1997 Minnesota Statutes

     296.12 Special fuels; licenses, tax administration. 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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