SENATE BILL No. 1074

 

 

January 31, 2008, Introduced by Senator WHITMER and referred to the Committee on Transportation.

 

 

 

     A bill to amend 1980 PA 119, entitled

 

"Motor carrier fuel tax act,"

 

by amending section 2 (MCL 207.212), as amended by 2006 PA 346.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 2. (1) A motor carrier licensed under this act shall pay

 

a road tax calculated on the amount of motor fuel consumed in

 

qualified commercial motor vehicles on the public roads or highways

 

within this state. Except as otherwise provided under subsection

 

(6), the tax shall be at the rate of 15 cents per gallon on motor

 

fuel consumed on the public roads or highways within this state. In

 

addition, qualified commercial motor vehicles licensed under this

 

act that travel in interstate commerce will be subject to the

 

definition of taxable motor fuels and rates as defined by the

 

respective international fuel tax agreement member jurisdictions. A


 

return shall be filed, and the tax due paid, quarterly to the

 

department on or before the last day of January, April, July, and

 

October of each year on a form prescribed and furnished by the

 

department. Each quarterly return and tax payment shall cover the

 

liability for the annual quarter ending on the last day of the

 

preceding month.

 

     (2) The amount of motor fuel consumed in the operation of a

 

motor carrier on public roads or highways within this state shall

 

be determined by dividing the miles traveled within Michigan by the

 

average miles per gallon of motor fuel. The average miles per

 

gallon of motor fuel shall be determined by dividing the miles

 

traveled within and outside of Michigan by the total amount of

 

motor fuel consumed within and outside of Michigan.

 

     (3) In the absence of records showing the average number of

 

miles operated per gallon of motor fuel, it shall be presumed that

 

1 gallon of motor fuel is consumed for every 4 miles traveled.

 

     (4) The quarterly tax return shall be accompanied by a

 

remittance covering any tax due.

 

     (5) The commissioner, when he or she considers it necessary to

 

ensure payment of the tax or to provide a more efficient

 

administration of the tax, may require the filing of returns and

 

payment of the tax for other than quarterly periods.

 

     (6) The road tax required under this section shall be at a

 

rate of 12 cents per gallon for diesel fuel that contains at least

 

5% biodiesel. As used in this subsection, "biodiesel" means a fuel

 

composed of mono-alkyl esters of long chain fatty acids derived

 

from vegetable oils or animal fats and, in accordance with


 

standards specified by the American society for testing and

 

materials, designated B100 and meeting the requirements of D-6751,

 

as approved by the department of agriculture.

 

     (7) Beginning on September 1, 2006, the state treasurer shall

 

annually determine, for the 12-month period ending May 1 and for

 

any additional times that the treasurer may determine, the

 

difference between the amount of motor fuel tax collected and the

 

amount of motor fuel tax that would have been collected but for the

 

differential rates on motor fuel in section 8 of the motor fuel tax

 

act, 2000 PA 403, MCL 207.1008, and on motor fuel in subsection

 

(6). The treasurer shall notify the chairs of the appropriations

 

committees of the senate and the house of representatives, the

 

chairs of the appropriations subcommittees on transportation of the

 

senate and the house of representatives, and the senate and house

 

fiscal agencies of the rate differential no later than 7 days after

 

the treasurer has determined the rate differential. Subsection (6)

 

is no longer effective the earlier of 10 years after September 1,

 

2006 or the first day of the first month that is not less than 90

 

days after the state treasurer certifies that the total cumulative

 

rate differential due to the differential rates in section 8 of the

 

motor fuel tax act, 2000 PA 403, MCL 207.1008, and subsection (6)

 

from September 1, 2006 is greater than $2,500,000.00.

 

     (8) The legislature shall annually appropriate to the Michigan

 

transportation fund created in 1951 PA 51, MCL 247.651 to 247.675,

 

the amount determined as the rate differential certified by the

 

state treasurer for the 12-month period ending on May 1 of the

 

calendar year in which the fiscal year begins. Subsection Except


 

for the fiscal year that begins October 1, 2007, subsection (6)

 

shall not be effective beginning January of any fiscal year for

 

which the appropriation required under this subsection has not been

 

made by the first day of the fiscal year. For the fiscal year that

 

begins October 1, 2007, subsection (6) shall be suspended beginning

 

January of the fiscal year for which the appropriation required

 

under this subsection has not been made by October 1, 2007 and

 

shall become effective no later than 14 days after the department

 

of treasury determines that the appropriation required under this

 

subsection has been made.