Bill Text: MI HB5477 | 2013-2014 | 97th Legislature | Engrossed
Bill Title: Transportation; motor fuel tax; motor fuel tax; modify. Amends secs. 2, 3, 6, 8 & 152 of 2000 PA 403 (MCL 207.1002 et seq.).
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2014-12-31 - Assigned Pa 468'14 With Immediate Effect 2014 Addenda [HB5477 Detail]
Download: Michigan-2013-HB5477-Engrossed.html
HB-5477, As Passed House, May 8, 2014
SUBSTITUTE FOR
HOUSE BILL NO. 5477
A bill to amend 2000 PA 403, entitled
"Motor fuel tax act,"
by amending sections 2, 3, 5, 6, 8, and 152 (MCL 207.1002,
207.1003, 207.1005, 207.1006, 207.1008, and 207.1152), sections 2
and 5 as amended by 2002 PA 668, section 3 as amended by 2006 PA
277, and section 8 as amended by 2006 PA 268.
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) "Average wholesale diesel fuel price" means the statewide
average wholesale price of diesel fuel as determined by the
department based upon a 12-month rolling average of the diesel fuel
wholesale price. For each rate in effect for a particular year
under section 8(1)(d), the 12-month rolling average period ends on
the last day of the month that is 3 months prior to the date in
which the rate determined under section 8(1)(d) is in effect.
(c) "Average wholesale gasoline price" means the statewide
average wholesale price of gasoline as determined by the department
based upon a 12-month rolling average of the gasoline wholesale
price. For each rate in effect for a particular year under section
8(1)(c), the 12-month rolling average period ends on the last day
of the month that is 3 months prior to the date in which the rate
determined under section 8(1)(c) is in effect.
(d) (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.
(e) (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.
(f) (d)
"Blender" means and
includes any person who produces
blended motor fuel outside of the bulk transfer/terminal system.
(g) (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.
(h) (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.
(i) (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.
(j) (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.
(k) (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.
(l) (j)
"Carrier" means an
operator of a pipeline or marine
vessel engaged in the business of transporting motor fuel above the
terminal rack.
(m)
(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.
(n) (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.
(o) (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.
(p) (n)
"Department" means the bureau
of revenue within the
department of treasury or its designee.
(q) (o)
"Destination state" means
the a state, Canadian
province or territory, or foreign country to which motor fuel is
directed for export.
(r) (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.
(s) (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.
(t) (r)
"Eligible purchaser"
means a person who has been
authorized
by the department under section 75 to make the an
election under section 74.
(u) (s)
"Excluded liquid" means
that term as defined in 26
C.F.R.
CFR 48.4081-1.
(v) (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.
(w) (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 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) (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.
(m) "Index" means the national highway construction cost index
or, if the federal highway administration ceases publication of the
national highway construction cost index, the published index that
most closely measures inflation in the costs of highway
construction, as determined by the department.
(n) "Inflation rate" means the percentage change between the
most recent calendar year index and the index for the calendar year
immediately preceding the most recent calendar year, as determined
by the department.
(o) (n)
"Invoiced gallons" means
the number of gallons
actually billed on an invoice.
Sec. 5. (1) As used in this act:
(a) "Rack" means a mechanism for delivering motor fuel from a
refinery, a terminal, or a marine vessel into a railroad tank car,
a transport truck, a tank wagon, the fuel supply tank of a marine
vessel, or other means of transfer outside of the bulk
transfer/terminal system.
(b) "Rate ceiling" means a cents per gallon upper limit on the
tax rate determined by the department and imposed on gasoline under
section 8(1)(c) and on diesel fuel under section 8(1)(d). Beginning
on the effective date of the 2014 amendatory act that amended this
subdivision, rate ceiling means 32.5 cents.
(c) "Rate floor" means a cents per gallon lower limit on the
tax rate determined by the department and imposed on gasoline under
section 8(1)(c) and on diesel fuel under section 8(1)(d). Beginning
on the effective date of the 2014 amendatory act that amended this
subdivision, rate floor means 19 cents.
(d) (b)
"Refiner" means a person
who owns, operates, or
otherwise controls a refinery within the United States.
(e) (c)
"Refinery" means a
facility used to produce motor fuel
from crude oil, unfinished oils, natural gas liquids, or other
hydrocarbons and from which motor fuel may be removed by pipeline,
by marine vessel, or at a rack.
