HOUSE BILL No. 5734 February 21, 2002, Introduced by Reps. Stallworth, Gilbert, Hummel and Julian and referred to the Committee on Transportation. A bill to amend 1980 PA 119, entitled "Motor carrier fuel tax act," by amending sections 1, 2, and 4 (MCL 207.211, 207.212, and 207.214), sections 1 and 4 as amended by 2000 PA 406 and section 2 as amended by 1996 PA 584. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 1. As used in this act: 2 (a) "Axle" means any 2 or more load-carrying wheels mounted 3 in a single transverse vertical plane. 4 (b) "Commissioner" means the state commissioner of revenue. 5 (c) "Department" means the revenue division of the depart- 6 ment of treasury. 7 (d) "Motor carrier" means:a02672'01 * MRM 2 1 (i) A person who operates or causes to be operated a 2 qualified commercial motor vehicle on a public road or highway in 3 this state AND AT LEAST 1 OTHER STATE OR CANADIAN PROVINCE. 4 (ii) A PERSON WHO OPERATES OR CAUSES TO BE OPERATED A QUALI- 5 FIED COMMERCIAL MOTOR VEHICLE ON A PUBLIC ROAD OR HIGHWAY IN THIS 6 STATE AND WHO IS LICENSED UNDER THE INTERNATIONAL FUEL TAX 7 AGREEMENT. 8 (e) "Motor fuel" means diesel fuel as defined by the motor 9 fuel tax act. 10 (f) "Nonprofit private, parochial, denominational, or public 11 school, college, or university" means an elementary, secondary, 12 or postsecondary educational facility. 13 (g) "Person" means a natural person, partnership, firm, 14 association, joint stock company, limited liability company, 15 limited liability partnership, syndicate, or corporation, and any 16 receiver, trustee, conservator, or officer, other than a unit of 17 government, having jurisdiction and control of property by virtue 18 of law or by appointment of a court. 19 (h) "Public roads or highways" means a road, street, or 20 place maintained by this state or a political subdivision of this 21 state and generally open to use by the public as a matter of 22 right for the purpose of vehicular travel, notwithstanding that 23 they may be temporarily closed or travel restricted for the pur- 24 pose of construction, maintenance, repair, or reconstruction. 25 (i) "Qualified commercial motor vehicle", SUBJECT TO SUBDI- 26 VISION (J), means a motor vehicle used, designed, or maintained 02672'01 * 3 1 for transportation of persons or property and 1 of the 2 following: 3 (i) Having 3 or more axles regardless of weight. 4 (ii) Having 2 axles and a gross vehicle weight or registered 5 gross vehicle weight exceeding 26,000 pounds or 12,000 6 kilograms. 7 (iii) Is used in a combination of vehicles, if the weight of 8 that combination exceeds 26,000 pounds or 12,000 kilograms gross 9 vehicle or registered gross vehicle weight. 10 (j) "Qualified commercial motor vehicle" shall not include a 11 recreational vehicle,orA ROAD TRACTOR, TRUCK, OR TRUCK TRAC- 12 TOR USED EXCLUSIVELY IN THIS STATE, a road tractor, truck, or 13 truck tractor owned by a farmer and used in connection with the 14 farmer's farming operation and not used for hire,ora school 15 bus, a bus defined and certificated under the motor bus transpor- 16 tation act, 1982 PA 432, MCL 474.101 to 474.141, or a bus oper- 17 ated by a public transit agency operating under any of the 18 following: 19 (i) A county, city, township, or village as provided by law, 20 or other authority incorporated under 1963 PA 55, MCL 124.351 to 21 124.359. Each authority and governmental agency incorporated 22 under 1963 PA 55, MCL 124.351 to 124.359, has the exclusive 23 jurisdiction to determine its own contemplated routes, hours of 24 service, estimated transit vehicle miles, costs of public trans- 25 portation services, and projected capital improvements or 26 projects within its service area. 02672'01 * 4 1 (ii) An authority incorporated under the metropolitan 2 transportation authorities act of 1967, 1967 PA 204, MCL 124.401 3 to 124.426, or that operates a transportation service pursuant to 4 an interlocal agreement under the urban cooperation act of 1967, 5 1967 (Ex Sess) PA 7, MCL 124.501 to 124.512. 6 (iii) A contract entered into pursuant to 1967 (Ex Sess) PA 7 8, MCL 124.531 to 124.536, or 1951 PA 35, MCL 124.1 to 124.13. 8 (iv) An authority incorporated under the public transporta- 9 tion authority act, 1986 PA 196, MCL 124.451 to 124.479, or a 10 nonprofit corporation organized under the nonprofit corporation 11 act, 1982 PA 162, MCL 450.2101 to 450.3192, that provides trans- 12 portation services. 13 (v) An authority financing public improvements to transpor- 14 tation systems under the revenue bond act of 1933, 1933 PA 94, 15 MCL 141.101 to 141.140. 