SF 438

3rd Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to natural resources; regulating gross vehicle weights and axle weights
of vehicles and combinations of vehicles; amending allowable weight limits
on certain routes; modifying restrictions on vehicles hauling unfinished
forest products; modifying timber sales on tax-forfeited lands; modifying
apportionment of net income; amending permit fees and requirements;
authorizing permits for certain vehicles and combinations of vehicles; making
technical changes; defining wood products industry; modifying certain tax
exemptions; amending Minnesota Statutes 2006, sections 169.824, subdivisions
1, 2; 169.826, subdivisions 1a, 1b; 169.8261; 169.828, subdivision 2; 169.86,
subdivisions 1a, 5; 282.04, subdivision 1; 290.191, subdivision 2; 297A.68,
subdivision 5; 297A.69, subdivision 3; proposing coding for new law in
Minnesota Statutes, chapter 169.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2006, section 169.824, subdivision 1, is amended to read:

Subdivision 1.

deleted text begin Table of deleted text end Axle weight limits new text begin table new text end .

(a) No vehicle or combination of
vehicles equipped with pneumatic tires shall be operated upon the highways of this state
where the total gross weight on any group of two or more consecutive axles of any vehicle
or combination of vehicles exceeds that given in the following new text begin axle weight limits new text end table for
the distance between the centers of the first and last axles of any group of two or more
consecutive axles under consideration deleted text begin ; deleted text end new text begin . new text end Unless otherwise noted, the distance between
axles deleted text begin being deleted text end new text begin is new text end measured longitudinally to the nearest even foot, and when the measurement
is a fraction of exactly one-half foot the next largest whole number in feet shall be used,
except that when the distance between axles is more than three feet four inches and less
than three feet six inches the distance of four feet shall be used deleted text begin : deleted text end new text begin .
new text end

new text begin Axle Weight Limits Table new text end
	Maximum gross weight in pounds on a group of
	2	3	4
Distances in feet between centers of foremost and rearmost axles of a group	consecutive axles of a 2-axle vehicle or of any vehicle or combination of vehicles having a total of 2 or more axles	consecutive axles of a 3-axle vehicle or of any vehicle or combination of vehicles having a total of 3 or more axles	consecutive axles of a 4-axle vehicle or any combination of vehicles having a total of 4 or more axles
4	34,000
5	34,000
6	34,000
7	34,000	37,000
8	34,000	38,500
8 plus	34,000	42,000
	(38,000)
9	35,000	43,000
	(39,000)
10	36,000	43,500	49,000
	(40,000)
11	36,000	44,500	49,500
12		45,000	50,000
13		46,000	51,000
14		46,500	51,500
15		47,500	52,000
16		48,000	53,000
17		49,000	53,500
18		49,500	54,000
19		50,500	55,000
20		51,000	55,500
21		52,000	56,000
22		52,500	57,000
23		53,500	57,500
24		54,000	58,000
25		(55,000)	59,000
26		(55,500)	59,500
27		(56,500)	60,000
28		(57,000)	61,000
29		(58,000)	61,500
30		(58,500)	62,000
31		(59,500)	63,000
32		(60,000)	63,500
33			64,000
34			65,000
35			65,500
36			66,000
37			67,000
38			67,500
39			68,000
40			69,000
41			69,500
42			70,000
43			71,000
44			71,500
45			72,000
46			72,500
47			(73,500)
48			(74,000)
49			(74,500)
50			(75,500)
51			(76,000)

deleted text begin The maximum gross weight on a group of three consecutive axles where the distance
between centers of foremost and rearmost axles is listed as seven feet or eight feet applies
only to vehicles manufactured before August 1, 1991.
deleted text end

deleted text begin "8 plus" refers to any distance greater than eight feet but less than nine feet.
deleted text end

new text begin Axle Weight Limits Table (continued) new text end
	Maximum gross weight in pounds on a group of
	5	6	7
Distances in feet between centers of foremost and rearmost axles of a group	consecutive axles of a 5-axle vehicle or any combination of vehicles having a total of 5 or more axles	consecutive axles of a combination of vehicles having a total of 6 or more axles	consecutive axles of a combination of vehicles having a total of 7 or more axles
14	57,000
15	57,500
16	58,000
17	59,000
18	59,500
19	60,000
20	60,500	66,000	72,000
21	61,500	67,000	72,500
22	62,000	67,500	73,000
23	62,500	68,000	73,500
24	63,000	68,500	74,000
25	64,000	69,000	75,000
26	64,500	70,000	75,500
27	65,000	70,500	76,000
28	65,500	71,000	76,500
29	66,500	71,500	77,000
30	67,000	72,000	77,500
31	67,500	73,000	78,500
32	68,000	73,500	79,000
33	69,000	74,000	79,500
34	69,500	74,500	80,000
35	70,000	75,000	new text begin [80,500] new text end
36	70,500	76,000	new text begin [81,000] new text end
37	71,500	76,500	new text begin [81,500] new text end
38	72,000	77,000	new text begin [82,000] new text end
39	72,500	77,500	new text begin [82,500] new text end
40	deleted text begin 73,000 deleted text end new text begin 73,280 new text end	78,000	new text begin [83,500] new text end
41	(74,000)	79,000	new text begin [84,000] new text end
42	(74,500)	79,500	new text begin [84,500] new text end
43	(75,000)	80,000	new text begin [85,000] new text end
44	(75,500)	new text begin [80,500] new text end	new text begin [85,500] new text end
45	(76,500)	new text begin [81,000] new text end	new text begin [86,000] new text end
46	(77,000)	new text begin [81,500] new text end	new text begin [87,000] new text end
47	(77,500)	new text begin [82,000] new text end	new text begin [87,500] new text end
48	(78,000)	new text begin [83,000] new text end	new text begin [88,000] new text end
49	(79,000)	new text begin [83,500] new text end	new text begin [88,500] new text end
50	(79,500)	new text begin [84,000] new text end	new text begin [89,000] new text end
51	(80,000)	new text begin [84,500] new text end	new text begin [89,500] new text end
new text begin 52 new text end		new text begin [85,000] new text end	new text begin [90,500] new text end
new text begin 53 new text end		new text begin [86,000] new text end	new text begin [91,000] new text end
new text begin 54 new text end		new text begin [86,500] new text end	new text begin [91,500] new text end
new text begin 55 new text end		new text begin [87,000] new text end	new text begin [92,000] new text end
new text begin 56 new text end		new text begin [87,500] new text end	new text begin [92,500] new text end
new text begin 57 new text end		new text begin [88,000] new text end	new text begin [93,000] new text end
new text begin 58 new text end		new text begin [89,000] new text end	new text begin [94,000] new text end
new text begin 59 new text end		new text begin [89,500] new text end	new text begin [94,500] new text end
new text begin 60 new text end		new text begin [90,000] new text end	new text begin [95,000] new text end
new text begin 61 new text end			new text begin [95,500] new text end
new text begin 62 new text end			new text begin [96,000] new text end
new text begin 63 new text end			new text begin [97,000] new text end

