HOUSE BILL No. 6023


     September 28, 2000, Introduced by Reps. Brewer, DeHart, Bovin and Sheltrown and referred to the Committee on Tax Policy.


        A bill to impose a tax on the sale of gasoline and diesel

   motor fuel; to determine who shall pay the tax; and to specify

   the collection process for the tax imposed.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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           Sec. 1.  Beginning October 1, 2000, an excise tax equal to

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      excess profits is imposed on the excess profits of suppliers

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      doing business in this state that gouge consumers from the sale

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      of all gasoline and diesel motor fuel sold or used in this state

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      that is used for producing or generating power for propelling

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      motor vehicles used upon the public roads and highways in this

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      state.

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           Sec. 2.  Excess profits are the amount of profits by which

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      the supplier's profits as for the tax year exceed the

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      industrywide average profits for the 5 immediately preceding

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      calendar years.  Profits under this section shall be apportioned


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      to this state based on the percentage that gasoline and diesel

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      motor fuel distributed within this state is of the supplier's

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      total amount of gasoline and diesel motor fuel distributed.

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           Sec. 3.  A supplier is considered to have gouged the consum-

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      ers if the supplier increases the cost of gasoline or diesel

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      motor fuel by more than 50% over the average cost of gasoline or

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      diesel motor fuel charged by the supplier for the 5 immediately

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      preceding calendar years.

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           Sec. 4.  The excise tax imposed under this act shall be paid

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      annually at those times, in the manner, and by those persons as

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      specified in this act in accordance with the collection provi-

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      sions of 1941 PA 122, MCL 205.1 to 205.31.

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           Sec. 5.  The tax imposed by this act is in addition to all

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      other taxes.

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           Sec. 6.  As used in this act, "supplier" means a person that

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      imports or acquires immediately upon import gasoline or diesel

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      motor fuel by pipeline or marine vessel from within a state, ter-

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      ritory, or possession of the United States into a terminal or

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      that imports gasoline or diesel motor fuel from a foreign coun-

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      try, or that produces, manufactures, or refines gasoline or

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      diesel motor fuel within this state and in any case is also reg-

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      istered pursuant to 26 U.S.C. 4101 for tax-free transactions in

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      gasoline.  A retail dealer or wholesaler shall not be considered

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      a supplier merely because the retail dealer or wholesaler blends

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      alcohol with gasoline prior to the sale or distribution of the

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      product.





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