Bill Text: MI SB0918 | 2011-2012 | 96th Legislature | Introduced

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Bill Title: Transportation; motor fuel tax; motor fuel tax; modify, and implement a wholesale tax on fuel wholesalers. Amends secs. 2, 3, 4, 5, 6, 8, 10, 14, 30, 32, 34, 39, 48, 63, 94, 122, 130, 143, 151, 152, 161 & 163 of 2000 PA 403 (MCL 207,1002 et seq.) & repeals secs. 33, 35, 38, 41, 42, 45, 47 & 147 of 2000 PA 403 (MCL 207.1033 et seq.).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2012-01-26 - Referred To Committee On Appropriations [SB0918 Detail]

Download: Michigan-2011-SB0918-Introduced.html

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SENATE BILL No. 918

 

 

January 26, 2012, Introduced by Senator KAHN and referred to the Committee on Appropriations.

 

 

 

     A bill to amend 2000 PA 403, entitled

 

"Motor fuel tax act,"

 

by amending sections 2, 3, 4, 5, 6, 8, 10, 14, 30, 32, 34, 39, 48,

 

63, 94, 122, 130, 143, 151, 152, 161, and 163 (MCL 207.1002,

 

207.1003, 207.1004, 207.1005, 207.1006, 207.1008, 207.1010,

 

207.1014, 207.1030, 207.1032, 207.1034, 207.1039, 207.1048,

 

207.1063, 207.1094, 207.1122, 207.1130, 207.1143, 207.1151,

 

207.1152, 207.1161, and 207.1163), sections 2, 5, and 122 as

 

amended by 2002 PA 668, sections 3, 4, and 39 as amended by 2006 PA

 

277, section 8 as amended by 2006 PA 268, and sections 30 and 94 as

 

amended by 2008 PA 26; 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) "Applicable percentage" means 10.1%.

 

     (c) "Average wholesale price" means the statewide average

 

wholesale price as determined by the department based upon a 12-

 

month rolling average of the wholesale price. The 12-month rolling

 

average period ends on the last day of the month that is 3 months

 

prior to the month in which the rate is determined by the

 

department under section 8(1)(d).

 

     (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) "Commercial corridor fund" means the fund established

 

under 1951 PA 51, MCL 247.651 to 247.675.

 

     (n) (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.

 

     (o) (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.

 

     (p) (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.

 

     (q) (n) "Department" means the bureau of revenue within the

 

department of treasury or its designee.

 

     (r) (o) "Destination state" means the a state, Canadian

 

province or territory, or foreign country to which motor fuel is

 

directed for export.

 

     (s) (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.

 

     (t) (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.

 

     (u) (r) "Eligible purchaser" means a person who has been

 

authorized by the department under section 75 to make the an

 

election under section 74.

 

     (v) (s) "Excluded liquid" means that term as defined in 26

 

C.F.R. CFR 48.4081-1.

 

     (w) (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.

 

     (x) (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.

 

     (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 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.

 

     (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 of this state by or for the purchaser

 

constitutes an import by the purchaser.

 

     (k) "Importer" means a person who imports motor fuel into this

 

state.

 

     (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.

 

     (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. 4. As used in this act:

 

     (a) "Kerosene" means all grades of kerosene, including, but

 

not limited to, the 2 grades of kerosene, No. 1-K and No. 2-K,

 

commonly known as K-1 kerosene and K-2 kerosene respectively,

 

described in American society for testing and materials

 

specifications specification D-3699, in effect on January 1, 1999,

 

and kerosene-type jet fuel described in American society for

 

testing and materials specification D-1655 and military

 

specifications MIL-T-5624r and MIL-T-83133d (grades jp-5 and jp-8),

 

and any successor internal revenue service rules or regulations, as

 

the specification for kerosene and kerosene-type jet fuel. Kerosene

 

does not include an excluded liquid.

 

     (b) "Leaded racing fuel" is a fuel other than diesel fuel that

 

is leaded and at least 100 octane and is used in vehicles on a

 

racetrack.

 

     (b) (c) "Liquid" means any substance that is liquid in excess

 

of 60 degrees Fahrenheit and a pressure of 14.7 pounds per square

 

inch absolute.

 

     (c) (d) "Motor fuel" means gasoline, diesel fuel, kerosene, a

 

mixture of gasoline, diesel fuel, or kerosene, or a mixture of

 

gasoline, diesel fuel, or kerosene and any other substance. Motor

 

fuel does not include leaded racing fuel.

