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S.F. No. 269 - Tax Treatment of Gasoline Used as Substitute for Aviation Gasoline (First Engrossment)
 
Author: Senator Ann H. Rest
 
Prepared By: Krista Boyd, Senate Fiscal Analyst (651/296-7681)
 
Date: April 7, 2015



 

Section 1 adds a definition to the fuel tax chapter of statutes, defining “dealer of gasoline used as a substitute for aviation gasoline” as a person who sells gasoline on the premises of an airport to be dispensed directly into the fuel tank of an aircraft.

Section 2 exempts from the fuel excise tax gasoline purchased by a dealer of gasoline used as a substitute for aviation gasoline.

Section 3 applies the five cents per gallon aviation gasoline tax to gasoline used as a substitute for aviation gasoline.

Section 4 provides that the aviation gasoline tax does not apply to gasoline purchased and placed in an aircraft fuel tank outside the state of Minnesota.

Section 5 provides that the aviation gasoline tax is not a tax upon consumption by an aircraft.

Section 6 exempts a licensed ambulance service from liability for the aviation gasoline tax.

Section 7 requires gasoline taxpayers to include in their monthly reports to the Department of Revenue a statement of the number of gallons sold to a dealer of gasoline used as a substitute for aviation gasoline.

Section 8 requires a person who buys gasoline from a dealer of gasoline used as a substitute for aviation gasoline and pays the tax on it, then uses it in motor vehicles, or sells it knowingly to a person for use in motor vehicles, to report this to the Commissioner of Revenue.

Section 9 requires a person claiming a graduated refund or credit under Section. 296A.17, subdivision 3 (Section 11 of this bill) to set forth in the claim form the total number of gallons of gasoline used as a substitute for aviation gasoline on which tax was paid during the calendar year.

Section 10 adds purchasers of gasoline used as a substitute for aviation gasoline to the eligible claimants for refunds of aviation taxes paid and not used in motor vehicles or in aircraft.  

Section 11 adds taxpayers who have paid: (1) aviation tax on gasoline used as a substitute for aviation tax, and (2) airflight property tax, to the eligible claimants for refunds on a graduated basis.

Section 12 excepts gasoline sold to a dealer of gasoline used as a substitute for aviation gasoline from the presumption that all gasoline in this state is intended for use in motor vehicles.

Section 13 provides that revenues from excise taxes on gasoline used as a substitute for aviation gasoline are credited to the state airports fund and appropriated to the commissioner as needed.

Section 14 establishes recordkeeping and retention requirements for dealers of gasoline used as a substitute for aviation gasoline.

Section 15 repeals a subpart of Minnesota Rules that describes who may claim refunds for gasoline used as a substitute for aviation gasoline.

Section 16 provides for an immediate effective date for the repealer in section 15 and provides that the remainder of the bill is effective for sales and purchases made after June 30, 2015.

 
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