16 (k) Qualified commercial motor vehicle includes a vehicle 17 operated on a public road or highway owned by a farmer and used 18 in connection with the farmer's farming operation if the vehicle 19 bears out of state registration plates of a state that does not 20 give similar treatment to vehicles from this state. 21 Sec. 2. (1) A motor carrier licensed under this act shall 22 pay a road tax calculated on the amount of motor fuel consumed in 23 qualified commercial motor vehicles on the public roads or high- 24 ways within this state.TheBEGINNING ON OCTOBER 1, 2002, THE 25 tax shall be at the rate of2119 cents per gallon on motor 26 fuel consumed on the public roads or highways within this state. 27 In addition, qualified commercial motor vehicles licensed under 02672'01 * 5 1 this act that travel in interstate commerce will be subject to 2 the definition of taxable motor fuels and rates as defined by the 3 respective international fuel tax agreement member 4 jurisdictions. A return shall be filed, and the tax due paid, 5 quarterly to the department on or before the last day of January, 6 April, July, and October of each year on a form prescribed and 7 furnished by the department. Each quarterly return and tax pay- 8 ment shall cover the liability for the annual quarter ending on 9 the last day of the preceding month. 10 (2) The amount of motor fuel consumed in the operation of a 11 motor carrier on public roads or highways within this state shall 12 be determined by dividing the miles traveled within Michigan by 13 the average miles per gallon of motor fuel. The average miles 14 per gallon of motor fuel shall be determined by dividing the 15 miles traveled within and outside of Michigan by the total amount 16 of motor fuel consumed within and outside of Michigan. 17 (3) In the absence of records showing the average number of 18 miles operated per gallon of motor fuel, it shall be presumed 19 that 1 gallon of motor fuel is consumed for every 4 miles 20 traveled. 21 (4) The quarterly tax return shall be accompanied by a 22 remittance covering any tax due. 23 (5) The commissioner, when he or she considers it necessary 24 to ensure payment of the tax or to provide a more efficient 25 administration of the tax, may require the filing of returns and 26 payment of the tax for other than quarterly periods. 02672'01 * 6 1 Sec. 4. (1) A person filing a return pursuant to section 2 2 who purchased motor fuel in this state upon which a tax was 3 imposed and not refunded pursuant to the motor fuel tax act, 4 shall be entitled to a credit against the tax imposed by this act 5 equal to the tax paid when purchasing the motor fuel pursuant to 6 the motor fuel tax act. The excess of a credit allowed by this 7 subsection over tax liabilities imposed by this act shall be 8 refunded to the taxpayer. 9 (2) In order to secure credit under subsection (1) for motor 10 fuel purchased in this state the motor carrier shall secure a 11 receipt showing the seller's name, the number of gallons of motor 12 fuel, the type of motor fuel, the address of the seller, the 13 license number or unit number of the commercial motor vehicle, 14 and the date of sale. 15(3) A motor carrier may credit against the tax imposed by16this act on each quarterly return filed under this subsection an17amount equal to 6 cents per gallon of the sales tax paid on18diesel fuel purchased in this state during the preceding calendar19quarter.20 (3)(4)A refund, when approved by the department, shall 21 be payable from the revenue received under this act. 22 (4)(5)A person, or an agent, employee, or representative 23 of the person, who makes a false statement in any return under 24 this act or who submits or provides an invoice or invoices in 25 supportthereofOF THE FALSE STATEMENT upon which alterations 26 or changes exist in the date, name of seller or purchaser, number 27 of gallons, identity of the qualified commercial motor vehicle 02672'01 * 7 1 into which fuel was delivered or the amount of tax that was paid, 2 or who knowingly presents any return or invoice containing a 3 false statement, or who collects or causes to be paid a refund 4 without being entitledtheretoTO THE REFUND, forfeits the full 5 amount of the claim and is guilty of a misdemeanor, punishable by 6 a fine of not more than $5,000.00 or imprisonment for not more 7 than 1 year, or both. 8 Enacting section 1. This amendatory act does not take 9 effect unless all of the following bills of the 91st Legislature 10 are enacted into law: 11 (a) Senate Bill No. _____ or House Bill No. 5735 (request 12 no. 02672'01 a *). 13 (b) Senate Bill No. _____ or House Bill No. 5736 (request 14 no. 04929'01). 15 (c) Senate Bill No. _____ or House Bill No. 5733 (request 16 no. 05318'01 *). 02672'01 * Final page. MRM