new text begin (b) The maximum gross weight on a group of three consecutive axles where the
distance between centers of foremost and rearmost axles is listed as seven feet or eight
feet applies only to vehicles manufactured before August 1, 1991. "8 plus" means any
distance greater than eight feet but less than nine feet.
new text end

new text begin (c) new text end The gross weights shown in parentheses in deleted text begin this deleted text end new text begin the axle weight limits new text end table
are permitted only on deleted text begin state deleted text end new text begin (i) new text end trunk highways deleted text begin and deleted text end new text begin , (ii) new text end routes designated under section
169.832, subdivision 11 new text begin , and (iii) routes designated as having a maximum weight limit of
at least nine tons per axle new text end .

new text begin (d) The gross weights shown in brackets in the axle weight limits table are permitted
only for a vehicle or combination of vehicles for which a permit has been issued under
section 169.863 or 169.865.
new text end

deleted text begin (b) deleted text end new text begin (e) new text end Notwithstanding any lesser weight in pounds shown in deleted text begin this deleted text end new text begin the axle weight
limits new text end table but subject to the restrictions on gross vehicle weights in subdivision 2,
paragraph (a), two consecutive sets of tandem axles may carry a gross load of 34,000
pounds each and a combined gross load of 68,000 pounds provided the overall distance
between the first and last axles of the consecutive sets of tandem axles is 36 feet or more.

Sec. 2.

Minnesota Statutes 2006, section 169.824, subdivision 2, is amended to read:

Subd. 2.

Gross vehicle weight of all axles.

deleted text begin (a) deleted text end Notwithstanding the provisions
of section 169.85, the gross vehicle weight of all axles of a vehicle or combination of
vehicles deleted text begin shall deleted text end new text begin must new text end not exceed:

(1) 80,000 pounds for any vehicle or combination of vehicles on all deleted text begin state deleted text end new text begin (i) new text end trunk
highways as defined in section 160.02, subdivision 29, deleted text begin and for all deleted text end new text begin (ii) new text end routes designated
under section 169.832, subdivision 11 new text begin , and (iii) routes designated as having a maximum
weight limit of at least nine tons per axle new text end ;

(2) 88,000 pounds for any vehicle or combination of vehicles with six or more
axles while exclusively engaged in hauling livestock on all state trunk highways other
than interstate highways, if the vehicle has a permit under section 169.86, subdivision 5,
paragraph (k); new text begin and
new text end

(3) 73,280 pounds for any vehicle or combination of vehicles with five axles or less
on all routes, other than deleted text begin state trunk highways and routes that are designated under section
169.832, subdivision 11, except that a vehicle needing reasonable access to a terminal or
facilities for food, fuel, repairs, and rest, located within three miles of a ten-ton route, may
not exceed 80,000 pounds. "Terminal" means any location where freight either originates,
terminates, or is handled in the transportation process, or where commercial motor carriers
maintain operating facilities; and
deleted text end

deleted text begin (4) 80,000 pounds for any vehicle or combination of vehicles with six or more
axles on all routes, other than state trunk highways and routes that are designated under
section 169.832, subdivision 11.
deleted text end

deleted text begin (b) The maximum weights specified in this section for five consecutive axles shall
not apply to a four-axle ready-mix concrete truck which was equipped with a fifth axle
prior to June 1, 1981. The maximum gross weight on four or fewer consecutive axles of
vehicles excepted by this clause shall not exceed any maximum weight specified for four
or fewer consecutive axles in this section deleted text end new text begin routes identified in clause (1) new text end .

Sec. 3.

Minnesota Statutes 2006, section 169.826, subdivision 1a, is amended to read:

Subd. 1a.

Harvest season increase amount.

The limitations provided in sections
169.822 to 169.829 are increased by ten percent from deleted text begin the beginning of harvest deleted text end new text begin July 1 new text end to
November 30 each year for the movement of deleted text begin sugar beets, carrots, and potatoes deleted text end new text begin agricultural
crops new text end from the field of harvest to the point of the first unloading. Transfer of the product
from a farm vehicle or small farm trailer, within the meaning of chapter 168, to another
vehicle is not considered to be the first unloading. The commissioner shall not deleted text begin issue
permits deleted text end new text begin take any action new text end under this subdivision if to do so will result in a loss of federal
highway funding to the state.

