Bill Text: MN SF1011 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Aviation fuel tax and aircraft registration tax modifications
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2011-03-23 - Referred to Transportation [SF1011 Detail]
Download: Minnesota-2011-SF1011-Introduced.html
1.2relating to taxation; increasing tax on special fuel used as substitute for aviation
1.3gasoline; basing aircraft property tax on maximum takeoff weight; removing
1.4obsolete language and making clarifying changes;amending Minnesota Statutes
1.52010, sections 296A.09, subdivisions 2, 6; 296A.17, subdivisions 1, 3; 360.511,
1.6by adding a subdivision; 360.531, subdivisions 1, 2, 8, 9, by adding a subdivision;
1.7360.57; repealing Minnesota Statutes 2010, section 360.531, subdivisions 3, 4, 6.
1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.9 Section 1. Minnesota Statutes 2010, section 296A.09, subdivision 2, is amended to
1.10read:
1.11 Subd. 2. Special fuel tax imposed. There is imposed an excise tax ofthe same rate
1.12ten cents per gallonas the aviation gasoline on all jet fuel or special fuel received, sold,
1.13stored, or withdrawn from storage in this state, for use as substitutes for aviation gasoline
1.14and not otherwise taxed as gasoline. Jet fuel is defined in section296A.01, subdivision 8 .
1.15 Sec. 2. Minnesota Statutes 2010, section 296A.09, subdivision 6, is amended to read:
1.16 Subd. 6. Exemptions. The provisions of subdivisions 1 and 2 do not apply to
1.17aviation gasoline or jet fuel purchased by an ambulance service licensed under chapter
1.18144E, or to commercial aerial applicators licensed under chapter 18B.
1.19 Sec. 3. Minnesota Statutes 2010, section 296A.17, subdivision 1, is amended to read:
1.20 Subdivision 1. Aviation refund requirements. Any person claiming to be entitled
1.21to any refund or credit provided for in subdivision 3 shall receive the refund or credit
1.22upon filing with the commissioner a claim in such form and manner prescribed by the
1.23commissioner. The claim shall set forth, among other things, the total number of gallons
2.1of aviation gasolineor special fuel for aircraft use upon which the claimant has directly
2.2or indirectly paid the excise tax provided for in this chapter, during the calendar year,
2.3which has been received, stored, or withdrawn from storage by the claimant in this
2.4state and not sold or otherwise disposed of to others. All claims for refunds under this
2.5subdivision shall be made on or before April 30 following the end of the calendar year
2.6for which the refund is claimed.
2.7 Sec. 4. Minnesota Statutes 2010, section 296A.17, subdivision 3, is amended to read:
2.8 Subd. 3. Refund on graduated basis. Any person who has directly or indirectly
2.9paid the excise tax on aviation gasolineor special fuel for aircraft use provided for
2.10by this chapter, shall, as to all such aviation gasolineand special fuel received, stored,
2.11or withdrawn from storage by the person in this state in any calendar year and not sold
2.12or otherwise disposed of to others, or intended for sale or other disposition to others, on
2.13which such tax has been so paid, be entitled to the following graduated reductions in such
2.14tax for that calendar year, to be obtained by means of the following refunds:
2.15(1) on each gallon of such aviation gasolineor special fuel up to 50,000 gallons, all
2.16but five cents per gallon;
2.17(2) on each gallon of such aviation gasolineor special fuel above 50,000 gallons and
2.18not more than 150,000 gallons, all but two cents per gallon;
2.19(3) on each gallon of such aviation gasolineor special fuel above 150,000 gallons
2.20and not more than 200,000 gallons, all but one cent per gallon;
2.21(4) on each gallon of such aviation gasolineor special fuel above 200,000, all but
2.22one-half cent per gallon.
2.23 Sec. 5. Minnesota Statutes 2010, section 360.511, is amended by adding a subdivision
2.24to read:
2.25 Subd. 24a. Maximum takeoff weight. "Maximum takeoff weight" means the
2.26maximum weight authorized for takeoff of a particular aircraft.
2.27 Sec. 6. Minnesota Statutes 2010, section 360.531, subdivision 1, is amended to read:
2.28 Subdivision 1. In lieu tax. All aircraft using the air space overlying the state of
2.29Minnesota or the airports thereof, except as set forth in section360.55 , shall be taxed
2.30in lieu of all other taxes thereon, on the basisand at the rate for the period January 1,
2.311966, to June 30, 1967, and for each fiscal year as follows of maximum takeoff weight
2.32except as otherwise provided in this section for registration periods beginning on and
2.33after July 1, 2011.
