May 19, 2015, Introduced by Senator SHIRKEY and referred to the Committee on Transportation.
A bill to amend 2000 PA 403, entitled
"Motor fuel tax act,"
by amending sections 22, 40, 53, 63, 151, 152, 153, 154, and 155
(MCL 207.1022, 207.1040, 207.1053, 207.1063, 207.1151, 207.1152,
207.1153, 207.1154, and 207.1155).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 22. (1) The tax imposed on gasoline shall be in lieu of
all other taxes imposed or to be imposed upon the sale or use of
gasoline
by the this state or any political subdivision of this
state except for the taxes imposed by the general sales tax act,
1933 PA 167, MCL 205.51 to 205.78, and the use tax act, 1937 PA 94,
MCL 205.91 to 205.111.
(2) The tax imposed on diesel fuel and alternative fuel shall
be imposed in lieu of all other taxes imposed or to be imposed upon
the
sale or use of diesel fuel by the this state or a political
subdivision
of the this state, except the taxes imposed by the
general sales tax act, 1933 PA 167, MCL 205.51 to 205.78, the use
tax act, 1937 PA 94, MCL 205.91 to 205.111, and the motor carrier
fuel tax act, 1980 PA 119, MCL 207.211 to 207.234. The exception
for taxes imposed by the general sales tax act, 1933 PA 167, MCL
205.51
to 205.78, and the use tax act, 1937 PA 94, shall MCL 205.91
to 205.111, does not apply to diesel fuel used in passenger
vehicles of a capacity of 10 or more operated for hire under a
certificate issued by the state transportation department. As used
in this subsection, "alternative fuel" means that term as defined
in section 151.
Sec. 40. (1) A person may seek a refund for tax paid under
this act on motor fuel or alternative fuel that is 1 or more of the
following:
(a) Accidentally contaminated by dye or another contaminant,
including but not limited to gasoline that is mixed with diesel
fuel, if the resulting product cannot be used to operate a motor
vehicle on the public roads or highways without violating this act
or other state or federal law.
(b) Accidentally lost or destroyed as a direct result of a
sudden and unexpected casualty loss.
(2)
This The refund described
in subsection (1) does not apply
if the person seeking the refund has been reimbursed for the cost
of the tax by any person, including, but not limited to, an
insurance company, for the loss or contamination. If a person
seeking a refund under this section is reimbursed for any amount,
that person shall demonstrate to the department that the amount
reimbursed does not include tax paid under this act on the motor
fuel or alternative fuel in order to be eligible for the refund.
Sec. 53. (1) A person shall not engage in a business activity
in this state where a license is required by this act unless the
person is licensed under this act.
(2) A person required to be licensed under this act shall
apply for a license on a form or in a format prescribed by the
department.
(3) An application for a license under this act may contain
any information the department may reasonably require to administer
this act including the applicant's federal identification number.
(4)
The following persons currently licensed on the effective
date
of this act April 1, 2001 are not required to obtain a new
license under this act and shall be considered licensed under this
act:
(a)
A person licensed in this state as a supplier on the
effective
date of this act April 1,
2001 shall be considered
licensed as a supplier under this act but only if the person is a
terminal
operator or a position holder in a terminal on the
effective
date of this act.April 1,
2001.
(b)
A wholesale distributor who on the effective date of this
act
April 1, 2001 possesses a valid exemption certificate issued
under former section 12 of 1927 PA 150 shall be considered licensed
as a fuel vendor under this act.
(c)
A person licensed in this state as an exporter on the
effective
date of this act April 1,
2001 shall be considered
licensed as an exporter under this act.
(d) A person licensed in this state as a liquid fuel hauler on
the
effective date of this act April
1, 2001 shall be considered
licensed as a transporter under this act.
(e) A person licensed in this state as a retail dealer of
diesel
motor fuel on the effective date of this act April 1, 2001
shall be considered licensed as a retail diesel dealer under this
act.
(5) A person considered licensed under subsection (4) is
subject to all of the provisions of this act except those requiring
an application for a new license.
(6) Except as otherwise provided in this act, a person who is
engaged in more than 1 business activity for which a license is
required under this act shall be licensed for each business
activity.
(7) A person who is licensed as a supplier is not required to
obtain a separate license for any other business activity for which
a license is required under this act except as a retail diesel
dealer
or as an LPG alternative fuel dealer or alternative fuel
commercial user under sections 151 to 155.
(8)
A person licensed in this state as an LPG dealer on the
effective
date of this act shall be considered licensed as an LPG
dealer
under this act.