Sec. 4.

Minnesota Statutes 2006, section 169.826, subdivision 1b, is amended to read:

Subd. 1b.

Nine-ton county roads.

Despite the provisions of subdivision 5 and
sections 169.824, subdivision 2, deleted text begin paragraph (a), deleted text end clause (2), and 169.832, subdivision 11, a
vehicle or combination of vehicles with a gross vehicle weight up to 88,000 pounds may
be operated on a nine-ton county road, consistent with the increases allowed for vehicles
operating on a ten-ton road, during the time when the increases under subdivision 1 are in
effect in that zone.

Sec. 5.

Minnesota Statutes 2006, section 169.8261, is amended to read:

169.8261 GROSS WEIGHT LIMITATIONS; FOREST PRODUCTS.

(a) A vehicle or combination of vehicles hauling raw or unfinished forest products,
including wood chips, new text begin paper, pulp, oriented strandboard, laminated strand lumber,
hardboard, treated lumber, untreated lumber, or barrel staves, new text end by the most direct route to the
nearest highway that has been designated under section 169.832, subdivision 11, may be
operated on any highway with gross weights permitted under sections 169.822 to 169.829
without regard to load restrictions imposed on that highway, except that the vehicles must:

(1) comply with seasonal load restrictions in effect between the dates set by the
commissioner under section 169.87, subdivision 2;

(2) comply with bridge load limits posted under section 169.84;

(3) be equipped and operated with six axles and brakes new text begin on all wheels new text end ;

(4) not exceed 90,000 pounds gross weight, or deleted text begin 98,000 deleted text end new text begin 99,000 new text end pounds gross weight
during the time when seasonal increases are authorized under section 169.826;

(5) not be operated on interstate and defense highways;

(6) obtain an annual permit from the commissioner of transportation;

(7) obey all road postings; and

(8) not exceed 20,000 pounds gross weight on any single axle.

(b) A vehicle operated under this section may exceed the legal axle weight limits
listed in section 169.824 by not more than 12.5 percent; except that, the weight limits may
be exceeded by not more than 22.5 percent during the time when seasonal increases are
authorized under section 169.826, subdivision 1.

Sec. 6.

Minnesota Statutes 2006, section 169.828, subdivision 2, is amended to read:

Subd. 2.

Variable load axle.

A vehicle or combination of vehicles equipped with
one or more variable load axles shall have the pressure control preset so that the weight
carried on the variable load axle may not be varied by the operator during transport of
any load. The actuating control for the axle shall function only as an on-and-off switch new text begin ,
and must be located outside of the passenger compartment of the vehicle new text end . The provisions
of this subdivision do not apply to any farm truck registered prior to July 1, 1981, under
section 168.013, subdivision 1c, for 57,000 pounds or less. This subdivision does not
apply to rear-loading refuse-compactor vehicles, except that any refuse-compactor vehicle
having a tridem rear axle must comply with this subdivision before being issued a special
permit under section 169.86, subdivision 5, paragraph (h).

Sec. 7.

Minnesota Statutes 2006, section 169.86, subdivision 1a, is amended to read:

Subd. 1a.

Seasonal permits for certain haulers.

The commissioner of
transportation, upon application in writing therefor, may issue special permits annually
to any hauler authorizing the hauler to move vehicles or combinations of vehicles with
weights exceeding by not more than ten percent the weight limitations contained in
sections 169.822 to 169.829, on interstate highways during the times and within the zones
specified deleted text begin in sections 169.822 to 169.829 deleted text end new text begin by the commissioner for winter weight increases
under section 169.826, subdivision 1 new text end .

Sec. 8.

Minnesota Statutes 2006, section 169.86, subdivision 5, is amended to read:

Subd. 5.

Fee; proceeds deposited; appropriation.

The commissioner, with respect
to highways under the commissioner's jurisdiction, may charge a fee for each permit
issued. All such fees for permits issued by the commissioner of transportation shall be
deposited in the state treasury and credited to the trunk highway fund. Except for those
annual permits for which the permit fees are specified elsewhere in this chapter, the fees
shall be:

(a) $15 for each single trip permit.

(b) $36 for each job permit. A job permit may be issued for like loads carried on
a specific route for a period not to exceed two months. "Like loads" means loads of the
same product, weight, and dimension.

(c) $60 for an annual permit to be issued for a period not to exceed 12 consecutive
months. Annual permits may be issued for:

(1) motor vehicles used to alleviate a temporary crisis adversely affecting the safety
or well-being of the public;

(2) motor vehicles which travel on interstate highways and carry loads authorized
under subdivision 1a;

(3) deleted text begin motor vehicles operating with gross weights authorized under section 169.826,
subdivision 1a;
deleted text end

deleted text begin (4) deleted text end special pulpwood vehicles described in section 169.863;

deleted text begin (5) deleted text end new text begin (4) new text end motor vehicles bearing snowplow blades not exceeding ten feet in width; and

deleted text begin (6) deleted text end new text begin (5) new text end noncommercial transportation of a boat by the owner or user of the boat.

(d) $120 for an oversize annual permit to be issued for a period not to exceed 12
consecutive months. Annual permits may be issued for:

(1) mobile cranes;

(2) construction equipment, machinery, and supplies;

(3) manufactured homes and manufactured storage buildings;

(4) implements of husbandry when the movement is not made according to the
provisions of paragraph (i);

(5) double-deck buses;

(6) commercial boat hauling; and

(7) three-vehicle combinations consisting of two empty, newly manufactured trailers
for cargo, horses, or livestock, not to exceed 28-1/2 feet per trailer; provided, however,
the permit allows the vehicles to be moved from a trailer manufacturer to a trailer dealer
only while operating on twin-trailer routes designated under section 169.81, subdivision 3,
paragraph (c).