3.1 Sec. 7. Minnesota Statutes 2010, 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
3.3the minimum tax on an aircraft subject to the provisions of sections
360.511 to
360.67
3.4shall not be less than 25 percent of the tax on said aircraft computed on its base price or
3.5$50 whichever is the higher. for registration periods beginning from July 1, 2011, to
3.6June 30, 2012:
3.15For registration periods beginning on and after July 1, 2012, and in each fiscal
3.16year after:
3.25For an aircraft for which aircraft registration tax was due and paid between July 1,
3.262010, and June 30, 2011, the amount of the tax each year is the lesser of the amount paid
3.27between July 1, 2010, and June 30, 2011, or the tax computed under this subdivision.
3.28 Sec. 8. Minnesota Statutes 2010, section 360.531, subdivision 8, is amended to read:
3.29 Subd. 8. Tax, fiscal year. Every aircraft subject tothe provisions of sections
360.511
3.30to360.67 which that has at any time since April 19, 1945, used the air space overlying the
3.31state of Minnesota orthe its airports thereof shall be taxed for the period from January 1,
3.321966, through June 30, 1967, and for each fiscal year thereafter in which it is so used. Any
3.33aircraftwhich that does not use the air space overlying the state of Minnesota or the its
3.34airportsthereof at any time during the period of January 1, 1966, to and including June
3.3530, 1967, or at any time during any fiscal year thereafter shall not be subject to the tax
3.36provided by sections360.511 to
360.67 for such that period. Rebuilt aircraft shall be
4.1subject to the tax provided by sections360.511 to
360.67 for that portion of the aforesaid
4.2periods remaining after the aircraft has been rebuilt, prorated on a monthly basis.
4.3 Sec. 9. Minnesota Statutes 2010, section 360.531, is amended by adding a subdivision
4.4to read:
4.5 Subd. 8a. Turbine-powered business and general aviation. A resident of this state
4.6and an entity based in this state who owns turbine-powered business aircraft or general
4.7aviation aircraft shall pay a filing fee of $25 to the commissioner and file an affidavit
4.8with the commissioner that states:
4.9(1) the name and address of the owner;
4.10(2) the name and address of the person or entity from whom the aircraft was
4.11purchased; and
4.12(3) the aircraft's make, year, model number, federal aircraft registration number,
4.13and manufacturer's identification number.
4.14 Sec. 10. Minnesota Statutes 2010, section 360.531, subdivision 9, is amended to read:
4.15 Subd. 9. Assessed as personal property in certain cases. Aircraft subject to
4.16taxation under the provisions of sections360.54 to
360.67 shall not be assessed as personal
4.17property and shall be subject to no tax except as provided for by these sections. Aircraft
4.18not subject to taxation as provided in these sections, but subject to taxation as personal
4.19property within the state of Minnesota shall be assessed and valued at 33-1/3 percent of
4.20the market value thereof and taxed at the rate and in the manner provided by law for the
4.21taxation of ordinary personal property. If the person against whom any tax has been levied
4.22on the ad valorem basis because of any aircraft shall, during the calendar year for which
4.23such ad valorem tax is levied, be also taxed under provisions of these sections, then and in
4.24that event, upon proper showing, the commissioner of revenue shall grant to the person
4.25against whom said ad valorem tax was levied, such reduction or abatement of net tax
4.26capacity or taxes as was occasioned by the so-called ad valorem tax imposed. If the ad
4.27valorem tax upon any aircraft has been assessed against a dealer in new and used aircraft,
4.28and the tax imposed by these sections for the required period is thereafter paid by the
4.29owner, then and in that event, upon proper showing, the commissioner of revenue, upon
4.30the application of said dealer, shall grant to such dealer against whom said ad valorem tax
4.31was levied such reduction or abatement of net tax capacity or taxes as was occasioned
4.32by the so-called ad valorem tax imposed. Aircraft engaged in air commerce, within the
4.33meaning of section 360.511, subdivision 4, is subject to taxation under this subdivision.
