Bill Text: MI HB4653 | 2009-2010 | 95th Legislature | Introduced

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Bill Title: Transportation; motor carrier fuel tax; use of vehicle miles traveled tax and fee system; prohibit. Amends sec. 8 of 2000 PA 403 (MCL 207.1008).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2009-04-29 - Recommendation Concurred In [HB4653 Detail]

Download: Michigan-2009-HB4653-Introduced.html

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HOUSE BILL No. 4653

 

March 19, 2009, Introduced by Rep. Opsommer and referred to the Committee on Tax Policy.

 

     A bill to amend 2000 PA 403, entitled

 

"Motor fuel tax act,"

 

by amending section 8 (MCL 207.1008), as amended by 2006 PA 268.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

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

 

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

 

or used in this state at the following rates:

 

     (a) Except as otherwise provided in subdivision (c), 19 cents

 

per gallon on gasoline.

 

     (b) Except as otherwise provided in subdivision (d), 15 cents

 

per gallon on diesel fuel.

 

     (c) Subject to subsections (10) and (11), 12 cents per gallon

 

on gasoline that is at least 70% ethanol. Under this subdivision,

 

blenders of ethanol and gasoline outside of the bulk transfer

 

terminal system shall obtain a blender's license and are subject to

 

the blender reporting requirements under this act. A licensed

 

supplier who blends ethanol and gasoline shall also obtain a

 

blender's license.

 

     (d) Subject to subsections (10) and (11), 12 cents per gallon

 

on diesel fuel that contains at least 5% biodiesel. Under this

 

subdivision, blenders of biodiesel and diesel fuel outside of the

 

bulk transfer terminal system are required to obtain a blender's

 

license and are subject to the blender reporting requirements under

 

this act. A licensed supplier who blends biodiesel and diesel fuel

 

shall also obtain a blender's license.

 

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

 

that is in the bulk transfer/terminal system.

 

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

 

by this section shall be accomplished in the manner and at the time

 

provided for in this act.

 

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

 

(1) on net gallons of motor fuel, including transmix, lost or

 

unaccounted for, at each terminal in this state. The tax shall be

 

measured annually and shall apply to the net gallons of motor fuel

 

lost or unaccounted for that are in excess of 1/2 of 1% of all net

 

gallons of fuel removed from the terminal across the rack or in

 

bulk.

 

     (5) It is the intent of this act:

 

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

 

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

 

using those roads or highways.

 

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

 

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

 

unless otherwise specifically provided in this act.

 

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

 

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

 

a deduction as provided in this act.

 

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

 

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

 

act.

 

     (e) That the tax imposed on motor fuel by this act is

 

representative of the type of energy-consumption-based revenue

 

scheme that is the primary method that the legislature taxes

 

persons for driving motor vehicles on the public roads and highways

 

of this state. The legislature further finds and determines that

 

any form of taxation or fees that is based on the tracking of where

 

vehicles drive is not an acceptable method of revenue generation

 

and will not be employed by this state.

 

     (6) Bills of lading and invoices shall identify the blended

 

product and the correct fuel product code. The motor fuel tax rate

 

for each product shall be listed separately on each invoice.

 

Licensees shall report the correct fuel product code for the

 

blended product as required by the department. When fuel is blended

 

below the terminal rack, new bills of lading and invoices shall be

 

generated and submitted to the department upon request. All bills

 

of lading and invoices shall meet the requirements provided under

 

this act.

 

     (7) Notwithstanding any other provision of this act, all

 

facilities in this state that produce motor fuel and distribute the

 

fuel from a rack for purposes of this act are a terminal and shall

 

obtain a terminal operator license and shall comply with all

 

terminal operator reporting requirements under this act. All

 

position holders in these facilities shall be licensed as a

 

supplier and shall comply with all supplier requirements under this

 

act.

 

     (8) If the tax on gasoline that contains at least 70% ethanol

 

or diesel fuel that contains at least 5% biodiesel held in storage

 

outside of the bulk transfer/terminal system on the effective date

 

of the amendatory act that added this subsection September 1, 2006

 

has previously been paid at the rates imposed by subsection (1)(a)

 

and (b), the person who paid the tax may claim a refund for the

 

difference between the rates imposed by subsection (1)(a) and (b)

 

and the rates imposed by subsection (1)(c) and (d). All of the

 

following shall apply to a refund claimed under this subsection:

 

     (a) The refund shall be claimed on a form prescribed by the

 

department.

 

     (b) The refund shall apply only to:

 

     (i) Previously taxed gasoline containing at least 70% ethanol

 

or diesel fuel containing at least 5% biodiesel in excess of 3,000

 

gallons held in storage by an end user.

 

     (ii) Previously taxed gasoline containing at least 70% ethanol

 

or diesel fuel containing at least 5% biodiesel held for sale that

 

is in excess of dead storage.

 

     (9) A refund request shall be filed within 60 days after the

 

last day of the month in which the amendatory act that added this

 

subsection took effect September 30, 2006. A taxpayer shall provide

 

documentation that the department requires in order to verify the

 

request for refund. A person who may claim a refund under

 

subsection (8) shall do all of the following to claim the refund:

 

     (a) Not later than 12 a.m. on the effective date of the

 

amendatory act that added this subsection September 1, 2006, take

 

an inventory of gasoline containing at least 70% ethanol or undyed

 

diesel fuel containing at least 5% biodiesel.

 

     (b) Deduct 3,000 gallons if the person claiming the refund is

 

an end user.

 

     (c) Deduct the number of gallons in dead storage if the

 

gasoline containing at least 70% ethanol or the undyed diesel fuel

 

containing at least 5% biodiesel is held for subsequent sale.

 

     (10) Beginning on the effective date of the amendatory act

 

that added this subsection September 1, 2006, the state treasurer

 

shall annually determine, for the 12-month period ending May 1 and

 

for any additional times that the treasurer may determine, the

 

difference between the amount of motor fuel tax collected and the

 

amount of motor fuel tax that would have been collected but for the

 

differential rates on gasoline pursuant to subsection (1)(c) and

 

biodiesel pursuant to subsection (1)(d). Subsection (1)(c) and (d)

 

is no longer effective the earlier of 10 years after the effective

 

date of the amendatory act that added this subsection September 1,

 

2006 or the first day of the first month that is not less than 90

 

days after the state treasurer certifies that the total cumulative

 

rate differential from the effective date of this amendatory act

 

September 1, 2006 is greater than $2,500,000.00.

 

     (11) The legislature shall annually appropriate to the

 

Michigan transportation fund created in 1951 PA 51, MCL 247.651 to

 

247.675, the amount determined as the rate differential certified

 

by the state treasurer for the 12-month period ending on May 1 of

 

the calendar year in which the fiscal year begins. Subsection

 

(1)(c) and (d) shall not be effective beginning January of any

 

fiscal year for which the appropriation required under this

 

subsection has not been made by the first day of the fiscal year.

 

     (12) As used in this section:

 

     (a) "Biodiesel" means a fuel composed of mono-alkyl esters of

 

long chain fatty acids derived from vegetable oils or animal fats

 

and, in accordance with standards specified by the American society

 

for testing and materials, designated B100 and meeting the

 

requirements of D-6751, as approved by the department of

 

agriculture.

 

     (b) "Ethanol" means denatured fuel ethanol that is suitable

 

for use in a spark-ignition engine when mixed with gasoline so long

 

as the mixture meets the American society for testing and materials

 

D-5798 specifications.