Bill Text: MN HF811 | 2013-2014 | 88th Legislature | Engrossed
Bill Title: Aircraft sales tax, jet and special fuel excise tax, and aircraft registration tax provisions modified; and report required.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2013-04-11 - Committee report, to pass as amended and re-refer to Rules and Legislative Administration [HF811 Detail]
Download: Minnesota-2013-HF811-Engrossed.html
1.2relating to taxation; modifying provisions related to aircraft sales taxes, jet
1.3and special fuel excise taxes, and aircraft registration taxes; requiring a report;
1.4amending Minnesota Statutes 2012, sections 296A.09, subdivision 2, by adding
1.5a subdivision; 296A.17, subdivision 3, by adding a subdivision; 297A.82,
1.6subdivision 4, by adding a subdivision; 360.531, subdivisions 2, 4; 360.66.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2012, section 296A.09, subdivision 2, is amended to read:
1.9 Subd. 2. Jet fuel and special fuel tax imposed. There is imposed an excise tax
1.10ofthe same rate 15 cents per gallon as the aviation gasoline on all jet fuel or special
1.11fuel received, sold, stored, or withdrawn from storage in this state, for use as substitutes
1.12for aviation gasoline and not otherwise taxed as gasoline. Jet fuel is defined in section
1.13296A.01, subdivision 8
.
1.14 Sec. 2. Minnesota Statutes 2012, section 296A.09, is amended by adding a subdivision
1.15to read:
1.16 Subd. 3a. Excise tax for certain airline companies. Subdivision 2 does not apply
1.17to jet fuel or special fuel purchased by an airline company that is engaged in air commerce
1.18in this state and is required to pay air flight property tax under section 270.072. An excise
1.19tax of five cents per gallon is imposed on fuel that is described in this subdivision.
1.20 Sec. 3. Minnesota Statutes 2012, section 296A.17, subdivision 3, is amended to read:
1.21 Subd. 3. Refund on graduated basis. Except as provided in subdivision 3a, any
1.22person who has directly or indirectly paid the excise tax on aviation gasoline or special
1.23fuel for aircraft use provided for by this chapter, shall, as to all such aviation gasoline
2.1and special fuel received, stored, or withdrawn from storage by the person in this state
2.2in any calendar year and not sold or otherwise disposed of to others, or intended for
2.3sale or other disposition to others, on which such tax has been so paid, be entitled to
2.4the following graduated reductions in such tax for that calendar year, to be obtained by
2.5means of the following refunds:
2.6(1) on each gallon of such aviation gasoline or special fuel up to 50,000 gallons, all
2.7but five cents per gallon;
2.8(2) on each gallon of such aviation gasoline or special fuel above 50,000 gallons and
2.9not more than 150,000 gallons, all but two cents per gallon;
2.10(3) on each gallon of such aviation gasoline or special fuel above 150,000 gallons
2.11and not more than 200,000 gallons, all but one cent per gallon;
2.12(4) on each gallon of such aviation gasoline or special fuel above 200,000, all but
2.13one-half cent per gallon.
2.14 Sec. 4. Minnesota Statutes 2012, section 296A.17, is amended by adding a subdivision
2.15to read:
2.16 Subd. 3a. Nonrefundable excise tax. Any person who has directly or indirectly
2.17paid the jet fuel or special fuel tax imposed under section 296A.09, subdivision 2, is not
2.18entitled to a tax refund under subdivision 3.
2.19 Sec. 5. Minnesota Statutes 2012, section 297A.82, subdivision 4, is amended to read:
2.20 Subd. 4. Exemptions. (a) The following transactions are exempt from the tax
2.21imposed in this chapter to the extent provided.
2.22(b) The purchase or use of aircraft previously registered in Minnesota by a
2.23corporation or partnership is exempt if the transfer constitutes a transfer within the
2.24meaning of section 351 or 721 of the Internal Revenue Code.
2.25(c) The sale to or purchase, storage, use, or consumption by a licensed aircraft dealer
2.26of an aircraft for which a commercial use permit has been issued pursuant to section
2.27360.654
is exempt, if the aircraft is resold while the permit is in effect.
