Minnesota Statutes 168D.04 – Taxing Authority
Subdivision 1.Agreement terms.
(a) Under the provisions of an agreement entered into according to section 168D.02, each member shall retain its sovereign authority to determine tax rates and exemptions and to exercise other substantive tax authority.
Terms Used In Minnesota Statutes 168D.04
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Jurisdiction: means a state of the United States, the District of Columbia, a province or territory of Canada, and any other member jurisdiction of the International Fuel Tax Agreement (IFTA) compact as approved by Congress in the Intermodal Surface Transportation Efficiency Act (ISTEA), Public Law 102-240. See Minnesota Statutes 168D.01
- Motor carrier: means an individual, corporation, partnership, association, trust, or other entity, however organized, operating one or more qualified motor vehicles as a part of its interstate business operations. See Minnesota Statutes 168D.01
- Motor fuel: means an agent, regardless of its composition or properties, used to propel a qualified motor vehicle. See Minnesota Statutes 168D.01
- state: extends to and includes the District of Columbia and the several territories. See Minnesota Statutes 645.44
- Tax: means any fee, charge, exaction, or assessment imposed by a governmental entity on an individual, person, entity, transaction, good, service, or other thing. See Minnesota Statutes 645.44
(b) In accordance with federal and state law, the agreement must provide for:
(1) determining the base jurisdiction for users;
(2) users’ records requirements;
(3) audit procedures;
(4) exchanging information;
(5) eligibility of persons for tax licensing;
(6) defining qualified motor vehicles;
(7) determining if bonding is required;
(8) specifying reporting requirements and periods, including defining uniform penalty and interest rates for late reporting;
(9) determining methods for collecting and forwarding motor fuel taxes and penalties to another jurisdiction;
(10) display of identification indicating compliance with the agreement; and
(11) other provisions to facilitate the administration of the agreement.
(c) Each jurisdiction shall audit the records of persons based in the jurisdiction to determine if the motor fuel taxes due each jurisdiction are properly reported and paid.
Subd. 2.Fuel 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 Minnesota. The tax rate is imposed at the rate and conditions specified in chapter 296A.
(b) The amount of motor fuel consumed in the operations of a motor carrier on highways within Minnesota is determined by dividing the miles traveled within Minnesota by the average miles per gallon.
(c) The average miles per gallon for a motor carrier’s qualified motor vehicles is determined by dividing the total miles traveled by the total motor fuel consumed.