 

     (d) (e) "Motor vehicle" means a vehicle that is propelled by

 

an internal combustion engine or motor and is designed to permit

 

the vehicle's mobile use on the public roads or highways of this

 

state. Motor vehicle does not include any of the following:

 

     (i) An implement of husbandry.

 

     (ii) A train or other vehicle operated exclusively on rails.

 

     (iii) Machinery designed principally for off-road use and not

 

licensed for on-road use.

 

     (iv) A stationary engine.

 

     (e) (f) "Net gallons" means the remaining product, after all

 

considerations and deductions have been made, measured in gallons,

 

corrected to a temperature of 60 degrees Fahrenheit, 13 degrees

 

Celsius, and a pressure of 14.7 pounds per square inch. , the

 

ultimate end amount.

 

     (f) (g) "Oxygenate" means an oxygen-containing, ashless,

 

organic compound, such as an alcohol or ether, which may be used as

 

a fuel or fuel supplement.

 

     (g) (h) "Permissive supplier" means a person who may is not be

 

subject to the taxing jurisdiction of this state but who does meet

 

and meets both of the following requirements:

 

     (i) Is a position holder in a federally registered terminal

 

located outside of this state, or a person who acquires from a

 

position holder motor fuel in an out-of-state terminal in a

 

transaction that otherwise qualifies as a 2-party exchange under

 

this act.

 

     (ii) Is registered under section 4101 of the internal revenue

 

code, 26 USC 4101, for transactions in motor fuel in the bulk

 

transfer/terminal system.

 

     (h) (i) "Person" means and includes an individual,

 

cooperative, partnership, firm, association, limited liability

 

company, limited liability partnership, joint stock company,

 

syndicate, and corporation, both private and municipal, and any

 

receiver, trustee, conservator, or any other officer having

 

jurisdiction and control of property by law or by appointment of a

 

court other than units of government.

 

     (i) (j) "Position holder" means a person who has a contract

 

with a terminal operator for the use of storage facilities and

 

other terminal services for motor fuel at the terminal, as

 

reflected in the records of the terminal operator. Position holder

 

includes a terminal operator who owns motor fuel in the terminal.

 

     (j) (k) "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 is restricted for the purpose of

 

construction, maintenance, repair, or reconstruction.

 

     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 motor fuel

 

under section 8(1)(d). Beginning on the first day of the second

 

calendar quarter following the effective date of the amendatory act

 

that added this subdivision, rate ceiling means 40 cents.

 

     (c) "Rate floor" means a cents per gallon lower limit on the

 

tax rate determined by the department and imposed on motor fuel

 

under section 8(1)(d). Beginning on the first day of the second

 

calendar quarter following the effective date of the amendatory act

 

that added this subdivision, rate floor means 28.3 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 of

 

motor fuel 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 temporarily 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, 26 USC 4101, 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 the 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 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 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) (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 subdivisions

 

(c) to (e), 19 cents per gallon on gasoline.

 

     (b) Except as otherwise provided in subdivision (d),

 

subdivisions (c) to (e), 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) Beginning on the effective date of the amendatory act that

 

added this subdivision, 28.3 cents per gallon on motor fuel.

 

     (d) Subject to subdivision (e), beginning the first day of the

 

second calendar quarter following the effective date of the

 

amendatory act that added this subdivision, the rate per gallon on

 

motor fuel shall be determined by the department on a quarterly

 

basis. The rate shall be equal to the product of the average

 

wholesale price and the applicable percentage, rounded up to the

 

nearest 1/10 of 1 cent.

 

     (e) The rate determined by the department under subdivision

 

(d) shall not at any time exceed the rate ceiling or be below the

 

rate floor and shall be further limited as follows:

 

     (i) During the period beginning on the first day of the first

 

calendar quarter immediately following the effective date of the

 

amendatory act that added this subparagraph and ending 12 months

 

thereafter, for the calendar quarter during which a rate is in

 

effect, the rate shall not be more than 1 cent greater or 1 cent

 

lower than the rate that is in effect for the calendar quarter

 

immediately preceding the calendar quarter during which that rate

 

is in effect.

 

     (ii) Beginning on the first day of the calendar quarter

 

immediately following the expiration of the 12-month period

 

described in subparagraph (i) and for each calendar quarter

 

thereafter, for the calendar quarter during which a rate is in

 

effect, the rate shall not be more than 1 cent greater or 1 cent

 

lower than the rate that is in effect for the calendar quarter

 

beginning 12 months prior to the calendar quarter during which that

 

rate is in effect.

