HOUSE BILL No. 4356


     February 19, 1997, Introduced by Reps. Owen, Green, Gagliardi, Walberg, Nye, Lowe, Oxender, Baade, Cherry, Mans, Jaye, Martinez, Brater, Tesanovich, Jelinek, Goschka, Raczkowski, Kaza, Dobronski, Mathieu, Bogardus, McBryde, Bodem and Perricone and referred to the Committee on Transportation.


        A bill to amend 1927 PA 150, entitled

   "An act to prescribe a privilege tax for the use of the public
   highways by owners and drivers of motor vehicles by imposing a
   specific tax upon the sale or use, within the state of Michigan,
   of motor fuel; to prescribe the manner and the time of paying
   this tax and the duties of officials and others respecting the
   payment and collection of this tax; to provide for the licensing
   of wholesale distributors, certain retail dealers, exporters, and
   suppliers as defined in this act; to fix a time when this tax and
   interest and penalties thereon become a lien upon the property of
   persons, firms, partnerships, associations, or corporations,
   subject to the payment of this tax; to provide for the enforce-
   ment of this lien; to permit the inspection and testing of petro-
   leum products; to provide for certain exemptions and refunds and
   for the disposition of the proceeds of this tax; and to prescribe
   penalties for the violation of this act,"

   by amending section 12 (MCL 207.112), as amended by 1996 PA 56.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         Sec. 12.  (1) The state government and the federal govern-

 2    ment using gasoline in a state or federally owned motor vehicle,

 3    and a political subdivision of the state using gasoline in a

 4    vehicle owned by or leased and operated by the political


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 1    subdivision of the state, are exempt from the tax on gasoline

 2    levied by this act.

 3         (2) The purchaser of gasoline used for a purpose other than

 4    the operation of a motor vehicle on the public roads, streets,

 5    and highways of this state, a person operating a passenger vehi-

 6    cle of a capacity of 5 or more under a municipal franchise,

 7    license, permit, agreement, or grant, respectively, a person

 8    operating a passenger vehicle for the transportation of school

 9    students under a certificate of authority issued by the state

10    transportation department pursuant to section 5 of article II of

11    the motor carrier act,  Act No. 254 of the Public Acts of 1933,

12     being section 476.5 of the Michigan Compiled Laws  1933 PA 254,

13    MCL 476.5, and community action agencies as described in former

14    title II of the economic opportunity act of 1964, Public Law

15    88-452, which are not a part or division of a political subdivi-

16    sion of this state shall be entitled to a refund of the tax on

17    the gasoline.  Community action agencies shall make the refund a

18    state-contributed non-federal share to grants received by such

19    community action agencies from the community services administra-

20    tion under former title II of the economic opportunity act of

21    1964, by filing a verified claim with the department upon forms

22    prescribed and to be furnished by it, within 1 year after the

23    date of purchase, as shown by the invoice.  A claim mailed within

24    the 1-year period, as evidenced by the postmark, when received by

25    the department, shall be considered as filed within the required

26    time.  An amount equal to the tax levied pursuant to section 2

27    shall be refunded to each person operating a passenger vehicle of



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 1    a capacity of 5 or more under a municipal franchise, license,

 2    permit, agreement, or grant, respectively, and operated over reg-

 3    ularly traveled routes expressly provided for in the municipal

 4    licenses, permits, agreements, or grants and to each person oper-

 5    ating a passenger vehicle for the transportation of school stu-

 6    dents under a certificate of authority issued by the state trans-

 7    portation department.  The retail dealer shall furnish the pur-

 8    chaser with an invoice, showing the amount of gasoline purchased,

 9    the date of purchase, and the amount of tax on the purchase, and

10    the dealer shall at the request of the department immediately

11    supply the department with a copy of an invoice issued by the

12    dealer during a 1-year period preceding the request.  A claim for

13    a refund shall have attached to the claim the original invoice

14    received by the purchaser and, when approved by the department,

15    shall be paid out of the Michigan transportation fund upon the

16    warrant of the state treasurer.  A claim for a refund shall not

17    be assignable without the prior written consent of the

18    department.  If the verified claim of the purchaser, in form and

19    content as prescribed by the department, shall show or it shall

20    otherwise appear that the amount of gasoline used by the pur-

21    chaser for purposes on which the taxes under the general sales

22    tax act,  Act No. 167 of the Public Acts of 1933, being sections

23     205.51 to 205.78 of the Michigan Compiled Laws  1933 PA 167, MCL

24    205.51 TO 205.78, are deductible pursuant to section 4a(f) of

25     Act No. 167 of the Public Acts of 1933, being section 205.54a of

26     the Michigan Compiled Laws  THE GENERAL SALES TAX ACT, 1933 PA

27    167, MCL 205.54A, is not the total amount included in the



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 1    statement of the transferee under section 4a(f) of  Act No. 167

