Bill Text: MI HB4616 | 2015-2016 | 98th Legislature | Engrossed
Bill Title: Transportation; motor carrier fuel tax; flat tax rate; eliminate, and establish an 18-month limitation period for filing refund claims. Amends secs. 1, 2, 2a, 4, 5, 6a, 8, 9 & 10 of 1980 PA 119 (MCL 207.211 et seq.). TIE BAR WITH: HB 4370'15, HB 4614'15, HB 4736'15, HB 4737'15, HB 4738'15, SB 0414'15
Spectrum: Partisan Bill (Republican 4-0)
Status: (Passed) 2015-11-10 - Assigned Pa 178'15 With Immediate Effect [HB4616 Detail]
Download: Michigan-2015-HB4616-Engrossed.html
HB-4616, As Passed Senate, July 1, 2015
SENATE SUBSTITUTE FOR
HOUSE BILL NO. 4616
A bill to amend 1980 PA 119, entitled
"Motor carrier fuel tax act,"
by amending sections 1, 2, 2a, 4, 5, 6a, 8, 9, and 10 (MCL 207.211,
207.212, 207.212a, 207.214, 207.215, 207.216a, 207.218, 207.219,
and 207.220), section 1 as amended by 2002 PA 667, sections 2 and 4
as amended by 2006 PA 346, section 2a as added by 1994 PA 353,
section 5 as amended and section 6a as added by 1996 PA 584, and
section 8 as amended by 2006 PA 449.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. As used in this act:
(a) "Alternative fuel" means that term as defined in section
151 of the motor fuel tax act, 2000 PA 403, MCL 207.1151.
(b) "Alternative fuel dealer" means that term as defined in
section 151 of the motor fuel tax act, 2000 PA 403, MCL 207.1151.
(c) (a)
"Axle" means any 2 or
more load-carrying wheels
mounted in a single transverse vertical plane.
(d) (b)
"Commissioner" means the
state commissioner of
revenue.
(e) (c)
"Department" means the
revenue division of the
department of treasury.
(f) "Gallon equivalent" means that term as defined in section
151 of the motor fuel tax act, 2000 PA 403, MCL 207.1151.
(g) (d)
"Motor carrier" means:
(i) A person who operates or causes to be operated a qualified
commercial motor vehicle on a public road or highway in this state
and at least 1 other state or Canadian province.
(ii) A person who operates or causes to be operated a
qualified commercial motor vehicle on a public road or highway in
this state and who is licensed under the international fuel tax
agreement.
(h) (e)
"Motor fuel" means diesel
fuel as defined by in
section 2 of the motor fuel tax act, 2000 PA 403, MCL 207.1002.
Beginning on October 1, 2015, motor fuel includes gasoline as that
term is defined in section 3 of the motor fuel tax act, 2000 PA
403, MCL 207.1003.
(i) (f)
"Nonprofit private, parochial,
denominational, or
public school, college, or university" means an elementary,
secondary, or postsecondary educational facility.
(j) (g)
"Person" means a natural
person, partnership, firm,
association, joint stock company, limited liability company,
limited liability partnership, syndicate, or corporation, and any
receiver, trustee, conservator, or officer, other than a unit of
government, having jurisdiction and control of property by virtue
of law or by appointment of a court.
(k) (h)
"Public roads or
highways" means a road, street, or
place maintained by this state or a political subdivision of this
state and generally open to use by the public as a matter of right
for the purpose of vehicular travel, notwithstanding that they may
be temporarily closed or travel restricted for the purpose of
construction, maintenance, repair, or reconstruction.
(l) (i)
"Qualified commercial motor
vehicle", subject to
subdivision
(j), (m), means a motor vehicle used, designed, or
maintained for transportation of persons or property and 1 of the
following:
(i) Having 3 or more axles regardless of weight.
(ii) Having 2 axles and a gross vehicle weight or registered
gross vehicle weight exceeding 26,000 pounds or 12,000 kilograms.
