HB-4634, As Passed House, February 16, 2016

SUBSTITUTE FOR

HOUSE BILL NO. 4634

A bill to amend 1949 PA 300, entitled

"Michigan vehicle code,"

by amending section 801 (MCL 257.801), as amended by 2015 PA 174.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 Sec. 801. (1) The secretary of state shall collect the

2 following taxes at the time of registering a vehicle, which shall

3 exempt the vehicle from all other state and local taxation,

4 except the fees and taxes provided by law to be paid by certain

5 carriers operating motor vehicles and trailers under the motor

6 carrier act, 1933 PA 254, MCL 475.1 to 479.42; the taxes imposed

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

8 207.234; and except as otherwise provided by this act:

9 (a) For a motor vehicle, including a motor home, except as

1 otherwise provided, and a pickup truck or van that weighs not

2 more than 8,000 pounds, except as otherwise provided, according

3 to the following schedule of empty weights:

4 Empty weights Tax

5 0 to 3,000 pounds..................................$ 29.00

6 3,001 to 3,500 pounds.............................. 32.00

7 3,501 to 4,000 pounds.............................. 37.00

8 4,001 to 4,500 pounds.............................. 43.00

9 4,501 to 5,000 pounds.............................. 47.00

10 5,001 to 5,500 pounds.............................. 52.00

11 5,501 to 6,000 pounds.............................. 57.00

12 6,001 to 6,500 pounds.............................. 62.00

13 6,501 to 7,000 pounds.............................. 67.00

14 7,001 to 7,500 pounds.............................. 71.00

15 7,501 to 8,000 pounds.............................. 77.00

16 8,001 to 8,500 pounds.............................. 81.00

17 8,501 to 9,000 pounds.............................. 86.00

18 9,001 to 9,500 pounds.............................. 91.00

19 9,501 to 10,000 pounds............................. 95.00

20 over 10,000 pounds.....................$ 0.90 per 100 pounds

21 of empty weight

22 On October 1, 1983, and October 1, 1984, the tax assessed

23 under this subdivision shall be annually revised for the

24 registrations expiring on the appropriate October 1 or after that

25 date by multiplying the tax assessed in the preceding fiscal year

26 times the personal income of Michigan for the preceding calendar

27 year divided by the personal income of Michigan for the calendar

1 year that preceded that calendar year. In performing the

2 calculations under this subdivision, the secretary of state shall

3 use the spring preliminary report of the United States Department

4 of Commerce or its successor agency. A van that is owned by an

5 individual who uses a wheelchair or by an individual who

6 transports a member of his or her household who uses a wheelchair

7 and for which registration plates are issued under section 803d

8 shall be assessed at the rate of 50% of the tax provided for in

9 this subdivision.

10 (b) For a trailer coach attached to a motor vehicle, the tax

11 shall be assessed as provided in subdivision (l). A trailer coach

12 not under 1959 PA 243, MCL 125.1035 to 125.1043, and while

13 located on land otherwise assessable as real property under the

14 general property tax act, 1893 PA 206, MCL 211.1 to 211.155, if

15 the trailer coach is used as a place of habitation, and whether

16 or not permanently affixed to the soil, is not exempt from real

17 property taxes.

18 (c) For a road tractor, modified agricultural vehicle,

19 truck, or truck tractor owned by a farmer and used exclusively in

20 connection with a farming operation, including a farmer hauling

21 livestock or farm equipment for other farmers for remuneration in

22 kind or in labor, but not for money, or used for the

23 transportation of the farmer and the farmer's family, and not

24 used for hire, 74 cents per 100 pounds of empty weight of the

25 road tractor, truck, or truck tractor. If the road tractor,

26 modified agricultural vehicle, truck, or truck tractor owned by a

27 farmer is also used for a nonfarming operation, the farmer is

1 subject to the highest registration tax applicable to the nonfarm

2 use of the vehicle but is not subject to more than 1 tax rate

3 under this act.