2.28(d) Air flight equipment when sold to, or purchased, stored, used, or consumed by
2.29airline companies, as defined in section270.071, subdivision 4 , is exempt. For purposes
2.30of this subdivision, "air flight equipment" includes airplanes and parts necessary for the
2.31repair and maintenance of such air flight equipment, and flight simulators, but does
2.32not include airplanes with a gross weight of less than 30,000 pounds that are used on
2.33intermittent or irregularly timed flights.
3.1(e) Sales of, and the storage, distribution, use, or consumption of aircraft, as defined
3.2in section360.511 and approved by the Federal Aviation Administration, and which the
3.3seller delivers to a purchaser outside Minnesota or which, without intermediate use, is
3.4shipped or transported outside Minnesota by the purchaser are exempt, but only if the
3.5purchaser is not a resident of Minnesota and provided that the aircraft is not thereafter
3.6returned to a point within Minnesota, except in the course of interstate commerce or
3.7isolated and occasional use, and will be registered in another state or country upon its
3.8removal from Minnesota. This exemption applies even if the purchaser takes possession of
3.9the aircraft in Minnesota and uses the aircraft in the state exclusively for training purposes
3.10for a period not to exceed ten days prior to removing the aircraft from this state.
3.11(f) The sale or purchase of the following items that relate to aircraft operated under
3.12Federal Aviation Regulations, parts 91 and 135, and associated installation charges:
3.13airflight equipment; parts necessary for repair and maintenance of aircraft; and equipment
3.14and parts to upgrade and improve aircraft.
3.15 Sec. 6. Minnesota Statutes 2012, section 297A.82, is amended by adding a subdivision
3.16to read:
3.17 Subd. 4a. Deposit in state airports fund. Tax revenue collected from the sale or
3.18purchase of an aircraft taxable under this chapter must be deposited in the state airports
3.19fund, established in section 360.017.
3.20 Sec. 7. Minnesota Statutes 2012, section 360.531, subdivision 2, is amended to read:
3.21 Subd. 2. Rate. The tax shall beat the rate of one percent of value; provided that
3.22the minimum tax on an aircraft subject to the provisions of sections
360.511 to
360.67
shall not be less than 25 percent of the tax on said aircraft computed on its base price or
3.24$50 whichever is the higher. as follows:
4.6 Sec. 8. Minnesota Statutes 2012, section 360.531, subdivision 4, is amended to read:
4.7 Subd. 4. Base price for taxation. For the purpose of fixing a base price for taxation
4.8from which depreciation in value at a fixed percent per annum can be counted, such, the
4.9base price is defined as follows:
4.10(a) The base price for taxation of an aircraft shall be the manufacturer's list price.
4.11(b) The commissioner shall have authority to fix the base value for taxation purposes
4.12of any aircraft of which no such similar or corresponding model has been manufactured,
4.13and of any rebuilt or foreign aircraft, any aircraft on which a record of the list price is not
4.14available, or any military aircraft converted for civilian use, using as a basis forsuch
4.15 valuation the list price of aircraft with comparable performance characteristics, and taking
4.16into consideration the age and condition of the aircraft.
4.17 Sec. 9. Minnesota Statutes 2012, section 360.66, is amended to read:
4.18360.66 STATE AIRPORTS FUND.
4.19 Subdivision 1. Tax credited to fund. The proceeds of the tax imposed on aircraft
4.20under sections360.54360.67 and all fees and penalties provided for therein
4.21shall be collected by the commissioner and paid into the state treasury and credited to the
4.22state airports fund created by other statutes of this state.
4.23 Subd. 2. Reimbursement for expenses. There shall be transferred by the
4.24commissioner of management and budget each year from the state airports fund to the
4.25general fund in the state treasury the amount expended from the latter fund for expenses of
4.26administering the provisions of sections360.54360.67 .
4.27 Sec. 10. REPORT.
4.28On or before June 30, 2016, and every four years thereafter, the commissioner of
4.29transportation, in consultation with the commissioner of revenue, shall prepare and submit
4.30to the chairs and ranking minority members of the senate and house of representatives
4.31committees with jurisdiction over transportation policy and budget, a report that identifies
4.32the amount and sources of annual revenues attributable to each type of aviation tax, along
4.33with annual expenditures from the state airports fund, and any other transfers out of the
5.1fund, during the previous four years. The report must include draft legislation for any
5.2recommended statutory changes to ensure the future adequacy of the state airports fund.
