Bill Text: MI HB4738 | 2015-2016 | 98th Legislature | Engrossed
Bill Title: Transportation; motor fuel tax; tax rate increase for motor fuel and taxation of certain alternative fuel; provide for. Amends secs. 2, 3, 8, 22, 40, 45, 53, 63, 122, 143, 151, 152, 153, 154 & 155 of 2000 PA 403 (MCL 207.1002 et seq.) & repeals sec. 38 of 2000 PA 403 (MCL 207.1038). TIE BAR WITH: HB 4370'15, HB 4614'15, HB 4616'15, HB 4736'15, HB 4737'15, SB 0414'15
Spectrum: Partisan Bill (Republican 5-0)
Status: (Passed) 2015-11-10 - Assigned Pa 176'15 [HB4738 Detail]
Download: Michigan-2015-HB4738-Engrossed.html
HB-4738, As Passed Senate, November 3, 2015
SENATE SUBSTITUTE FOR
HOUSE BILL NO. 4738
A bill to amend 2000 PA 403, entitled
"Motor fuel tax act,"
by amending sections 2, 3, 8, 22, 40, 45, 53, 63, 122, 143, 151,
152, 153, 154, and 155 (MCL 207.1002, 207.1003, 207.1008, 207.1022,
207.1040, 207.1045, 207.1053, 207.1063, 207.1122, 207.1143,
207.1151, 207.1152, 207.1153, 207.1154, and 207.1155), sections 2
and 122 as amended by 2002 PA 668, section 3 as amended by 2006 PA
277, and section 8 as amended by 2006 PA 268; and to repeal acts
and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2. As used in this act:
(a) "Alcohol" means fuel grade ethanol or a mixture of fuel
grade ethanol and another product.
(b) "Blendstock" means and includes any petroleum product
component of motor fuel, such as naphtha, reformate, or toluene; or
any oxygenate that can be blended for use in a motor fuel.
(c) "Blended motor fuel" means a mixture of motor fuel and
another liquid, other than a de minimis amount of a product
including, but not limited to, carburetor detergent or oxidation
inhibitor, that can be used as motor fuel in a motor vehicle.
(d) "Blender" means and includes any person who produces
blended motor fuel outside of the bulk transfer/terminal system.
(e) "Blends" or "blending" means the mixing of 1 or more
petroleum products, with or without another product, regardless of
the original character of the product blended, if the product
obtained by the blending is capable of use in the generation of
power for the propulsion of a motor vehicle, an airplane, or a
marine vessel. Blending does not include mixing that occurs in the
process of refining by the original refiner of crude petroleum or
the blending of products known as lubricating oil in the production
of lubricating oils and greases.
(f) "Bulk end user" means a person who receives into the
person's own storage facilities by transport truck or tank wagon
motor fuel for the person's own consumption.
(g) "Bulk plant" means a motor fuel storage and distribution
facility that is not a terminal and from which motor fuel may be
withdrawn by a tank wagon, a transport truck, or a marine vessel.
(h) "Bulk transfer" means a transfer of motor fuel from 1
location to another by pipeline tender or marine delivery within
the bulk transfer/terminal system, including, but not limited to,
all of the following transfers:
(i) A marine vessel movement of motor fuel from a refinery or
terminal to a terminal.
(ii) Pipeline movements of motor fuel from a refinery or
terminal to a terminal.
(iii) Book transfers of motor fuel within a terminal between
licensed suppliers before completion of removal across the terminal
rack.
(iv) Two-party exchanges between licensed suppliers.
(i) "Bulk transfer/terminal system" means the motor fuel
distribution system consisting of refineries, pipelines, marine
vessels, and terminals. Motor fuel in a refinery, pipeline,
terminal, or a marine vessel transporting motor fuel to a refinery
or terminal is in the bulk transfer/terminal system. Motor fuel in
a fuel storage facility including, but not limited to, a bulk plant
that is not part of a refinery or terminal, in the fuel supply tank
of any engine or motor vehicle, in a marine vessel transporting
motor fuel to a fuel storage facility that is not in the bulk
transfer/terminal system, or in any tank car, rail car, trailer,
truck, or other equipment suitable for ground transportation is not
in the bulk transfer/terminal system.
(j) "Carrier" means an operator of a pipeline or marine vessel
engaged in the business of transporting motor fuel above the
terminal rack.
(k) "Commercial motor vehicle" means a motor vehicle licensed
as a qualified commercial motor vehicle under the motor carrier
fuel tax act, 1980 PA 119, MCL 207.211 to 207.234, or a motor
vehicle licensed under an international fuel tax agreement under
section 2a of the motor carrier fuel tax act, 1980 PA 119, MCL
207.212a.
