HB-5583, As Passed Senate, March 4, 2008

SUBSTITUTE FOR

HOUSE BILL NO. 5583

     A bill to amend 2000 PA 403, entitled

"Motor fuel tax act,"

by amending sections 30 and 94 (MCL 207.1030 and 207.1094), section

30 as amended by 2002 PA 668.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     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.

     (d) Is 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.

     (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.

     (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.

     (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.

     (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 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. The payment shall be made on a form or in a

format prescribed by the department.

     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)(g) 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.

     Enacting section 1. This amendatory act takes effect 60 days

after the date it is enacted into law.

     Enacting section 2. This amendatory act does not take effect

unless House Bill No. 5582 of the 94th Legislature is enacted into

law.