House Introduced Bill 5735

HOUSE BILL No. 5735

February 21, 2002, Introduced by Reps. Hart, Gilbert and Stallworth and referred to the Committee on Transportation.

A bill to amend 2000 PA 403, entitled

"Motor fuel tax act,"

by amending sections 8, 92, and 152 (MCL 207.1008, 207.1092, and

207.1152); and to repeal acts and parts of acts.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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Sec. 8. (1) Subject to the exemptions provided for in this

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act, tax is imposed on motor fuel imported into or sold, deliv-

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ered, or used in this state at the following rates:

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(a) Nineteen cents per gallon on gasoline.

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(b) Fifteen cents per gallon THROUGH SEPTEMBER 30, 2002, AND

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19 CENTS PER GALLON BEGINNING OCTOBER 1, 2002 on diesel fuel.

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(2) The tax on diesel fuel shall be collected or paid in

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the following manner:

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(a) Subject to subsection (3), 9 cents of tax per gallon

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shall be collected by all of the following:

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(i) A person who sells or delivers diesel fuel to a licensed

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supplier, licensed importer, licensed fuel vendor, licensed

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retail diesel dealer, or licensed marine retail dealer.

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(ii) A person who delivers the fuel into the bulk storage

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tank of a motor carrier licensed under the motor carrier fuel tax

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act, 1980 PA 119, MCL 207.211 to 207.234, or into the fuel supply

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tank of a qualified commercial motor vehicle issued a decal under

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the motor carrier fuel tax act, 1980 PA 119, MCL 207.211 to

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207.234.

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(b) An additional 6 cents of tax per gallon shall be col-

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lected and remitted to the department by any person who collected

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or paid 9 cents per gallon of tax on diesel fuel under subdivi-

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sion (a) and who does any of the following:

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(i) Uses the diesel fuel in a motor vehicle that is not

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issued a decal under the motor carrier fuel tax act.

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(ii) Sells or delivers diesel fuel into the fuel supply tank

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of a motor vehicle that is not licensed under the motor carrier

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fuel tax act.

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(iii) Delivers undyed diesel fuel into a storage tank of a

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person who is neither licensed under the motor carrier fuel tax

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act nor licensed under this act.

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(c) Fifteen cents of tax per gallon shall be collected and

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remitted by any person importing, selling, distributing, deliver-

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ing, or using diesel fuel unless otherwise provided for in subdi-

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vision (a) or (b).

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(2) (3) Tax shall not be imposed under this section on

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motor fuel that is in the bulk transfer/terminal system.

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(3) (4) The collection, payment, and remittance of the tax

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imposed by this section shall be accomplished in the manner and

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at the time provided for in this act.

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(4) (5) Tax is also imposed at the rate described in

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subsection (1)(a) or (b) on net gallons of motor fuel, including

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transmix, lost or unaccounted for, at each terminal in this

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state. The tax shall be measured annually and shall apply to the

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net gallons of motor fuel lost or unaccounted for that are in

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excess of 1/2 of 1% of all net gallons of fuel removed from the

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terminal across the rack or in bulk.

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(5) (6) It is the intent of this act:

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(a) To require persons who operate a motor vehicle on the

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public roads or highways of this state to pay for the privilege

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of using those roads or highways.

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(b) To impose on suppliers a requirement to collect and

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remit the tax imposed by this act at the time of removal of motor

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fuel unless otherwise specifically provided in this act.

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(c) To allow persons who pay the tax imposed by this act and

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who use the fuel for a nontaxable purpose to seek a refund or

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claim a deduction as provided in this act.

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(d) That the tax imposed by this act be collected and paid

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at those times, in the manner, and by those persons specified in

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this act.

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Sec. 92. (1) A person shall not deliver diesel fuel into

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the fuel supply tank of an end user's motor vehicle or make a

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bulk delivery of diesel fuel to an unlicensed end user unless

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licensed as a retail MARINE diesel dealer under this act.

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(2) The fee for a retail MARINE diesel dealer license is

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$50.00.

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(3) A retail MARINE diesel dealer shall list the amount of

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tax and any applicable tax discounts for motor carriers on diesel

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fuel as separate line items on all invoices or billings to end

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users.

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(4) A retail MARINE diesel dealer shall file with the

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department on forms or in a format prescribed by the department a

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quarterly report containing the information the department

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requires as reasonably necessary for the department to determine

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the amount of diesel fuel tax due. A licensed retail MARINE

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diesel dealer shall not be required to report the amount of dyed

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diesel fuel purchased or sold until 2 years after the effective

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date of this act. The department may waive the requirements in

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this subsection if the report is not needed to administer this

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act.

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(5) The report shall be filed and the tax paid to the

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department on or before the twentieth day of the month following

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the close of the reporting period.

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(6) The department may waive the requirement for filing a

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report under this section.

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Sec. 152. A tax at a rate of 15 cents per gallon THROUGH

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SEPTEMBER 30, 2002, AND 19 CENTS PER GALLON BEGINNING OCTOBER 1,

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2002 is imposed upon all liquefied petroleum gas used in this

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state. The tax shall be paid at the times and in the manner

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specified in this section. The tax on liquefied petroleum gas

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fuel sold or delivered either by placing into a permanently

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attached fuel supply tank on a motor vehicle, or exchanging or

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replacing the fuel supply tank of a motor vehicle, shall be col-

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lected by the LPG dealer from the purchaser and paid over quar-

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terly to the department as provided in this act. Liquefied

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petroleum gas fuel delivered in this state into the storage

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facility of any person when the exclusive purpose of the storage

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facility is for resale or use in a motor vehicle on the public

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roads or highways of this state, shall, upon delivery to storage

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facility, be subject to tax. An LPG dealer shall, upon delivery

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of the liquefied petroleum gas, collect and remit the tax to the

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department as provided in this act. A person shall not operate a

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motor vehicle on the public roads or highways of this state from

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the cargo containers of a truck, trailer, or semitrailer with

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liquefied petroleum gas in vapor or liquid form, except when the

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fuel in the liquid or vapor phase is withdrawn from the cargo

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container for use in motor vehicles through a permanently

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installed and approved metering device. The tax on liquefied

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petroleum gas withdrawn from a cargo container through a per-

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manently installed and approved metering device shall apply in

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accordance with measured gallons as reflected by meter reading,

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and shall be paid quarterly by the LPG dealer to the department

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as provided in this act.

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Enacting section 1. Section 91 of the motor fuel tax act,

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2000 PA 403, MCL 207.1091, is repealed.

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Enacting section 2. This amendatory act does not take

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effect unless all of the following bills of the 91st Legislature

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are enacted into law:

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(a) Senate Bill No. _____ or House Bill No. 5734 (request

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no. 02672'01 *).

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(b) Senate Bill No. _____ or House Bill No. 5736 (request

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no. 04929'01).

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(c) Senate Bill No. _____ or House Bill No. 5733 (request

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no. 05318'01 *).

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