(l) "Consumer price index" means United States consumer price
index for all urban consumers as defined and reported by the United
States Department of Labor, Bureau of Labor Statistics.
(m) (l) "Dead
storage" is the amount of motor fuel that cannot
be pumped out of a motor fuel storage tank because the motor fuel
is below the mouth of the tank's draw pipe. The amount of motor
fuel in dead storage is 200 gallons for a tank with a capacity of
less than 10,000 gallons and 400 gallons for a tank with a capacity
of 10,000 gallons or more.
(n) (m)
"Denaturants" means and
includes gasoline, natural
gasoline, gasoline components, or toxic or noxious materials added
to fuel grade ethanol to make it unsuitable for beverage use but
not unsuitable for automotive use.
(o) (n)
"Department" means the bureau
of revenue within the
department of treasury or its designee.
(p) (o)
"Destination state" means
the a state, Canadian
province or territory, or foreign country to which motor fuel is
directed for export.
(q) (p)
"Diesel fuel" means any
liquid other than gasoline
that is capable of use as a fuel or a component of a fuel in a
motor vehicle that is propelled by a diesel-powered engine or in a
diesel-powered train. Diesel fuel includes number 1 and number 2
fuel oils, kerosene, dyed diesel fuel, and mineral spirits. Diesel
fuel also includes any blendstock or additive that is sold for
blending with diesel fuel, any liquid prepared, advertised, offered
for sale, sold for use as, or used in the generation of power for
the propulsion of a diesel-powered engine, airplane, or marine
vessel. An additive or blendstock is presumed to be sold for
blending unless a certification is obtained for federal purposes
that the substance is for a use other than blending for diesel
fuel. Diesel fuel does not include an excluded liquid.
(r) (q)
"Dyed diesel fuel" means
diesel fuel that is dyed in
accordance with internal revenue service rules or pursuant to any
other internal revenue service requirements, including any
invisible marker requirements.
(s) (r)
"Eligible purchaser"
means a person who has been
authorized
by the department under section 75 to make the an
election under section 74.
(t) (s)
"Excluded liquid" means
that term as defined in 26
C.F.R.
CFR 48.4081-1.
(u) (t)
"Export" means to obtain
motor fuel in this state for
sale or other distribution outside of this state. Motor fuel
delivered outside of this state by or for the seller constitutes an
export by the seller and motor fuel delivered outside of this state
by or for the purchaser constitutes an export by the purchaser.
(v) (u)
"Exporter" means a person
who exports motor fuel.
Sec. 3. As used in this act:
(a) "Fuel feedstock user" means a person who receives motor
fuel for the person's own use in the manufacture or production of
any substance other than motor fuel.
(b)
"Fuel grade ethanol" means the American society for
testing
and materials Society for
Testing and Materials standard in
effect
on the effective date of this act April 1, 2001 as the D-
4806 specification for denatured fuel grade ethanol for blending
with gasoline.
(c) "Fuel transportation vehicle" means a vehicle designed or
used to transport motor fuel on the public roads or highways. Fuel
transportation vehicle includes, but is not limited to, a transport
truck and a tank wagon. Fuel transportation vehicle does not
include a vehicle transporting a nurse tank or limited volume
auxiliary-mounted supply tank used for fueling an implement of
husbandry.
(d) "Gallon" means a unit of liquid measure as customarily
used in the United States containing 231 cubic inches, or 4 quarts,
or its metric equivalent expressed in liters. Where the term gallon
appears in this act, the term liters is interchangeable so long as
the equivalence of a gallon and 3.785 liters is preserved. A
quantity required to be furnished under this act may be specified
in liters when authorized by the department.
(e) "Gasohol" means a blended motor fuel composed of gasoline
and fuel grade ethanol.
(f)
"Gasoline" means and includes gasoline, alcohol, gasohol,
casing head or natural gasoline, benzol, benzine, naphtha, and any
blendstock additive, or other product including methanol that is
sold for blending with gasoline or for use on the road other than
products typically sold in containers of less than 5 gallons.