 

     (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) The department shall publish notice of the applicable tax

 

rate calculated under subsection (1)(d) not later than 30 days

 

before the effective date of the rate.

 

     (9) A determination of the applicable percentage, the average

 

wholesale price, the wholesale price, or the rate under subsection

 

(1)(d) by the department is presumed to be correct and will not be

 

set aside unless an administrative tribunal or a court of competent

 

jurisdiction finds the department's determination to be clearly

 

erroneous.

 

     Sec. 10. (1) If the tax rate imposed by section 8 is

 

increased, the increase in the tax rate shall also apply to both of

 

the following:

 

     (a) Previously-taxed motor fuel in excess of 3,000 gallons

 

held in storage by an end user.

 

     (b) Previously-taxed motor fuel held for sale that is in

 

excess of dead storage.

 

     (2) The increased rate of tax applies to all nonexempt motor

 

fuel held by a person outside of the bulk transfer/terminal system

 

in this state in excess of 3,000 gallons, to the extent the

 

inventory was not previously subject to the tax rate imposed before

 

the effective date of this section. However, tax is not payable on

 

motor fuel that is either dyed diesel fuel or motor fuel held by

 

the federal or state government, or a political subdivision of this

 

state.

 

     (3) A person in possession of motor fuel subject to subsection

 

(1) shall do all of the following:

 

     (a) Take an inventory at the close of business on the last day

 

before the effective date of the tax increase to determine the

 

gallons of motor fuel in storage for purposes of determining the

 

tax due on the inventory.

 

     (b) Deduct the number of gallons of motor fuel in dead

 

storage.

 

     (c) Deduct the number of gallons of dyed diesel fuel.

 

     (d) Report the gallons of motor fuel listed in subdivisions

 

(a) to (c) on a form or in a format provided by the department.

 

     (4) The amount of the tax due under subsection (3) is equal to

 

the increase in the tax rate times the gallons of motor fuel in

 

storage as determined under subsection (1).

 

     (5) The report shall be filed and the tax paid within 20 days

 

after the last day of the month that the increase in the tax rate

 

took effect.

 

     (1) Beginning on the first day of the second calendar quarter

 

following the effective date of the amendatory act that added this

 

subsection, in addition to any other tax imposed on motor fuel

 

under this act, a supplemental excise tax on motor fuel is imposed.

 

     (2) The supplemental excise tax imposed under subsection (1)

 

shall only be imposed and collected by the department if the tax

 

imposed by the federal government pursuant to section 4081 of the

 

internal revenue code, 26 USC 4081, is reduced or discontinued in

 

whole or in part. The rate of the tax imposed under subsection (1)

 

is equal to the rate of tax by which the federal tax imposed on

 

gasoline is reduced in whole or in part. If the federal tax imposed

 

on gasoline is discontinued, the tax imposed under subsection (1)

 

is limited to the most recent rate of federal tax imposed upon

 

gasoline prior to discontinuance of the federal tax.

 

     (3) The supplemental excise tax imposed under subsection (1)

 

shall be imposed no later than the effective date of the rate

 

determined under section 8(1)(d) that immediately follows the

 

reduction or discontinuance of the federal tax, and shall conform

 

to the notice requirements in section 8(8).

 

     (4) The supplemental excise tax imposed under subsection (1)

 

is subject to any applicable exemptions under this act and shall be

 

collected in the same manner and method and at the same time as the

 

tax imposed under section 8.

 

     Sec. 14. (1) The department may require a supplier required to

 

remit tax under this act to remit the tax by an electronic funds

 

transfer acceptable to the department. The remittance shall be made

 

on or before the date the tax is due.

 

     (2) In computing the tax, a supplier may deduct 1.5% of the

 

quantity of gasoline removed by the supplier to allow for the cost

 

of remitting the tax. This deduction is not allowed for the

 

quantity of gasoline removed by the supplier and sold tax-free. At

 

the time of filing the report and paying the tax, the supplier

 

shall submit satisfactory evidence to the department that the

 

amount of tax represented by the deduction was paid or credited to

 

the supplier or wholesaler who purchased the gasoline from the

 

supplier or wholesaler. The amount of the deduction shall be paid

 

or credited by each supplier or wholesaler to the purchaser at each

 

subsequent sale to a wholesaler. When a wholesaler or supplier

 

sells gasoline to a retailer, the wholesaler or supplier shall pay

 

or credit to the retailer 1/3 of the deduction on quantities sold

 

to that retailer.

