Bill Text: MS HB1661 | 2012 | Regular Session | Introduced
Bill Title: Special fuels tax; assess flat fee for motor vehicles using certain alternative fuels in lieu of.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2012-03-28 - Died In Committee [HB1661 Detail]
Download: Mississippi-2012-HB1661-Introduced.html
MISSISSIPPI LEGISLATURE
2012 Regular Session
To: Ways and Means
By: Representative Boyd
House Bill 1661
AN ACT TO CREATE NEW SECTION 27-55-522, MISSISSIPPI CODE OF 1972, TO ESTABLISH A FLAT FEE, TO BE ASSESSED IN LIEU OF THE EXCISE TAX ON SPECIAL FUELS, ON MOTOR VEHICLES USING CERTAIN ALTERNATIVE FUELS; TO PRESCRIBE THE AMOUNT OF THE FLAT FEE BASED ON THE TYPE OF FUEL USED BY THE VEHICLE AND THE VEHICLE'S WEIGHT; TO REQUIRE THE DISPLAY OF A DECAL ON ALTERNATIVE FUEL VEHICLES ASSESSED A FLAT FEE; TO DIRECT THE ALLOCATION OF FUNDS COLLECTED FROM THE FLAT FEE; TO BRING FORWARD SECTION 27-55-505, MISSISSIPPI CODE OF 1972, WHICH DEFINES CERTAIN TERMS USED IN THE SPECIAL FUEL TAX LAWS, AND SECTIONS 27-55-519 AND 27-55-521, MISSISSIPPI CODE OF 1972, WHICH REQUIRE THE LEVY OF AN EXCISE TAX ON SPECIAL FUELS, FOR PURPOSES OF POSSIBLE AMENDMENT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. The following shall be codified as Section 27-55-522, Mississippi Code of 1972:
27-55-522. (1) In lieu of the excise tax on special fuel imposed under this article, there is levied a flat fee of Fifty Dollars ($50.00) on each passenger automobile, and on each pickup truck or van not exceeding one (1) ton in capacity, using liquefied petroleum gas or natural gas as fuel, except that no such fee may be levied on any motor vehicle that is the subject of an exemption under Section 27-55-527. However, if the passenger automobile, pickup truck or van is acquired or if the liquefied petroleum gas or natural gas system is installed on or after July 1, the flat fee shall be Twenty-five Dollars ($25.00) for the remainder of that calendar year.
(2) In lieu of the excise tax on special fuel imposed under this article, there is levied a flat fee of One Hundred Dollars ($100.00) on each passenger automobile, and on each pickup truck or van not exceeding one (1) ton in capacity, using liquefied natural gas, methanol or "M-85" (a mixture of methanol and gasoline containing at least eighty-five percent (85%) methanol) as fuel, except that no such fee may be levied on any vehicle that is the subject of an exemption under Section 27-55-527. However, if the passenger automobile, pickup truck or van is acquired or if the liquefied natural gas, methanol or "M-85" system is installed on or after July 1, the flat fee shall be Fifty Dollars ($50.00) for the remainder of that calendar year.
(3) In lieu of the excise tax on special fuel imposed under this article, there is levied a flat fee of One Hundred Fifty Dollars ($150.00) on each vehicle exceeding one (1) ton in capacity, using liquefied petroleum gas, liquefied natural gas, methanol or "M-85" as fuel, except that no such fee may be levied on any vehicle that is the subject of an exemption under Section 27-55-527. However, if the vehicle is acquired or if the liquefied natural gas, methanol or "M-85" system is installed on or after July 1, the flat fee shall be Seventy-five Dollars ($75.00) for the remainder of that calendar year.
(4) Every person operating a vehicle using liquefied petroleum gas, liquefied natural gas, methanol or "M-85" as fuel must apply for and obtain a decal to be issued on a yearly basis by the Department of Revenue on forms prescribed and furnished by the department.
(5) Every person required to apply for and receive a decal under this section shall remit to the department, at the time of making the application, the total amount of the fee due.
(6) Each decal issued by the department under this section shall expire on December 31 of the year in which it is issued. The decals must be displayed in the lower right hand corner of the front windshield of the vehicle. Upon receipt of satisfactory proof by the department that it has become necessary to replace the windshield of the vehicle for which the decal was issued, another decal shall be issued by the department as a replacement for a fee of One Dollar ($1.00).
(7) When any vehicle using liquefied petroleum gas, liquefied natural gas, methanol or "M-85" as fuel and displaying a current decal as provided in this section is sold, the decal must remain with the vehicle sold unless the equipment installed to enable the vehicle to use liquefied petroleum gas, liquefied natural gas, methanol or "M-85" has been removed from the vehicle before the sale. If the equipment has been removed before the sale, the seller of the vehicle also must remove the decal required of vehicles using liquefied petroleum gas, liquefied natural gas, methanol or "M-85". The removed decal, a receipt from the Department of Revenue showing that the required fee has been paid for the current year, and the payment of a fee in the amount of One Dollar ($1.00) for a duplicate decal shall entitle the seller to apply for and obtain a new decal to be used for the remainder of the year on any vehicle using liquefied petroleum gas, liquefied natural gas, methanol or "M-85" in accordance with this section.
