HB-5920, As Passed Senate, December 8, 2004                                 

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 5920

                                                                             A bill to amend 1980 PA 119, entitled                                             

"Motor carrier fuel tax act,"                                               

by amending section 8 (MCL 207.218), as amended by 1996 PA 584.             

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1       Sec. 8.  (1) Every qualified commercial motor vehicle leased                

2   to a motor carrier shall be subject to this act, to the same                

3   extent and in the same manner as qualified commercial motor                 

4   vehicles owned by a motor carrier.                                          

5       (2) A lessor of qualified commercial motor vehicles may be                  

6   considered a motor carrier with respect to qualified commercial             

7   motor vehicles leased to others, if the lessor supplies or pays             

8   for the motor fuel consumed by the vehicles or bills rental or              

9   other charges calculated to include the cost of motor fuel.  A              

10  lessee motor carrier may exclude a qualified commercial motor               

11  vehicle leased from others from the reports and liabilities                 

1   required by this act if that qualified commercial motor vehicle             

2   has been leased from a lessor who is a motor carrier pursuant to            

3   this act and the lease agreement provides for the lessor to pay             

4   the cost of motor fuel and motor fuel taxes.                                

5       (3) Upon application by the licensed motor carrier, the                     

6   department may authorize a licensed motor carrier leasing                   

7   qualified commercial motor vehicles from 2 or more lessors to               

8   file consolidated reports for these lessors.                                

9       (4) This section shall govern the primary liability under                   

10  this act of lessors and lessees of qualified commercial motor               

11  vehicles.   If For tax liabilities incurred before April 1, 2005

12  and tax liabilities incurred after April 1, 2007, if a lessor or            

13  lessee primarily liable fails, in whole or in part, to discharge            

14  his or her liability, the failing party and the other lessor or             

15  lessee party to the transaction shall be jointly and severally              

16  responsible and liable for compliance with this act and for the             

17  payment of tax due.  However, the aggregate of taxes collected              

18  from a lessor and lessee by this state under this act shall not             

19  exceed the total amount of taxes due and costs and penalties                

20  imposed.                                                                    

21  (5) For tax liabilities arising after April 1, 2005 and                     

22  before April 1, 2007, if a lease agreement identifies a party               

23  responsible for the payment of taxes, the nonresponsible party              

24  under the lease shall obtain a copy of the responsible party's              

25  valid international fuel tax agreement registration and keep the            

26  copy on file.  If the nonresponsible party does not obtain a copy           

27  of the responsible party's valid international fuel tax agreement           

1   registration and the responsible party fails in whole or in part            

2   to discharge his or her liability, then the responsible and                 

3   nonresponsible parties shall be jointly and severally responsible           

4   and liable for compliance with this act and payment of tax due.             

5   If the lease agreement does not identify the party responsible              

6   for payment of fuel taxes under this act, then both parties shall           

7   be jointly and severally responsible and liable for compliance              

8   with this act and payment of tax due.  However, the aggregate of            

9   taxes collected from a lessor and lessee by this state under this           

10  act shall not exceed the total amount of taxes due and costs and            

11  penalties imposed.