Gasoline also includes a liquid prepared, advertised, offered for
sale, sold for use as, or used in the generation of power for the
propulsion of a motor vehicle, airplane, or marine vessel,
including a product obtained by blending together any 1 or more
products of petroleum, with or without another product, and
regardless of the original character of the petroleum products
blended, if the product obtained by the blending is capable of use
in the generation of power for the propulsion of a motor vehicle,
airplane, or marine vessel. The blending of all of the above named
products, regardless of their name or characteristics, shall
conclusively be presumed to have been done to produce motor fuel,
unless the product obtained by the blending is entirely incapable
of use as motor fuel. Gasoline also includes transmix. Gasoline
does not include diesel fuel or leaded racing fuel. An additive or
blendstock is presumed to be sold for blending unless a
certification is obtained for federal purposes that the substance
is for a use other than blending for gasoline.
(g) "Gross gallons" means the total measured product,
exclusive of any temperature or pressure adjustments,
considerations, or deductions, in gallons.
(h)
"Heating oil" means a motor fuel including dyed diesel
fuel
that is burned in a boiler, furnace, or stove for heating,
agricultural,
or industrial processing purposes.
(h) (i)
"Implement of husbandry"
means and includes a farm
tractor, a vehicle designed to be drawn or pulled by a farm tractor
or
animal, a vehicle that directly harvests farm products, and or a
vehicle that directly applies fertilizer, spray, or seeds to a farm
field. Implement of husbandry does not include a motor vehicle
licensed for use on the public roads or highways of this state.
(i) (j)
"Import" means to bring
motor fuel into this state by
motor vehicle, marine vessel, pipeline, or any other means.
However,
import Import does not include bringing motor fuel into
this state in the fuel supply tank of a motor vehicle if the motor
fuel is used to power that motor vehicle. Motor fuel delivered into
this state from outside of this state by or for the seller
constitutes an import by the seller, and motor fuel delivered into
this
state from out outside of this state by or for the purchaser
constitutes an import by the purchaser.
(j) (k)
"Importer" means a person
who imports motor fuel into
this state.
(k) (l) "Import
verification number" means the number assigned
by the department to an individual delivery of motor fuel by a
transport truck, tank wagon, marine vessel, or rail car in response
to a request for a number from an importer or transporter carrying
motor fuel into this state for the account of an importer.
(l) "Inflation rate" means the annual percentage change in the
consumer price index, as determined by the department, comparing
the 2 most recent October 1 through September 30 periods that are
immediately preceding the effective date of the rate prescribed
under section 8(1)(c), converted to decimals. If the annual
percentage change is negative, then the inflation rate is zero.
(m) "In this state" means the area within the borders of this
state, including all territories within the borders owned by, held
in trust by, or added to the United States of America.
(n) "Invoiced gallons" means the number of gallons actually
billed on an invoice.
Sec.
8. (1) Subject Except as
otherwise provided in this act
and 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), as
follows:
(i) Through December 31, 2016, 19 cents per gallon on
gasoline.
(ii) Beginning January 1, 2017, 26.3 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.
(b) Except as otherwise provided in subdivision (c), as
follows:
(i) Through December 31, 2016, 15 cents per gallon on diesel
fuel.
(ii) Beginning January 1, 2017, 26.3 cents per gallon on
diesel fuel.
(c) Beginning with the rate effective on January 1, 2022 and
January 1 of each year thereafter, the department shall determine a
cents-per-gallon rate on motor fuel that shall be derived by
multiplying the cents-per-gallon rate in effect during the
immediately preceding calendar year by 1 plus the lesser of 0.05 or
the inflation rate and rounding up the product to the nearest 1/10
of a cent.
(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.
(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
a facility in this state that produce produces motor
fuel
and distribute distributes
the fuel from a rack for purposes
of
this act are is a terminal, and shall obtain a terminal operator
license, and shall comply with all terminal operator reporting
requirements
under this act. All A position holders holder in
these
facilities
a facility 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 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. 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, 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, 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 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 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.
(8) Beginning with the rate in effect on January 1, 2022 and
January 1 of each year thereafter, the department shall publish
notice of the tax rate under this section not later than 30 days
before the effective date of the rate.
(9) A determination by the department of the consumer price
index, the inflation rate, or the tax rate under this section is
presumed correct and shall not be set aside unless an
administrative tribunal or a court of competent jurisdiction finds
the department's determination to be clearly erroneous.
Sec. 22. (1) The tax imposed on gasoline shall be in lieu of
all other taxes imposed or to be imposed upon the sale or use of
gasoline
by the this state or any political subdivision of this
state except for the taxes imposed by the general sales tax act,
1933 PA 167, MCL 205.51 to 205.78, and the use tax act, 1937 PA 94,
MCL 205.91 to 205.111.