(f) (d)
"Removal" or
"removed" means a physical transfer other
than by evaporation, loss, or destruction of motor fuel from a
terminal, manufacturing plant, customs custody, pipeline, marine
vessel, or refinery that stores motor fuel.
(g) (e)
"Retail diesel dealer"
means a person who sells or
distributes diesel fuel to an end user in this state.
(h) (f)
"Retail marine diesel
dealer" means a person who sells
or distributes diesel fuel to an end user in this state for use in
boats or other marine vessels.
(i) (g)
"Source state" means the
state, Canadian province or
territory, or foreign country from which motor fuel is imported.
(j) (h)
"Stationary engine" means
a temporary or permanently
affixed engine designed and used to supply power primarily for
agricultural or construction work. Stationary engine includes, but
is not limited to, an engine powering irrigation equipment,
generators, or earth-moving equipment.
(k) (i)
"Supplier", in addition
to subsection (2), means a
person who meets all of the following requirements:
(i) Is subject to the general taxing jurisdiction of this
state.
(ii) Is registered under section 4101 of the internal revenue
code for transactions in motor fuel in the bulk transfer/terminal
distribution system.
(iii) Is any 1 of the following:
(A) The position holder in a terminal or refinery in this
state.
(B) A person who imports fuel grade ethanol into this state.
(C) A person who acquires motor fuel from a terminal or
refinery in this state from a position holder pursuant to a 2-party
exchange.
(D) The position holder in a terminal or refinery outside this
state with respect to motor fuel which that person imports into
this state on its account.
(2) Supplier also means a person who either produces alcohol
or alcohol derivative substances in this state or produces alcohol
or alcohol derivative substances for import into a terminal in this
state, or who acquires immediately upon import by transport truck,
tank wagon, rail car, or marine vessel into a terminal or refinery
or other storage facility that is not part of a terminal or
refinery, alcohol or alcohol derivative substances. A terminal
operator is not considered a supplier merely because the terminal
operator handles motor fuel consigned to it within a terminal.
Supplier includes a permissive supplier unless otherwise
specifically provided in this act.
Sec. 6. As used in this act:
(a) "Tank wagon" means a straight truck having 1 or more
compartments other than the fuel supply tank designed or used to
carry motor fuel.
(b) "Tank wagon operator-importer" means a person who operates
a tank wagon and imports motor fuel into this state from another
state.
(c) "Tax" means a tax, interest, or penalty levied under this
act.
(d) "Terminal" means a motor fuel storage and distribution
facility that meets all of the following requirements:
(i) Is registered as a qualified terminal by the internal
revenue service.
(ii) Is supplied by pipeline or marine vessel.
(iii) Has a rack from which motor fuel may be removed.
(e) "Terminal operator" means a person who owns, operates, or
otherwise controls a terminal.
(f) "Transmix" means the mixed product that results from the
buffer or interface of 2 different products in a pipeline shipment,
or a mixture of 2 different products within a refinery or terminal
that results in an off-grade mixture.
(g) "Transport truck" means a semitrailer combination rig
designed or used for the purpose of transporting motor fuel over
the public roads or highways.
(h) "Transporter" means an operator of a railroad or rail car,
tank wagon, transport truck, or other fuel transportation vehicle
engaged in the business of transporting motor fuel below the
terminal rack.
(i) "Two-party exchange" means a transaction in which motor
fuel is transferred from 1 licensed supplier or licensed permissive
supplier to another licensed supplier or licensed permissive
supplier where all of the following occur:
(i) The transaction includes a transfer from the person who
holds the original inventory position for motor fuel in the
terminal as reflected in the records of the terminal operator.
(ii) The exchange transaction is completed before removal
across the rack from the terminal by the receiving licensed
supplier or licensed permissive supplier.
(iii) The terminal operator in its books and records treats the
receiving exchange party as the supplier that removes the product
across a terminal rack for purposes of reporting the transaction to
the department.
(j) "Ultimate vendor" means the person who sells motor fuel to
the end user of the fuel.