(e) For vehicles which have axle weights exceeding the weight limitations of
sections 169.822 to 169.829, an additional cost added to the fees listed above. However,
this paragraph applies to any vehicle described in section 168.013, subdivision 3,
paragraph (b), but only when the vehicle exceeds its gross weight allowance set forth in
that paragraph, and then the additional cost is for all weight, including the allowance
weight, in excess of the permitted maximum axle weight. The additional cost is equal
to the product of the distance traveled times the sum of the overweight axle group cost
factors shown in the following chart:

Overweight Axle Group Cost Factors

Weight (pounds)		Cost Per Mile For Each Group Of:
exceeding weight limitations on axles		Two new text begin or more new text end consecutive axles spaced within 8 feet or less		Three consecutive axles spaced deleted text begin within deleted text end new text begin more than 8 feet but less than new text end 9 feet deleted text begin or less deleted text end		Four consecutive axles spaced within 14 feet or less
0-2,000		.12		.05		.04
2,001-4,000		.14		.06		.05
4,001-6,000		.18		.07		.06
6,001-8,000		.21		.09		.07
8,001-10,000		.26		.10		.08
10,001-12,000		.30		.12		.09
12,001-14,000		Not permitted		.14		.11
14,001-16,000		Not permitted		.17		.12
16,001-18,000		Not permitted		.19		.15
18,001-20,000		Not permitted		Not permitted		.16
20,001-22,000		Not permitted		Not permitted		.20

The amounts added are rounded to the nearest cent for each axle or axle group. The
additional cost does not apply to paragraph (c), clauses (1) and (3).

For a vehicle found to exceed the appropriate maximum permitted weight, a cost-per-mile
fee of 22 cents per ton, or fraction of a ton, over the permitted maximum weight is imposed
in addition to the normal permit fee. Miles must be calculated based on the distance
already traveled in the state plus the distance from the point of detection to a transportation
loading site or unloading site within the state or to the point of exit from the state.

(f) As an alternative to paragraph (e), an annual permit may be issued for overweight,
or oversize and overweight, construction equipment, machinery, and supplies. The fees
for the permit are as follows:

Gross Weight (pounds) of Vehicle		Annual Permit Fee
90,000	or less	$200
90,001	- 100,000	$300
100,001	- 110,000	$400
110,001	- 120,000	$500
120,001	- 130,000	$600
130,001	- 140,000	$700
140,001	- 145,000	$800

If the gross weight of the vehicle is more than 145,000 pounds the permit fee is determined
under paragraph (e).

(g) For vehicles which exceed the width limitations set forth in section 169.80 by
more than 72 inches, an additional cost equal to $120 added to the amount in paragraph (a)
when the permit is issued while seasonal load restrictions pursuant to section 169.87 are
in effect.

(h) $85 for an annual permit to be issued for a period not to exceed 12 months, for
refuse-compactor vehicles that carry a gross weight of not more than: 22,000 pounds on
a single rear axle; 38,000 pounds on a tandem rear axle; or, subject to section 169.828,
subdivision 2, 46,000 pounds on a tridem rear axle. A permit issued for up to 46,000
pounds on a tridem rear axle must limit the gross vehicle weight to not more than 62,000
pounds.

(i) For vehicles exclusively transporting implements of husbandry, an annual permit
fee of $24. A vehicle operated under a permit authorized by this paragraph may be moved
at the discretion of the permit holder without prior route approval by the commissioner if:

(1) the total width of the transporting vehicle, including load, does not exceed 14 feet;

(2) the vehicle is operated only between sunrise and 30 minutes after sunset, and is
not operated at any time after 12:00 noon on Sundays or holidays;

(3) the vehicle is not operated when visibility is impaired by weather, fog, or other
conditions that render persons and other vehicles not clearly visible at 500 feet;

(4) the vehicle displays at the front and rear of the load or vehicle a pair of flashing
amber lights, as provided in section 169.59, subdivision 4, whenever the overall width of
the vehicle exceeds 126 inches; and

(5) the vehicle is not operated on a trunk highway with a surfaced roadway width of
less than 24 feet unless such operation is authorized by the permit.

A permit under this paragraph authorizes movements of the permitted vehicle on an
interstate highway, and movements of 75 miles or more on other highways.

(j) $300 for a motor vehicle described in section 169.8261. The fee under this
paragraph must be deposited as follows:

(1) in fiscal years 2005 through 2010:

(i) the first $50,000 in each fiscal year must be deposited in the trunk highway fund
for costs related to administering the permit program and inspecting and posting bridges;

(ii) all remaining money in each fiscal year must be deposited in a bridge inspection
and signing account in the special revenue fund. Money in the account is appropriated
to the commissioner for:

(A) inspection of local bridges and identification of local bridges to be posted,
including contracting with a consultant for some or all of these functions; and

(B) erection of weight-posting signs on local bridges; and

(2) in fiscal year 2011 and subsequent years must be deposited in the trunk highway
fund.

(k) deleted text begin Beginning August 1, 2006, $200 deleted text end new text begin $300 new text end for an annual permit for a vehicle
operating under authority of section 169.824, subdivision 2, deleted text begin paragraph (a), deleted text end clause (2).