(iii) Is used in a combination of vehicles, if the weight of
that combination exceeds 26,000 pounds or 12,000 kilograms gross
vehicle or registered gross vehicle weight.
(m) (j)
"Qualified commercial motor
vehicle" shall does not
include a recreational vehicle, a road tractor, truck, or truck
tractor used exclusively in this state, a road tractor, truck, or
truck tractor owned by a farmer and used in connection with the
farmer's farming operation and not used for hire, a school bus, a
bus defined and certificated under the motor bus transportation
act, 1982 PA 432, MCL 474.101 to 474.141, or a bus operated by a
public transit agency operating under any of the following:
(i) A county, city, township, or village as provided by law,
or other authority incorporated under 1963 PA 55, MCL 124.351 to
124.359. Each authority and governmental agency incorporated under
1963 PA 55, MCL 124.351 to 124.359, has the exclusive jurisdiction
to determine its own contemplated routes, hours of service,
estimated transit vehicle miles, costs of public transportation
services, and projected capital improvements or projects within its
service area.
(ii) An authority incorporated under the metropolitan
transportation authorities act of 1967, 1967 PA 204, MCL 124.401 to
124.426, or that operates a transportation service pursuant to an
interlocal agreement under the urban cooperation act of 1967, 1967
(Ex Sess) PA 7, MCL 124.501 to 124.512.
(iii) A contract entered into pursuant to under 1967
(Ex Sess)
PA 8, MCL 124.531 to 124.536, or 1951 PA 35, MCL 124.1 to 124.13.
(iv) An authority incorporated under the public transportation
authority act, 1986 PA 196, MCL 124.451 to 124.479, or a nonprofit
corporation organized under the nonprofit corporation act, 1982 PA
162, MCL 450.2101 to 450.3192, that provides transportation
services.
(v) An authority financing public improvements to
transportation systems under the revenue bond act of 1933, 1933 PA
94, MCL 141.101 to 141.140.
(n) (k)
Qualified commercial motor vehicle
includes a vehicle
operated on a public road or highway owned by a farmer and used in
connection with the farmer's farming operation if the vehicle bears
out of state registration plates of a state that does not give
similar treatment to vehicles from this state.
Sec. 2. (1) A motor carrier licensed under this act shall pay
a road tax calculated on the amount of motor fuel and alternative
fuel consumed in qualified commercial motor vehicles on the public
roads or highways within this state. Except as otherwise provided
under subsection (6), the tax shall be at the rate of 15 cents per
gallon on motor fuel consumed on the public roads or highways
within this state. In addition, qualified commercial motor vehicles
licensed
under this act that travel in interstate commerce will be
are subject to the definition of taxable motor fuels and
alternative fuels and rates as defined by the respective
international fuel tax agreement member jurisdictions. A motor
carrier
licensed under this act shall file a return
shall be filed,
and
pay the tax due paid, quarterly to the department
on or before
the last day of January, April, July, and October of each year on a
form prescribed and furnished by the department. Each quarterly
return and tax payment shall cover the liability for the annual
quarter ending on the last day of the preceding month.
(2) The amount of motor fuel or alternative fuel consumed in
the operation of a motor carrier on public roads or highways within
this state shall be determined by dividing the miles traveled
within
Michigan this state by the average miles per gallon of motor
fuel or applicable gallon equivalent of alternative fuel. The
average miles per gallon of motor fuel or per-gallon equivalent of
alternative fuel, as applicable, shall be determined by dividing
the
miles traveled within and outside of Michigan this state by the
total amount of motor fuel or alternative fuel consumed within and
outside
of Michigan.this state.
(3) In the absence of records showing the average number of
miles operated per gallon of motor fuel or per-gallon equivalent of
alternative
fuel, as applicable, it shall be is presumed
that 1
gallon of motor fuel or applicable gallon equivalent of alternative
fuel is consumed for every 4 miles traveled.