4 (d) For a road tractor, truck, or truck tractor owned by a

5 wood harvester and used exclusively in connection with the wood

6 harvesting operations or a truck used exclusively to haul milk

7 from the farm to the first point of delivery, 74 cents per 100

8 pounds of empty weight of the road tractor, truck, or truck

9 tractor. A registration secured by payment of the tax prescribed

10 in this subdivision continues in full force and effect until the

11 regular expiration date of the registration. As used in this

12 subdivision:

13 (i) "Wood harvester" includes the person or persons hauling

14 and transporting raw materials in the form produced at the

15 harvest site or hauling and transporting wood harvesting

16 equipment. Wood harvester does not include a person or persons

17 whose primary activity is tree-trimming or landscaping.

18 (ii) "Wood harvesting equipment" includes all of the

19 following:

20 (A) A vehicle that directly harvests logs or timber,

21 including, but not limited to, a processor or a feller buncher.

22 (B) A vehicle that directly processes harvested logs or

23 timber, including, but not limited to, a slasher, delimber,

24 processor, chipper, or saw table.

25 (C) A vehicle that directly processes harvested logs or

26 timber, including, but not limited to, a forwarder, grapple

27 skidder, or cable skidder.

1 (D) A vehicle that directly loads harvested logs or timber,

2 including, but not limited to, a knuckle-boom loader, front-end

3 loader, or forklift.

4 (E) A bulldozer or road grader being transported to a wood

5 harvesting site specifically for the purpose of building or

6 maintaining harvest site roads.

7 (iii) "Wood harvesting operations" does not include the

8 transportation of processed lumber, Christmas trees, or processed

9 firewood for a profit making venture.

10 (e) For a hearse or ambulance used exclusively by a licensed

11 funeral director in the general conduct of the licensee's funeral

12 business, including a hearse or ambulance whose owner is engaged

13 in the business of leasing or renting the hearse or ambulance to

14 others, $1.17 per 100 pounds of the empty weight of the hearse or

15 ambulance.

16 (f) For a vehicle owned and operated by this state, a state

17 institution, a municipality, a privately incorporated, nonprofit

18 volunteer fire department, or a nonpublic, nonprofit college or

19 university, $5.00 per plate. A registration plate issued under

20 this subdivision expires on June 30 of the year in which new

21 registration plates are reissued for all vehicles by the

22 secretary of state.

23 (g) For a bus including a station wagon, carryall, or

24 similarly constructed vehicle owned and operated by a nonprofit

25 parents' transportation corporation used for school purposes,

26 parochial school or society, church Sunday school, or any other

27 grammar school, or by a nonprofit youth organization or nonprofit

1 rehabilitation facility; or a motor vehicle owned and operated by

2 a senior citizen center, $10.00, if the bus, station wagon,

3 carryall, or similarly constructed vehicle or motor vehicle is

4 designated by proper signs showing the organization operating the

5 vehicle.

6 (h) For a vehicle owned by a nonprofit organization and used

7 to transport equipment for providing dialysis treatment to

8 children at camp; for a vehicle owned by the civil air patrol, as

9 organized under 36 USC 40301 to 40307, $10.00 per plate, if the

10 vehicle is designated by a proper sign showing the civil air

11 patrol's name; for a vehicle owned and operated by a nonprofit

12 veterans center; for a vehicle owned and operated by a nonprofit

13 recycling center or a federally recognized nonprofit conservation

14 organization; for a motor vehicle having a truck chassis and a

15 locomotive or ship's body that is owned by a nonprofit veterans

16 organization and used exclusively in parades and civic events; or

17 for an emergency support vehicle used exclusively for emergencies

18 and owned and operated by a federally recognized nonprofit

19 charitable organization, $10.00 per plate.

20 (i) For each truck owned and operated free of charge by a

21 bona fide ecclesiastical or charitable corporation, or ~~red cross,~~

22 ~~girl scout, or boy scout~~ Red Cross, Girl Scout, or Boy Scout

23 organization, 65 cents per 100 pounds of the empty weight of the

24 truck.