Sec. 9.

new text begin [169.865] EXTENDED WEIGHT LIMIT PERMITS.
new text end

new text begin Subdivision 1. new text end

new text begin Six-axle vehicles. new text end

new text begin (a) A road authority may issue an annual permit
authorizing a vehicle or combination of vehicles with a total of six axles to be operated
with a gross vehicle weight of up to:
new text end

new text begin (1) 90,000 pounds; and
new text end

new text begin (2) 99,000 pounds during the period set by the commissioner under section 169.826,
subdivision 1.
new text end

new text begin (b) Notwithstanding subdivision 4, paragraph (a), clause (3), a vehicle or
combination of vehicles operated under this subdivision and transporting only sealed
intermodal containers may be operated on an interstate highway if allowed by the United
States Department of Transportation.
new text end

new text begin (c) The fee for a permit issued under this subdivision is $300.
new text end

new text begin Subd. 2. new text end

new text begin Seven-axle vehicles. new text end

new text begin (a) A road authority may issue an annual permit
authorizing a vehicle or combination of vehicles with a total of seven axles to be operated
with a gross vehicle weight of up to:
new text end

new text begin (1) 97,000 pounds; and
new text end

new text begin (2) 99,000 pounds during the period set by the commissioner under section 169.826,
subdivision 1.
new text end

new text begin (b) Drivers of vehicles operating under this subdivision must comply with driver
qualification requirements adopted under section 221.0314, subdivisions 2 to 5.
new text end

new text begin (c) The fee for a permit issued under this subdivision is $500.
new text end

new text begin Subd. 3. new text end

new text begin Single-unit vehicles. new text end

new text begin (a) A road authority may issue an annual permit
authorizing a single-unit vehicle with a total of seven axles up to 45 feet in length to be
operated with a gross vehicle weight of up to:
new text end

new text begin (1) 80,000 pounds; and
new text end

new text begin (2) 88,000 pounds during the period set by the commissioner under section 169.826,
subdivisions 1 and 1a.
new text end

new text begin (b) Drivers of vehicles operating under this subdivision must comply with driver
qualification requirements adopted under section 221.0314, subdivisions 2 to 5.
new text end

new text begin (c) The fee for a permit issued under this subdivision is $300.
new text end

new text begin Subd. 4. new text end

new text begin Requirements; restrictions. new text end

new text begin (a) A vehicle or combination of vehicles
operating under this section:
new text end

new text begin (1) is subject to axle weight limitations under section 169.824, subdivision 1;
new text end

new text begin (2) is subject to seasonal load restrictions under section 169.87;
new text end

new text begin (3) is subject to bridge load limits posted under section 169.84;
new text end

new text begin (4) may only be operated on trunk highways other than interstate highways, and on
local roads designated under section 169.832, subdivision 11;
new text end

new text begin (5) may not be operated with loads that exceed the manufacturer's gross vehicle
weight rating as affixed to the vehicle, or other certification of gross vehicle weight rating
complying with Code of Federal Regulations, title 49, parts 567.4 to 567.7;
new text end

new text begin (6) must be issued a permit from each road authority having jurisdiction over a road
on which the vehicle is operated, if required;
new text end

new text begin (7) must comply with the requirements of section 169.851, subdivision 4; and
new text end

new text begin (8) must have brakes on all wheels.
new text end

new text begin (b) The percentage allowances for exceeding gross weights if transporting unfinished
forest products under section 168.013, subdivision 3, paragraph (b), or for the first haul of
unprocessed or raw farm products or unfinished forest products under section 168.013,
subdivision 3, paragraph (d), clause (3), do not apply to a vehicle or combination of
vehicles operated under this section.
new text end

new text begin Subd. 5. new text end

new text begin Deposit of revenues; appropriation. new text end

new text begin (a) Revenue from the permits issued
under this section must be deposited:
new text end

new text begin (1) in fiscal years 2007 through 2010, in the bridge inspection and signing account
in the special revenue fund; and
new text end

new text begin (2) in fiscal year 2011 and subsequent years, in the trunk highway fund.
new text end

new text begin (b) The revenue in the bridge inspection and signing account under this section is
annually appropriated to the commissioner for:
new text end

new text begin (1) inspection of local bridges and identification of local bridges to be posted,
including contracting with a consultant for some or all of these functions; and
new text end

new text begin (2) erection of weight posting signs on local bridges.
new text end

Sec. 10.

Minnesota Statutes 2006, section 282.04, subdivision 1, is amended to read:

Subdivision 1.

Timber sales; land leases and uses.

(a) The county auditor may
sell timber upon any tract that may be approved by the natural resources commissioner.
The sale of timber shall be made for cash at not less than the appraised value determined
by the county board to the highest bidder after not less than one week's published notice
in an official paper within the county. Any timber offered at the public sale and not sold
may thereafter be sold at private sale by the county auditor at not less than the appraised
value thereof, until the time as the county board may withdraw the timber from sale. The
appraised value of the timber and the forestry practices to be followed in the cutting of
said timber shall be approved by the commissioner of natural resources.

(b) Payment of the full sale price of all timber sold on tax-forfeited lands shall be
made in cash at the time of the timber sale, except in the case of oral or sealed bid auction
sales, the down payment shall be no less than 15 percent of the appraised value, and the
balance shall be paid prior to entry. In the case of auction sales that are partitioned and
sold as a single sale with predetermined cutting blocks, the down payment shall be no less
than 15 percent of the appraised price of the entire timber sale which may be held until the
satisfactory completion of the sale or applied in whole or in part to the final cutting block.
The value of each separate block must be paid in full before any cutting may begin in that
block. With the permission of the county contract administrator the purchaser may enter
unpaid blocks and cut necessary timber incidental to developing logging roads as may
be needed to log other blocks provided that no timber may be removed from an unpaid
block until separately scaled and paid for. If payment is provided as specified in this
paragraph as security under paragraph (a) and no cutting has taken place on the contract,
the county auditor may credit the security provided, less any down payment required for
an auction sale under this paragraph, to any other contract issued to the contract holder
by the county under this chapter to which the contract holder requests in writing that it
be credited, provided the request and transfer is made within the same calendar year as
the security was received.