5.3 Sec. 11. EFFECTIVE DATE.
5.4Sections 1 to 4 are effective July 1, 2014, and apply to sales and purchases made
5.5on or after that date. Sections 5 and 6 are effective July 1, 2013, and apply to sales and
5.6purchases made on or after that date. Sections 7 to 9 are effective July 1, 2014, and apply
5.7to aircraft tax due on or after that date. Section 10 is effective July 1, 2013.
1.3and special fuel excise taxes, and aircraft registration taxes; requiring a report;
1.4amending Minnesota Statutes 2012, sections 296A.09, subdivision 2, by adding
1.5a subdivision; 296A.17, subdivision 3, by adding a subdivision; 297A.82,
1.6subdivision 4, by adding a subdivision; 360.531, subdivisions 2, 4; 360.66.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2012, section 296A.09, subdivision 2, is amended to read:
1.9 Subd. 2. Jet fuel and special fuel tax imposed. There is imposed an excise tax
1.10of
1.11fuel received, sold, stored, or withdrawn from storage in this state, for use as substitutes
1.12for aviation gasoline and not otherwise taxed as gasoline. Jet fuel is defined in section
1.14 Sec. 2. Minnesota Statutes 2012, section 296A.09, is amended by adding a subdivision
1.15to read:
1.16 Subd. 3a. Excise tax for certain airline companies. Subdivision 2 does not apply
1.17to jet fuel or special fuel purchased by an airline company that is engaged in air commerce
1.18in this state and is required to pay air flight property tax under section 270.072. An excise
1.19tax of five cents per gallon is imposed on fuel that is described in this subdivision.
1.20 Sec. 3. Minnesota Statutes 2012, section 296A.17, subdivision 3, is amended to read:
1.21 Subd. 3. Refund on graduated basis. Except as provided in subdivision 3a, any
1.22person who has directly or indirectly paid the excise tax on aviation gasoline or special
1.23fuel for aircraft use provided for by this chapter, shall, as to all such aviation gasoline
2.1and special fuel received, stored, or withdrawn from storage by the person in this state
2.2in any calendar year and not sold or otherwise disposed of to others, or intended for
2.3sale or other disposition to others, on which such tax has been so paid, be entitled to
2.4the following graduated reductions in such tax for that calendar year, to be obtained by
2.5means of the following refunds:
2.6(1) on each gallon of such aviation gasoline or special fuel up to 50,000 gallons, all
2.7but five cents per gallon;
2.8(2) on each gallon of such aviation gasoline or special fuel above 50,000 gallons and
2.9not more than 150,000 gallons, all but two cents per gallon;
2.10(3) on each gallon of such aviation gasoline or special fuel above 150,000 gallons
2.11and not more than 200,000 gallons, all but one cent per gallon;
2.12(4) on each gallon of such aviation gasoline or special fuel above 200,000, all but
2.13one-half cent per gallon.
2.14 Sec. 4. Minnesota Statutes 2012, section 296A.17, is amended by adding a subdivision
2.15to read:
2.16 Subd. 3a. Nonrefundable excise tax. Any person who has directly or indirectly
2.17paid the jet fuel or special fuel tax imposed under section 296A.09, subdivision 2, is not
2.18entitled to a tax refund under subdivision 3.
2.19 Sec. 5. Minnesota Statutes 2012, section 297A.82, subdivision 4, is amended to read:
2.20 Subd. 4. Exemptions. (a) The following transactions are exempt from the tax
2.21imposed in this chapter to the extent provided.
2.22(b) The purchase or use of aircraft previously registered in Minnesota by a
2.23corporation or partnership is exempt if the transfer constitutes a transfer within the
2.24meaning of section 351 or 721 of the Internal Revenue Code.
2.25(c) The sale to or purchase, storage, use, or consumption by a licensed aircraft dealer
2.26of an aircraft for which a commercial use permit has been issued pursuant to section
2.28(d) Air flight equipment when sold to, or purchased, stored, used, or consumed by
2.29airline companies, as defined in section
2.30of this subdivision, "air flight equipment" includes airplanes and parts necessary for the
2.31repair and maintenance of such air flight equipment, and flight simulators, but does
2.32not include airplanes with a gross weight of less than 30,000 pounds that are used on
2.33intermittent or irregularly timed flights.