25 (j) For each truck, weighing 8,000 pounds or less, and not

26 used to tow a vehicle, for each privately owned truck used to tow

27 a trailer for recreational purposes only and not involved in a

1 profit making venture, and for each vehicle designed and used to

2 tow a mobile home or a trailer coach, except as provided in

3 subdivision (b), $38.00 or an amount computed according to the

4 following schedule of empty weights, whichever is greater:

5 Empty weights Per 100 pounds

6 0 to 2,500 pounds.............................. $ 1.40

7 2,501 to 4,000 pounds.......................... 1.76

8 4,001 to 6,000 pounds.......................... 2.20

9 6,001 to 8,000 pounds.......................... 2.72

10 8,001 to 10,000 pounds......................... 3.25

11 10,001 to 15,000 pounds........................ 3.77

12 15,001 pounds and over......................... 4.39

13 If the tax required under subdivision (p) for a vehicle of

14 the same model year with the same list price as the vehicle for

15 which registration is sought under this subdivision is more than

16 the tax provided under the preceding provisions of this

17 subdivision for an identical vehicle, the tax required under this

18 subdivision is not less than the tax required under subdivision

19 (p) for a vehicle of the same model year with the same list

20 price.

21 (k) For each truck weighing 8,000 pounds or less towing a

22 trailer or any other combination of vehicles and for each truck

23 weighing 8,001 pounds or more, road tractor or truck tractor,

24 except as provided in subdivision (j), as follows:

25 (i) Until December 31, 2016, according to the following

26 schedule of elected gross weights:

1 Elected gross weight Tax

2 0 to 24,000 pounds.............................. $ 491.00

3 24,001 to 26,000 pounds......................... 558.00

4 26,001 to 28,000 pounds......................... 558.00

5 28,001 to 32,000 pounds......................... 649.00

6 32,001 to 36,000 pounds......................... 744.00

7 36,001 to 42,000 pounds......................... 874.00

8 42,001 to 48,000 pounds......................... 1,005.00

9 48,001 to 54,000 pounds......................... 1,135.00

10 54,001 to 60,000 pounds......................... 1,268.00

11 60,001 to 66,000 pounds......................... 1,398.00

12 66,001 to 72,000 pounds......................... 1,529.00

13 72,001 to 80,000 pounds......................... 1,660.00

14 80,001 to 90,000 pounds......................... 1,793.00

15 90,001 to 100,000 pounds........................ 2,002.00

16 100,001 to 115,000 pounds....................... 2,223.00

17 115,001 to 130,000 pounds....................... 2,448.00

18 130,001 to 145,000 pounds....................... 2,670.00

19 145,001 to 160,000 pounds....................... 2,894.00

20 over 160,000 pounds............................. 3,117.00

21 (ii) Beginning on January 1, 2017, according to the following

22 schedule of elected gross weights:

23 Elected gross weight Tax

24 0 to 24,000 pounds.............................. $ 590.00

25 24,001 to 26,000 pounds......................... 670.00

26 26,001 to 28,000 pounds......................... 670.00

27 28,001 to 32,000 pounds......................... 779.00

1 32,001 to 36,000 pounds......................... 893.00

2 36,001 to 42,000 pounds......................... 1,049.00

3 42,001 to 48,000 pounds......................... 1,206.00

4 48,001 to 54,000 pounds......................... 1,362.00

5 54,001 to 60,000 pounds......................... 1,522.00

6 60,001 to 66,000 pounds......................... 1,678.00

7 66,001 to 72,000 pounds......................... 1,835.00

8 72,001 to 80,000 pounds......................... 1,992.00

9 80,001 to 90,000 pounds......................... 2,152.00

10 90,001 to 100,000 pounds........................ 2,403.00

11 100,001 to 115,000 pounds....................... 2,668.00

12 115,001 to 130,000 pounds....................... 2,938.00

13 130,001 to 145,000 pounds....................... 3,204.00

14 145,001 to 160,000 pounds....................... 3,473.00

15 over 160,000 pounds............................. 3,741.00

16 For each commercial vehicle registered under this

17 subdivision, $15.00 shall be deposited in a truck safety fund to

18 be expended as provided in section 25 of 1951 PA 51, MCL 247.675.