(c) The county board may deleted text begin require final settlement on the basis of a scale of cut
products deleted text end new text begin sell any timber, including biomass, as appraised or scaled, at its discretion new text end .
Any parcels of land from which timber is to be sold by scale of cut products shall be so
designated in the published notice of sale under paragraph (a), in which case the notice
shall contain a description of the parcels, a statement of the estimated quantity of each
species of timber, and the appraised price of each species of timber for 1,000 feet, per cord
or per piece, as the case may be. In those cases any bids offered over and above the
appraised prices shall be by percentage, the percent bid to be added to the appraised price
of each of the different species of timber advertised on the land. The purchaser of timber
from the parcels shall pay in cash at the time of sale at the rate bid for all of the timber
shown in the notice of sale as estimated to be standing on the land, and in addition shall
pay at the same rate for any additional amounts which the final scale shows to have been
cut or was available for cutting on the land at the time of sale under the terms of the sale.
Where the final scale of cut products shows that less timber was cut or was available
for cutting under terms of the sale than was originally paid for, the excess payment
shall be refunded from the forfeited tax sale fund upon the claim of the purchaser, to be
audited and allowed by the county board as in case of other claims against the county. No
timber, except hardwood pulpwood, may be removed from the parcels of land or other
designated landings until scaled by a person or persons designated by the county board
and approved by the commissioner of natural resources. Landings other than the parcel
of land from which timber is cut may be designated for scaling by the county board by
written agreement with the purchaser of the timber. The county board may, by written
agreement with the purchaser and with a consumer designated by the purchaser when the
timber is sold by the county auditor, and with the approval of the commissioner of natural
resources, accept the consumer's scale of cut products delivered at the consumer's landing.
No timber shall be removed until fully paid for in cash. Small amounts of timber not
exceeding $3,000 in appraised valuation may be sold for not less than the full appraised
value at private sale to individual persons without first publishing notice of sale or calling
for bids, provided that in case of a sale involving a total appraised value of more than $200
the sale shall be made subject to final settlement on the basis of a scale of cut products in
the manner above provided and not more than two of the sales, directly or indirectly to any
individual shall be in effect at one time.

(d) As directed by the county board, the county auditor may lease tax-forfeited land
to individuals, corporations or organized subdivisions of the state at public or private sale,
and at the prices and under the terms as the county board may prescribe, for use as cottage
and camp sites and for agricultural purposes and for the purpose of taking and removing of
hay, stumpage, sand, gravel, clay, rock, marl, and black dirt from the land, and for garden
sites and other temporary uses provided that no leases shall be for a period to exceed ten
years; provided, further that any leases involving a consideration of more than $12,000 per
year, except to an organized subdivision of the state shall first be offered at public sale in
the manner provided herein for sale of timber. Upon the sale of any leased land, it shall
remain subject to the lease for not to exceed one year from the beginning of the term of the
lease. Any rent paid by the lessee for the portion of the term cut off by the cancellation
shall be refunded from the forfeited tax sale fund upon the claim of the lessee, to be
audited and allowed by the county board as in case of other claims against the county.

(e) As directed by the county board, the county auditor may lease tax-forfeited land
to individuals, corporations, or organized subdivisions of the state at public or private sale,
at the prices and under the terms as the county board may prescribe, for the purpose
of taking and removing for use for road construction and other purposes tax-forfeited
stockpiled iron-bearing material. The county auditor must determine that the material is
needed and suitable for use in the construction or maintenance of a road, tailings basin,
settling basin, dike, dam, bank fill, or other works on public or private property, and
that the use would be in the best interests of the public. No lease shall exceed ten years.
The use of a stockpile for these purposes must first be approved by the commissioner of
natural resources. The request shall be deemed approved unless the requesting county
is notified to the contrary by the commissioner of natural resources within six months
after receipt of a request for approval for use of a stockpile. Once use of a stockpile has
been approved, the county may continue to lease it for these purposes until approval is
withdrawn by the commissioner of natural resources.

(f) The county auditor, with the approval of the county board is authorized to grant
permits, licenses, and leases to tax-forfeited lands for the depositing of stripping, lean
ores, tailings, or waste products from mines or ore milling plants, upon the conditions and
for the consideration and for the period of time, not exceeding 15 years, as the county
board may determine. The permits, licenses, or leases are subject to approval by the
commissioner of natural resources.

(g) Any person who removes any timber from tax-forfeited land before said
timber has been scaled and fully paid for as provided in this subdivision is guilty of a
misdemeanor.

(h) The county auditor may, with the approval of the county board, and without first
offering at public sale, grant leases, for a term not exceeding 25 years, for the removal
of peat and for the production or removal of farm-grown closed-loop biomass as defined
in section 216B.2424, subdivision 1, or short-rotation woody crops from tax-forfeited
lands upon the terms and conditions as the county board may prescribe. Any lease for
the removal of peat, farm-grown closed-loop biomass, or short-rotation woody crops
from tax-forfeited lands must first be reviewed and approved by the commissioner of
natural resources if the lease covers 320 or more acres. No lease for the removal of
peat, farm-grown closed-loop biomass, or short-rotation woody crops shall be made by
the county auditor pursuant to this section without first holding a public hearing on the
auditor's intention to lease. One printed notice in a legal newspaper in the county at least
ten days before the hearing, and posted notice in the courthouse at least 20 days before
the hearing shall be given of the hearing.

