Bill Text: MI HB5982 | 2013-2014 | 97th Legislature | Introduced

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Bill Title: Transportation; motor fuel tax; tax exemptions for motor fuel; modify to exclude government agencies, colleges, and universities and certain other entities. Amends secs. 30 & 41 of 2000 PA 403 (MCL 207.1030 & 207.1041).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2014-12-03 - Printed Bill Filed 12/03/2014 [HB5982 Detail]

Download: Michigan-2013-HB5982-Introduced.html

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HOUSE BILL No. 5982

 

December 2, 2014, Introduced by Rep. McMillin and referred to the Committee on Tax Policy.

 

     A bill to amend 2000 PA 403, entitled

 

"Motor fuel tax act,"

 

by amending sections 30 and 41 (MCL 207.1030 and 207.1041), section

 

30 as amended by 2008 PA 26.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 30. (1) Motor fuel is exempt from the tax imposed by

 

section 8 and the tax shall not be collected by the supplier if the

 

motor fuel:

 

     (a) Is dyed diesel fuel or dyed kerosene.

 

     (b) Is gasoline or diesel fuel that is sold directly by the

 

supplier to the federal government, the state government, or a

 

political subdivision of the state for use in a motor vehicle owned

 

and operated or leased and operated by the federal or state

 

government or a political subdivision of the state.

 

     (b) (c) Is sold directly by the supplier to a nonprofit,

 

private, parochial, or denominational school , college, or

 

university and is used in a school bus owned and operated or leased

 

and operated by the educational institution that is used in the

 

transportation of students to and from the institution or to and

 

from school functions authorized by the administration of the

 

institution.

 

     (c) (d) Is fuel for which proof of export is available in the

 

form of a terminal-issued destination state shipping paper under

 

any of the following circumstances:

 

     (i) The motor fuel is exported by a supplier who is licensed in

 

the destination state.

 

     (ii) Until December 31, 2000, the The motor fuel is sold by a

 

supplier to a licensed exporter for immediate export.

 

     (iii) The motor fuel is sold by a supplier to another person for

 

immediate export to a state for which the destination state fuel

 

tax has been paid to the supplier who is licensed to remit tax to

 

that destination state.

 

     (d) (e) Is gasoline removed from a pipeline or marine vessel

 

by a taxable fuel registrant with the internal revenue service as a

 

fuel feedstock user.

 

     (e) (f) Is motor fuel that is sold for use in aircraft but

 

only if the purchaser paid the tax imposed on that fuel under the

 

aeronautics code of the state of Michigan, 1945 PA 327, MCL 259.1

 

to 259.208, and the purchaser is registered under section 94 if

 

required to be registered under that section.

 

     (f) (g) Is aviation fuel upon which tax is not due under

 

section 203 of the aeronautics code of the state of Michigan, 1945

 

PA 327, MCL 259.203, and the purchaser has certified in writing to

 

the seller that the aviation fuel is being purchased solely for the

 

purpose of formulating leaded racing fuel. as that term is defined

 

in section 4. Aviation fuel qualifying under this subsection shall

 

be identified on shipping papers and invoices as "aviation fuel

 

exempt for LRF".

 

     (2) Motor fuel is exempt from the tax imposed by section 8 if

 

it is acquired by an end user outside of this state and brought

 

into this state in the fuel supply tank of a motor vehicle that is

 

not a commercial motor vehicle, but only if the fuel is retained

 

within and consumed from that same fuel supply tank.

 

     (3) A person who uses motor fuel for a taxable purpose where

 

the tax imposed by this act was not collected shall pay to the

 

department the tax imposed by section 8 and any applicable

 

penalties or interest. The payment shall be made on a form or in a

 

format prescribed by the department.

 

     Sec. 41. An end user may seek a refund for tax paid under this

 

act on gasoline used in a passenger vehicle of a capacity of 5 or

 

more under a municipal franchise, license, permit, agreement, or

 

grant, respectively, a person operating a passenger vehicle for the

 

transportation of school students under a certificate of authority

 

issued by the state transportation department pursuant to under

 

section 5 of article II of the motor carrier act, 1933 PA 254, MCL

 

476.5, and for gasoline used in a passenger vehicle used by a

 

community action agency as described in former title II of the

 

economic opportunity act of 1964, Public Law 88-452, which are if

 

the end user is not a part or division of a political subdivision

 

of this state. A community action agency shall make the refund a

 

state-contributed nonfederal share to grants received by the

 

community action agency from the community services administration

 

under former title II of the economic opportunity act of 1964.