5.1 Sec. 11. Minnesota Statutes 2010, section 360.57, is amended to read:
5.2360.57 FILING SWORN STATEMENT BY MANUFACTURER.
5.3Every manufacturer of an aircraft sold or offered for sale within this state, either by
5.4the manufacturer, distributor, dealer, or any other person, shall, on or before the first day in
5.5August of each year, file in the office of the commissioner a sworn statement showing
5.6the various models manufactured by the manufacturer and theretail list price maximum
5.7takeoff weight of each model being manufactured August 1 of that year, and shall also
5.8file with the commissioner, in such form as manufacturers usually use for advertising,
5.9complete specifications of the construction of each model that has been manufactured by
5.10the manufacturer. Upon each change insuch price the maximum takeoff weight and upon
5.11the manufacture of each new model thereafter such manufacturer shall in like manner file
5.12a new statement setting forth such change.
5.13 Sec. 12. REPEALER.
5.14Minnesota Statutes 2010, section 360.531, subdivisions 3, 4, and 6, are repealed.
5.15 Sec. 13. EFFECTIVE DATE.
5.16This act is effective July 1, 2011.
1.3gasoline; basing aircraft property tax on maximum takeoff weight; removing
1.4obsolete language and making clarifying changes;amending Minnesota Statutes
1.52010, sections 296A.09, subdivisions 2, 6; 296A.17, subdivisions 1, 3; 360.511,
1.6by adding a subdivision; 360.531, subdivisions 1, 2, 8, 9, by adding a subdivision;
1.7360.57; repealing Minnesota Statutes 2010, section 360.531, subdivisions 3, 4, 6.
1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.9 Section 1. Minnesota Statutes 2010, section 296A.09, subdivision 2, is amended to
1.10read:
1.11 Subd. 2. Special fuel tax imposed. There is imposed an excise tax of
1.12ten cents per gallon
1.13stored, or withdrawn from storage in this state, for use as substitutes for aviation gasoline
1.14and not otherwise taxed as gasoline. Jet fuel is defined in section
1.15 Sec. 2. Minnesota Statutes 2010, section 296A.09, subdivision 6, is amended to read:
1.16 Subd. 6. Exemptions. The provisions of subdivisions 1 and 2 do not apply to
1.17aviation gasoline or jet fuel purchased by an ambulance service licensed under chapter
1.18144E, or to commercial aerial applicators licensed under chapter 18B.
1.19 Sec. 3. Minnesota Statutes 2010, section 296A.17, subdivision 1, is amended to read:
1.20 Subdivision 1. Aviation refund requirements. Any person claiming to be entitled
1.21to any refund or credit provided for in subdivision 3 shall receive the refund or credit
1.22upon filing with the commissioner a claim in such form and manner prescribed by the
1.23commissioner. The claim shall set forth, among other things, the total number of gallons
2.1of aviation gasoline
2.2or indirectly paid the excise tax provided for in this chapter, during the calendar year,
2.3which has been received, stored, or withdrawn from storage by the claimant in this
2.4state and not sold or otherwise disposed of to others. All claims for refunds under this
2.5subdivision shall be made on or before April 30 following the end of the calendar year
2.6for which the refund is claimed.
2.7 Sec. 4. Minnesota Statutes 2010, section 296A.17, subdivision 3, is amended to read:
2.8 Subd. 3. Refund on graduated basis. Any person who has directly or indirectly
2.9paid the excise tax on aviation gasoline
2.10by this chapter, shall, as to all such aviation gasoline
2.11or withdrawn from storage by the person in this state in any calendar year and not sold
2.12or otherwise disposed of to others, or intended for sale or other disposition to others, on
2.13which such tax has been so paid, be entitled to the following graduated reductions in such
2.14tax for that calendar year, to be obtained by means of the following refunds:
2.15(1) on each gallon of such aviation gasoline
2.16but five cents per gallon;
2.17(2) on each gallon of such aviation gasoline
2.18not more than 150,000 gallons, all but two cents per gallon;
2.19(3) on each gallon of such aviation gasoline
2.20and not more than 200,000 gallons, all but one cent per gallon;
2.21(4) on each gallon of such aviation gasoline
2.22one-half cent per gallon.
2.23 Sec. 5. Minnesota Statutes 2010, section 360.511, is amended by adding a subdivision
2.24to read:
2.25 Subd. 24a. Maximum takeoff weight. "Maximum takeoff weight" means the
2.26maximum weight authorized for takeoff of a particular aircraft.
2.27 Sec. 6. Minnesota Statutes 2010, section 360.531, subdivision 1, is amended to read:
2.28 Subdivision 1. In lieu tax. All aircraft using the air space overlying the state of
2.29Minnesota or the airports thereof, except as set forth in section
2.30in lieu of all other taxes thereon, on the basis
2.31
2.32except as otherwise provided in this section for registration periods beginning on and
2.33after July 1, 2011.