 

     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.

 

     (c) (d) Is motor 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.

 

     (ii) (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.

 

     (d) (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.

 

     (e) (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 registration is

 

required.

 

     (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".

 

     (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 motor 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 to the department. The payment shall be made

 

on a form or in a format prescribed by the department.

 

     Sec. 32. If a person pays the tax imposed by this act and uses

 

the motor fuel for a nontaxable purpose as described in sections 33

 

to 47 section 34, 36, 37, 39, 40, 43, or 44, the person may seek a

 

refund of the tax. To obtain a refund, the person shall comply with

 

the requirements set forth in section 48.

 

     Sec. 34. A person may seek a refund or claim a deduction for

 

tax paid under this act on gasoline or diesel motor fuel that is

 

sold tax-free by the person seeking the refund or claiming the

 

deduction 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 government. ,

 

state government, or a political subdivision of the state. However,

 

if the purchase of motor fuel is charged to a credit card issued to

 

an eligible federal government entity, the issuer of the card shall

 

bill the federal government entity without the tax and seek a

 

refund.

 

     Sec. 39. (1) An end user A person may seek a refund for tax

 

paid under this act on motor fuel or leaded racing fuel that the

 

person used or consumed in an implement of husbandry or otherwise

 

used or consumed for a nonhighway purpose, not otherwise expressly

 

exempted under this act. except for use or consumption in a motor

 

vehicle licensed or required to be licensed for use on the public

 

roads or highways of this state. The department may request

 

information from the person seeking a refund under this section as

 

reasonably necessary to administer this section. However, a person

 

shall not seek and is not eligible for a refund for tax paid on

 

gasoline or leaded racing fuel motor fuel used in a snowmobile,

 

off-road vehicle, or vessel. as defined in the natural resources

 

and environmental protection act, 1994 PA 451, MCL 324.101 to

 

324.90106.

 

     (2) As used in this section:

 

     (a) "Off-road vehicle" means that term as defined in section

 

71101 of the natural resources and environmental protection act,

 

1994 PA 451, MCL 324.71101.

 

     (b) "Snowmobile" means that term as defined in section 82101

 

of the natural resources and environmental protection act, 1994 PA

 

451, MCL 324.82101.

 

     (c) "Vessel" means that term as defined in section 80104 of

 

the natural resources and environmental protection act, 1994 PA

 

451, MCL 324.80104.

 

     Sec. 48. (1) In order to make a refund claim under this act, a

 

person shall do all of the following:

 

     (a) File the claim on a form or in a format prescribed by the

 

department.

 

     (b) Provide the information required by the department

 

including, but not limited to, all of the following:

 

     (i) The total amount of motor fuel purchased based on the

 

original invoice unless the department waives this requirement.

 

     (ii) The total amount of tax paid.

 

     (iii) A statement that the fuel was used for an exempt or

 

nontaxable purpose or by an exempt user.

 

     (iv) A statement that the fuel was paid for in full.

 

     (v) A statement printed on the form that the claim is made

 

under penalty of perjury.

 

     (c) Comply with any specific requirement described in sections

 

32 to 47 section 34, 36, 37, 39, 40, 43, or 44.

 

     (d) Sign the claim.

 

     (e) File the claim not more than 18 months after the date the

 

motor fuel was purchased.

 

     (2) For purposes of this section, the filing date of a claim

 

is the earlier of the date the claim was postmarked by the United

 

States postal service or the date the claim was received by the

 

department.

 

     (3) The department may make any investigation it considers

 

necessary before refunding tax paid under this act to a person. but

 

in any case The department may also investigate a refund after the

 

refund has been issued, and within up to 4 years from after the

 

date of issuance of the refund was issued.

 

     (4) In any case where a refund would be payable to a A

 

licensee who files a report entitled to a refund under this act ,

 

the licensee may claim a deduction on the report filed under

 

section 70 in lieu of the refund. If a licensee claims a deduction

 

on the report, the licensee shall attach the claim for refund form

 

to the report.

 

     (5) The department shall pay interest on a refund claim in

 

accordance with the requirements of section 30 of 1941 PA 122, MCL

 

205.30.

 

     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 at any time.

 

     (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. 94. (1) A person shall not purchase for resale motor fuel

 

identified on a shipping paper or invoice as aviation fuel unless

 

the person is registered with the department on a form or in a

 

format prescribed by the department.

