Bill Text: MS HB1696 | 2013 | Regular Session | Engrossed
Bill Title: Special fuel excise tax; exempt fuel used by commercial aircraft in new market or for new direct service.
Spectrum: Partisan Bill (Republican 4-0)
Status: (Failed) 2013-03-19 - Died In Committee [HB1696 Detail]
Download: Mississippi-2013-HB1696-Engrossed.html
MISSISSIPPI LEGISLATURE
2013 Regular Session
To: Ways and Means
By: Representatives Monsour, DeLano, Guice, Zuber
House Bill 1696
(As Passed the House)
AN ACT TO AMEND SECTION 27-55-527, MISSISSIPPI CODE OF 1972, TO EXEMPT FROM THE SPECIAL FUEL EXCISE TAX SPECIAL FUEL SOLD TO BE CONSUMED BY COMMERCIAL AIRCRAFT USED BY AN AIRLINE COMPANY OFFERING NEW SERVICE AT A COMMERCIAL AIRPORT AT WHICH THE AIRLINE PREVIOUSLY OFFERED NO SERVICE OR USED BY AN AIRLINE CURRENTLY OFFERING SERVICE AT A COMMERCIAL AIRPORT FOR AIRCRAFT USED TO PROVIDE DIRECT SERVICE TO A NEW DESTINATION FROM THAT AIRPORT; TO PROVIDE FOR THE EXPIRATION OF THE EXEMPTION TWELVE MONTHS AFTER THE AIRLINE COMMENCES THE NEW SERVICE; TO AMEND SECTION 49-17-407, MISSISSIPPI CODE OF 1972, TO EXEMPT THOSE SALES OF SPECIAL FUEL TO BE CONSUMED BY COMMERCIAL AIRCRAFT WHICH ARE EXEMPT FROM THE SPECIAL FUEL EXCISE TAX FROM THE ENVIRONMENTAL PROTECTION FEE; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 27-55-527, Mississippi Code of 1972, is amended as follows:
27-55-527. (1) There shall not be included in the measure of the tax levied in this article any special fuel:
(a) Sold or delivered by a bonded distributor of special fuel to a second bonded distributor of special fuel within this state, but nothing in this exclusion shall exempt the second bonded distributor of special fuel from paying the tax unless the second bonded distributor of special fuel sells or delivers said special fuel to a third bonded distributor of special fuel, in which event the third bonded distributor of special fuel shall be liable for the tax.
(b) Sold to the United States government for use of the Armed Forces only, and delivered in quantities of not less than four thousand (4,000) gallons.
(c) Delivered to a bonded warehouse for storage within this state for the United States Department of Interior.
(d) Exported to a destination beyond the borders of this state by a bonded distributor of special fuel when the tax on such special fuel has been paid or on which the tax liability imposed by this article has accrued against such bonded distributor.
(e) Imported by, or sold to, any refiner or processor in this state for the purpose of being refined or further processed.
(f) Sold or delivered to any person within this state to be used as a herbicide or as a solvent for insecticides, wood preservatives and like products, or when so used in a commercial process that they become a component part of any manufactured product or where used as a processing agent in the treatment of raw material in manufacturing any product.
(g) Sold or delivered to be used for test purposes at any regularly established testing laboratory in this state.
(h) Sold to be consumed as fuel by any boat, vessel, ship, towboat or dredgeboat, or sold to the holder of a Marine Dealers Permit for resale or distribution as fuel for a boat, vessel, ship, towboat or dredgeboat.
(i) Sold as bunker oil or sold to be used for the generation of heat in a firebox or furnace.
(j) Sold or delivered to be used for the purpose of generating electricity.
(k) Sold for use as fuel in a railroad locomotive when subject to the tax levied by Section 27-59-301 et seq.
(l) Sold or delivered in bond, or sold or delivered, to any person within a foreign-trade zone within this state and sold, used, consumed, distributed, stored or withdrawn from storage and used to propel aircraft on an international flight including any interim stops within the United States so long as the origin or ultimate destination of the aircraft is outside the United States and District of Columbia. As used in this paragraph, "foreign-trade zone" means a foreign-trade zone operated and maintained by a public or private corporation under the provisions of Sections 59-3-31 through 59-3-37.