(4) The quarterly tax return shall be accompanied by a
remittance covering any tax due.
(5) The commissioner, when he or she considers it necessary to
ensure payment of the tax or to provide a more efficient
administration of the tax, may require the filing of returns and
payment of the tax for other than quarterly periods.
(6)
The road tax required under this section shall be at a
rate
of 12 cents per gallon for diesel fuel that contains at least
5%
biodiesel. As used in this subsection, "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.
(7)
Beginning on 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 motor fuel in section 8 of the motor fuel tax
act,
2000 PA 403, MCL 207.1008, and on motor fuel in subsection
(6).
Subsection (6) is no longer effective the earlier of 10 years
after
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 due to the differential rates in
section
8 of the motor fuel tax act, 2000 PA 403, MCL 207.1008, and
subsection
(6) from September 1, 2006 is greater than
$2,500,000.00.
(8)
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 (6) 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.
(6) Beginning October 1, 2015 and annually thereafter, the
per-gallon or per-gallon equivalent rate of tax under this act for
motor fuel or alternative fuel consumed on the public roads or
highways of this state is 1 of the following:
(a) For motor fuel, the applicable rate prescribed under
section 8(1) of the motor fuel tax act, 2000 PA 403, MCL 207.1008,
for the same period.
(b) For alternative fuel, the rate prescribed under section
152 of the motor fuel tax act, 2000 PA 403, MCL 207.1152, for the
same period.
Sec. 2a. (1) The department, on behalf of this state, may
enter into a reciprocal agreement providing for the imposition of a
motor fuel or alternative fuel tax on an apportionment or
allocation basis with the proper authority of a state, a
commonwealth, the District of Columbia, a state or province of a
foreign country, or a territory or possession either of the United
States
or of a foreign country. Pursuant to Under this subsection,
the department shall enter into the international fuel tax
agreement.
(2) The department may promulgate rules to implement and
enforce the provisions of the international fuel tax agreement.
Rules promulgated under this subsection shall be promulgated
pursuant
to under the administrative procedures act of 1969, Act
No.
306 of the Public Acts of 1969, being sections 24.201 to 24.328
of
the Michigan Compiled Laws.1969
PA 306, MCL 24.201 to 24.328.
(3)
Pursuant to the requirements of As
required by the
intermodal surface transportation efficiency act of 1991, Public
Law
102-240, 105 Stat. Stat 1914, if the department entered into
the international fuel tax agreement, and if the provisions set
forth in that agreement are different from this act, then the
provisions of the agreement shall control.
(4) This section constitutes complete authority for the
imposition of motor fuel or alternative fuel taxes upon an
apportionment or allocation basis.
Sec. 4. (1) A person filing a return under section 2 who
purchased motor fuel or alternative fuel in this state upon which a
tax was imposed and not refunded under the motor fuel tax act, 2000
PA
403, MCL 207.1001 to 207.1170, shall be is entitled to a credit
against the tax imposed by this act equal to the tax paid when
purchasing the motor fuel or alternative fuel under the motor fuel
tax act, 2000 PA 403, MCL 207.1001 to 207.1170. The excess of a
credit allowed by this subsection over tax liabilities imposed by
this act shall be refunded to the taxpayer.
(2) In order to secure credit under subsection (1) for motor
fuel or alternative fuel purchased in this state, the motor carrier
shall secure a receipt showing the seller's name, the number of
gallons of motor fuel or applicable gallon equivalents of
alternative fuel, the type of motor fuel or alternative fuel, the
tax rate charged, the address of the seller, the license number or
unit number of the commercial motor vehicle, and the date of sale.
(3) A refund, when approved by the department, shall be
payable from the revenue received under this act.
