December 13, 2007, Introduced by Reps. Schuitmaker, Bieda, Condino, Stahl, Huizenga, Tobocman, Accavitti, Hildenbrand, Proos, Shaffer, Elsenheimer, DeRoche and Johnson and referred to the Committee on Tax Policy.
A bill to amend 2000 PA 403, entitled
"Motor fuel tax act,"
by amending sections 30, 39, and 94 (MCL 207.1030, 207.1039, and
207.1094), section 30 as amended by 2002 PA 668 and section 39 as
amended by 2006 PA 277.
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 motor fuel bought for the purpose of formulating leaded
racing fuel to be used only by racing vehicles for a nonhighway
purpose.
(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.
39. (1) An Subject
to subsection (2), an end user may
seek a refund for tax paid under this act on motor fuel or leaded
racing fuel used in an implement of husbandry or otherwise used for
a nonhighway purpose not otherwise expressly exempted under this
act. However, a person shall not seek and is not eligible for a
refund for tax paid on gasoline or leaded racing 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) An end user of aviation fuel bought for the formulation of
leaded racing fuel to be used only by racing vehicles for a
nonhighway purpose is exempt from the payment of the tax imposed
under this act.
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. This subsection does not prohibit a
person from selling, using, or labeling motor fuel identified as
aviation fuel in the formulation of leaded racing fuel.
(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 does not take effect
unless Senate Bill No.____ or House Bill No. 5582(request no.
05040'07) of the 94th Legislature is enacted into law.