3.1 Sec. 7. Minnesota Statutes 2010, section 360.531, subdivision 2, is amended to read:
3.2 Subd. 2. Rate. The tax shall be
3.3
3.4
3.5
3.6June 30, 2012:
3.15For registration periods beginning on and after July 1, 2012, and in each fiscal
3.16year after:
3.25For an aircraft for which aircraft registration tax was due and paid between July 1,
3.262010, and June 30, 2011, the amount of the tax each year is the lesser of the amount paid
3.27between July 1, 2010, and June 30, 2011, or the tax computed under this subdivision.
3.28 Sec. 8. Minnesota Statutes 2010, section 360.531, subdivision 8, is amended to read:
3.29 Subd. 8. Tax, fiscal year. Every aircraft subject to
3.30to
3.31state of Minnesota or
3.32
3.33aircraft
3.34airports
3.35
3.36provided by sections
4.1subject to the tax provided by sections
4.2periods remaining after the aircraft has been rebuilt, prorated on a monthly basis.
4.3 Sec. 9. Minnesota Statutes 2010, section 360.531, is amended by adding a subdivision
4.4to read:
4.5 Subd. 8a. Turbine-powered business and general aviation. A resident of this state
4.6and an entity based in this state who owns turbine-powered business aircraft or general
4.7aviation aircraft shall pay a filing fee of $25 to the commissioner and file an affidavit
4.8with the commissioner that states:
4.9(1) the name and address of the owner;
4.10(2) the name and address of the person or entity from whom the aircraft was
4.11purchased; and
4.12(3) the aircraft's make, year, model number, federal aircraft registration number,
4.13and manufacturer's identification number.
4.14 Sec. 10. Minnesota Statutes 2010, section 360.531, subdivision 9, is amended to read:
4.15 Subd. 9. Assessed as personal property in certain cases. Aircraft subject to
4.16taxation under the provisions of sections
4.17property and shall be subject to no tax except as provided for by these sections. Aircraft
4.18not subject to taxation as provided in these sections, but subject to taxation as personal
4.19property within the state of Minnesota shall be assessed and valued at 33-1/3 percent of
4.20the market value thereof and taxed at the rate and in the manner provided by law for the
4.21taxation of ordinary personal property. If the person against whom any tax has been levied
4.22on the ad valorem basis because of any aircraft shall, during the calendar year for which
4.23such ad valorem tax is levied, be also taxed under provisions of these sections, then and in
4.24that event, upon proper showing, the commissioner of revenue shall grant to the person
4.25against whom said ad valorem tax was levied, such reduction or abatement of net tax
4.26capacity or taxes as was occasioned by the so-called ad valorem tax imposed. If the ad
4.27valorem tax upon any aircraft has been assessed against a dealer in new and used aircraft,
4.28and the tax imposed by these sections for the required period is thereafter paid by the
4.29owner, then and in that event, upon proper showing, the commissioner of revenue, upon
4.30the application of said dealer, shall grant to such dealer against whom said ad valorem tax
4.31was levied such reduction or abatement of net tax capacity or taxes as was occasioned
4.32by the so-called ad valorem tax imposed. Aircraft engaged in air commerce, within the
4.33meaning of section 360.511, subdivision 4, is subject to taxation under this subdivision.
5.1 Sec. 11. Minnesota Statutes 2010, section 360.57, is amended to read:
5.2360.57 FILING SWORN STATEMENT BY MANUFACTURER.
5.3Every manufacturer of an aircraft sold or offered for sale within this state, either by
5.4the manufacturer, distributor, dealer, or any other person, shall, on or before the first day in
5.5August of each year, file in the office of the commissioner a sworn statement showing
5.6the various models manufactured by the manufacturer and the
5.7takeoff weight of each model being manufactured August 1 of that year, and shall also
5.8file with the commissioner, in such form as manufacturers usually use for advertising,
5.9complete specifications of the construction of each model that has been manufactured by
5.10the manufacturer. Upon each change in
5.11the manufacture of each new model thereafter such manufacturer shall in like manner file
5.12a new statement setting forth such change.
5.13 Sec. 12. REPEALER.
5.14Minnesota Statutes 2010, section 360.531, subdivisions 3, 4, and 6, are repealed.
5.15 Sec. 13. EFFECTIVE DATE.
5.16This act is effective July 1, 2011.