(8) All funds derived from the fee imposed by subsection (1) of this section shall be deposited annually in the General Fund by the Department of Revenue. When any person fails to obtain a current decal within thirty (30) days of the date that the decal is required, as provided in this section, there shall become due and payable a penalty of twenty percent (20%) of the fee in addition to the fee. The penalty shall be deposited in the same manner as the fee pursuant to this subsection.
(9) All funds derived from the fee imposed by subsections (2) and (3) of this section shall be collected by the Department of Revenue and deposited annually into the State Highway Fund. When any person fails to obtain a current decal within thirty (30) days of the date that the decal is required, as provided in this section, there shall become due and payable a penalty of twenty percent (20%) of the fee in addition to the fee. The penalty shall be deposited in the same manner as the fee pursuant to this subsection.
SECTION 2. Section 27-55-505, Mississippi Code of 1972, is brought forward as follows:
27-55-505. The words, terms and phrases as used in this article shall have the following meanings unless the context requires otherwise:
(a) "Special fuel" means kerosene, diesel fuel, fuel oils, and any petroleum fuel or any other product other than gasoline or compressed gas which is usable as fuel in an internal combustion engine, and any combustible liquid other than gasoline or compressed gas used or capable of being used as a fuel in aircraft. The term "special fuel" shall not include racing gasoline as defined in Section 27-55-5.
(b) "Bunker oil" means a residual product obtained in the refining of crude petroleum intended for use for the generation of heat in a firebox or furnace when its flash point, as determined by use of the Pensky-Martens tester, shall not be less than one hundred fifty (150) degrees Fahrenheit and when its viscosity at one hundred (100) degrees Fahrenheit shall not be less than one hundred fifty (150) seconds when determined by use of the Saybolt Universal Tubes.
(c) "Person" means any individual, firm, copartnership, joint venture, association, corporation, estate, trust, or any group or combination acting as a unit, and the plural as well as the singular number unless the intention to give a more limited meaning is disclosed by the context.
(d) "Distributor of special fuel" means:
(i) Any person importing special fuel into this state;
(ii) Any person who shall receive, purchase, acquire, use, store or sell any special fuel in this state on which the excise tax hereinafter imposed by this article has not been paid;
(iii) Any person exporting special fuel;
(iv) Any person engaged in the distribution of special fuel by tank car or tank truck or both; however, no person may qualify as a distributor of special fuel for the sole purpose of using special fuel, as defined in this article, as a fuel to propel a vehicle or vehicles owned or operated by him on the highways of this state; and
(v) All persons meeting the definition of "refiners," "processors," "terminal operator," "blenders" and any person licensed to sell motor fuel in another state or jurisdiction who is authorized by that state or jurisdiction to collect the special fuel excise tax imposed by this article.
(e) "Bonded distributor of special fuel" means any person holding a valid distributor of special fuel permit issued by the Department of Revenue.
(f) "Refiner" or "processor" means every person who shall receive, produce, manufacture, refine, distill, blend or compound special fuel in this state, when such person shall engage in any business incident to or necessary for refining or processing petroleum products in this state; provided further, that such refiner or processor must have at least two (2) ten-thousand-gallon or larger tanks for product storage, and the blending or mixing process produces a finished product that has entirely different physical and chemical properties from the original products.
(g) "For nonhighway purposes" means special fuel which is not used for operating motor vehicles or motor-propelled machines of any description along the public roads, streets, alleys or highways of this state as defined in this article.
(h) "Highway" means every way or place of whatever nature, including public roads, toll roads, streets and alleys of this state generally open to the use of the public or to be opened or reopened to the use of the public for the purpose of vehicular travel, and notwithstanding that the same may be temporarily closed for the purpose of construction, reconstruction, maintenance or repair. The confines of a highway shall include the entire width and length of the right-of-way.
(i) "Commission" or "department" means the Department of Revenue of the State of Mississippi, acting either directly or through its duly authorized officers, agents or employees.
(j) "Terminal" means a tank farm within the State of Mississippi with storage capacity for the receipt of a full barge delivery or common carrier pipeline delivery of taxable petroleum products when such products are to be distributed within the state.
(k) "Marine dealer" means any person selling special fuel from marine or dockside storage facilities when such special fuel is for use in boats, vessels, barges or ships.
(l) "United States government" means and includes all purchasing officers of the Armed Forces of the United States and the United States Property and Fiscal Officer for the State of Mississippi or any other state appointed pursuant to Section 708, Title 32, United States Code, when purchasing special fuel with federal funds for the account of and use by a component of the Armed Forces as herein defined.