 2     of the Public Acts of 1933  THE GENERAL SALES TAX ACT, 1933 PA

 3    167, MCL 205.54A, the department shall deduct from the amount of

 4    the refund authorized by this section the rate of sales tax as is

 5    established in  Act No. 167 of the Public Acts of 1933  THE GEN-

 6    ERAL SALES TAX ACT, 1933 PA 167, MCL 205.51 TO 205.78, applicable

 7    to the retail sales price paid by the transferee on that portion

 8    of the gasoline not used for purposes described in section 4a(f)

 9    of  Act No. 167 of the Public Acts of 1933  THE GENERAL SALES TAX

10    ACT, 1933 PA 167, MCL 205.54A, and shall transfer the sales tax

11    so deducted to the sales tax account of the department.  The pur-

12    chaser of gasoline used for the operation of a snowmobile as

13    defined and regulated by part 821 (snowmobiles) of the natural

14    resources and environmental protection act,  Act No. 451 of the

15     Public Acts of 1994, being sections 324.82101 to 324.82159 of the

16     Michigan Compiled Laws  1994 PA 451, MCL 324.82101 TO 324.82159,

17    shall not be entitled to a refund under this section.

18         (3) The department shall issue to each wholesale distributor

19    who purchases gasoline or diesel motor fuel for an exempt purpose

20    an exemption certificate upon the wholesale distributor filing a

21    request for the certificate.  The certificate shall be valid

22    until the end of the calendar year in which the request was

23    filed.  On or before the twentieth day of the month following the

24    close of the reporting period, the wholesale distributor shall

25    file with the department on forms prescribed by the department, a

26    report showing the number of gallons of gasoline and diesel motor

27    fuel received from a supplier or purchased from a wholesale



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 1    distributor for a tax exempt purpose and the number of gallons of

 2    gasoline and diesel motor fuel sold for a tax exempt purpose.

 3    The wholesale distributor shall maintain records of purchases and

 4    sales as prescribed by the department for a period of 4 years.

 5     Each  FOR GASOLINE, EACH wholesale distributor shall at time of

 6    filing the report required under this subsection pay to the

 7    department the amount of tax payable at the applicable rate per

 8    gallon on all gallons received tax exempt but not sold for tax

 9    exempt purposes during the reporting period.  NOTWITHSTANDING

10    SECTION 3(1), FOR DIESEL MOTOR FUEL, EACH WHOLESALE DISTRIBUTOR

11    SHALL AT THE TIME OF FILING THE REPORT REQUIRED UNDER THIS SUB-

12    SECTION PAY TO THE DEPARTMENT THE AMOUNT OF TAX PAYABLE AT THE

13    APPLICABLE RATE PER GALLON ON ALL GALLONS RECEIVED TAX EXEMPT BUT

14    NOT SOLD FOR TAX EXEMPT PURPOSES DURING THE REPORTING PERIOD

15    EXCEPT FOR THOSE GALLONS RECEIVED TAX EXEMPT WHICH HAVE NOT BEEN

16    SOLD AND ARE HELD IN THE WHOLESALERS BULK PLANT AS DEFINED BY

17    THIS ACT. Any liability for tax on taxable gallons in excess of

18    15% of the amount of tax actually paid to a supplier shall be

19    treated as an underpayment of tax due as of the earliest date

20    during the 3-month period during which tax is due to the supplier

21    and shall be subject to the interest and penalties prescribed in

22     Act No. 122 of the Public Acts of 1941, being sections 205.1 to

23     205.31 of the Michigan Compiled Laws  1941 PA 122, MCL 205.1 TO

24    205.31.  At the time of the filing of the report required by this

25    section, the wholesale distributor may file a claim for refund

26    for taxes paid to a licensed supplier or the state on gasoline or





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 1    diesel motor fuel sold during reporting period for tax exempt

 2    purposes.

 3         (4) For purposes of this section, reporting periods shall be

 4    January 1 through March 31, April 1 through June 30, July 1

 5    through September 30, and October 1 through December 31.














































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