(m) (i) Sold to be consumed as fuel by commercial aircraft used to provide new service by an airline company at a commercial airport within this state at which the airline company previously offered no commercial service. The exemption authorized under this item shall expire twelve (12) months from the date on which the airline company commences the new service; or
(ii) Sold to be consumed as fuel by commercial aircraft used to provide direct service to a new destination from a commercial airport within this state when an airline company expands existing service currently offered by the airline at that commercial airport by introducing the new direct service from that airport. The exemption authorized under this item shall expire twelve (12) months from the date on which the airline company commences direct service to the new destination from the commercial airport at which the airline company currently operates.
(2) The exemptions set forth in paragraphs (f), (h), (i) and (j) of subsection (1) of this section shall not apply to special fuel used in performing contracts for construction, reconstruction, maintenance or repairs, where such contracts are entered into with the State of Mississippi, any political subdivision of the State of Mississippi, or any department, agency or institution of the State of Mississippi or any political subdivision thereof.
(3) Evidence of exempt
transactions provided in this section and the subsections thereof shall consist
of copies of invoices, documents or any other evidence that may be required by
the * * *
department.
(4) Any person other than a
bonded distributor of special fuel who has delivered or sold special fuel on
which the tax has been paid by him to the vendor may, if the special fuel is
subject to exemption under this article, assign his claim for exemption to any
bonded distributor of special fuel in this state. Such distributor may deduct
the amount of the tax exemption from his next special fuel report, provided the
distributor furnishes evidence satisfactory to the * * * department that the claim for
exemption is valid.
(5) When special fuel is
withdrawn from the storage tank of a refiner, processor, marine or pipeline
terminal operator and the tax is paid on such special fuel and it or any part
thereof cannot be delivered to a purchaser, said refiner, processor, marine or
pipeline terminal operator may deduct the tax on all or that portion of such
special fuel not delivered to a purchaser from its next special fuel
distributor's tax report, provided that such refiner, processor, marine or
pipeline terminal operator submits with such tax report: (a) a written report
setting forth the reasons why such delivery could not be made, and (b) proof or
evidence satisfactory to the * * * department that the tax in
question had theretofore been paid to the * * * department, and (c) proof or
evidence satisfactory to the * * * department that the
nondelivered special fuel was actually returned to the refinery, processor,
marine or pipeline terminal from which it was taken for the purpose of delivering
it to a purchaser; and provided further, that immediately upon ascertainment by
the refiner, processor, marine or pipeline terminal operator that said special
fuel cannot be delivered, he or it shall immediately notify the * * * department of this fact and
before moving his or its truck or other means of transporting such special fuel
from the intended point of delivery; and should the * * * department desire to inspect
such truck or other means of conveyance, such refiner, processor, marine or
pipeline terminal operator shall arrange for such inspection at that point or
at such other point that may be designated by the * * * department.
(6) In order to claim exemptions provided for under this article, the distributor of special fuel must file claims therefor within three (3) years from the date of sale or delivery; otherwise, claims for such exemptions shall be disallowed.
SECTION 2. Section 49-17-407, Mississippi Code of 1972, is amended as follows:
49-17-407. (1) (a) Except as otherwise provided under paragraph (h) of this subsection, an environmental protection fee of Four-tenths of One Cent (4/10 of 1¢) per gallon is hereby levied upon any bonded distributor, as defined by Sections 49-17-401 through 49-17-433, who sells or delivers motor fuels to a retailer or user in this state.
(b) Except as otherwise provided under paragraph (h) of this subsection, every person, other than a bonded distributor, who shall purchase or acquire motor fuels within this state on which the environmental protection fee has not accrued, shall be liable for the environmental protection fee.
(c) The environmental protection fee shall be imposed only one (1) time on motor fuels sold in the state.
(d) The environmental
protection fee shall be collected by the * * * Department of Revenue
and shall be designated separately from the excise taxes on fuels.
(e) Any person liable for the environmental protection fee shall be subject to the same requirements and penalties as distributors under the provisions of the Mississippi Special Fuel Tax Law.
