HOUSE BILL No. 4911


     September 29, 1999, Introduced by Rep. Stallworth and referred to the Committee on
Tax Policy.


        A bill 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 enforce-
   ment of this lien; to permit the inspection and testing of petro-
   leum 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 section 2 (MCL 207.102), as amended by 1997 PA 83.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         Sec. 2.  (1) A specific tax at a rate of cents per gallon

 2    determined under subsection (2) is imposed on all gasoline and

 3    diesel motor fuel sold or used in producing or generating power

 4    for propelling motor vehicles used upon the public roads and


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 1    highways in this state.  The tax shall be paid at those times, in

 2    the manner, and by those persons specified in this act.  It is

 3    the intent of this act to impose a tax upon the owners and driv-

 4    ers of motor vehicles using an internal combustion type of engine

 5    upon the public roads and highways of this state by requiring

 6    them to pay for the privilege of using the public roads and high-

 7    ways of this state, in addition to the motor vehicle 
             license 

 8    REGISTRATION tax.

 9         (2) The tax rate imposed under subsection (1) is as

10    follows:

11         (a) For the tax imposed on gasoline and diesel motor fuel

12    before August 1, 1997, 15 cents.

13         (b) For the tax imposed on gasoline after July 31, 1997,

14     19  18 cents.

15         (c) For the tax imposed on diesel motor fuel after July 31,

16    1997,  15  16 cents.

17         (3) The state commissioner of revenue shall notify each sup-

18    plier, wholesale distributor, and each retail dealer of gasoline

19    in this state of the tax rate imposed under subsection (1) imme-

20    diately after the tax rate is determined.

















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