(2) The tax imposed on diesel fuel and alternative fuel shall
be imposed in lieu of all other taxes imposed or to be imposed upon
the
sale or use of diesel fuel or
alternative fuel by the this
state
or a political subdivision of the this state, except the
taxes imposed by the general sales tax act, 1933 PA 167, MCL 205.51
to 205.78, the use tax act, 1937 PA 94, MCL 205.91 to 205.111, and
the motor carrier fuel tax act, 1980 PA 119, MCL 207.211 to
207.234. The exception for taxes imposed by the general sales tax
act, 1933 PA 167, MCL 205.51 to 205.78, and the use tax act, 1937
PA
94, shall MCL 205.91
to 205.111, does not apply to diesel
fuel
used in passenger vehicles of a capacity of 10 or more operated for
hire under a certificate issued by the state transportation
department. As used in this subsection, "alternative fuel" means
that term as defined in section 151.
Sec. 40. (1) A person may seek a refund for tax paid under
this act on motor fuel or alternative fuel that is 1 or more of the
following:
(a) Accidentally contaminated by dye or another contaminant,
including but not limited to gasoline that is mixed with diesel
fuel, if the resulting product cannot be used to operate a motor
vehicle on the public roads or highways without violating this act
or other state or federal law.
(b) Accidentally lost or destroyed as a direct result of a
sudden and unexpected casualty loss.
(2)
This The refund described
in subsection (1) does not apply
if the person seeking the refund has been reimbursed for the cost
of the tax by any person, including, but not limited to, an
insurance company, for the loss or contamination. If a person
seeking a refund under this section is reimbursed for any amount,
that person shall demonstrate to the department that the amount
reimbursed does not include tax paid under this act on the motor
fuel or alternative fuel in order to be eligible for the refund.
Sec. 45. (1) An end user operating a motor vehicle with a
common fuel supply tank from which motor fuel or alternative fuel
is used both to propel the vehicle and to operate attached
equipment
may seek a refund for tax paid under this act on diesel
motor fuel or alternative fuel consumed from that fuel supply tank
in the amount of 15% of the tax paid.
(2) Notwithstanding subsection (1), an end user operating a
motor
vehicle with a common fuel supply tank from which diesel
motor fuel or alternative fuel is used both to propel the vehicle
and to operate attached equipment may seek a refund for tax paid
under
this act on diesel motor fuel or
alternative fuel consumed
from that fuel supply tank in an amount that is more than 15% of
the tax paid if the operator provides evidence to the department
that a refund or deduction of more than 15% is justified. The
department shall determine the evidence that is necessary under
this section to justify a refund of more than 15% of the tax paid.
(3) A refund provided under this section only applies to a
motor vehicle that is used by the end user exclusively for business
or other commercial purposes and does not apply to an automobile
whether or not it is used by the end user for business or other
commercial purposes.
(4)
If the department determined before the effective date of
this
section April 1, 2001 that a class of motor vehicles with
attached equipment was eligible for a motor fuel refund in an
amount
different than 15% of the tax paid, that percentage shall
apply
applies to those motor vehicles on and after the
effective
date
of this section April 1, 2001
unless, following notice and
hearing, a later determination under subsection (2) is made.
(5)
As used in this section: , "attached equipment"
(a) "Alternative fuel" means that term as defined in section
151.
(b) "Attached equipment" means equipment used by the end user
in the regular course of his or her business that is powered by
diesel
motor fuel or
alternative fuel from the common fuel
supply
tank. Attached equipment includes, but is not limited to, certain
pumping, spraying, seeding, spreading, shredding, lifting,
winching, dumping, cleaning, mixing, processing, and refrigeration
equipment. Attached equipment does not include a heater, air
conditioner, radio, or any other equipment that is used in the cab
of the motor vehicle and does not include any other equipment that
the department reasonably determines does not meet this definition.
Sec. 53. (1) A person shall not engage in a business activity
in this state where a license is required by this act unless the
person is licensed under this act.
(2) A person required to be licensed under this act shall
apply for a license on a form or in a format prescribed by the
department.
(3) An application for a license under this act may contain
any information the department may reasonably require to administer
this act including the applicant's federal identification number.
(4)
The following persons currently licensed on the effective
date
of this act April 1, 2001 are not required to obtain a new
license under this act and shall be considered licensed under this
act:
(a)
A person licensed in this state as a supplier on the
effective
date of this act April 1,
2001 shall be considered
licensed as a supplier under this act but only if the person is a
terminal
operator or a position holder in a terminal on the
effective
date of this act.April 1,
2001.
(b)
A wholesale distributor who on the effective date of this
act
April 1, 2001 possesses a valid exemption certificate issued
under former section 12 of 1927 PA 150 shall be considered licensed
as a fuel vendor under this act.