(i) Notwithstanding any provision of paragraph (c) to the contrary, the St. Louis
County auditor may, at the discretion of the county board, sell timber to the party who
bids the highest price for all the several kinds of timber, as provided for sales by the
commissioner of natural resources under section 90.14. Bids offered over and above the
appraised price need not be applied proportionately to the appraised price of each of
the different species of timber.

(j) In lieu of any payment or deposit required in paragraph (b), as directed by the
county board and under terms set by the county board, the county auditor may accept an
irrevocable bank letter of credit in the amount equal to the amount otherwise determined
in paragraph (b). If an irrevocable bank letter of credit is provided under this paragraph,
at the written request of the purchaser, the county may periodically allow the bank letter
of credit to be reduced by an amount proportionate to the value of timber that has been
harvested and for which the county has received payment. The remaining amount of
the bank letter of credit after a reduction under this paragraph must not be less than 20
percent of the value of the timber purchased. If an irrevocable bank letter of credit or
cash deposit is provided for the down payment required in paragraph (b), and no cutting
of timber has taken place on the contract for which a letter of credit has been provided,
the county may allow the transfer of the letter of credit to any other contract issued to the
contract holder by the county under this chapter to which the contract holder requests in
writing that it be credited.

Sec. 11.

Minnesota Statutes 2006, section 290.191, subdivision 2, is amended to read:

Subd. 2.

Apportionment formula of general application.

(a) Except for those
trades or businesses required to use a different formula under subdivision 3 or section
290.36, and for those trades or businesses that receive permission to use some other
method under section 290.20 or under subdivision 4, a trade or business required to
apportion its net income must apportion its income to this state on the basis of the
percentage obtained by taking the sum of:

(1) the percent for the sales factor under paragraph (b) of the percentage which
the sales made within this state in connection with the trade or business during the tax
period are of the total sales wherever made in connection with the trade or business during
the tax period;

(2) the percent for the property factor under paragraph (b) of the percentage which
the total tangible property used by the taxpayer in this state in connection with the trade or
business during the tax period is of the total tangible property, wherever located, used by
the taxpayer in connection with the trade or business during the tax period; and

(3) the percent for the payroll factor under paragraph (b) of the percentage which
the taxpayer's total payrolls paid or incurred in this state or paid in respect to labor
performed in this state in connection with the trade or business during the tax period are
of the taxpayer's total payrolls paid or incurred in connection with the trade or business
during the tax period.

(b) For purposes of paragraph (a) and subdivision 3, the following percentages apply
for the taxable years specified:

Taxable years beginning during calendar year	Sales factor percent	Property factor percent	Payroll factor percent
2007	78	11	11
2008	deleted text begin 81 deleted text end new text begin 85 new text end	deleted text begin 9.5 deleted text end new text begin 7.5 new text end	deleted text begin 9.5 deleted text end new text begin 7.5 new text end
2009	deleted text begin 84 deleted text end new text begin 90 new text end	deleted text begin 8 deleted text end new text begin 5 new text end	deleted text begin 8 deleted text end new text begin 5 new text end
2010	deleted text begin 87 deleted text end new text begin 95 new text end	deleted text begin 6.5 deleted text end new text begin 2.5 new text end	deleted text begin 6.5 deleted text end new text begin 2.5 new text end
2011	deleted text begin 90 deleted text end	deleted text begin 5 deleted text end	deleted text begin 5 deleted text end
deleted text begin 2012 deleted text end	deleted text begin 93 deleted text end	deleted text begin 3.5 deleted text end	deleted text begin 3.5 deleted text end
deleted text begin 2013 deleted text end	deleted text begin 96 deleted text end	deleted text begin 2 deleted text end	deleted text begin 2 deleted text end
deleted text begin 2014 deleted text end and later calendar years	100	0	0

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for tax years beginning after
December 31, 2006.
new text end

Sec. 12.

Minnesota Statutes 2006, section 297A.68, subdivision 5, is amended to read:

Subd. 5.

Capital equipment.

(a) Capital equipment is exempt deleted text begin . deleted text end new text begin as follows: new text end

new text begin (1) for sales and purchases of capital equipment by the wood products industry, the
tax is not imposed;
new text end

new text begin (2) for sales and purchases of capital equipment by a small business, the tax is
not imposed. For purposes of this subdivision, "small business" is as defined in section
645.445, subdivision 2; and
new text end

new text begin (3) for all other sales and purchases of capital equipment, new text end the tax must be imposed
and collected as if the rate under section 297A.62, subdivision 1, applied, and then
refunded in the manner provided in section 297A.75.

"Capital equipment" means machinery and equipment purchased or leased, and used
in this state by the purchaser or lessee primarily for manufacturing, fabricating, mining,
or refining tangible personal property to be sold ultimately at retail if the machinery and
equipment are essential to the integrated production process of manufacturing, fabricating,
mining, or refining. Capital equipment also includes machinery and equipment
used primarily to electronically transmit results retrieved by a customer of an online
computerized data retrieval system.

(b) Capital equipment includes, but is not limited to:

(1) machinery and equipment used to operate, control, or regulate the production
equipment;

(2) machinery and equipment used for research and development, design, quality
control, and testing activities;

(3) environmental control devices that are used to maintain conditions such as
temperature, humidity, light, or air pressure when those conditions are essential to and are
part of the production process;

(4) materials and supplies used to construct and install machinery or equipment;

(5) repair and replacement parts, including accessories, whether purchased as spare
parts, repair parts, or as upgrades or modifications to machinery or equipment;

(6) materials used for foundations that support machinery or equipment;

(7) materials used to construct and install special purpose buildings used in the
production process;

(8) ready-mixed concrete equipment in which the ready-mixed concrete is mixed
as part of the delivery process regardless if mounted on a chassis, repair parts for
ready-mixed concrete trucks, and leases of ready-mixed concrete trucks; and

(9) machinery or equipment used for research, development, design, or production
of computer software.