(8) (9)
A person who negligently violates
this section is
subject to a civil penalty of $1,000.00.
(9) (10)
A person who knowingly violates or
knowingly aids and
abets another to violate this section is guilty of a felony.
Sec. 63. (1) If an application and the accompanying bond or
cash deposit, if any, are approved, the department shall issue a
license to the applicant.
(2) A licensee shall retain a copy of its license at each of
its business locations unless the department waives this
requirement.
(3) A licensee is not required to renew a license and a
license is valid unless and until it is suspended, canceled, or
revoked for cause by the department, or discontinued by the
licensee. However, the department may require a licensee to update
the information required under section 53 or 153.
(4) The department shall maintain a list containing the name
and address of each person licensed under this act. The department
may post the list on the department's website. The department shall
regularly update the list in order to reflect the current status of
a licensee.
Sec. 151. As used in this section and sections 152 to 155:
(a) "Alternative fuel" means a gas, liquid, or other fuel
that, with or without adjustment or manipulation such as adjustment
or manipulation of pressure or temperature, is capable of being
used for the generation of power to propel a motor vehicle,
including, but not limited to, natural gas, compressed natural gas,
liquefied natural gas, liquefied petroleum gas, hydrogen, hydrogen
compressed natural gas, or hythane. Alternative fuel does not
include motor fuel, electricity, leaded racing fuel, or an excluded
liquid.
(b) "Alternative fuel dealer" means a person that is licensed
under section 153 to use alternative fuel and is in the business of
selling at retail alternative fuel that is to be used to propel a
motor vehicle.
(c) "Alternative fuel commercial user" means a commercial or
other business enterprise or entity that is a consumer or end user
of alternative fuel to propel a motor vehicle on the public roads
and highways of this state. Alternative fuel commercial user does
not include a person licensed as an alternative fuel dealer under
section 153.
(d) "Alternative fuel filling station" means a machine or
other device located within this state that is supplied with
alternative fuel and that is designed or used for placing or
delivering alternative fuel into the fuel supply tank of a motor
vehicle. As used in this subdivision, "located within this state"
includes, but is not limited to, all of the following locations:
(i) An alternative fuel dealer's place of business.
(ii) A commercial or industrial establishment or facility.
(iii) A residence or residential property.
(iv) A landfill licensed or required to be licensed under part
115 of the natural resources and environmental protection act, 1994
PA 451, MCL 324.11501 to 324.11554.
(e) "British thermal unit" or "BTU" means the amount of heat
required to raise the temperature of 1 pound of water 1 degree
Fahrenheit.
(f) "Compressed natural gas" means a mixture of hydrocarbon
gases and vapors that consists primarily of methane in gaseous form
that has been compressed for use as a fuel to propel a motor
vehicle.
(g) "Diesel base rate" means the rate per gallon on diesel
fuel in effect for the applicable period under section 8(1)(b).
(h) "Diesel gallon equivalent" means 6.060 pounds of liquefied
natural gas or its metric equivalent.
(i) "Gasoline base rate" means the rate per gallon on gasoline
in effect for the applicable period under section 8(1)(a).
(j) "Gasoline gallon equivalent" means 1 of the following or
its metric equivalent:
(i) For compressed natural gas, 5.660 pounds or 126.67 cubic
feet measured at a base temperature of 60 degrees Fahrenheit and a
pressure of 14.7 pounds per square inch absolute.
(ii) For hydrogen, the volume or weight that is equal to
114,100 BTUs. For purposes of this subdivision, there are 27,000
BTUs per 100 standard cubic feet, and 425.93 standard cubic feet
per gasoline gallon equivalent.
(iii) For hydrogen compressed natural gas, the volume or
weight that is equal to 114,100 BTUs. For purposes of this
subdivision, there are 79,800 BTUs per 100 standard cubic feet, and
144.11 standard cubic feet per gasoline gallon equivalent.
(k) "Liquefied natural gas" means methane or natural gas in
the form of a cryogenic or refrigerated liquid that is suitable for
use or used as fuel to propel a motor vehicle.
(l) (a)
"Liquefied petroleum gas"
means gases derived from
petroleum
or natural gases which that
are in the gaseous state at
normal
atmospheric temperature and pressure, but which that may
be
maintained in the liquid state at normal atmospheric temperature by
suitable
pressure. Liquefied petroleum gas includes those products
predominately composed of propane, propylene, butylene, butane, and
similar products. Liquefied petroleum gas does not include
compressed natural gas, liquefied natural gas, hydrogen, or
hythane.