(c)
A person licensed in this state as an exporter on the
effective
date of this act April 1,
2001 shall be considered
licensed as an exporter under this act.
(d) A person licensed in this state as a liquid fuel hauler on
the
effective date of this act April
1, 2001 shall be considered
licensed as a transporter under this act.
(e) A person licensed in this state as a retail dealer of
diesel
motor fuel on the effective date of this act April 1, 2001
shall be considered licensed as a retail diesel dealer under this
act.
(5) A person considered licensed under subsection (4) is
subject to all of the provisions of this act except those requiring
an application for a new license.
(6) Except as otherwise provided in this act, a person who is
engaged in more than 1 business activity for which a license is
required under this act shall be licensed for each business
activity.
(7) A person who is licensed as a supplier is not required to
obtain a separate license for any other business activity for which
a license is required under this act except as a retail diesel
dealer
or as an LPG alternative fuel dealer or alternative fuel
commercial user under sections 151 to 155.
(8)
A person licensed in this state as an LPG dealer on the
effective
date of this act shall be considered licensed as an LPG
dealer
under this act.
(8) (9)
A person who negligently violates
this section is
subject to a civil penalty of $1,000.00.
(9) (10)
A person who knowingly violates or
knowingly aids and
abets another to violate this section is guilty of a felony.
Sec. 63. (1) If an application and the accompanying bond or
cash deposit, if any, are approved, the department shall issue a
license to the applicant.
(2) A licensee shall retain a copy of its license at each of
its business locations unless the department waives this
requirement.
(3) A licensee is not required to renew a license and a
license is valid unless and until it is suspended, canceled, or
revoked for cause by the department, or discontinued by the
licensee. However, the department may require a licensee to update
the information required under section 53 or 153.
(4) The department shall maintain a list containing the name
and address of each person licensed under this act. The department
may post the list on the department's website. The department shall
regularly update the list in order to reflect the current status of
a licensee.
Sec. 122. (1) A person shall not operate or maintain a motor
vehicle on the public roads or highways of this state with dyed
diesel fuel in the vehicle's fuel supply tank.
(2) This section does not apply to dyed diesel fuel used in
any of the following:
(a) A motor vehicle owned and operated or leased and operated
by the federal or state government or a political subdivision of
this state.
(b)
A motor vehicle used exclusively by the American red
cross.Red Cross.
(c) An implement of husbandry.
(d) A passenger vehicle that has a capacity of 10 or more and
that operates over regularly traveled routes expressly provided for
in 1 or more of the following that applies to the passenger
vehicle:
(i) A certificate of authority issued by the state
transportation department.
(ii) A municipal franchise.
(iii) A municipal license.
(iv) A municipal permit.
(v) A municipal agreement.
(vi) A municipal grant.
(3) An owner, operator, or driver of a vehicle who uses dyed
diesel fuel on the public roads or highways of this state is
subject
to a civil penalty of $200.00 $1,000.00
for each of the
first
2 violations within a 12-month period. For a third violation
within
a 12-month period, and violation,
and a civil penalty of
$5,000.00
for each subsequent violation. thereafter,
the person is
subject
to a civil penalty of $5,000.00. An
owner, operator, or
driver of a motor vehicle who knowingly violates the prohibition
against the sale or use of dyed diesel fuel upon the public roads
or highways of this state is subject to a civil penalty equal to
that imposed by section 6714 of the internal revenue code.
Sec. 143. (1) Except as otherwise provided in subsection (2)
or in section 142, all sums of money received and collected under
this act, except for license fees, and after the payment of the
necessary expenses incurred in the enforcement of this act, are
appropriated to and shall be deposited in the state treasury to the
credit of the Michigan transportation fund created in section 10 of
1951 PA 51, MCL 247.660.
(2) Beginning in fiscal year 2016-2017 and each fiscal year
thereafter, the first $100,000,000.00 received and collected
attributable to taxes imposed under section 8(1) shall be annually
deposited into the state treasury to the credit of the roads
innovation fund created in section 1j of 1951 PA 51, MCL 247.651j.
However, once the funds are released by the 1-time concurrent
resolution required under section 1j of 1951 PA 51, MCL 247.651j,
funds shall no longer be annually deposited into the roads
innovation fund under this subsection.
Sec. 151. As used in this section and sections 152 to 155:
(a) "Alternative fuel" means a gas, liquid, or other fuel
that, with or without adjustment or manipulation such as adjustment
or manipulation of pressure or temperature, is capable of being
used for the generation of power to propel a motor vehicle,
including, but not limited to, natural gas, compressed natural gas,
liquefied natural gas, liquefied petroleum gas, hydrogen, hydrogen
compressed natural gas, or hythane. Alternative fuel does not
include motor fuel, electricity, leaded racing fuel, or an excluded
liquid.