 

     (2) Motor fuel upon which the tax imposed under section 203 of

 

the aeronautics code of the state of Michigan, 1945 PA 327, MCL

 

259.203, has been paid shall be identified on the shipping paper or

 

invoice as aviation fuel and shall be sold only for aviation

 

purposes. A seller shall obtain from the purchaser a statement that

 

the fuel will only be sold or used as aviation fuel.

 

     (3) A person shall not sell, use, or label motor fuel that is

 

exempt from tax under section 30(1)(f) or that has been identified

 

on a shipping paper or invoice as aviation fuel for use other than

 

as aviation fuel. , except that a person may sell or use motor fuel

 

identified on a shipping paper or invoice as "aviation fuel exempt

 

for LRF" under this act for the sole purpose of producing leaded

 

racing fuel as that term is defined in section 4.

 

     (4) A person shall not sell, use, or label for aviation

 

purposes motor fuel identified on a shipping paper or invoice as

 

diesel fuel.

 

     (5) A person who knowingly violates this section is guilty of

 

a felony.

 

     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.

 

     (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 for each of the first 2

 

violations within a the same 12-month period. For a third violation

 

within a the same 12-month period, and 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

 

6715 of the internal revenue code, 26 USC 6715.

 

     Sec. 130. (1) As soon as possible, but not more than 5

 

business days after seizure of a motor vehicle and its cargo under

 

section 129, the person making the seizure shall deliver an

 

inventory statement of the motor vehicle, motor fuel, or other

 

property seized personally or by registered mail to the last known

 

address of the person from whom the seizure was made, if known. ,

 

an inventory statement of the motor vehicle, motor fuel, or other

 

property seized. A copy of the inventory statement shall also be

 

filed with the department.

 

     (2) In addition to notice of the property seized, the

 

inventory statement shall contain a notice that unless demand for a

 

hearing as provided in under this section is made within 10

 

business days after the date the inventory statement was delivered,

 

the property is forfeited to the state.

 

     (3) If the person from whom the seizure was made is not known,

 

the person making the seizure shall cause a copy of the inventory

 

statement , together with and the notice provided for in this

 

section , to be published not less than 3 times in a newspaper of

 

general circulation in the county where the seizure was made.

 

     (4) Within 10 business days after the date of service of the

 

inventory statement or, in the case of publication, within 10

 

business days after the date of last publication, the person from

 

whom the property was seized or any person claiming an interest in

 

the property may by registered mail, facsimile transmission, or

 

personal service file with the department by registered mail,

 

facsimile transmission, or personal service a demand for a hearing

 

before the commissioner for a determination as to of whether the

 

property was lawfully subject to seizure and forfeiture. The person

 

shall verify a request for hearing filed by facsimile transmission

 

by also providing a copy of the original request for hearing to the

 

department by registered mail or personal service.

 

     (5) The person or persons are filing a demand for hearing

 

under subsection (4) is entitled to appear at a hearing before the

 

department, to be represented by counsel, and to present testimony

 

and argument.

 

     (6) Upon receipt of a request for hearing, the department

 

shall hold the hearing within 15 business days. The hearing is not

 

a contested case proceeding and is not subject to the

 

administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to

 

24.328.

 

     (7) After the hearing, the department shall render its

 

decision in writing within 10 business days after the hearing and,

 

by order, shall either declare the seized property subject to

 

seizure and forfeiture, or declare the property returnable in whole

 

or in part to the person entitled to possession.

 

     (8) If, within 10 business days after the date of service of

 

the inventory statement, the person from whom the property was

 

seized or any person claiming an interest in the property does not

 

file with the department a demand for a hearing before the

 

department, the property seized shall be considered is forfeited to

 

the state by operation of law and may be disposed of by the

 

department as provided in this section.

 

     (9) If, after a hearing, the department determines that the

 

property is lawfully subject to seizure and forfeiture and the

 

person from whom the property was seized or any persons claiming an

 

interest in the property do not take an appeal to the circuit court

 

of the county in which the seizure was made within the time

 

prescribed in this section, the property seized shall be considered

 

is forfeited to the state by operation of law and may be disposed

 

of by the department as provided in this section.

 

     (10) If a person is aggrieved by the decision of the

 

department, that person may appeal to the circuit court of the

 

county where the seizure was made to obtain a judicial

 

determination of the lawfulness of the seizure and forfeiture. The

 

action shall be commenced within 20 days after notice of the

 

department's determination is sent to the person or persons

 

claiming an interest in the seized property. The court shall hear

 

the action and determine the issues of fact and law involved in

 

accordance with rules of practice and procedure as in other in rem

 

proceedings. If a judicial determination of the lawfulness of the

 

seizure and forfeiture cannot be made before deterioration of any

 

of the property seized, the court shall order the sale of the

 

property with public notice as determined by the court and require

 

the proceeds to be deposited with the court until the lawfulness of

 

the seizure and forfeiture is finally adjudicated.