(b)
"LPG dealer" means a person who is licensed under this
chapter
to use liquefied petroleum gas.
(m) (c)
"Use", "used",
or "uses" means any of the following:
(i) Selling or delivering liquefied petroleum gas alternative
fuel not otherwise subject to tax under this act, either by placing
it into a permanently attached fuel supply tank of a motor vehicle,
or exchanging or replacing of the fuel supply tank of a motor
vehicle.
(ii) Delivery of liquefied petroleum gas alternative fuel into
storage,
devoted exclusively to the storage of liquefied petroleum
gas
alternative fuel to be consumed in motor vehicles on the public
roads or highways of this state.
(iii) Withdrawing liquefied petroleum gas alternative fuel
from the cargo tank of a truck, trailer or semi-trailer for the
operation of a motor vehicle upon the public roads and highways of
this state, whether used in vapor or liquid form.
(iv) Placing or delivering alternative fuel into the fuel
supply tank of a motor vehicle by or through the operation of an
alternative fuel filling station or by any other means not
involving the delivery, receipt, or purchase of alternative fuel
from an alternative fuel dealer or any other means not otherwise
described in subparagraphs (i) to (iii).
Sec.
152. (1) A Except
as otherwise provided in subsection (2)
and
section 154, a tax at a the rate
of 15 cents per gallon equal
to
the diesel base rate is imposed upon
all liquefied petroleum gas
alternative fuel used in this state. The tax shall be paid at the
times and in the manner specified in this section or section 154 or
155,
as applicable. The tax on liquefied
petroleum gas alternative
fuel sold or delivered either by placing it into a permanently
attached fuel supply tank on a motor vehicle, or by exchanging or
replacing the fuel supply tank of a motor vehicle, shall be
collected
by the LPG alternative
fuel dealer from the purchaser,
consumer,
or end user and paid over quarterly monthly to
the
department
as provided in this act. Liquefied petroleum gas
Alternative fuel delivered in this state into the storage facility
of any person when the exclusive purpose of the storage facility is
for resale or use in a motor vehicle on the public roads or
highways of this state, shall, upon delivery to storage facility,
be
subject to tax. An LPG alternative
fuel dealer shall, upon
delivery
of the liquefied petroleum gas, alternative
fuel, collect
and remit the tax to the department as provided in this act. A
person shall not operate a motor vehicle on the public roads or
highways of this state from the cargo containers of a truck,
trailer,
or semitrailer with liquefied petroleum gas alternative
fuel in vapor or liquid form, as applicable, except when the
alternative fuel in the liquid or vapor phase is withdrawn from the
cargo container for use in motor vehicles through a permanently
installed
and approved metering device. The tax on liquefied
petroleum
gas alternative fuel withdrawn from a cargo container
through a permanently installed and approved metering device shall
apply in accordance with measured gallons or gallon equivalents, if
applicable, as reflected by meter reading, and shall be paid
quarterly
monthly by the LPG alternative fuel dealer to
the
department as provided in this act.
(2) The rate of tax on the following alternative fuels shall
be as follows:
(a) For liquefied natural gas, the diesel base rate per diesel
gallon equivalent or fractional part thereof rounded to the nearest
1/10 of 1 gallon.
(b) For compressed natural gas, hydrogen, or hydrogen
compressed natural gas, the gasoline base rate per gasoline gallon
equivalent or fractional part thereof rounded to the nearest 1/10
of 1 gallon.
Sec.
153. (1) A person shall not act as an LPG alternative
fuel dealer or an alternative fuel commercial user unless the
person is licensed under this act.
(2) To obtain a license as an alternative fuel dealer or an
alternative fuel commercial user, an applicant shall file with the
department an application upon a form or in a format prescribed by
the department. The application shall include the name and address
of the applicant and of each place of business to be operated by
the
applicant at which liquefied petroleum gas alternative fuel
will be used and other information the department may reasonably
require.
(3) At the time of applying for the license, an applicant for
an alternative fuel dealer license shall pay to the department a
license
fee of $50.00.$500.00.
(4) At the time of applying for the license, an applicant for
an alternative fuel commercial user license shall pay to the
department a license fee of $50.00.
(5) (4)
An applicant for an LPG dealer a license
or a licensee
under this section is subject to the general licensing and bonding
requirements of this act.
(5)
A person licensed in this state as an LPG dealer on the
effective
date of this act shall be considered licensed as an LPG
dealer
under this act.
