SB-1362, As Passed House, August 30, 2006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 1362

(As amended, August 9, 2006)

 

 

July 26, 2006, Introduced by Senator GILBERT and referred to the Committee on Technology and Energy.

 

 

 

     A bill to amend 1980 PA 119, entitled

 

"Motor carrier fuel tax act,"

 

by amending sections 2 and 4 (MCL 207.212 and 207.214), as amended

 

by 2002 PA 667.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 2. (1) A motor carrier licensed under this act shall pay

 

a road tax calculated on the amount of motor fuel consumed in

 

qualified commercial motor vehicles on the public roads or highways

 

within this state. <<The Except as otherwise provided under subsection

(6), the>> tax shall be at the rate <<of 15 cents per

 

gallon on                                                               

 

                           >> motor fuel consumed on the public roads

 

or highways within this state. In addition, qualified commercial

 

motor vehicles licensed under this act that travel in interstate

 

commerce will be subject to the definition of taxable motor fuels


Senate Bill No. 1362 as amended August 8, 2006                (1 of 2)

 

and rates as defined by the respective international fuel tax

 

agreement member jurisdictions. A return shall be filed, and the

 

tax due paid, quarterly to the department on or before the last day

 

of January, April, July, and October of each year on a form

 

prescribed and furnished by the department. Each quarterly return

 

and tax payment shall cover the liability for the annual quarter

 

ending on the last day of the preceding month.

 

     (2) The amount of motor fuel consumed in the operation of a

 

motor carrier on public roads or highways within this state shall

 

be determined by dividing the miles traveled within Michigan by the

 

average miles per gallon of motor fuel. The average miles per

 

gallon of motor fuel shall be determined by dividing the miles

 

traveled within and outside of Michigan by the total amount of

 

motor fuel consumed within and outside of Michigan.

 

     (3) In the absence of records showing the average number of

 

miles operated per gallon of motor fuel, it shall be presumed that

 

1 gallon of motor fuel is consumed for every 4 miles traveled.

 

     (4) The quarterly tax return shall be accompanied by a

 

remittance covering any tax due.

 

     (5) The commissioner, when he or she considers it necessary to

 

ensure payment of the tax or to provide a more efficient

 

administration of the tax, may require the filing of returns and

 

payment of the tax for other than quarterly periods.

           <<(6) The road tax required under this section shall be at a rate of 12 cents per gallon for diesel fuel that contains at least 5% biodiesel. As used in this subsection, "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.

           (7) Beginning on September 1, 2006, 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 motor fuel in section 8 of the motor fuel tax act, 2000 PA 403, MCL 207.1008, and on motor fuel in subsection (6). Subsection (6) is no longer effective the earlier of 10 years after September 1, 2006 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 due to the differential rates in section 8 of the motor fuel tax act, 2000 PA 403, MCL 207.1008, and subsection (6) from September 1, 2006 is greater than $2,500,000.00.

     (8) 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 (6) 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.>>

     Sec. 4. (1) A person filing a return  pursuant to  under

 

section 2 who purchased motor fuel in this state upon which a tax

 

was imposed and not refunded  pursuant to  under the motor fuel tax

 

act, 2000 PA 403, MCL 207.1001 to 207.1170, shall be entitled to a


Senate Bill No. 1362 as amended August 8, 2006

 

credit against the tax imposed by this act equal to the tax paid

 

when purchasing the motor fuel  pursuant to  under the motor fuel

 

tax act. The excess of a credit allowed by this subsection over tax

 

liabilities imposed by this act shall be refunded to the taxpayer.

 

     (2) In order to secure credit under subsection (1) for motor

 

fuel purchased in this state the motor carrier shall secure a

 

receipt showing the seller's name, the number of gallons of motor

 

fuel, the type of motor fuel, the tax rate charged, the address of

 

the seller, the license number or unit number of the commercial

 

motor vehicle, and the date of sale.

 

     (3) A refund, when approved by the department, shall be

 

payable from the revenue received under this act.

 

     (4) A person, or an agent, employee, or representative of the

 

person, who makes a false statement in any return under this act or

 

who submits or provides an invoice or invoices in support of the

 

false statement upon which alterations or changes exist in the

 

date, name of seller or purchaser, number of gallons, identity of

 

the qualified commercial motor vehicle into which fuel was

 

delivered or the amount of tax that was paid, or who knowingly

 

presents any return or invoice containing a false statement, or who

 

collects or causes to be paid a refund without being entitled to

 

the refund, forfeits the full amount of the claim and is guilty of

 

a misdemeanor, punishable by a fine of not more than $5,000.00 or

 

imprisonment for not more than 1 year, or both.

     <<Enacting section 1. This amendatory act takes effect September 1,

2006.>>