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296.17 Fuel unreported or used in other states; road tax; motor carriers; reciprocity.

Subdivision 1. Unreported fuel. It shall be 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, if the same has not been reported or if the tax on account thereof has not been paid to the commissioner, to report to the commissioner in the form and manner prescribed by the commissioner, the quantity of such gasoline so sold or used or such special fuel used, and such person shall become liable for the payment of the tax. All provisions of sections 296.01 to 296.421 relating to the calculation, collection and payment of the tax shall be applicable to any such person, dealer or distributor.

Subd. 2. Repealed, 1967 c 802 s 2

Subd. 3. Refunds on fuel used in other states. Every person regularly or habitually operating motor vehicles upon the public highways of any other state or states and using in said motor vehicles gasoline or special fuel purchased or obtained in this state, shall be allowed a credit or refund equal to the tax on said gasoline or special fuel paid to this state on the gasoline or special fuel actually used in the other state or states. No credit or refund shall be allowed under this subdivision for taxes paid to any state which imposes a tax upon gasoline or special fuel purchased or obtained in this state and used on the highways of such other state, and which does not allow a similar credit or refund for the tax paid to this state on gasoline or special fuel purchased or acquired in such other state and used on the highways of this state. Every person claiming a credit or refund under this subdivision shall file a claim in the form and manner prescribed by the commissioner or take the credit on a subsequent tax return within one year of the last day of the month following the end of the quarter when the overpayment occurred.

Subd. 4. Repealed, 1967 c 802 s 2

Subd. 5. Unreported aviation gasoline. The provisions of subdivision 1 do not apply to aviation gasoline. It shall be 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, if the same has not been reported or if a tax provided for in section 296.02 on account thereof, has not been paid to the commissioner, to report to the commissioner, in the form and manner prescribed by the commissioner, the quantity of such gasoline so received, sold, stored, or withdrawn from storage, and such person shall become liable for the payment of the tax.

All provisions of sections 296.01 to 296.421 relating to the calculation, collections, and payment of the tax shall be applicable to any such person, dealer, or distributor.

Subd. 6. Reciprocal agreements. The commissioner of public safety or the commissioner of revenue may enter into reciprocal agreements with the appropriate officials of any other state under which either commissioner may waive all or any part of the requirements imposed by this section upon those who use in Minnesota gasoline or other motor vehicle fuel upon which the tax has been paid to such other state, provided that the officials of such other state grant equivalent privileges with respect to gasoline or other motor vehicle fuel used in such other state but upon which the tax has been paid to Minnesota.

The commissioner of public safety or the commissioner of revenue may enter into reciprocal agreements with the appropriate officials of other states, exempting vehicles licensed in such other states from the license and use tax provisions contained in this section, which otherwise would apply to vehicles licensed by such other state, provided that such other state grant equivalent privileges with respect to vehicles licensed by Minnesota.

Subd. 7. Definitions. As used in subdivisions 7 to 22:

(a) "Motor fuel" means a liquid, regardless of its composition or properties, used to propel a motor vehicle.

(b) "Commercial motor vehicle" means a motor vehicle used, designed, or maintained for transportation of persons or property that:

(1) has two axles and a gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds; or

(2) has three or more axles regardless of weight; or

(3) is used in combination, when the weight of such combination exceeds 26,000 pounds gross vehicle or registered gross vehicle weight. "Commercial motor vehicle" does not include recreational vehicles.

(c) "Motor carrier" means a person who operates or causes to be operated a commercial motor vehicle on a highway in this state.

(d) "Operation" means operation of commercial 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.

(e) "Highway" means the entire width between the boundary lines of every way publicly maintained when part of the highway is open for the public to travel on.

Subd. 8. Road tax imposed. (a) Every motor carrier shall pay a road tax calculated on the amount of motor fuel consumed in the motor carrier's operations on highways within this state. The tax shall be at the same rate as the tax applicable to the purchase of the same motor fuel within this state.

(b) The amount of motor fuel consumed in the operations of any motor carrier on highways within this state shall be determined by dividing the miles traveled within Minnesota by the average miles per gallon. The average miles per gallon shall be determined by dividing the miles traveled within and without Minnesota by the total motor fuel consumed within and without Minnesota.

