PREPAID FUEL TAX                                                                              H.B. 5817 (S-1):

                                                                                                      FLOOR SUMMARY

House Bill 5817 (Substitute S-1 as reported)

Sponsor:  Representative Paul Opsommer

House Committee:  Transportation

Senate Committee:  Energy and Technology

CONTENT

The bill would amend the General Sales Tax Act to do the following:

-- Extend to diesel fuel a requirement for prepayment of a portion of the sales tax on gasoline.

-- Require the Department of Treasury to determine the prepayment rate on a monthly basis; and eliminate a requirement that the Department determine the rate every three months, unless the Department determines that the change in the statewide average retail price for gasoline has been less than 10% since the establishment of the effective rate.

-- Allow a prepayment credit for a person making a prepayment for diesel fuel, as allowed for gasoline prepayment.

The bill would take effect on January 1, 2013.

MCL 205.56a                                                                Legislative Analyst:  Julie Cassidy

FISCAL IMPACT

The bill would have no fiscal impact on State or local government.

Date Completed:  12-13-12                                                Fiscal Analyst:  Elizabeth Pratt

David Zin

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.