 

     (11) During the pendency of any filing for appeal, hearing, or

 

rendering of decision, the aggrieved person and the department may

 

by mutual consent agree to sale of the fuel in order to facilitate

 

release of the vehicle containing the fuel. The proceeds from the

 

sale shall be held in escrow by the department pending the

 

department's decision and an appeal, if any, from the department's

 

decision.

 

     (12) The department may sell fuel forfeited under this act at

 

public sale. Public notice of the sale shall be given at least 5

 

days before the date of sale. The department may pay an amount not

 

to exceed 25% of the proceeds of the sale to the local governmental

 

unit whose law enforcement agency performed the seizure. The

 

balance of the proceeds derived from the sale by the department

 

shall be credited to the Michigan transportation fund commercial

 

corridor fund.

 

     Sec. 143. Except as otherwise provided 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 mobility commercial corridor fund.

 

     Sec. 151. As used in this section and sections 152 to 155:

 

     (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.

 

     (b) "LPG dealer" means a person who is licensed under this

 

chapter act to use liquefied petroleum gas.

 

     (c) "Use", "used", or "uses" means any of the following:

 

     (i) Selling or delivering liquefied petroleum gas not otherwise

 

subject to tax under this act, either by placing it into a

 

permanently attached fuel supply tank of a motor vehicle, or by

 

exchanging or replacing of the fuel supply tank of a motor vehicle.

 

     (ii) Delivery of liquefied petroleum gas into storage , devoted

 

exclusively to the storage of liquefied petroleum gas to be

 

consumed in motor vehicles on the public roads or highways.

 

     (iii) Withdrawing liquefied petroleum gas 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.

 

     Sec. 152. (1) A Except as provided in subsections (3) and (4),

 

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) Subject to subsection (4), beginning on the first day of

 

the first calendar quarter following the effective date of the

 

amendatory act that added this subsection, the tax described in

 

subsections (1) and (2) shall be imposed at a rate equal to the

 

rate per gallon for motor fuel under section 8(1)(c).

 

     (4) Beginning on the first day of the second calendar quarter

 

following the effective date of the amendatory act that added this

 

subsection, the tax described in subsections (1) and (2) shall be

 

imposed at a rate equal to the rate per gallon for motor fuel

 

established under section 8(1)(d) and subject to the applicable

 

rate cap and rate floor.

 

     Sec. 161. In January of each year, there is appropriated from

 

the proceeds of the tax levied by this act up to $3,500,000.00,

 

that shall be used to pay the principal, interest, and incidental

 

costs for the outstanding bonds , previously issued by the Mackinac

 

bridge authority. The unexpended amount shall lapse to the Michigan

 

transportation commercial corridor fund at the end of each fiscal

 

year. Upon retirement of all outstanding bonds and any refunding

 

bonds hereafter issued, this appropriation shall cease.

 

     Sec. 163. The appropriations made in section 161 shall be

 

considered as are advances in aid of reducing the bonded

 

indebtedness of the Mackinac bridge. At such time as When all

 

principal and interest for all outstanding bonds , previously

 

issued by the Mackinac bridge authority and, if the bonds are

 

refunded in accordance with 1966 PA 13, MCL 254.361 to 254.372, all

 

principal and interest on the refunding bonds has been paid, the

 

authority responsible for setting tolls for the Mackinac bridge

 

shall continue to charge tolls as are considered necessary by the

 

authority to reimburse the Michigan transportation commercial

 

corridor fund for all advances made pursuant to this act. At such

 

time as When reimbursement has been made for the sums advanced

 

under this act and those sums advanced pursuant to section 7 of

 

1952 PA 214, MCL 254.317, the Mackinac bridge shall thereafter be

 

maintained and operated as a free bridge.

 

     Enacting section 1. Sections 33, 35, 38, 41, 42, 45, 47, and

 

147 of the motor fuel tax act, 2000 PA 403, MCL 207.1033, 207.1035,

 

207.1038, 207.1041, 207.1042, 207.1045, 207.1047, and 207.1147, are

 

repealed.

 

     Enacting section 2. This amendatory act takes effect on the

 

first day of the first calendar quarter following the date of its

 

enactment.