(b) "Alternative fuel commercial user" means a commercial or
other business enterprise or entity that is a consumer or end user
of alternative fuel to propel a motor vehicle on the public roads
and highways of this state. Alternative fuel commercial user does
not include a person licensed as an alternative fuel dealer under
section 153.
(c) "Alternative fuel dealer" means a person that is licensed
or required to be licensed under section 153, that is in the
business of selling at retail alternative fuel, and that uses
alternative fuel as described in subdivision (j).
(d) "Alternative fuel filling station" means a machine or
other device located within this state that is supplied with
alternative fuel and that is designed or used for placing or
delivering alternative fuel into the fuel supply tank of a motor
vehicle. As used in this subdivision, "located within this state"
includes, but is not limited to, all of the following locations:
(i) An alternative fuel dealer's place of business.
(ii) A commercial or industrial establishment or facility.
(iii) A residence or residential property.
(iv) A landfill licensed or required to be licensed under part
115 of the natural resources and environmental protection act, 1994
PA 451, MCL 324.11501 to 324.11554.
(e) "British thermal unit" or "BTU" means the amount of heat
required to raise the temperature of 1 pound of water 1 degree
Fahrenheit.
(f) "Compressed natural gas" means a mixture of hydrocarbon
gases and vapors that consists primarily of methane in gaseous form
that has been compressed for use as a fuel to propel a motor
vehicle.
(g) "Gallon equivalent" means 1 of the following or its metric
equivalent:
(i) For compressed natural gas, 5.660 pounds or 126.67 cubic
feet at 60 degrees Fahrenheit and 1 atmosphere of pressure.
(ii) For hydrogen, the volume or weight that is equal to
128,450 BTUs. For purposes of this subdivision, there are 27,000
BTUs per 100 standard cubic feet, and 480.11 standard cubic feet
per gallon equivalent.
(iii) For hydrogen compressed natural gas, the volume or
weight that is equal to 128,450 BTUs. For purposes of this
subdivision, there are 79,800 BTUs per 100 standard cubic feet, and
162.44 standard cubic feet per gallon equivalent.
(iv) For liquefied natural gas, 6.060 pounds.
(h) "Liquefied natural gas" means methane or natural gas in
the form of a cryogenic or refrigerated liquid that is suitable for
use or used as fuel to propel a motor vehicle.
(i) (a)
"Liquefied petroleum gas"
means gases derived from
petroleum
or natural gases which that
are in the gaseous state at
normal
atmospheric temperature and pressure, but which that may
be
maintained in the liquid state at normal atmospheric temperature by
suitable
pressure. Liquefied petroleum gas includes those products
predominately composed of propane, propylene, butylene, butane, and
similar products. Liquefied petroleum gas does not include
compressed natural gas, liquefied natural gas, hydrogen, or
hythane.
(b)
"LPG dealer" means a person who is licensed under this
chapter
to use liquefied petroleum gas.
(j) (c)
"Use", "used",
or "uses" means any of the following:
(i) Selling or delivering liquefied petroleum gas alternative
fuel not otherwise subject to tax under this act, either by placing
it into a permanently attached fuel supply tank of a motor vehicle,
or exchanging or replacing of the fuel supply tank of a motor
vehicle.
(ii) Delivery of liquefied petroleum gas alternative fuel into
storage,
devoted exclusively to the storage of liquefied petroleum
gas
alternative fuel to be consumed in motor vehicles on the public
roads or highways of this state.
(iii) Withdrawing liquefied petroleum gas alternative fuel
from the cargo tank of a truck, trailer or semi-trailer for the
operation of a motor vehicle upon the public roads and highways of
this state, whether used in vapor or liquid form.
(iv) Placing or delivering alternative fuel into the fuel
supply tank of a motor vehicle by or through the operation of an
alternative fuel filling station, exchanging or replacing an
alternative fuel supply tank of a motor vehicle with another
alternative fuel supply tank of a motor vehicle filled with
alternative fuel, or by any other means not involving the delivery,
receipt, or purchase of alternative fuel from an alternative fuel
dealer or any other means not otherwise described in subparagraphs
(i) to (iii).
Sec.
