HOUSE BILL No. 4614

 

May 14, 2015, Introduced by Reps. LaFontaine, Leutheuser, Inman and Potvin and referred to the Committee on Roads and Economic Development.

 

     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) "Diesel 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) "Liquefied natural gas" means that term as defined in

 

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

 

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

 

     (i) (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.

 

     (j) (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.

 

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

 

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

 

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

 

levied under this act.

 

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

 

act.

 

     (n) (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 rate 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 rate shall be imposed at a cents-

 

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

 

applicable, equal to the following:

 

     (a) For liquefied natural gas, 6% of the statewide average

 

retail price of a gallon of self-serve undyed no. 2 ultra-low

 

sulfur diesel fuel.

 

     (b) For any other alternative fuel, 6% of the statewide

 

average retail price of a gallon of self-serve unleaded regular

 

gasoline.

 

     (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) Senate Bill No.____ or House Bill No. 4615 (request no.

 

03001'15).

 

     (b) Senate Bill No.____ or House Bill No. 4616 (request no.

 

03002'15).