MOTOR CARRIER FUEL TAX LIABILITY H.B. 5920: FLOOR ANALYSIS
House Bill 5920 (as reported without amendment)
Sponsor: Representative Jerry O. Kooiman
House Committee: Transportation
Senate Committee: Transportation
CONTENT
The bill would amend the Motor Carrier Fuel Tax Act to delete a provision under which the lessors and lessees of qualified commercial motor vehicles are jointly and severally liable for taxes due under the Act.
The Act imposes a tax on motor fuel for the use of public roads and highways in Michigan by motor carriers. The Act also contains licensure and reporting requirements for motor carriers. (A "motor carrier" is a person who operates or causes to be operated a qualified commercial motor vehicle on a public road or highway in Michigan and at least one other state or Canadian province, or a person who operates or causes to be operated a qualified commercial motor vehicle on a public road or highway in Michigan and who is licensed under the International Fuel Tax Agreement. A "qualified commercial motor vehicle" is a motor vehicle that meets certain criteria regarding axles and/or weight.)
Section 8(4) governs the primary liability under the Act of lessors and lessees of qualified commercial motor vehicles. If a lessor or lessee primarily liable fails, in whole or in part, to discharge his or her liability, the failing party and the other lessor or lessee party to the transaction must be jointly and severally responsible and liable for compliance with the Act and for the payment of the tax due. The aggregate of taxes collected from a lessor and lessee by the State under the Act, however, may not exceed the total amount of taxes due and costs and penalties imposed. The bill would delete Section 8(4).
MCL 207.218 Legislative Analyst: Julie Koval
FISCAL IMPACT
The bill could result in a reduction in State motor carrier fuel tax receipts if removing the liability clause in Section 8(4) made it more difficult for the Department of Treasury to collect taxes due. This reduction would decrease deposits in the Michigan Transportation Fund. Data are not readily available to determine the possible revenue reduction.
Date Completed: 12-1-04 Fiscal Analyst: Craig Thiel
Analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent. hb5920/0304