152. (1) A Except
as otherwise provided in this section
and
sections 154 and 155, a tax at a the rate
of 15 cents per
gallon
equal to the tax on motor fuel is imposed upon all liquefied
petroleum
gas alternative fuel used in this state. The Except as
provided in section 154 or 155, the tax shall be paid at the times
and
in the manner specified in this section. The tax on liquefied
petroleum
gas alternative fuel sold or delivered either by placing
it into a permanently attached fuel supply tank on a motor vehicle,
or by exchanging or replacing the fuel supply tank of a motor
vehicle,
shall be collected by the LPG alternative
fuel dealer from
the
purchaser, consumer, or end user and paid over quarterly
monthly
to the department as provided in this
act. Liquefied
petroleum
gas Alternative fuel delivered in this state into the
storage facility of any person when the exclusive purpose of the
storage facility is for resale or use in a motor vehicle on the
public roads or highways of this state, shall, upon delivery to
storage
facility, be subject to tax. An LPG alternative fuel dealer
shall,
upon delivery of the liquefied petroleum gas, alternative
fuel, collect and remit the tax to the department as provided in
this act. A person shall not operate a motor vehicle on the public
roads or highways of this state from the cargo containers of a
truck,
trailer, or semitrailer with liquefied petroleum gas
alternative fuel in vapor or liquid form, as applicable, except
when the alternative fuel in the liquid or vapor phase is withdrawn
from the cargo container for use in motor vehicles through a
permanently installed and approved metering device. The tax on
liquefied
petroleum gas alternative
fuel withdrawn from a cargo
container through a permanently installed and approved metering
device shall apply in accordance with measured gallons or gallon
equivalents, if applicable, as reflected by meter reading, and
shall
be paid quarterly monthly by the LPG alternative fuel dealer
to the department as provided in this act.
(2) The rate of tax on the following alternative fuels shall
be equal to the tax on motor fuel per gallon equivalent or
fractional part thereof rounded to the nearest 1/10 of 1 gallon:
(a) Compressed natural gas.
(b) Hydrogen.
(c) Hydrogen compressed natural gas.
(d) Liquefied natural gas.
(3) The tax imposed under this section does not apply to an
alternative fuel commercial user described in section 154(2) until
January 1, 2017.
(4) The tax imposed under this section does not apply to a
person described in section 154(3) until January 1, 2018.
Sec.
153. (1) A person shall not act as an LPG alternative
fuel dealer or an alternative fuel commercial user unless the
person is licensed under this act.
(2) To obtain a license as an alternative fuel dealer or an
alternative fuel commercial user, an applicant shall file with the
department an application upon a form or in a format prescribed by
the department. The application shall include the name and address
of the applicant and of each place of business to be operated by
the
applicant at which liquefied petroleum gas alternative fuel
will be used and other information the department may reasonably
require.
(3) At the time of applying for the license, an applicant for
an alternative fuel dealer license shall pay to the department a
license
fee of $50.00.$500.00.
(4) At the time of applying for the license, an applicant for
an alternative fuel commercial user license shall pay to the
department a license fee of $50.00.
(5) (4)
An applicant for an LPG dealer a license
or a licensee
under this section is subject to the general licensing and bonding
requirements of this act.
(5)
A person licensed in this state as an LPG dealer on the
effective
date of this act shall be considered licensed as an LPG
dealer
under this act.
Sec. 154. (1) For the purpose of determining the amount of tax
payable
to the department, an LPG alternative
fuel dealer shall, on
or
before the twentieth day of each calendar month, following
the
close
of the reporting calendar quarter, file
with the department
on a form or in a format prescribed by the department a report
which
shall include that includes the number of gallons or gallon
equivalents,
if applicable, of liquefied
petroleum gas alternative
fuel
used by the LPG alternative fuel dealer during the preceding
calendar
quarter, month, together with any other information the
department
may require. An LPG alternative
fuel dealer at the time
of
filing the report shall pay to the
department at the time of
filing the report the full amount of the tax owed.
(2) Beginning on January 1, 2017, for the purpose of
determining the amount of tax owed to the department, an
alternative fuel commercial user that uses alternative fuel as
described in section 151(j) upon which the tax imposed under
section 152 has not been collected by or paid to an alternative
fuel dealer shall, on or before the twentieth day of each month,
file with the department a report that includes the number of
gallons or gallon equivalents, if applicable, of the alternative
fuel described in this subsection that was used or consumed by the
alternative fuel commercial user during the preceding calendar
month, together with any other information the department requires.
An alternative fuel commercial user shall pay the full amount of
the tax due to the department at the time of filing the required
report.
