HB-4614, As Passed House, June 10, 2015

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

HOUSE BILL NO. 4614

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 2004 PA 175, entitled

 

"Streamlined sales and use tax revenue equalization act,"

 

by amending sections 3 and 5 (MCL 205.173 and 205.175).

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3. As used in this act:

 

     (a) "Alternative fuel" means that term as defined in section

 

151 of the motor fuel tax act, 2000 PA 403, MCL 207.1151.

 

     (b) (a) "Department" means the department of treasury.

 

     (c) (b) "Diesel fuel" means that term as defined in section

 

2(p) 2 of the motor fuel tax act, 2000 PA 403, MCL 207.1002.

 

     (d) "Gallon equivalent" means that term as defined in section

 

151 of the motor fuel tax act, 2000 PA 403, MCL 207.1151.

 

     (e) "Gasoline" means that term as defined in section 3 of the

 

motor fuel tax act, 2000 PA 403, MCL 207.1003.

 

     (f) (c) "Interstate motor carrier" means a person who operates


 

or causes to be operated a qualified commercial motor vehicle on a

 

public road or highway in this state and at least 1 other state or

 

Canadian province.

 

     (g) "Motor fuel" means diesel fuel and gasoline.

 

     (h) (d) "Person" means an individual, firm, partnership, joint

 

venture, association, social club fraternal organization, municipal

 

or private corporation whether or not organized for profit,

 

company, limited liability company, estate, trust receiver,

 

trustee, syndicate, the United States, this state, country, or any

 

other group or combination acting as a unit, and the plural as well

 

as the singular number, unless the intention to give a more limited

 

meaning is disclosed by the context.

 

     (i) (e) "Qualified commercial motor vehicle" means that term

 

as defined in section 1 of the motor carrier fuel tax act, 1980 PA

 

119, MCL 207.211.

 

     (j) (f) "Sales tax" means the tax levied under the general

 

sales tax act, 1933 PA 167, MCL 205.51 to 205.78.

 

     (k) (g) "Tax" includes all taxes, interest, or penalties

 

levied under this act.

 

     (l) (h) "Taxpayer" means a person subject to tax under this

 

act.

 

     (m) (i) "Use tax" means the tax levied under the use tax act,

 

1937 PA 94, MCL 205.91 to 205.111.

 

     Sec. 5. (1) There is levied upon and there shall be collected

 

from every person in this state who is an interstate motor carrier

 

a specific tax for the privilege of using or consuming diesel motor

 

fuel and alternative fuel in a qualified commercial motor vehicle


 

in this state.

 

     (2) For motor fuel upon which the tax imposed under subsection

 

(1) applies, the tax shall be imposed at a cents-per-gallon rate

 

equal to 6% of the statewide average retail price of a gallon of

 

self-serve undyed no. 2 ultra-low sulfur diesel fuel or self-serve

 

unleaded regular gasoline, as applicable, rounded down to the

 

nearest 1/10 of a cent as determined and certified quarterly by the

 

department. This tax on diesel motor fuel used by interstate motor

 

carriers in a qualified commercial motor vehicle shall be collected

 

under the international fuel tax agreement. An interstate motor

 

carrier is entitled to a credit for 6% of the price of motor fuel

 

purchased in this state and used in a qualified commercial motor

 

vehicle. This credit shall be claimed on the returns filed under

 

the international fuel tax agreement.

 

     (3) For alternative fuel upon which the tax imposed under

 

subsection (1) applies, the tax shall be imposed at a cents-per-

 

gallon rate, or cents-per-gallon equivalent rate, as applicable,

 

equal to 6% of the average retail price of a gallon or gallon

 

equivalent, as applicable, of the applicable alternative fuel

 

rounded down to the nearest 1/10 of a cent as determined and

 

certified quarterly by the department. For purposes of this

 

subsection, the average retail price is to be based on the

 

statewide average price of the particular alternative fuel, as

 

determined by the department, unless the department determines that

 

a statewide average is not readily available. If a statewide

 

average is not readily available, the department may use available

 

regional or nationwide average retail pricing information, or when


 

regional or nationwide pricing information cannot be readily

 

obtained, may use the average retail price applicable to gasoline

 

under subsection (2) for compressed natural gas or the average

 

retail price applicable to diesel fuel under subsection (2) for all

 

other types of alternative fuel, with adjustments as the department

 

determines are appropriate to convert gasoline or diesel fuel

 

prices to prices for alternative fuel.

 

     (4) (2) The tax on alternative fuel under subsection (3) used

 

by interstate motor carriers in a qualified commercial motor

 

vehicle shall be collected under the international fuel tax

 

agreement. An interstate motor carrier is entitled to a credit for

 

6% of the price of diesel alternative fuel purchased in this state

 

and used in a qualified commercial motor vehicle. This credit shall

 

be claimed on the returns filed under the international fuel tax

 

agreement.

 

     Enacting section 1. This amendatory act takes effect October

 

1, 2015.

 

     Enacting section 2. This amendatory act does not take effect

 

unless all of the following bills of the 98th Legislature are

 

enacted into law:

 

     (a) House Bill No. 4615.

 

     (b) House Bill No. 4616.