February 23, 2006, Introduced by Reps. LaJoy, Nitz, Stahl, Marleau, Schuitmaker, Jones, Caswell, Mayes, Nofs, Proos, Vander Veen, Byrum, Kathleen Law, Anderson, Gosselin, Sheltrown, Ball, Polidori, Hune, Taub, Green, Bennett, Bieda, Espinoza, Sak, David Law, Miller, Kooiman, Hildenbrand, Williams, Brown, Adamini, McConico, Hunter, Hood, Gillard, Murphy, Virgil Smith, Cushingberry, Accavitti, Farrah, Alma Smith, Tobocman, Hummel, Waters, Zelenko, Condino, Gleason, Whitmer, Sheen, Moore, Van Regenmorter, Walker, Moolenaar, Hansen, Pearce, Emmons, Stakoe, Amos, Palsrok, Pastor, Gaffney, Meyer, Elsenheimer, Garfield, Brandenburg, Palmer, Newell, Mortimer, Farhat and Wenke and referred to the Committee on Agriculture.
A bill to amend 2000 PA 403, entitled
"Motor fuel tax act,"
by amending section 8 (MCL 207.1008), as amended by 2002 PA 668.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 8. (1) Subject to the exemptions provided for in this
act, tax is imposed on motor fuel imported into or sold, delivered,
or used in this state at the following rates:
(a) Nineteen
Except as provided in
subdivision (c), 19 cents
per gallon on gasoline.
(b) Fifteen
Except as otherwise provided
in subdivision (d),
15 cents per gallon on diesel fuel.
(c) Twelve cents per gallon on gasoline that is at least 85%
ethanol.
(d) Twelve cents per gallon on diesel fuel that contains at
least 5% biodiesel.
(2) Tax shall not be imposed under this section on motor fuel
that is in the bulk transfer/terminal system.
(3) The collection, payment, and remittance of the tax imposed
by this section shall be accomplished in the manner and at the time
provided for in this act.
(4) Tax is also imposed at the rate described in subsection
(1)(a) or (b) on net gallons of motor fuel, including transmix,
lost or unaccounted for, at each terminal in this state. The tax
shall be measured annually and shall apply to the net gallons of
motor fuel lost or unaccounted for that are in excess of 1/2 of 1%
of all net gallons of fuel removed from the terminal across the
rack or in bulk.
(5) It is the intent of this act:
(a) To require persons who operate a motor vehicle on the
public roads or highways of this state to pay for the privilege of
using those roads or highways.
(b) To impose on suppliers a requirement to collect and remit
the tax imposed by this act at the time of removal of motor fuel
unless otherwise specifically provided in this act.
(c) To allow persons who pay the tax imposed by this act and
who use the fuel for a nontaxable purpose to seek a refund or claim
a deduction as provided in this act.
(d) That the tax imposed by this act be collected and paid at
those times, in the manner, and by those persons specified in this
act.
(6) Beginning on the effective date of the amendatory act that
added this section, the director shall annually 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 gasoline pursuant to subsection (1)(c) and
biodiesel fuel pursuant to subsection (1)(d). Subsection (1)(c) and
(d) are no longer effective the earlier of 10 years after the
effective date of the amendatory act that added this subsection or
the date that the director certifies that the total cumulative rate
differential from the effective date of this amendatory act is
greater than $2,500,000.00. The legislature shall appropriate the
amount determined as the rate differential by the director annually
to the Michigan transportation fund created in 1951 PA 51, MCL
247.651 to 247.675. If the legislature does not annually
appropriate the amount determined as the rate differential by the
director, subsection (1)(c) and (d) are no longer effective
beginning the first fiscal year after the year in which the annual
appropriation required under this section is not made.