19 If a truck tractor or road tractor without trailer is leased

20 from an individual owner-operator, the lessee, whether an

21 individual, firm, or corporation, shall pay to the owner-operator

22 60% of the tax prescribed in this subdivision for the truck

23 tractor or road tractor at the rate of 1/12 for each month of the

24 lease or arrangement in addition to the compensation the owner-

25 operator is entitled to for the rental of his or her equipment.

26 (l) For each pole trailer, semitrailer, trailer coach, or

27 trailer, the tax shall be assessed according to the following

1 schedule of empty weights:

2 Empty weights Tax

3 0 to 2,499 pounds................................ $ 75.00

4 2,500 to 9,999 pounds............................ 200.00

5 10,000 pounds and over........................... 300.00

6 The registration plate issued under this subdivision expires

7 only when the secretary of state reissues a new registration

8 plate for all trailers. Beginning October 1, 2005, if the

9 secretary of state reissues a new registration plate for all

10 trailers, a person who has once paid the tax as increased by 2003

11 PA 152 for a vehicle under this subdivision is not required to

12 pay the tax for that vehicle a second time, but is required to

13 pay only the cost of the reissued plate at the rate provided in

14 section 804(2) for a standard plate. A registration plate issued

15 under this subdivision is nontransferable.

16 (m) For each commercial vehicle used for the transportation

17 of passengers for hire except for a vehicle for which a payment

18 is made under 1960 PA 2, MCL 257.971 to 257.972, according to the

19 following schedule of empty weights:

20 Empty weights Per 100 pounds

21 0 to 4,000 pounds.............................. $ 1.76

22 4,001 to 6,000 pounds.......................... 2.20

23 6,001 to 10,000 pounds......................... 2.72

24 10,001 pounds and over......................... 3.25

25 (n) For each motorcycle, $23.00.

1 On October 1, 1983, and October 1, 1984, the tax assessed

2 under this subdivision shall be annually revised for the

3 registrations expiring on the appropriate October 1 or after that

4 date by multiplying the tax assessed in the preceding fiscal year

5 times the personal income of Michigan for the preceding calendar

6 year divided by the personal income of Michigan for the calendar

7 year that preceded that calendar year. In performing the

8 calculations under this subdivision, the secretary of state shall

9 use the spring preliminary report of the United States Department

10 of Commerce or its successor agency.

11 Beginning January 1, 1984, the registration tax for each

12 motorcycle is increased by $3.00. The $3.00 increase is not part

13 of the tax assessed under this subdivision for the purpose of the

14 annual October 1 revisions but is in addition to the tax assessed

15 as a result of the annual October 1 revisions. Beginning January

16 1, 1984, $3.00 of each motorcycle fee shall be placed in a

17 motorcycle safety fund in the state treasury and shall be used

18 only for funding the motorcycle safety education program as

19 provided for under sections 312b and 811a.

20 (o) For each truck weighing 8,001 pounds or more, road

21 tractor, or truck tractor used exclusively as a moving van or

22 part of a moving van in transporting household furniture and

23 household effects or the equipment or those engaged in conducting

24 carnivals, at the rate of 80% of the schedule of elected gross

25 weights in subdivision (k) as modified by the operation of that

26 subdivision.

27 (p) After September 30, 1983, each motor vehicle of the 1984

1 or a subsequent model year as shown on the application required

2 under section 217 that has not been previously subject to the tax

3 rates of this section and that is of the motor vehicle category

4 otherwise subject to the tax schedule described in subdivision

5 (a), and each low-speed vehicle according to the following

6 schedule based upon registration periods of 12 months:

7 (i) Except as otherwise provided in this subdivision, for the

8 first registration that is not a transfer registration under

9 section 809 and for the first registration after a transfer

10 registration under section 809, according to the following

11 schedule based on the vehicle's list price:

12 (A) Until December 31, 2016, as follows:

13 List Price Tax

14 $ 0 - $ 6,000.00................................ $ 30.00

15 More than $ 6,000.00 - $ 7,000.00............... $ 33.00

16 More than $ 7,000.00 - $ 8,000.00............... $ 38.00

17 More than $ 8,000.00 - $ 9,000.00............... $ 43.00

18 More than $ 9,000.00 - $ 10,000.00.............. $ 48.00

19 More than $ 10,000.00 - $ 11,000.00............. $ 53.00

20 More than $ 11,000.00 - $ 12,000.00............. $ 58.00

21 More than $ 12,000.00 - $ 13,000.00............. $ 63.00

22 More than $ 13,000.00 - $ 14,000.00............. $ 68.00

23 More than $ 14,000.00 - $ 15,000.00............. $ 73.00

24 More than $ 15,000.00 - $ 16,000.00............. $ 78.00

25 More than $ 16,000.00 - $ 17,000.00............. $ 83.00

26 More than $ 17,000.00 - $ 18,000.00............. $ 88.00

27 More than $ 18,000.00 - $ 19,000.00............. $ 93.00

1 More than $ 19,000.00 - $ 20,000.00............. $ 98.00

2 More than $ 20,000.00 - $ 21,000.00............. $ 103.00

3 More than $ 21,000.00 - $ 22,000.00............. $ 108.00

4 More than $ 22,000.00 - $ 23,000.00............. $ 113.00

5 More than $ 23,000.00 - $ 24,000.00............. $ 118.00

6 More than $ 24,000.00 - $ 25,000.00............. $ 123.00

7 More than $ 25,000.00 - $ 26,000.00............. $ 128.00

8 More than $ 26,000.00 - $ 27,000.00............. $ 133.00

9 More than $ 27,000.00 - $ 28,000.00............. $ 138.00

10 More than $ 28,000.00 - $ 29,000.00............. $ 143.00

11 More than $ 29,000.00 - $ 30,000.00............. $ 148.00

12 More than $30,000.00, the tax of $148.00 is increased by

13 $5.00 for each $1,000.00 increment or fraction of a $1,000.00

14 increment over $30,000.00. If a current tax increases or

15 decreases as a result of 1998 PA 384, only a vehicle purchased or

16 transferred after January 1, 1999 shall be assessed the increased

17 or decreased tax.

18 (B) Beginning on January 1, 2017, as follows:

