1.1.................... moves to amend H.F. No. 811 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2012, section 296A.09, subdivision 2, is amended to
1.4read:
1.5    Subd. 2. Jet fuel and special fuel tax imposed. There is imposed an excise tax
1.6of the same rate 15 cents per gallon as the aviation gasoline on all jet fuel or special
1.7fuel received, sold, stored, or withdrawn from storage in this state, for use as substitutes
1.8for aviation gasoline and not otherwise taxed as gasoline. Jet fuel is defined in section
1.9296A.01, subdivision 8 .

1.10    Sec. 2. Minnesota Statutes 2012, section 296A.09, is amended by adding a subdivision
1.11to read:
1.12    Subd. 3a. Excise tax for certain airline companies. Subdivision 2 does not apply
1.13to jet fuel or special fuel purchased by an airline company that is engaged in air commerce
1.14in this state and is required to pay air flight property tax under section 270.072. An excise
1.15tax of five cents per gallon is imposed on fuel that is described in this subdivision.

1.16    Sec. 3. Minnesota Statutes 2012, section 296A.17, subdivision 3, is amended to read:
1.17    Subd. 3. Refund on graduated basis. Except as provided in subdivision 3a, any
1.18person who has directly or indirectly paid the excise tax on aviation gasoline or special
1.19fuel for aircraft use provided for by this chapter, shall, as to all such aviation gasoline
1.20and special fuel received, stored, or withdrawn from storage by the person in this state
1.21in any calendar year and not sold or otherwise disposed of to others, or intended for
1.22sale or other disposition to others, on which such tax has been so paid, be entitled to
1.23the following graduated reductions in such tax for that calendar year, to be obtained by
1.24means of the following refunds:
2.1(1) on each gallon of such aviation gasoline or special fuel up to 50,000 gallons, all
2.2but five cents per gallon;
2.3(2) on each gallon of such aviation gasoline or special fuel above 50,000 gallons and
2.4not more than 150,000 gallons, all but two cents per gallon;
2.5(3) on each gallon of such aviation gasoline or special fuel above 150,000 gallons
2.6and not more than 200,000 gallons, all but one cent per gallon;
2.7(4) on each gallon of such aviation gasoline or special fuel above 200,000, all but
2.8one-half cent per gallon.

2.9    Sec. 4. Minnesota Statutes 2012, section 296A.17, is amended by adding a subdivision
2.10to read:
2.11    Subd. 3a. Nonrefundable excise tax. Any person who has directly or indirectly
2.12paid the jet fuel or special fuel tax imposed under section 296A.09, subdivision 2, is not
2.13entitled to a tax refund under subdivision 3.

2.14    Sec. 5. Minnesota Statutes 2012, section 297A.82, subdivision 4, is amended to read:
2.15    Subd. 4. Exemptions. (a) The following transactions are exempt from the tax
2.16imposed in this chapter to the extent provided.
2.17(b) The purchase or use of aircraft previously registered in Minnesota by a
2.18corporation or partnership is exempt if the transfer constitutes a transfer within the
2.19meaning of section 351 or 721 of the Internal Revenue Code.
2.20(c) The sale to or purchase, storage, use, or consumption by a licensed aircraft dealer
2.21of an aircraft for which a commercial use permit has been issued pursuant to section
2.22360.654 is exempt, if the aircraft is resold while the permit is in effect.
2.23(d) Air flight equipment when sold to, or purchased, stored, used, or consumed by
2.24airline companies, as defined in section 270.071, subdivision 4, is exempt. For purposes
2.25of this subdivision, "air flight equipment" includes airplanes and parts necessary for the
2.26repair and maintenance of such air flight equipment, and flight simulators, but does
2.27not include airplanes with a gross weight of less than 30,000 pounds that are used on
2.28intermittent or irregularly timed flights.
2.29(e) Sales of, and the storage, distribution, use, or consumption of aircraft, as defined
2.30in section 360.511 and approved by the Federal Aviation Administration, and which the
2.31seller delivers to a purchaser outside Minnesota or which, without intermediate use, is
2.32shipped or transported outside Minnesota by the purchaser are exempt, but only if the
2.33purchaser is not a resident of Minnesota and provided that the aircraft is not thereafter
2.34returned to a point within Minnesota, except in the course of interstate commerce or
3.1isolated and occasional use, and will be registered in another state or country upon its
3.2removal from Minnesota. This exemption applies even if the purchaser takes possession of
3.3the aircraft in Minnesota and uses the aircraft in the state exclusively for training purposes
3.4for a period not to exceed ten days prior to removing the aircraft from this state.
3.5(f) The sale or purchase of the following items that relate to aircraft operated under
3.6Federal Aviation Regulations, Parts 91 and 135, and associated installation charges:
3.7airflight equipment; parts necessary for repair and maintenance of aircraft; and equipment
3.8and parts to upgrade and improve aircraft.