3.1(e) Sales of, and the storage, distribution, use, or consumption of aircraft, as defined
3.2in section
3.3seller delivers to a purchaser outside Minnesota or which, without intermediate use, is
3.4shipped or transported outside Minnesota by the purchaser are exempt, but only if the
3.5purchaser is not a resident of Minnesota and provided that the aircraft is not thereafter
3.6returned to a point within Minnesota, except in the course of interstate commerce or
3.7isolated and occasional use, and will be registered in another state or country upon its
3.8removal from Minnesota. This exemption applies even if the purchaser takes possession of
3.9the aircraft in Minnesota and uses the aircraft in the state exclusively for training purposes
3.10for a period not to exceed ten days prior to removing the aircraft from this state.
3.11(f) The sale or purchase of the following items that relate to aircraft operated under
3.12Federal Aviation Regulations, parts 91 and 135, and associated installation charges:
3.13airflight equipment; parts necessary for repair and maintenance of aircraft; and equipment
3.14and parts to upgrade and improve aircraft.
3.15 Sec. 6. Minnesota Statutes 2012, section 297A.82, is amended by adding a subdivision
3.16to read:
3.17 Subd. 4a. Deposit in state airports fund. Tax revenue collected from the sale or
3.18purchase of an aircraft taxable under this chapter must be deposited in the state airports
3.19fund, established in section 360.017.
3.20 Sec. 7. Minnesota Statutes 2012, section 360.531, subdivision 2, is amended to read:
3.21 Subd. 2. Rate. The tax shall be
3.22
3.24
4.6 Sec. 8. Minnesota Statutes 2012, section 360.531, subdivision 4, is amended to read:
4.7 Subd. 4. Base price for taxation. For the purpose of fixing a base price for taxation
4.8
4.9base price is defined as follows:
4.10(a) The base price for taxation of an aircraft shall be the manufacturer's list price.
4.11(b) The commissioner shall have authority to fix the base value for taxation purposes
4.12of any aircraft of which no such similar or corresponding model has been manufactured,
4.13and of any rebuilt or foreign aircraft, any aircraft on which a record of the list price is not
4.14available, or any military aircraft converted for civilian use, using as a basis for
4.15 valuation the list price of aircraft with comparable performance characteristics, and taking
4.16into consideration the age and condition of the aircraft.
4.17 Sec. 9. Minnesota Statutes 2012, section 360.66, is amended to read:
4.18360.66 STATE AIRPORTS FUND.
4.19 Subdivision 1. Tax credited to fund. The proceeds of the tax imposed on aircraft
4.20under sections
4.21shall be collected by the commissioner and paid into the state treasury and credited to the
4.22state airports fund created by other statutes of this state.
4.23 Subd. 2. Reimbursement for expenses. There shall be transferred by the
4.24commissioner of management and budget each year from the state airports fund to the
4.25general fund in the state treasury the amount expended from the latter fund for expenses of
4.26administering the provisions of sections
4.27 Sec. 10. REPORT.
4.28On or before June 30, 2016, and every four years thereafter, the commissioner of
4.29transportation, in consultation with the commissioner of revenue, shall prepare and submit
4.30to the chairs and ranking minority members of the senate and house of representatives
4.31committees with jurisdiction over transportation policy and budget, a report that identifies
4.32the amount and sources of annual revenues attributable to each type of aviation tax, along
4.33with annual expenditures from the state airports fund, and any other transfers out of the
5.1fund, during the previous four years. The report must include draft legislation for any
5.2recommended statutory changes to ensure the future adequacy of the state airports fund.
5.3 Sec. 11. EFFECTIVE DATE.
5.4Sections 1 to 4 are effective July 1, 2014, and apply to sales and purchases made
5.5on or after that date. Sections 5 and 6 are effective July 1, 2013, and apply to sales and
5.6purchases made on or after that date. Sections 7 to 9 are effective July 1, 2014, and apply
5.7to aircraft tax due on or after that date. Section 10 is effective July 1, 2013.