Sec. 154. (1) For the purpose of determining the amount of tax
payable
to the department, an LPG alternative
fuel dealer shall, on
or
before the twentieth day of each calendar month, following
the
close
of the reporting calendar quarter, file
with the department
on a form or in a format prescribed by the department a report
which
shall include that includes the number of gallons or gallon
equivalents,
if applicable, of liquefied
petroleum gas alternative
fuel
used by the LPG alternative fuel dealer during the preceding
calendar
quarter, month, together with any other information the
department
may require. An LPG alternative
fuel dealer at the time
of
filing the report shall pay to the
department at the time of
filing the report the full amount of the tax owed.
(2) Beginning on July 1, 2016, for the purpose of determining
the amount of tax owed to the department, an alternative fuel
commercial user that uses alternative fuel as described in section
151(m) upon which the tax imposed under section 152 has not been
collected by or paid to an alternative fuel dealer or public
utility shall, on or before the twentieth day of each month, file
with the department a report that includes the number of gallons or
gallon equivalents, if applicable, of the alternative fuel
described in this subsection that was used or consumed by the
alternative fuel commercial user during the preceding month,
together with any other information the department requires. An
alternative fuel commercial user shall pay the full amount of the
tax due to the department at the time of filing the required
report.
(3) Beginning on January 1, 2017, for the purpose of
determining the amount of tax owed to the department, a person that
is not an alternative fuel dealer or an alternative fuel commercial
user shall pay the tax imposed under section 152 on alternative
fuel placed into a motor vehicle fuel supply tank from an
alternative fuel filling station for which the tax has not been
collected by or paid to an alternative fuel dealer or a public
utility, and shall file with the department a form that indicates
the number of gallons or gallon equivalents, if applicable, used or
consumed by that person during the preceding quarter. A person
described in this subsection shall pay to the department the full
amount of the tax due at the time of filing the required form.
(4) Except as otherwise provided in this section, a person
that uses alternative fuel for a taxable purpose and does not pay
the tax imposed under this section shall pay to the department the
tax imposed under section 152, along with any applicable penalties
or interest.
Sec.
155. (1) Each of the following persons is entitled to a
refund
of the tax on liquefied petroleum gas imposed by this act:
(1) (a)
A person consuming liquefied
petroleum gas alternative
fuel
for any purpose other than the
operation of to propel a motor
vehicle on the public roads or highways of this state may seek a
refund of the tax on alternative fuel imposed by this act, if that
person has already paid the tax imposed under section 152 on that
alternative fuel.
(b)
The federal government, state government, or a political
subdivision
of this state consuming liquefied petroleum gas in a
motor
vehicle owned and operated or leased and operated by the
federal
government, state government, or political subdivision of
this
state.
(c)
A person consuming liquefied petroleum gas in the
operation
of a passenger vehicle of a capacity of 5 or more under a
municipal
franchise, license, permit, agreement, or grant, upon
which
gas the tax imposed by this section has been paid.
(2) To obtain a refund under this section, a person shall file
a claim with the department within 18 months after the date of
purchase, as shown on the invoice and shall comply with the
requirements set forth in section 48.
(3) A claim for refund under this section shall be on a form
or in a format prescribed by the department and shall have attached
the original invoice that was provided to the purchaser.
(4) An alternative fuel is exempt from the tax imposed by this
act and the tax imposed by this act shall not be collected by an
alternative fuel dealer if 1 of the following applies:
(a) The alternative fuel is sold directly by an alternative
fuel dealer to the federal government, the state government, or a
political subdivision of this state for use in a motor vehicle
owned and operated or leased and operated by the federal
government, state government, or political subdivision of this
state.
(b) The alternative fuel is sold directly by an alternative
fuel dealer 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. For alternative fuel sold for
mixed use purposes, only that portion of alternative fuel used for
school buses qualifies for the exemption under this subdivision.
(5) (4)
A person who that sells
liquefied petroleum gas
alternative fuel shall provide the purchaser with an invoice or
receipt showing the amount expressed in gallons or gallon
equivalents,
as applicable, of gas alternative fuel purchased, the
date of purchase, and the amount of tax paid.
(6) An alternative fuel dealer that sells alternative fuel at
retail shall clearly list in plain view of the customer the price
of the alternative fuel in diesel gallon equivalents or gasoline
gallon equivalents, as applicable, on the alternative fuel filling
station and any other markings or information required by law.
(7) Except as otherwise provided in this section, a person
that uses or consumes alternative fuel for a taxable purpose and
does not pay the tax imposed under section 154 is liable for the
payment of that tax and shall pay to the department the tax imposed
under section 152 and any applicable penalties or interest.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.