19 List Price Tax

20 $ 0 - $ 6,000.00................................ $ 36.00

21 More than $ 6,000.00 - $ 7,000.00............... $ 40.00

22 More than $ 7,000.00 - $ 8,000.00............... $ 46.00

23 More than $ 8,000.00 - $ 9,000.00............... $ 52.00

24 More than $ 9,000.00 - $ 10,000.00.............. $ 58.00

25 More than $ 10,000.00 - $ 11,000.00............. $ 64.00

26 More than $ 11,000.00 - $ 12,000.00............. $ 70.00

27 More than $ 12,000.00 - $ 13,000.00............. $ 76.00

1 More than $ 13,000.00 - $ 14,000.00............. $ 82.00

2 More than $ 14,000.00 - $ 15,000.00............. $ 88.00

3 More than $ 15,000.00 - $ 16,000.00............. $ 94.00

4 More than $ 16,000.00 - $ 17,000.00............. $ 100.00

5 More than $ 17,000.00 - $ 18,000.00............. $ 106.00

6 More than $ 18,000.00 - $ 19,000.00............. $ 112.00

7 More than $ 19,000.00 - $ 20,000.00............. $ 118.00

8 More than $ 20,000.00 - $ 21,000.00............. $ 124.00

9 More than $ 21,000.00 - $ 22,000.00............. $ 130.00

10 More than $ 22,000.00 - $ 23,000.00............. $ 136.00

11 More than $ 23,000.00 - $ 24,000.00............. $ 142.00

12 More than $ 24,000.00 - $ 25,000.00............. $ 148.00

13 More than $ 25,000.00 - $ 26,000.00............. $ 154.00

14 More than $ 26,000.00 - $ 27,000.00............. $ 160.00

15 More than $ 27,000.00 - $ 28,000.00............. $ 166.00

16 More than $ 28,000.00 - $ 29,000.00............. $ 172.00

17 More than $ 29,000.00 - $ 30,000.00............. $ 178.00

18 More than $30,000.00, the tax of $178.00 is increased by

19 $6.00 for each $1,000.00 increment or fraction of a $1,000.00

20 increment over $30,000.00. If a current tax increases or

21 decreases as a result of 1998 PA 384, only a vehicle purchased or

22 transferred after January 1, 1999 shall be assessed the increased

23 or decreased tax.

24 (ii) For the second registration, 90% of the tax assessed

25 under subparagraph (i).

26 (iii) For the third registration, 90% of the tax assessed

27 under subparagraph (ii).

1 (iv) For the fourth and subsequent registrations, 90% of the

2 tax assessed under subparagraph (iii).

3 For a vehicle of the 1984 or a subsequent model year that

4 has been previously registered by a person other than the person

5 applying for registration or for a vehicle of the 1984 or a

6 subsequent model year that has been previously registered in

7 another state or country and is registered for the first time in

8 this state, the tax under this subdivision shall be determined by

9 subtracting the model year of the vehicle from the calendar year

10 for which the registration is sought. If the result is zero or a

11 negative figure, the first registration tax shall be paid. If the

12 result is 1, 2, or 3 or more, then, respectively, the second,

13 third, or subsequent registration tax shall be paid. A van that

14 is owned by an individual who uses a wheelchair or by an

15 individual who transports a member of his or her household who

16 uses a wheelchair and for which registration plates are issued

17 under section 803d shall be assessed at the rate of 50% of the

18 tax provided for in this subdivision.

19 (q) For a wrecker, $200.00.

20 (r) When the secretary of state computes a tax under this

21 act, a computation that does not result in a whole dollar figure

22 shall be rounded to the next lower whole dollar when the

23 computation results in a figure ending in 50 cents or less and

24 shall be rounded to the next higher whole dollar when the

25 computation results in a figure ending in 51 cents or more,

26 unless specific taxes are specified, and the secretary of state

27 may accept the manufacturer's shipping weight of the vehicle

1 fully equipped for the use for which the registration application

2 is made. If the weight is not correctly stated or is not

3 satisfactory, the secretary of state shall determine the actual

4 weight. Each application for registration of a vehicle under

5 subdivisions (j) and (m) shall have attached to the application a

6 scale weight receipt of the vehicle fully equipped as of the time

7 the application is made. The scale weight receipt is not

8 necessary if there is presented with the application a

9 registration receipt of the previous year that shows on its face

10 the weight of the motor vehicle as registered with the secretary

11 of state and that is accompanied by a statement of the applicant

12 that there has not been a structural change in the motor vehicle

13 that has increased the weight and that the previous registered

14 weight is the true weight.

15 (2) A manufacturer is not exempted under this act from

16 paying ad valorem taxes on vehicles in stock or bond, except on

17 the specified number of motor vehicles registered. A dealer is

18 exempt from paying ad valorem taxes on vehicles in stock or bond.

19 (3) Until October 1, 2019, the tax for a vehicle with an

20 empty weight over 10,000 pounds imposed under subsection (1)(a)

21 and the taxes imposed under subsection (1)(c), (d), (e), (f),

22 (i), (j), (m), (o), and (p) are each increased as follows:

23 (a) A regulatory fee of $2.25 that shall be credited to the

24 traffic law enforcement and safety fund created in section 819a

25 and used to regulate highway safety.

26 (b) A fee of $5.75 that shall be credited to the

27 transportation administration collection fund created in section

1 810b.

