Bill Text: MN HF811 | 2013-2014 | 88th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Introduced.html
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-Introduced.html
1.2relating to taxation; modifying provisions related to aircraft sales taxes, jet and
1.3special fuel excise taxes, and aircraft registration taxes; amending Minnesota
1.4Statutes 2012, sections 296A.09, subdivision 2; 296A.17, subdivision 3;
1.5297A.82, subdivision 4; 360.531, subdivisions 2, 4, by adding a subdivision;
1.6repealing Minnesota Statutes 2012, section 360.531, subdivisions 3, 6.
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 ten 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1.11fuel received, sold, stored, or withdrawn from storage in this state, for use as substitutes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.17, subdivision 3, is amended to read:
1.15 Subd. 3. Refund on graduated basis. Any person who has directly or indirectly
1.16paid the excise tax on aviation gasolineor special fuel for aircraft use provided for
1.17by this chapter, shall, as to all such aviation gasoline and special fuel received, stored,
1.18or withdrawn from storage by the person in this state in any calendar year and not sold
1.19or otherwise disposed of to others, or intended for sale or other disposition to others, on
1.20whichsuch the tax has been so paid, be entitled to the following graduated reductions in
1.21such the tax for that calendar year, to be obtained by means of the following refunds:
1.22(1) on each gallon ofsuch aviation gasoline or special fuel up to 50,000 gallons, all
1.23but five cents per gallon;
2.1(2) on each gallon ofsuch aviation gasoline or special fuel above 50,000 gallons and
2.2not more than 150,000 gallons, all but two cents per gallon;
2.3(3) on each gallon ofsuch aviation gasoline or special fuel above 150,000 gallons
2.4and not more than 200,000 gallons, all but one cent per gallon;
2.5(4) on each gallon ofsuch aviation gasoline or special fuel above 200,000, all but
2.6one-half cent per gallon.
2.7 Sec. 3. Minnesota Statutes 2012, section 297A.82, subdivision 4, is amended to read:
2.8 Subd. 4. Exemptions. (a) The following transactions are exempt from the tax
2.9imposed in this chapter to the extent provided.
2.10(b) The purchase or use of aircraft previously registered in Minnesota by a
2.11corporation or partnership is exempt if the transfer constitutes a transfer within the
2.12meaning of section 351 or 721 of the Internal Revenue Code.
2.13(c) The sale to or purchase, storage, use, or consumption by a licensed aircraft dealer
2.14of an aircraft for which a commercial use permit has been issued pursuant to section
2.15360.654
is exempt, if the aircraft is resold while the permit is in effect.
2.16(d) Air flight equipment when sold to, or purchased, stored, used, or consumed by
2.17airline companies, as defined in section270.071, subdivision 4 , is exempt. For purposes
2.18of this subdivision, "air flight equipment" includes airplanes and parts necessary for the
2.19repair and maintenance of such air flight equipment, and flight simulators, but does
2.20not include airplanes with a gross weight of less than 30,000 pounds that are used on
2.21intermittent or irregularly timed flights.
2.22(e) Sales of, and the storage, distribution, use, or consumption of aircraft, as defined
2.23in section360.511 and approved by the Federal Aviation Administration, and which the
2.24seller delivers to a purchaser outside Minnesota or which, without intermediate use, is
2.25shipped or transported outside Minnesota by the purchaser are exempt, but only if the
2.26purchaser is not a resident of Minnesota and provided that the aircraft is not thereafter
2.27returned to a point within Minnesota, except in the course of interstate commerce or
2.28isolated and occasional use, and will be registered in another state or country upon its
2.29removal from Minnesota. This exemption applies even if the purchaser takes possession of
2.30the aircraft in Minnesota and uses the aircraft in the state exclusively for training purposes
2.31for a period not to exceed ten days prior to removing the aircraft from this state.
2.32(f) The sale or purchase of aircraft operated under Federal Aviation Regulations,
2.33Parts 91 and 135, including airflight equipment and parts necessary for repair and
2.34maintenance of aircraft, together with associated installation charges, are exempt.
3.1 Sec. 4. Minnesota Statutes 2012, section 360.531, subdivision 2, is amended to read:
3.2 Subd. 2. Rate. The tax shall beat the rate of one percent of value; provided that the
3.3minimum tax on an aircraft subject to the provisions of sections
360.511 to
360.67 shall
3.4not be less than 25 percent of the tax on said aircraft computed on its base price or $50
3.5whichever is the higher. based on the base price of the aircraft as follows:
3.15 Sec. 5. Minnesota Statutes 2012, section 360.531, subdivision 4, is amended to read:
3.16 Subd. 4. Base price for taxation. For the purpose of fixing a base price for taxation
3.17from which depreciation in value at a fixed percent per annum can be counted, such, the
3.18base price is defined as follows:
3.19(a) The base price for taxation of an aircraft shall be the manufacturer's list price.
3.20(b) The commissioner shall have authority to fix the base value for taxation purposes
3.21of any aircraft of which no such similar or corresponding model has been manufactured,
3.22and of any rebuilt or foreign aircraft, any aircraft on which a record of the list price is not
3.23available, or any military aircraft converted for civilian use, using as a basis forsuch
3.24 valuation the list price of aircraft with comparable performance characteristics, and taking
3.25into consideration the age and condition of the aircraft.