(k) "Wholesale gasoline price" means the price per gallon of
unleaded regular gasoline charged by a licensed supplier to a
purchaser at the time of removal from a terminal across the rack,
as determined by the department. Wholesale gasoline price does not
include the tax imposed by this act, prepaid sales tax under
section 6a of the general sales tax act, 1933 PA 167, MCL 205.56a,
federal excise tax under section 4081 of the internal revenue code,
26 USC 4081, any other federal tax upon motor fuel, or an
environmental protection regulatory fee imposed under section 21508
of the natural resources and environmental protection act, 1994 PA
451, MCL 324.21508.
(l) "Wholesale diesel fuel price" means the price per gallon of
undyed no. 2 ultra-low sulfur diesel fuel charged by a licensed
supplier to a purchaser at the time of removal from a terminal
across the rack, as determined by the department. Wholesale diesel
fuel price does not include the tax imposed by this act, prepaid
sales tax under section 6a of the general sales tax act, 1933 PA
167, MCL 205.56a, federal excise tax under section 4081 of the
internal revenue code, 26 USC 4081, any other federal tax upon
motor fuel, or an environmental protection regulatory fee imposed
under section 21508 of the natural resources and environmental
protection act, 1994 PA 451, MCL 324.21508.
(m) (k)
"Wholesaler" means a
person who acquires motor fuel
from a supplier or from another wholesaler for subsequent sale and
distribution at wholesale by a fuel transportation vehicle, rail
car, or other motor vehicle.
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), Through
September 30, 2014, 19 cents per gallon on gasoline.
(b)
Except as otherwise provided in subdivision (d), Through
September 30, 2014, 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.
(c) Subject to subsections (2), (3), and (4), beginning
October 1, 2014 and annually thereafter, the department shall
determine a cents per gallon rate on gasoline that shall be derived
by multiplying the average wholesale gasoline price by 6%, rounded
up to the nearest 1/10 of 1 cent.
(d) Subject to subsections (2), (3), and (4), beginning
October 1, 2014 and annually thereafter, the department shall
determine a cents per gallon rate on diesel fuel that shall be
derived by multiplying the average wholesale diesel fuel price by
6%, rounded up to the nearest 1/10 of 1 cent.
(2) The rates determined under subsection (1)(c) and (d) shall
not exceed the rate ceiling or be below the rate floor for any year
for which the rates are in effect.
(3) Subject to subsections (2) and (4), beginning October 1,
2014, the rates determined under subsection (1)(c) and (d) shall
not exceed the rates in effect for the immediately preceding year
by more than 1 cent.
(4) Subject to subsection (2), beginning October 1, 2015 and
annually thereafter, each of the rates determined by the department
under subsection (1)(c) and (d) shall not exceed the rates in
effect for the immediately preceding year multiplied by 1 plus the
lesser of the following:
(a) Five percent.
(b) The inflation rate.
(5) (2)
Tax shall not be imposed under this
section on motor
fuel that is in the bulk transfer/terminal system.
(6) (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.
(7) (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.
(8) (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.
(9) (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.
(10) (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.
(11) The department shall publish notice of each tax rate
under subsection (1)(c) and (d) not later than 30 days before the
effective date of the rate.
(12) A determination of the average wholesale gasoline price,
the average diesel fuel price, the wholesale gasoline price, the
wholesale diesel fuel price, or the rate under subsection (1)(c) or
(d) is presumed to be 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.
152. (1) A Except
as provided in subsection (3), a tax at
a rate of 15 cents per gallon is imposed upon all liquefied
petroleum gas used in this state. The tax shall be paid at the
times and in the manner specified in this section. The tax on
liquefied petroleum gas fuel sold or delivered either by placing
into a permanently attached fuel supply tank on a motor vehicle, or
exchanging or replacing the fuel supply tank of a motor vehicle,
shall be collected by the LPG dealer from the purchaser and paid
over
quarterly to the department quarterly as provided in this act.
Liquefied petroleum gas 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 dealer shall, upon
delivery of the liquefied petroleum gas, collect and remit the tax
to the department as provided in this act.
(2) 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 in
vapor or liquid form, except when the 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 withdrawn from a cargo
container through a permanently installed and approved metering
device
shall apply be applied in accordance with measured gallons
as reflected by meter reading, and shall be paid quarterly by the
LPG dealer to the department as provided in this act.
(3) Beginning October 1, 2014, the tax described in
subsections (1) and (2) shall be imposed at a rate equal to the
rate per gallon for diesel fuel under section 8(1)(d).
Enacting section 1. This amendatory act takes effect on the
first day of the first calendar quarter following the date of its
enactment.