Subd. 9. Exemptions. Nothing in subdivisions 7 to 22 shall apply to: (a) any commercial motor vehicle or vehicles operated by this state, any subdivision thereof, the United States, or any agency of two or more states or of states and the United States in which this state participates; (b) any school bus as defined by the laws of this state operated by, for or on behalf of a state or any subdivision thereof; or (c) any motor vehicle bearing Minnesota base license plates.

Subd. 9a. Repealed, 1992 c 581 s 21

Subd. 10. Motor carrier license. (a) No motor carrier may operate a commercial motor vehicle upon the highways of this state unless and until issued a license pursuant to this section or has obtained a trip permit or temporary authorization as provided in this section.

(b) A license shall be issued to any responsible person qualifying as a motor carrier who makes application therefor and who pays to the commissioner, at the time thereof, a license fee of $30. The license is valid for a period of up to two years or until revoked by the commissioner or until surrendered by the motor carrier. All outstanding licenses will expire on March 31 of each even-numbered year beginning with 1984 and may be renewed upon application to the commissioner and payment of the $30 fee. The license, photocopy, or electrostatic copy of it, shall be carried in the cab of every commercial motor vehicle while it is being operated in Minnesota by a licensed motor carrier.

Subd. 11. Motor carrier reports. Every motor carrier subject to the road tax shall, on or before the last day of April, July, October, and January, file with the commissioner in the form and manner prescribed by the commissioner, reports of operations during the previous three months, and such other reports from time to time as the commissioner may deem necessary. The commissioner by rule may exempt from the quarterly reporting requirements of this section those motor carriers whose mileage is all or substantially all and those motor carriers whose mileage is minimal within this state, or states with which Minnesota has reciprocity and require in such instances an annual report reflecting the operations of the carrier during the previous year along with payment of any taxes due.

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

Subd. 12. Repealed, 1987 c 268 art 14 s 25

Subd. 13. Repealed, 1990 c 480 art 3 s 4

Subd. 14. Motor carrier records. (a) Every motor carrier shall keep such records as may be necessary for the administration of subdivisions 7 to 22 and for the reporting and justification of the amount of tax liability pursuant hereto. Such records shall be kept in such form as the commissioner reasonably may prescribe. All such records shall be safely preserved for a period of three years in such manner as to insure their security and availability for inspection by the commissioner. Upon application in writing stating the reasons therefor, the commissioner may consent to the destruction of such records at an earlier time if the commissioner has completed an audit of the records in question.

(b) The commissioner or authorized agents or representatives shall have the right at any reasonable time to inspect the books and records of any motor carrier subject to the tax imposed by this chapter.

Subd. 15. Evidence. In the absence of records showing the number of miles actually operated per gallon of motor fuel, it shall be presumed that one gallon of motor fuel was consumed for every four miles traveled.

Subd. 16. Leased commercial motor vehicles. (a) Except as otherwise provided in this section, every commercial motor vehicle leased to a motor carrier shall be subject to the provisions of subdivisions 7 to 22 and rules in force pursuant hereto, to the same extent and in the same manner as commercial motor vehicles owned by such carrier.

(b) A lessor of commercial motor vehicles may be deemed a motor carrier with respect to such vehicles leased to others by the lessor and motor fuel consumed thereby, if the lessor supplies or pays for the motor fuel consumed by such vehicles or makes rental or other charges calculated to include the cost of such fuel. Any lessee motor carrier may exclude the leased commercial motor vehicles from reports and liabilities pursuant to subdivisions 7 to 22, but only if the commercial motor vehicles in question have been leased from a lessor who is a motor carrier pursuant to this section.

(c) The provisions of clauses (a) and (b) of this subdivision shall govern the primary liability pursuant to subdivisions 7 to 22 of lessors and lessees of commercial motor vehicles. If a lessor or lessee primarily liable fails, in whole or in part, to discharge liability, such failing party and the other lessor or lessee party to the transaction shall be jointly and severally responsible and liable for compliance with the provisions of subdivisions 7 to 22 and for the payment of any tax due pursuant hereto, provided that the aggregate of any taxes collected by this state shall not exceed the total amount or amounts of taxes due on account of the transactions in question and such costs and penalties, if any, as may be imposed.

