from the funds collected all liens according to their priority,
which are established as being bona fide and as existing without the lienor having any notice or
knowledge that the property or vehicle was being used or was intended to be used for or in
connection with any violation, and shall pay the balance of the proceeds into the general fund.
(e) If no demand for judicial determination is made, the property or vehicle 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.
    Subd. 3.[Repealed, 1Sp2001 c 5 art 18 s 11]
History: 1998 c 299 s 24; 1Sp2001 c 5 art 18 s 1,2

296A.25 [Repealed, 2005 c 151 art 1 s 117]

296A.26 JUDICIAL REVIEW; APPEAL TO TAX COURT.
In lieu of an administrative appeal under this chapter, any person aggrieved by an order of the
commissioner fixing a tax, penalty, or interest under this chapter may, within 60 days from the date
of the notice of the order, appeal to the Tax Court in the manner provided under section 271.06.
History: 1998 c 299 s 26

296A.27 [Repealed, 2002 c 371 art 2 s 23]

296A.28 [Repealed, 2002 c 371 art 2 s 23]