296A.16 REFUND OR CREDIT.
Subdivision 1. Credit or refund of gasoline or special fuel tax paid.
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
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
, shall forfeit the full amount of the claim. In addition, a person who is convicted
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