Bill Text: MI HB4614 | 2015-2016 | 98th Legislature | Engrossed
Bill Title: Sales tax; collections; tax on motor fuel and alternative fuel; include in streamlined sales and use tax revenue equalization act. Amends secs. 3 & 5 of 2004 PA 175 (MCL 205.173 & 205.175). TIE BAR WITH: HB 4370'15, HB 4616'15, HB 4736'15, HB 4737'15, HB 4738'15, SB 0414'15
Spectrum: Partisan Bill (Republican 4-0)
Status: (Passed) 2015-11-10 - Assigned Pa 177'15 With Immediate Effect [HB4614 Detail]
Download: Michigan-2015-HB4614-Engrossed.html
HB-4614, As Passed House, June 10, 2015
SUBSTITUTE FOR
HOUSE BILL NO. 4614
A bill to amend 2004 PA 175, entitled
"Streamlined sales and use tax revenue equalization act,"
by amending sections 3 and 5 (MCL 205.173 and 205.175).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3. As used in this act:
(a) "Alternative fuel" means that term as defined in section
151 of the motor fuel tax act, 2000 PA 403, MCL 207.1151.
(b)
(a) "Department" means the department of
treasury.
(c) (b)
"Diesel fuel" means that
term as defined in section
2(p)
2 of the motor fuel tax act, 2000 PA 403, MCL
207.1002.
(d) "Gallon equivalent" means that term as defined in section
151 of the motor fuel tax act, 2000 PA 403, MCL 207.1151.
(e) "Gasoline" means that term as defined in section 3 of the
motor fuel tax act, 2000 PA 403, MCL 207.1003.
(f)
(c) "Interstate motor carrier" means a person
who operates
or causes to be operated a qualified commercial motor vehicle on a
public road or highway in this state and at least 1 other state or
Canadian province.
(g) "Motor fuel" means diesel fuel and gasoline.
(h) (d)
"Person" means an
individual, firm, partnership, joint
venture, association, social club fraternal organization, municipal
or private corporation whether or not organized for profit,
company, limited liability company, estate, trust receiver,
trustee, syndicate, the United States, this state, country, or any
other group or combination acting as a unit, and the plural as well
as the singular number, unless the intention to give a more limited
meaning is disclosed by the context.
(i) (e)
"Qualified commercial motor
vehicle" means that term
as defined in section 1 of the motor carrier fuel tax act, 1980 PA
119, MCL 207.211.
(j) (f)
"Sales tax" means the tax
levied under the general
sales tax act, 1933 PA 167, MCL 205.51 to 205.78.
(k) (g)
"Tax" includes all taxes,
interest, or penalties
levied under this act.
(l) (h)
"Taxpayer" means a person
subject to tax under this
act.
(m) (i)
"Use tax" means the tax
levied under the use tax act,
1937 PA 94, MCL 205.91 to 205.111.
Sec. 5. (1) There is levied upon and there shall be collected
from every person in this state who is an interstate motor carrier
a
specific tax for the privilege of using or consuming diesel motor
fuel and alternative fuel in a qualified commercial motor vehicle
in this state.
(2) For motor fuel upon which the tax imposed under subsection
(1) applies, the tax shall be imposed at a cents-per-gallon rate
equal to 6% of the statewide average retail price of a gallon of
self-serve undyed no. 2 ultra-low sulfur diesel fuel or self-serve
unleaded regular gasoline, as applicable, rounded down to the
nearest 1/10 of a cent as determined and certified quarterly by the
department.
This tax on diesel motor fuel used by interstate motor
carriers in a qualified commercial motor vehicle shall be collected
under the international fuel tax agreement. An interstate motor
carrier is entitled to a credit for 6% of the price of motor fuel
purchased in this state and used in a qualified commercial motor
vehicle. This credit shall be claimed on the returns filed under
the international fuel tax agreement.
(3) For alternative fuel upon which the tax imposed under
subsection (1) applies, the tax shall be imposed at a cents-per-
gallon rate, or cents-per-gallon equivalent rate, as applicable,
equal to 6% of the average retail price of a gallon or gallon
equivalent, as applicable, of the applicable alternative fuel
rounded down to the nearest 1/10 of a cent as determined and
certified quarterly by the department. For purposes of this
subsection, the average retail price is to be based on the
statewide average price of the particular alternative fuel, as
determined by the department, unless the department determines that
a statewide average is not readily available. If a statewide
average is not readily available, the department may use available
regional or nationwide average retail pricing information, or when
regional or nationwide pricing information cannot be readily
obtained, may use the average retail price applicable to gasoline
under subsection (2) for compressed natural gas or the average
retail price applicable to diesel fuel under subsection (2) for all
other types of alternative fuel, with adjustments as the department
determines are appropriate to convert gasoline or diesel fuel
prices to prices for alternative fuel.
(4)
(2) The tax on alternative fuel under subsection
(3) used
by interstate motor carriers in a qualified commercial motor
vehicle shall be collected under the international fuel tax
agreement. An interstate motor carrier is entitled to a credit for
6%
of the price of diesel alternative
fuel purchased in this state
and used in a qualified commercial motor vehicle. This credit shall
be claimed on the returns filed under the international fuel tax
agreement.
Enacting section 1. This amendatory act takes effect October
1, 2015.
Enacting section 2. This amendatory act does not take effect
unless all of the following bills of the 98th Legislature are
enacted into law:
(a) House Bill No. 4615.
(b) House Bill No. 4616.