2 (4) If Except as otherwise provided in this subsection, if a

3 tax required to be paid under this section is not received by the

4 secretary of state on or before the expiration date of the

5 registration plate, the secretary of state shall collect a late

6 fee of $10.00 for each registration renewed after the expiration

7 date. An application for a renewal of a registration using the

8 regular mail and postmarked before the expiration date of that

9 registration shall not be assessed a late fee. The late fee

10 collected under this subsection shall be deposited into the

11 general fund. The secretary of state shall waive the late fee

12 collected under this subsection if all of the following are

13 satisfied:

14 (a) The registrant presents proof of storage insurance for

15 the vehicle for which the late fee is assessed that is valid for

16 the period of time between the expiration date of the most recent

17 registration and the date of application for the renewal.

18 (b) The registrant requests in person at a department of

19 state branch office that the late fee be waived at the time of

20 application for the renewal.

21 (5) In addition to the registration taxes under this

22 section, the secretary of state shall collect taxes charged under

23 section 801j and credit revenues to a regional transit authority

24 created under the regional transit authority act, 2012 PA 387,

25 MCL 124.541 to 124.558, minus necessary collection expenses as

26 provided in section 9 of article IX of the state constitution of

27 1963. Necessary collection expenses incurred by the secretary of

1 state under this subsection shall be based upon an established

2 cost allocation methodology.

3 (6) This section does not apply to a historic vehicle.

4 (7) Beginning January 1, 2017, the registration fee imposed

5 under this section for a vehicle using 4 or more tires is

6 increased as follows:

7 (a) If the vehicle is a hybrid electric vehicle, the

8 registration fee for that vehicle is increased by $30.00 for a

9 vehicle with an empty weight of 8,000 pounds or less, and $100.00

10 for a vehicle with an empty weight of more than 8,000 pounds. As

11 used in this subdivision and subsection (8)(a), "hybrid electric

12 vehicle" means a vehicle that can be propelled at least in part

13 by electrical energy and uses a battery storage system of at

14 least 4 kilowatt-hours, but is also capable of using gasoline,

15 diesel fuel, or alternative fuel to propel the vehicle.

16 (b) If the vehicle is a nonhybrid electric vehicle, the

17 registration fee for that vehicle is increased by $100.00 for a

18 vehicle with an empty weight of 8,000 pounds or less, and $200.00

19 for a vehicle with an empty weight of more than 8,000 pounds. As

20 used in this subdivision and subsection (8)(b), "nonhybrid

21 electric vehicle" means a vehicle that is propelled solely by

22 electrical energy and that is not capable of using gasoline,

23 diesel fuel, or alternative fuel to propel the vehicle.

24 (8) Beginning January 1, 2017, if the tax on gasoline

25 imposed under section 8 of the motor fuel tax act, 2000 PA 403,

26 MCL 207.1008, is increased above 19 cents per gallon, the

27 secretary of state shall increase the fees collected under

1 subsection (7) as follows:

2 (a) For a hybrid electric vehicle, $2.50 per each 1 cent

3 above 19 cents per gallon.

4 (b) For a nonhybrid electric vehicle, $5.00 per each 1 cent

5 above 19 cents per gallon.

6 (9) As used in this section:

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

8 151 of the motor fuel tax act, 2000 PA 403, MCL 207.1151.

9 (b) "Diesel fuel" means that term as defined in section 2 of

10 the motor fuel tax act, 2000 PA 403, MCL 207.1002.

11 (c) "Gasoline" means that term as defined in section 3 of

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

13 (d) "Gross proceeds" means that term as defined in section 1

14 of the general sales tax act, 1933 PA 167, MCL 205.51, and

15 includes the value of the motor vehicle used as part payment of

16 the purchase price as that value is agreed to by the parties to

17 the sale, as evidenced by the signed agreement executed under

18 section 251.

19 (e) "List price" means the manufacturer's suggested base

20 list price as published by the secretary of state, or the

21 manufacturer's suggested retail price as shown on the label

22 required to be affixed to the vehicle under 15 USC 1232, if the

23 secretary of state has not at the time of the sale of the vehicle

24 published a manufacturer's suggested retail price for that

25 vehicle, or the purchase price of the vehicle if the

26 manufacturer's suggested base list price is unavailable from the

27 sources described in this subdivision.