(f) Any person liable
for the environmental protection fee shall file a report and remit any fees due
at the same time provided for filing reports under Section 27-55-523, on forms
prescribed by the * * * Department of Revenue.
(g) The * * * Department of Revenue
is hereby authorized and empowered to promulgate all rules and regulations
necessary for the administration of the environmental protection fee.
(h) The environmental protection fee may not be imposed on sales of special fuel to be consumed as fuel by commercial aircraft which are exempt under Section 27-55-527 from the special fuel excise tax.
(2) (a) On or before the
fifteenth day of each month the environmental protection fees collected during
the previous month shall be deposited into the Mississippi Groundwater
Protection Trust Fund established in Section 49-17-405. When the unobligated
balance in the fund reaches or exceeds Ten Million Dollars ($10,000,000.00),
the administrator of the fund shall notify in writing the * * * Department of Revenue
no later than the twenty-fifth day of the month to abate the environmental
protection fee. The abatement shall become effective on the last day of the
month succeeding the month in which such notice was given. All environmental
protection fees accrued shall be reported and paid.
(b) When the fund
balance is reduced below Six Million Dollars ($6,000,000.00), the fee shall
again be imposed at the rate of Four-tenths of One Cent (4/10 of 1¢) per gallon
until such time as the fund shall reach or exceed Ten Million Dollars
($10,000,000.00). The administrator of the fund shall notify, no later than the
twenty-fifth day of the month, the * * * Department of Revenue
to reimpose the environmental protection fee. The imposition of the fee shall
become effective on the first day of the second month succeeding the month in
which the notice to reimpose the fee was given.
(3) This fund shall be used for the purposes set forth in Sections 49-17-401 through 49-17-435 and for no other governmental purposes, nor shall any portion hereof ever be available to borrow from by any branch of government; it being the intent of the Legislature that this fund and its increments shall remain intact and inviolate. Any interest earned on monies in this fund shall remain in this fund.
(4) Monies held in the fund
established under Sections 49-17-401 through 49-17-435 shall be used only at an
active site and shall be disbursed in accordance with the * * * department requirements and
as follows:
(a) Payments shall be
made to any third party who brings a third-party claim against any owner of an
underground storage tank and the * * * department as trustee of the
Mississippi Groundwater Protection Trust Fund and who obtains a final judgment
in such action which is valid and enforceable in this state against such
parties. Payment shall be paid to the third party upon filing by such party an
application with the department attaching the original or a certified copy of
the final judgment.
(b) Payments shall be made in reasonable amounts to approved response action contractors and other parties involved in the site study and cleanup. Payment shall be made to the party incurring the costs by filing of a sworn application with the department indicating the fair and reasonable value of the costs of site rehabilitation, subject to the regulations and limitations as set by the department.
(5) Payments from the fund are limited as follows:
(a) For cleanup purposes, a maximum of One Million Five Hundred Thousand Dollars ($1,500,000.00) may be disbursed from the fund for any one (1) site, per confirmed release occurrence.
(b) For third-party judgments, a maximum of One Million Dollars ($1,000,000.00) may be disbursed from the fund for any one (1) site, per confirmed release occurrence.
(c) Nothing in Sections 49-17-401 through 49-17-435 shall establish or create any liability or responsibility on the part of the department or the State of Mississippi to pay any cleanup costs or third-party claims if the fund created herein is insufficient to do so.
(6) Monies held in the fund established under Sections 49-17-401 through 49-17-435 shall not be used for purchases of equipment needed to assist in cleanup operations.
(7) Nothing in Sections 49-17-401 through 49-17-435 shall serve to limit any recovery against an owner of an underground storage tank in excess of the fund payment limits established under this section.
(8) Substantial compliance shall in no way be construed to be an absolute defense to civil liability.
SECTION 3. Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the special fuel excise tax laws before the date on which this act becomes effective, whether such claims, assessments, appeals, suits or actions have been begun before the date on which this act becomes effective or are begun thereafter; and the provisions of the special fuel excise tax laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before the date on which this act becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.
SECTION 4. This act shall take effect and be in force from and after July 1, 2013.
