SENATE BILL No. 387

 

 

April 22, 2003, Introduced by Senators LELAND, JACOBS, BRATER and SCOTT and referred to the Committee on Transportation.

 

 

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 2000 PA 403, entitled                                             

                                                                                

    "Motor fuel tax act,"                                                       

                                                                                

    by amending sections 8 and 152 (MCL 207.1008 and 207.1152),                 

                                                                                

    section 8 as amended by 2002 PA 668.                                        

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 8.  (1) Subject to the exemptions provided for in this                 

                                                                                

2   act, tax is imposed on motor fuel imported into or sold,                    

                                                                                

3   delivered, or used in this state at the following rates:                    

                                                                                

4       (a) Nineteen cents per gallon on gasoline.                                  

                                                                                

5       (b) Fifteen cents per gallon on diesel fuel through September               

                                                                                

6   30, 2003 and 19 cents per gallon beginning October 1, 2003.                 

                                                                                

7       (2) Tax shall not be imposed under this section on motor fuel               

                                                                                

8   that is in the bulk transfer/terminal system.                               

                                                                                

9       (3) The collection, payment, and remittance of the tax                      

                                                                                

10  imposed by this section shall be accomplished in the manner and             

                                                                                


                                                                                

1   at the time provided for in this act.                                       

                                                                                

2       (4) Tax is also imposed at the rate described in                            

                                                                                

3   subsection (1)(a) or (b) on net gallons of motor fuel, including            

                                                                                

4   transmix, lost or unaccounted for, at each terminal in this                 

                                                                                

5   state.  The tax shall be measured annually and shall apply to the           

                                                                                

6   net gallons of motor fuel lost or unaccounted for that are in               

                                                                                

7   excess of 1/2 of 1% of all net gallons of fuel removed from the             

                                                                                

8   terminal across the rack or in bulk.                                        

                                                                                

9       (5) It is the intent of this act:                                           

                                                                                

10      (a) To require persons who operate a motor vehicle on the                   

                                                                                

11  public roads or highways of this state to pay for the privilege             

                                                                                

12  of using those roads or highways.                                           

                                                                                

13      (b) To impose on suppliers a requirement to collect and remit               

                                                                                

14  the tax imposed by this act at the time of removal of motor fuel            

                                                                                

15  unless otherwise specifically provided in this act.                         

                                                                                

16      (c) To allow persons who pay the tax imposed by this act and                

                                                                                

17  who use the fuel for a nontaxable purpose to seek a refund or               

                                                                                

18  claim a deduction as provided in this act.                                  

                                                                                

19      (d) That the tax imposed by this act be collected and paid at               

                                                                                

20  those times, in the manner, and by those persons specified in               

                                                                                

21  this act.                                                                   

                                                                                

22      Sec. 152.  A tax at a rate of 15 cents per gallon through                   

                                                                                

23  September 30, 2003 and 19 cents per gallon beginning October 1,             

                                                                                

24  2003 is imposed upon all liquefied petroleum gas used in this               

                                                                                

25  state.  The tax shall be paid at the times and in the manner                

                                                                                

26  specified in this section.  The tax on liquefied petroleum gas              

                                                                                

27  fuel sold or delivered either by placing into a permanently                 


                                                                                

1   attached fuel supply tank on a motor vehicle, or exchanging or              

                                                                                

2   replacing the fuel supply tank of a motor vehicle, shall be                 

                                                                                

3   collected by the LPG dealer from the purchaser and paid over                

                                                                                

4   quarterly to the department as provided in this act.  Liquefied             

                                                                                

5   petroleum gas fuel delivered in this state into the storage                 

                                                                                

6   facility of any person when the exclusive purpose of the storage            

                                                                                

7   facility is for resale or use in a motor vehicle on the public              

                                                                                

8   roads or highways of this state, shall, upon delivery to storage            

                                                                                

9   facility, be subject to tax.  An LPG dealer shall, upon delivery            

                                                                                

10  of the liquefied petroleum gas, collect and remit the tax to the            

                                                                                

11  department as provided in this act.  A person shall not operate a           

                                                                                

12  motor vehicle on the public roads or highways of this state from            

                                                                                

13  the cargo containers of a truck, trailer, or semitrailer with               

                                                                                

14  liquefied petroleum gas in vapor or liquid form, except when the            

                                                                                

15  fuel in the liquid or vapor phase is withdrawn from the cargo               

                                                                                

16  container for use in motor vehicles through a permanently                   

                                                                                

17  installed and approved metering device.  The tax on liquefied               

                                                                                

18  petroleum gas withdrawn from a cargo container through a                    

                                                                                

19  permanently installed and approved metering device shall apply in           

                                                                                

20  accordance with measured gallons as reflected by meter reading,             

                                                                                

21  and shall be paid quarterly by the LPG dealer to the department             

                                                                                

22  as provided in this act.