Act No. 29

Public Acts of 1998

Approved by the Governor

March 18, 1998

Filed with the Secretary of State

March 18, 1998

EFFECTIVE DATE: March 18, 1998

STATE OF MICHIGAN

89TH LEGISLATURE

REGULAR SESSION OF 1998

Introduced by Reps. Gernaat, Johnson, Lowe, Llewellyn, McManus, Goschka, McBryde, Walberg, Green, Oxender, Griffin, Baade, LeTarte, Voorhees, Jellema, Nye, DeVuyst, Kukuk, Jelinek, Cropsey, Horton, Birkholz, London and Jaye

ENROLLED HOUSE BILL No. 4841

AN ACT to amend 1927 PA 150, entitled "An act to prescribe a privilege tax for the use of the public highways by owners and drivers of motor vehicles by imposing a specific tax upon the sale or use, within the state of Michigan, of motor fuel; to prescribe the manner and the time of paying this tax and the duties of officials and others respecting the payment and collection of this tax; to provide for the licensing of wholesale distributors, certain retail dealers, exporters, and suppliers as defined in this act; to fix a time when this tax and interest and penalties thereon become a lien upon the property of persons, firms, partnerships, associations, or corporations, subject to the payment of this tax; to provide for the enforcement of this lien; to permit the inspection and testing of petroleum products; to provide for certain exemptions and refunds and for the disposition of the proceeds of this tax; and to prescribe penalties for the violation of this act," by amending sections 12a and 22 (MCL 207.112a and 207.122), section 22 as amended by 1995 PA52.

The People of the State of Michigan enact:

Sec. 12a. The purchaser of gasoline for use in school buses owned by or leased and operated by nonprofit private, parochial or denominational schools, colleges and universities and used in the transportation of students to and from school, and to and from school functions authorized by the administration of the eligible institution, shall be exempt from the tax on gasoline levied by this act.

Sec. 22. (1) There shall be allowed a discount of 6 cents per gallon of the tax imposed on diesel motor fuel pursuant to section 2(1) if the diesel motor fuel is delivered into the fuel supply tanks of a commercial motor vehicle licensed under the motor carrier fuel tax act, 1980 PA 119, MCL 207.211 to 207.234.

(2) The tax on diesel motor fuel sold and delivered in this state by the retailer into the fuel supply tanks of motor vehicles shall be collected by the supplier and paid over monthly to the department except that the retail dealer shall pay over monthly to the department 6 cents of the tax imposed under section 2 for each gallon sold for delivery into or supplied into the fuel supply tanks of a motor vehicle that is not a commercial motor vehicle licensed under the motor carrier fuel tax act, 1980 PA 119, MCL 207.211 to 207.234, and eligible for discount allowed under subsection (1). Each diesel motor fuel retailer shall invoice sales of diesel motor fuel as prescribed by the department. Persons operating passenger vehicles of a capacity of 10 or more under a certificate of public convenience and necessity issued by the Michigan public service commission, or under a municipal franchise, license, permit, agreement, or grant, respectively, and operating over regularly traveled routes expressly provided for in the certificate of convenience and necessity, or municipal license, permit, agreement, or grant, shall be entitled to a refund of the tax paid in the manner provided in section 12. Refunds provided for under this section to a state certificated operator of an intercity motor bus, shall apply only to those gallons of diesel motor fuel producing mileage traveled by each intercity motor bus over regular routes or on charter trips or portions of charter trips within this state. The tax shall apply to diesel motor fuel delivered in this state into the storage of a user or acquired by a user in any manner.

(3) An end use purchaser who has paid the tax on diesel motor fuel may claim a refund of the tax paid on diesel motor fuel used by the purchaser while operating a motor vehicle at a plant or jobsite while not on the public roads and highways of this state. The department may determine the formulae, methodology, and documentation necessary to implement this subsection.

(4) A tax is not imposed or collected under this act on diesel motor fuel used in motor vehicles owned by or leased and operated by a political subdivision of this state, or motor vehicles owned and operated by this state or the federal government.

(5) A tax is not imposed or collected under this act on diesel motor fuel purchased for use in school buses owned by or leased and operated by nonprofit private, parochial, or denominational schools, colleges, and universities and used in the transportation of students to and from school, or to and from school functions authorized by the administration of the eligible institution.

(6) A tax is not imposed or collected under this act by a supplier of diesel motor fuel if the fuel is purchased by an end user for any of the following purposes or for resale to an end user for any of the following purposes:

(a) For off-highway use.

(b) For use as a home heating oil.

(c) For export in compliance with section 3.

(d) For use as other than motor fuel.

(e) For use in trains.

This act is ordered to take immediate effect.

Clerk of the House of Representatives.

Secretary of the Senate.

Approved

Governor.