(c) Capital equipment does not include the following:

(1) motor vehicles taxed under chapter 297B;

(2) machinery or equipment used to receive or store raw materials;

(3) building materials, except for materials included in paragraph (b), clauses (6)
and (7);

(4) machinery or equipment used for nonproduction purposes, including, but not
limited to, the following: plant security, fire prevention, first aid, and hospital stations;
support operations or administration; pollution control; and plant cleaning, disposal of
scrap and waste, plant communications, space heating, cooling, lighting, or safety;

(5) farm machinery and aquaculture production equipment as defined by section
297A.61, subdivisions 12 and 13;

(6) machinery or equipment purchased and installed by a contractor as part of an
improvement to real property;

(7) machinery and equipment used by restaurants in the furnishing, preparing, or
serving of prepared foods as defined in section 297A.61, subdivision 31;

(8) machinery and equipment used to furnish the services listed in section 297A.61,
subdivision 3, paragraph (g), clause (6), items (i) to (vi) and (viii);

(9) machinery or equipment used in the transportation, transmission, or distribution
of petroleum, liquefied gas, natural gas, water, or steam, in, by, or through pipes, lines,
tanks, mains, or other means of transporting those products. This clause does not apply to
machinery or equipment used to blend petroleum or biodiesel fuel as defined in section
239.77; or

(10) any other item that is not essential to the integrated process of manufacturing,
fabricating, mining, or refining.

(d) For purposes of this subdivision:

(1) "Equipment" means independent devices or tools separate from machinery but
essential to an integrated production process, including computers and computer software,
used in operating, controlling, or regulating machinery and equipment; and any subunit or
assembly comprising a component of any machinery or accessory or attachment parts of
machinery, such as tools, dies, jigs, patterns, and molds.

(2) "Fabricating" means to make, build, create, produce, or assemble components or
property to work in a new or different manner.

(3) "Integrated production process" means a process or series of operations through
which tangible personal property is manufactured, fabricated, mined, or refined. For
purposes of this clause, (i) manufacturing begins with the removal of raw materials
from inventory and ends when the last process prior to loading for shipment has been
completed; (ii) fabricating begins with the removal from storage or inventory of the
property to be assembled, processed, altered, or modified and ends with the creation
or production of the new or changed product; (iii) mining begins with the removal of
overburden from the site of the ores, minerals, stone, peat deposit, or surface materials and
ends when the last process before stockpiling is completed; and (iv) refining begins with
the removal from inventory or storage of a natural resource and ends with the conversion
of the item to its completed form.

(4) "Machinery" means mechanical, electronic, or electrical devices, including
computers and computer software, that are purchased or constructed to be used for the
activities set forth in paragraph (a), beginning with the removal of raw materials from
inventory through completion of the product, including packaging of the product.

(5) "Machinery and equipment used for pollution control" means machinery and
equipment used solely to eliminate, prevent, or reduce pollution resulting from an activity
described in paragraph (a).

(6) "Manufacturing" means an operation or series of operations where raw materials
are changed in form, composition, or condition by machinery and equipment and which
results in the production of a new article of tangible personal property. For purposes of
this subdivision, "manufacturing" includes the generation of electricity or steam to be
sold at retail.

(7) "Mining" means the extraction of minerals, ores, stone, or peat.

(8) "Online data retrieval system" means a system whose cumulation of information
is equally available and accessible to all its customers.

(9) "Primarily" means machinery and equipment used 50 percent or more of the time
in an activity described in paragraph (a).

(10) "Refining" means the process of converting a natural resource to an intermediate
or finished product, including the treatment of water to be sold at retail.

(11) new text begin "Wood products industry" means:
new text end

new text begin (i) manufacturers of pulp, paper, and paperboard;
new text end

new text begin (ii) sawmills and planing mills;
new text end

new text begin (iii) manufacturers of panelboard, including veneer, plywood, and reconstituted
wood products, such as particleboard, waferboard, and oriented strandboard;
new text end

new text begin (iv) manufacturers of fabricated wood millwork;
new text end

new text begin (v) manufacturers of structural wood members; and
new text end

new text begin (vi) manufacturers of prefabricated wood buildings and components.
new text end

new text begin (12) Wood products industry does not include:
new text end

new text begin (i) logging;
new text end

new text begin (ii) manufacturers of wood cabinets, furniture, office or store fixtures, toys and
playground equipment, caskets, or miscellaneous wood products;
new text end

new text begin (iii) manufacturers of wood containers;
new text end

new text begin (iv) businesses engaged in wood preserving;
new text end

new text begin (v) the operation of timber tracts or tree farms;
new text end

new text begin (vi) forest nurseries and the gathering of forest products; and
new text end

new text begin (vii) forestry services related to timber production.
new text end

new text begin (13) new text end This subdivision does not apply to telecommunications equipment as
provided in subdivision 35, and does not apply to wire, cable, fiber, poles, or conduit
for telecommunications services.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2007.
new text end

Sec. 13.

Minnesota Statutes 2006, section 297A.69, subdivision 3, is amended to read:

Subd. 3.

Repair and replacement parts.

Repair and replacement parts, except tires,
used for maintenance or repair of farm machinery, logging equipment, new text begin including skidder
tires, new text end and aquaculture production equipment are exempt, if the part replaces a machinery
part assigned a specific or generic part number by the manufacturer of the machinery.