(4) A person, or an agent, employee, or representative of the
person, who makes a false statement in any return under this act or
who submits or provides an invoice or invoices in support of the
false statement upon which alterations or changes exist in the
date, name of seller or purchaser, number of gallons or gallon
equivalents, identity of the qualified commercial motor vehicle
into which fuel was delivered or the amount of tax that was paid,
or who knowingly presents any return or invoice containing a false
statement, or who collects or causes to be paid a refund without
being entitled to the refund, forfeits the full amount of the claim
and is guilty of a misdemeanor, punishable by a fine of not more
than $5,000.00 or imprisonment for not more than 1 year, or both.
Sec. 5. (1) A person required to be licensed by this act shall
not act as a motor carrier in this state unless the person is the
holder of an unrevoked license issued by the department or is the
holder of an unrevoked license issued under the international fuel
tax agreement by this state or another member jurisdiction of the
international fuel tax agreement. To procure a license, a motor
carrier shall file with the department a verified application upon
a form prescribed and to be furnished by the department. The
application shall contain the name and address of the motor carrier
and, if a partnership, limited liability company, or corporation,
the names and addresses of the persons constituting the firm,
partnership, association, joint stock company, limited liability
company, syndicate, or corporation, the name of its resident agent,
the location of its predominant place of business, both within and
outside of this state, and other pertinent information the
department may require.
(2) The department shall issue to each motor carrier 1 license
per person and 2 decals for each qualified commercial motor
vehicle. A decal shall be affixed respectively to the right-hand
side and left-hand side of the cab of every qualified commercial
motor vehicle while it is being operated in this state by each
person licensed under this act. A copy of the license shall be
carried in each cab while it is being operated.
(3) For cause, a motor carrier may be required to file with
the
department a surety bond payable to the this state, upon which
the applicant is the obligor, in the sum of 3 times the highest
estimated quarterly tax, or $1,000.00, whichever is greater. This
surety bond shall be conditioned upon the applicant complying with
this
act and with the rules promulgated pursuant to under this
act,
promptly filing true reports, and paying the taxes, interest, and
penalties required by this act. Each surety bond shall be approved
as to amount and sureties by the department. The department may
accept cash or securities instead of a surety bond.
(4) The commissioner may waive the bond requirement for a
motor carrier exempt from the reporting requirements of section 2
when the collection of taxes would not be impaired by lack of
security of a bond required by this section.
(5)
The license and decals shall are
not be assignable or
transferable
to another person and shall be are
valid only for the
person in whose name they are issued. However, upon application to
the department, a motor carrier, upon the sale, conveyance,
disposal, or replacement of a qualified commercial motor vehicle,
may transfer the license and decals for that qualified commercial
motor vehicle to another qualified commercial motor vehicle of the
motor
carrier which that is required to be licensed under this act.
The department shall issue replacement decals for the newly
licensed qualified commercial motor vehicle that authorizes the
holder of the qualified commercial motor vehicle license to use and
consume motor fuel or alternative fuel in the qualified commercial
motor vehicle upon the public roads or highways of this state until
the original license would have expired. The department may require
the payment of a fee to cover the administrative costs of issuing a
replacement license or decals.
(6) Upon filing of the application and upon posting of any
bond as required, the department shall issue to the applicant a
license and decals that authorize the holder to operate qualified
commercial motor vehicles using and consuming motor fuels or
alternative fuels upon the public roads or highways of this state
until January 1 of the year following the date of issuance.
(7) If a licensee ceases to engage in business within this
state, the licensee shall notify the department in writing within
15 days after discontinuance.
Sec.
6a. (1) The Except as
provided in subsection (3), the tax
imposed
by this act shall be administered pursuant to Act No. 122
of
the Public Acts of 1941. under
1941 PA 122, MCL 205.1 to 205.31.
In
case of conflict between Act No. 122 of the Public Acts of 1941
1941 PA 122, MCL 205.1 to 205.31, and this act, this act shall
prevail.
(2) Tax due to other member jurisdictions of the international
fuel
tax agreement that is incurred by persons a person while
operating on a current, suspended, or revoked license issued by the
department
under the international fuel tax agreement shall be is
considered tax imposed by this act and a tax debt due to this
state.