3.9    Sec. 6. Minnesota Statutes 2012, section 297A.82, is amended by adding a subdivision
3.10to read:
3.11    Subd. 4a. Deposit in state airports fund. Tax revenue collected from the sale or
3.12purchase of an aircraft taxable under this chapter must be deposited in the state airports
3.13fund, established in section 360.017.

3.14    Sec. 7. Minnesota Statutes 2012, section 360.531, subdivision 2, is amended to read:
3.15    Subd. 2. Rate. The tax shall be at the rate of one percent of value; provided that
3.16the minimum tax on an aircraft subject to the provisions of sections 360.511 to 360.67
3.17 shall not be less than 25 percent of the tax on said aircraft computed on its base price or
3.18$50 whichever is the higher. as follows:
3.19
 Base Price
 Tax
3.20
 $499,999 and under
 $100
3.21
 $500,000 to $999,999
 $200
3.22
 $1,000,000 to $2,499,999
 $2,000
3.23
 $2,500,000 to $4,999,999
 $4,000
3.24
 $5,000,000 to $7,499,999
 $7,500
3.25
 $7,500,000 to $9,999,999
 $10,000
3.26
 $10,000,000 to $12,499,999
 $12,500
3.27
 $12,500,000 to $14,999,999
 $15,000
3.28
 $15,000,000 to $17,499,999
 $17,500
3.29
 $17,500,000 to $19,999,999
 $20,000
3.30
 $20,000,000 to $22,499,999
 $22,500
3.31
 $22,500,000 to $24,999,999
 $25,000
3.32
 $25,000,000 to $27,499,999
 $27,500
3.33
 $27,500,000 to $29,999,999
 $30,000
3.34
 $30,000,000 to $39,999,999
 $50,000
3.35
 $40,000,000 and over
 $75,000

3.36    Sec. 8. Minnesota Statutes 2012, section 360.531, subdivision 4, is amended to read:
4.1    Subd. 4. Base price for taxation. For the purpose of fixing a base price for taxation
4.2from which depreciation in value at a fixed percent per annum can be counted, such, the
4.3base price is defined as follows:
4.4(a) The base price for taxation of an aircraft shall be the manufacturer's list price.
4.5(b) The commissioner shall have authority to fix the base value for taxation purposes
4.6of any aircraft of which no such similar or corresponding model has been manufactured,
4.7and of any rebuilt or foreign aircraft, any aircraft on which a record of the list price is not
4.8available, or any military aircraft converted for civilian use, using as a basis for such
4.9 valuation the list price of aircraft with comparable performance characteristics, and taking
4.10into consideration the age and condition of the aircraft.

4.11    Sec. 9. Minnesota Statutes 2012, section 360.66, is amended to read:
4.12360.66 STATE AIRPORTS FUND.
4.13    Subdivision 1. Tax credited to fund. The proceeds of the tax imposed on aircraft
4.14under sections 360.54 360.531 to 360.67 and all fees and penalties provided for therein
4.15shall be collected by the commissioner and paid into the state treasury and credited to the
4.16state airports fund created by other statutes of this state.
4.17    Subd. 2. Reimbursement for expenses. There shall be transferred by the
4.18commissioner of management and budget each year from the state airports fund to the
4.19general fund in the state treasury the amount expended from the latter fund for expenses of
4.20administering the provisions of sections 360.54 360.531 to 360.67.

4.21    Sec. 10. REPORT.
4.22On or before June 30, 2016, and every four years thereafter, the commissioner of
4.23transportation, in consultation with the commissioner of revenue, shall prepare and submit
4.24to the chairs and ranking minority members of the senate and house of representatives
4.25committees with jurisdiction over transportation policy and budget, a report that identifies
4.26the amount and sources of annual revenues attributable to each type of aviation tax, along
4.27with annual expenditures from the state airports fund, and any other transfers out of the
4.28fund, during the previous four years. The report must include draft legislation for any
4.29recommended statutory changes to ensure the future adequacy of the state airports fund.

4.30    Sec. 11. EFFECTIVE DATE.
4.31Sections 1 to 4 are effective July 1, 2014, and apply to sales and purchases made
4.32on and after that date. Sections 5 and 6 are effective July 1, 2013, and apply to sales and
5.1purchases made on and after that date. Sections 7 to 9 are effective July 1, 2014, and apply
5.2to aircraft tax due on and after that date. Section 10 is effective July 1, 2013."
5.3Amend the title accordingly