Bill Text: MI HB5039 | 2017-2018 | 99th Legislature | Engrossed
Bill Title: Transportation; motor fuel tax; motor fuel tax exemptions; modify. Amends sec. 30 of 2000 PA 403 (MCL 207.1030).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2018-03-07 - Assigned Pa 55'18 With Immediate Effect [HB5039 Detail]
Download: Michigan-2017-HB5039-Engrossed.html
HB-5039, As Passed Senate, February 21, 2018
SUBSTITUTE FOR
HOUSE BILL NO. 5039
A bill to amend 2000 PA 403, entitled
"Motor fuel tax act,"
by amending section 30 (MCL 207.1030), 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.
(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.
(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 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.
(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.
(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.
(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".
(h) Is number 5 fuel oil, number 6 fuel oil, or fuel oil
commonly sold or referred to as bunker C or navy special, as
determined by the department.
(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.