(3) For motor fuel or alternative fuel purchased on or after
October 1, 2015, a refund claim involving the payment of a tax that
was paid under this act or in connection with a return filed under
this act may not be filed more than 18 months after the date the
motor fuel or alternative fuel was purchased.
Sec. 8. (1) Every qualified commercial motor vehicle leased to
a
motor carrier shall be is subject to this act , to the same
extent and in the same manner as a qualified commercial motor
vehicles
vehicle owned by a motor carrier.
(2) A lessor of qualified commercial motor vehicles may be
considered a motor carrier with respect to qualified commercial
motor vehicles leased to others, if the lessor supplies or pays for
the motor fuel or alternative fuel consumed by the vehicles or
bills rental or other charges calculated to include the cost of
motor fuel or alternative fuel. A lessee motor carrier may exclude
a qualified commercial motor vehicle leased from others from the
reports and liabilities required by this act if that qualified
commercial motor vehicle has been leased from a lessor who is a
motor
carrier pursuant to under this act and the lease agreement
provides for the lessor to pay the cost of motor fuel or
alternative fuel and motor fuel or alternative fuel taxes.
(3)
Upon application by the a licensed motor carrier, the
department may authorize a licensed motor carrier leasing qualified
commercial motor vehicles from 2 or more lessors to file
consolidated reports for these lessors.
(4)
This section shall govern governs
the primary liability
under this act of lessors and lessees of qualified commercial motor
vehicles. For tax liabilities incurred before April 1, 2005, if a
lessor or lessee primarily liable fails, in whole or in part, to
discharge his or her liability, the failing party and the other
lessor
or lessee party to the transaction shall be are jointly
and
severally responsible and liable for compliance with this act and
for the payment of tax due. However, the aggregate of taxes
collected from a lessor and lessee by this state under this act
shall not exceed the total amount of taxes due and costs and
penalties imposed.
(5) For tax liabilities arising after April 1, 2005, if a
lease agreement identifies a party responsible for the payment of
taxes, the nonresponsible party under the lease shall obtain a copy
of the responsible party's valid international fuel tax agreement
registration and keep the copy on file. If the nonresponsible party
does not obtain a copy of the responsible party's valid
international fuel tax agreement registration and the responsible
party fails in whole or in part to discharge his or her liability,
then
the responsible and nonresponsible parties shall be are
jointly and severally responsible and liable for compliance with
this act and payment of tax due. If the lease agreement does not
identify the party responsible for payment of fuel taxes under this
act,
then both parties shall be are
jointly and severally
responsible and liable for compliance with this act and payment of
tax due. However, the aggregate of taxes collected from a lessor
and lessee by this state under this act shall not exceed the total
amount of taxes due and costs and penalties imposed. If the
nonresponsible party under the lease maintains a copy of the
responsible party's valid international fuel tax agreement
registration
on file, the nonresponsible party shall have has no
responsibility or liability for compliance with this act or payment
of any taxes, costs, or penalties due under this act relating to
the motor fuel or alternative fuel consumed under the lease.
Sec. 9. The department may examine the books, invoices,
receipts,
records, and papers of a motor carrier, or
fuel supplier,
which
or alternative fuel dealer
that pertain to the motor fuel or
alternative fuel received, used, purchased, shipped, or delivered
to verify the truth and accuracy of any statement, report, or
return.
Sec. 10. Each motor carrier shall maintain and keep, for a
period of at least 4 years, suitable books, records, and accounts
of all motor fuel and alternative fuel purchased, sold, dispensed,
or used, together with all invoices, delivery tickets, bills of
lading,
and other pertinent records and papers as may be required
by the department for the administration of this act.
Enacting section 1. This amendatory act takes effect October
1, 2015.
Enacting section 2. 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. 4612.
(c) House Bill No. 4613.
(d) House Bill No. 4614.
(e) House Bill No. 4615.