(m) "Armed Forces" means and includes all components of the Armed Forces of the United States including the Army National Guard, the Army National Guard of the United States, the Air National Guard and the Air National Guard of the United States, as those terms are defined in Section 101, Title 10, United States Code, and any other reserve component of the Armed Forces of the United States enumerated in Section 261, Title 10, United States Code.
(n) "Motor vehicle" means every vehicle designed, constructed for or used on the highways of this state which is self-propelled, except a farm tractor using the highways solely in hauling or transporting farm products of the soil from the farm to a gin or market when the title to such products is still in the producer, or a farm tractor used in transporting fertilizer or food to a farm when the title to such products is still in the user.
(o) "Consumer" means, in addition to its ordinary meaning, a person who purchases undyed diesel fuel to be used for nonhighway purposes and who does not resell such undyed diesel fuel.
(p) "Retail dealer" means any person who operates a retail station.
(q) "Dyed diesel fuel" means diesel fuel that is dyed in accordance with United States Environmental Protection Agency or Internal Revenue Service requirements.
(r) "Dyed kerosene" means kerosene that is dyed in accordance with United States Environmental Protection Agency or Internal Revenue Service requirements.
(s) "Undyed diesel fuel" means diesel fuel that does not meet the dyeing requirements prescribed by United States Environmental Protection Agency or Internal Revenue Service Regulations.
(t) "Fuel oil" means a general classification for one (1) of the petroleum fractions produced in conventional distillation operations. For the purposes of this article, "fuel oil" is No. 1, No. 2 and No. 4 fuel oils and No. 1, No. 2 and No. 4 diesel fuels.
(u) "Blender" shall mean any person who blends or compounds any product to produce special fuel.
(v) "Terminal operator" means any person who owns, operates or otherwise controls a terminal.
SECTION 3. Section 27-55-519, Mississippi Code of 1972, is brought forward as follows:
27-55-519. (1) Any person engaged in business as a distributor of special fuel or who acts as a distributor of special fuel, as defined in this article, shall pay for the privilege of engaging in such business or acting as such distributor an excise tax on all special fuel stored, used, sold, distributed, manufactured, refined, distilled, blended or compounded in this state or received in this state for sale, storage, distribution or for any purpose, adjusted to sixty (60) degrees Fahrenheit.
The excise tax shall become due and payable when:
(a) Special fuel is withdrawn from storage at a refinery, marine or pipeline terminal, except when withdrawal is by barge or pipeline.
(b) Special fuel imported by a common carrier is unloaded by that carrier unless the special fuel is unloaded directly into the storage tanks of a refinery, marine or pipeline terminal.
(c) Special fuel imported by any person other than a common carrier enters the State of Mississippi unless the special fuel is unloaded directly into the storage tanks of a refinery, marine or pipeline terminal.
(d) Special fuel is blended in this state unless such blending occurs in a refinery, marine or pipeline terminal.
(e) Special fuel is acquired tax free.
(2) The special fuel excise tax shall be as follows:
(a) Eighteen Cents (18¢) per gallon on undyed diesel fuel until the date specified in Section 65-39-35 and Fourteen and Three-fourths Cents (14.75¢) per gallon thereafter;
(b) Five and Three-fourths Cents (5.75¢) per gallon on all special fuel except undyed diesel fuel and special fuel used as fuels in aircraft; and
(c) Five and One-fourth Cents (5.25¢) per gallon on special fuel used as fuel in aircraft.
SECTION 4. Section 27-55-521, Mississippi Code of 1972, is brought forward as follows:
27-55-521. (1) An excise tax at the rate of Eighteen Cents (18¢) per gallon until the date specified in Section 65-39-35, Mississippi Code of 1972, and Fourteen and Three-fourths Cents (14.75¢) per gallon thereafter is levied on any person engaged in business as a distributor of special fuel or who acts as such who sells:
(a) Special fuel for use in performing contracts for construction, reconstruction, maintenance or repairs, where such contracts are entered into with the State of Mississippi, any political subdivision of the State of Mississippi, or any department, agency, institution of the State of Mississippi or any political subdivision thereof.
(b) Dyed diesel fuel or kerosene to a state or local governmental entity for use on the highways in a motor vehicle.
(c) Special fuel for use on the highway.
(2) An excise tax at the rate of Eighteen Cents (18¢) per gallon until the date specified in Section 65-39-35, Mississippi Code of 1972, and Fourteen and Three-fourths Cents (14.75¢) per gallon thereafter is levied on any person who:
(a) Uses dyed diesel fuel or kerosene in a motor vehicle on the highways of this state in violation of Section 27-55-539.
(b) Purchases or acquires undyed diesel fuel or kerosene for nonhighway use and subsequently uses such diesel fuel or kerosene in a motor vehicle on the highways of this state.
(c) Purchases or acquires special fuel for use in performing contracts as specified in this section.
SECTION 5. This act shall take effect and be in force from and after July 1, 2012.