Subd. 17. Motor carrier trip permits; temporary authorizations. (a) A motor carrier may obtain a trip permit which shall authorize an unlicensed motor carrier to operate a commercial motor vehicle in Minnesota for a period of five consecutive days beginning and ending on the dates specified on the face of the permit. The fee for the permit shall be $25. Fees for trip permits shall be in lieu of the road tax otherwise assessable against the motor carrier on account of the commercial motor vehicle operating therewith, and no reports of mileage shall be required with respect to the vehicle.

The above permit shall be issued in lieu of license if in the course of operations a motor carrier operates on Minnesota highways no more than three times in any one calendar year.

(b) Whenever the commissioner is satisfied that unforeseen or uncertain circumstances have arisen which requires a motor carrier to operate in this state a commercial motor vehicle for which neither a trip permit pursuant to clause (a) nor a license pursuant to subdivisions 7 to 22 has yet been obtained, and if the commissioner is satisfied that prohibition of that operation would cause undue hardship, the commissioner may provide the motor carrier with temporary authorization for the operation of the vehicle. A motor carrier receiving temporary authorization pursuant to this subdivision shall perfect the same either by obtaining a trip permit or a license, as the case may be, for the vehicle at the earliest practicable time.

Subd. 18. Cooperative audits. The commissioner may make arrangements with the commissioner of transportation and may enter into agreements with the appropriate authorities of other states having statutes similar to this act for the cooperative audit of motor carriers' reports and returns. In performing any such audit, or part thereof, the officers and employees of the department of transportation and the other state or states shall be deemed authorized agents of this state for such purpose, and such audits, or parts thereof, shall have the same effect as similar audits, or parts thereof, when made by the commissioner.

Subd. 19. Actions to avoid tax. If the commissioner ascertains that a person designs quickly to depart from this state, or to remove therefrom the person's property, or any property used by the person in operations subject to subdivisions 7 to 22, or to discontinue business, or to do any other act tending to prejudice or render wholly or partly ineffectual proceedings to assess or collect the tax, whereby it becomes important that such proceedings be brought without delay, the commissioner may immediately make an assessment of tax estimated to be due, whether or not any report is then due by law, and may proceed under such assessment to collect the tax, or compel security for the same, and thereupon shall cause notice of such finding to be given to such motor carrier, together with a demand for an immediate payment of such tax.

The commissioner or agents is also authorized to impound motor vehicles of persons in violation of subdivisions 7 to 22. Such vehicle shall be released either upon payment of all taxes, penalties and interest that may be due, or depositing a bond or security to assure the payment of said taxes, penalties and interest.

Subd. 20. Enforcement powers. (a) The commissioner is authorized and directed to enforce the provisions of subdivisions 7 to 22. In addition, the commissioner of public safety is authorized and directed to use the Minnesota state patrol to assist in the enforcement of the provisions of subdivisions 7 to 22 and the commissioner of transportation is authorized and directed to enforce the provisions of subdivisions 10 and 17 as provided in section 221.221.

(b) The officers of the Minnesota state patrol shall in addition to all other powers granted to them by Minnesota Statutes have the power of making arrests, service process, and appearing in court in all matters and things relating to subdivisions 7 to 22 and the administration and enforcement thereof.

Subd. 21. Rules. The commissioner may, from time to time, issue, amend and revise such rules as may be necessary for the effective enforcement of subdivisions 7 to 22.

Subd. 22. Commissioner may waive requirements. The commissioner is hereby empowered to suspend the enforcement of subdivisions 7 to 22 if the cost of administration thereof exceeds the tax revenue produced therefrom.

HIST: 1941 c 495 s 15; 1943 c 320 s 12; 1945 c 412 s 11; 1945 c 480; 1949 c 143 s 10-12; 1957 c 203 s 6,7; 1961 c 506 s 1; 1963 c 66 s 16; 1967 c 802 s 1; 1969 c 102 s 1; 1973 c 107 s 1; 1977 c 45 s 2-4; 1980 c 509 s 118,119; 1981 c 37 s 2; 1982 c 523 art 2 s 42; 1983 c 222 s 34-36; 1983 c 293 s 87-89; 1983 c 311 s 12; 1985 c 248 s 70; 1986 c 444; 1Sp1986 c 1 art 4 s 41,42; 1987 c 268 art 14 s 21-23; 1987 c 358 s 109; 1990 c 594 art 1 s 68,69; 1995 c 264 art 14 s 10-13; 1996 c 471 art 5 s 14; 1997 c 230 s 20

Official Publication of the State of Minnesota
Revisor of Statutes