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
Subd. 2. Tax imposed for marine use.
Subject to the provisions of section
, 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tax, on all marine gasoline received, sold, stored, or withdrawn from storage in this state.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
256B.0625, subdivision 17
(2) an ambulance service licensed under chapter 144E.
History: 1998 c 299 s 7; 1Sp2001 c 5 art 13 s 5