Bill Text: MI HB4603 | 2009-2010 | 95th Legislature | Introduced
Bill Title: Transportation; motor fuel tax; gas tax; increase. Amends sec. 8 of 2000 PA 403 (MCL 207.1008).
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2009-03-18 - Printed Bill Filed 03/18/2009 [HB4603 Detail]
Download: Michigan-2009-HB4603-Introduced.html
HOUSE BILL No. 4603
March 17, 2009, Introduced by Rep. Cushingberry and referred to the Committee on Transportation.
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 Sixty-
nine cents per gallon on gasoline.
(b)
Except as otherwise provided in subdivision (d), 15 Sixty-
five 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.
(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 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.