3.26 Sec. 6. Minnesota Statutes 2012, section 360.531, is amended by adding a subdivision
3.27to read:
3.28 Subd. 10. Applicability. For any aircraft registered in this state before July 1,
3.292013, the annual tax under this section must not exceed the lowest amount of annual tax
3.30previously paid or due to this state on the aircraft.
3.31 Sec. 7. REPEALER.
3.32Minnesota Statutes 2012, section 360.531, subdivisions 3 and 6, are repealed.
3.33 Sec. 8. EFFECTIVE DATE.
4.1Sections 1 to 3 are effective July 1, 2013, and apply to sales and purchases made
4.2on and after that date. Sections 4 to 7 are effective July 1, 2013, and apply to aircraft
4.3registration on and after that date.
1.3special fuel excise taxes, and aircraft registration taxes; amending Minnesota
1.4Statutes 2012, sections 296A.09, subdivision 2; 296A.17, subdivision 3;
1.5297A.82, subdivision 4; 360.531, subdivisions 2, 4, by adding a subdivision;
1.6repealing Minnesota Statutes 2012, section 360.531, subdivisions 3, 6.
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.17, subdivision 3, is amended to read:
1.15 Subd. 3. Refund on graduated basis. Any person who has directly or indirectly
1.16paid the excise tax on aviation gasoline
1.17by this chapter
1.18or withdrawn from storage by the person in this state in any calendar year and not sold
1.19or otherwise disposed of to others, or intended for sale or other disposition to others, on
1.20which
1.21
1.22(1) on each gallon of
1.23but five cents per gallon;
2.1(2) on each gallon of
2.2not more than 150,000 gallons, all but two cents per gallon;
2.3(3) on each gallon of
2.4and not more than 200,000 gallons, all but one cent per gallon;
2.5(4) on each gallon of
2.6one-half cent per gallon.
2.7 Sec. 3. Minnesota Statutes 2012, section 297A.82, subdivision 4, is amended to read:
2.8 Subd. 4. Exemptions. (a) The following transactions are exempt from the tax
2.9imposed in this chapter to the extent provided.
2.10(b) The purchase or use of aircraft previously registered in Minnesota by a
2.11corporation or partnership is exempt if the transfer constitutes a transfer within the
2.12meaning of section 351 or 721 of the Internal Revenue Code.
2.13(c) The sale to or purchase, storage, use, or consumption by a licensed aircraft dealer
2.14of an aircraft for which a commercial use permit has been issued pursuant to section
2.16(d) Air flight equipment when sold to, or purchased, stored, used, or consumed by
2.17airline companies, as defined in section
2.18of this subdivision, "air flight equipment" includes airplanes and parts necessary for the
2.19repair and maintenance of such air flight equipment, and flight simulators, but does
2.20not include airplanes with a gross weight of less than 30,000 pounds that are used on
2.21intermittent or irregularly timed flights.
2.22(e) Sales of, and the storage, distribution, use, or consumption of aircraft, as defined
2.23in section
2.24seller delivers to a purchaser outside Minnesota or which, without intermediate use, is
2.25shipped or transported outside Minnesota by the purchaser are exempt, but only if the
2.26purchaser is not a resident of Minnesota and provided that the aircraft is not thereafter
2.27returned to a point within Minnesota, except in the course of interstate commerce or
2.28isolated and occasional use, and will be registered in another state or country upon its
2.29removal from Minnesota. This exemption applies even if the purchaser takes possession of
2.30the aircraft in Minnesota and uses the aircraft in the state exclusively for training purposes
2.31for a period not to exceed ten days prior to removing the aircraft from this state.
2.32(f) The sale or purchase of aircraft operated under Federal Aviation Regulations,
2.33Parts 91 and 135, including airflight equipment and parts necessary for repair and
2.34maintenance of aircraft, together with associated installation charges, are exempt.
3.1 Sec. 4. Minnesota Statutes 2012, section 360.531, subdivision 2, is amended to read:
3.2 Subd. 2. Rate. The tax shall be
3.3
3.4
3.5
3.15 Sec. 5. Minnesota Statutes 2012, section 360.531, subdivision 4, is amended to read:
3.16 Subd. 4. Base price for taxation. For the purpose of fixing a base price for taxation
3.17
3.18base price is defined as follows:
3.19(a) The base price for taxation of an aircraft shall be the manufacturer's list price.
3.20(b) The commissioner shall have authority to fix the base value for taxation purposes
3.21of any aircraft of which no such similar or corresponding model has been manufactured,
3.22and of any rebuilt or foreign aircraft, any aircraft on which a record of the list price is not
3.23available, or any military aircraft converted for civilian use, using as a basis for
3.24 valuation the list price of aircraft with comparable performance characteristics, and taking
3.25into consideration the age and condition of the aircraft.
3.26 Sec. 6. Minnesota Statutes 2012, section 360.531, is amended by adding a subdivision
3.27to read:
3.28 Subd. 10. Applicability. For any aircraft registered in this state before July 1,
3.292013, the annual tax under this section must not exceed the lowest amount of annual tax
3.30previously paid or due to this state on the aircraft.
3.31 Sec. 7. REPEALER.
3.32Minnesota Statutes 2012, section 360.531, subdivisions 3 and 6, are repealed.
3.33 Sec. 8. EFFECTIVE DATE.
4.1Sections 1 to 3 are effective July 1, 2013, and apply to sales and purchases made
4.2on and after that date. Sections 4 to 7 are effective July 1, 2013, and apply to aircraft
4.3registration on and after that date.