(3) Beginning on January 1, 2018, for the purpose of
determining the amount of tax owed to the department, a person that
is not an alternative fuel dealer or an alternative fuel commercial
user shall pay the tax imposed under section 152 on alternative
fuel placed into a motor vehicle fuel supply tank from an
alternative fuel filling station for which the tax has not been
collected by or paid to an alternative fuel dealer, and shall file
with the department on or before the twentieth day following the
end of each quarter a form that indicates the number of gallons or
gallon equivalents, if applicable, used or consumed by that person
during the preceding calendar quarter. A person described in this
subsection shall pay to the department the full amount of the tax
due at the time of filing the required form.
(4) Except as otherwise provided in this section, a person
that uses alternative fuel for a taxable purpose and does not pay
the tax imposed under this section shall pay to the department the
tax imposed under section 152, along with any applicable penalties
or interest, at the time and in the manner prescribed by the
department.
Sec.
155. (1) Each of the following persons is entitled to a
refund
of the tax on liquefied petroleum gas imposed by this act:
(1) (a)
A person consuming liquefied
petroleum gas alternative
fuel
for any purpose other than the
operation of to operate a motor
vehicle on the public roads or highways of this state may seek a
refund of the tax on alternative fuel imposed by this act,
including a refund as provided in section 45, if that person has
already paid the tax imposed under section 152 on that alternative
fuel.
(b)
The federal government, state government, or a political
subdivision
of this state consuming liquefied petroleum gas in a
motor
vehicle owned and operated or leased and operated by the
federal
government, state government, or political subdivision of
this
state.
(c)
A person consuming liquefied petroleum gas in the
operation
of a passenger vehicle of a capacity of 5 or more under a
municipal
franchise, license, permit, agreement, or grant, upon
which
gas the tax imposed by this section has been paid.
(2) To obtain a refund under this section, a person shall file
a claim with the department within 18 months after the date of
purchase, as shown on the invoice and shall comply with the
requirements set forth in section 48.
(3) A claim for refund under this section shall be on a form
or in a format prescribed by the department and shall have attached
the original invoice that was provided to the purchaser.
(4) An alternative fuel is exempt from the tax imposed by this
act and the tax imposed by this act shall not be collected by an
alternative fuel dealer if any of the following apply:
(a) The alternative fuel is sold directly by an alternative
fuel dealer to the federal government, the state government, or a
political subdivision of this state for use in a motor vehicle
owned and operated or leased and operated by the federal
government, state government, or political subdivision of this
state.
(b) The alternative fuel is sold directly by an alternative
fuel dealer 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) The alternative fuel is imported into this state in the
fuel supply tank of a motor vehicle used solely for noncommercial
purposes, if the aggregate capacity of the motor vehicle's fuel
supply tank does not exceed 30 gallons or the equivalent of 30
gallons.
(5) Both of the following are exempt from the tax on
alternative fuel imposed by this act:
(a) The federal government, state government, or a political
subdivision of this state consuming alternative fuel in a motor
vehicle owned and operated or leased and operated by the federal
government, state government, or a political subdivision of this
state.
(b) A nonprofit, private, parochial, or denominational school,
college, or university consuming alternative fuel in a school bus
owned and operated or leased and operated by the institution when
the alternative fuel is consumed by the school bus while
transporting students to and from the institution or to and from
school functions authorized by the administration of the
institution.
(6) (4)
A person who that sells
liquefied petroleum gas
alternative fuel shall provide the purchaser with an invoice or
receipt showing the amount expressed in gallons or gallon
equivalents,
as applicable, of gas alternative fuel purchased, the
date of purchase, and the amount of tax paid.
(7) An alternative fuel dealer that sells alternative fuel at
retail shall clearly list in plain view of the customer the price
of the alternative fuel in gallon equivalents, as applicable, on
the alternative fuel filling station and any other markings or
information required by law.
(8) Except as otherwise provided in this section, a person
that uses or consumes alternative fuel for a taxable purpose and
does not pay the tax imposed under section 154 is liable for the
payment of that tax and shall pay to the department the tax imposed
under section 152 and any applicable penalties or interest, at the
time and in the manner prescribed by the department.
Enacting section 1. Section 38 of the motor fuel tax act, 2000
PA 403, MCL 207.1038, is repealed.
Enacting section 2. This amendatory act takes effect January
1, 2017.
Enacting section 3. This amendatory act does not take effect
unless all of the following bills of the 98th Legislature are
enacted into law:
(a) Senate Bill No. 414.
(b) House Bill No. 4370.
(c) House Bill No. 4614.
(d) House Bill No. 4616.
(e) House Bill No. 4736.
(f) House Bill No. 4737.
