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HB-5959, As Passed House, May 17, 2006

SUBSTITUTE FOR

HOUSE BILL NO. 5959

A bill to amend 2000 PA 403, entitled

"Motor fuel tax act,"

by amending sections 3 and 4 (MCL 207.1003 and 207.1004), as

amended by 2002 PA 668.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 3. As used in this act:

(a) "Fuel feedstock user" means a person who receives motor

fuel for the person's own use in the manufacture or production of

any substance other than motor fuel.

(b) "Fuel grade ethanol" means the American society for

testing and materials standard in effect on the effective date of

this act as the D-4806 specification for denatured fuel grade

ethanol for blending with gasoline.

used to transport motor fuel on the public roads or highways. Fuel

transportation vehicle includes, but is not limited to, a transport

truck and a tank wagon. Fuel transportation vehicle does not

include a vehicle transporting a nurse tank or limited volume

auxiliary-mounted supply tank used for fueling an implement of

husbandry.

(d) "Gallon" means a unit of liquid measure as customarily

used in the United States containing 231 cubic inches, or 4 quarts,

or its metric equivalent expressed in liters. Where the term gallon

appears in this act, the term liters is interchangeable so long as

the equivalence of a gallon and 3.785 liters is preserved. A

quantity required to be furnished under this act may be specified

in liters when authorized by the department.

(e) "Gasohol" means a blended motor fuel composed of gasoline

and fuel grade ethanol.

(f) "Gasoline" means and includes gasoline, alcohol, gasohol,

casing head or natural gasoline, benzol, benzine, naphtha, and any

blendstock additive, or other product including methanol that is

sold for blending with gasoline or for use on the road other than

products typically sold in containers of less than 5 gallons.

Gasoline also includes a liquid prepared, advertised, offered for

sale, sold for use as, or used in the generation of power for the

propulsion of a motor vehicle, airplane, or marine vessel,

including a product obtained by blending together any 1 or more

products of petroleum, with or without another product, and

regardless of the original character of the petroleum products

blended, if the product obtained by the blending is capable of use

in the generation of power for the propulsion of a motor vehicle,

airplane, or marine vessel. The blending of all of the above named

products, regardless of their name or characteristics, shall

conclusively be presumed to have been done to produce motor fuel,

unless the product obtained by the blending is entirely incapable

of use as motor fuel. Gasoline also includes transmix. Gasoline

does not include diesel fuel or leaded racing fuel. An additive or

blendstock is presumed to be sold for blending unless a

certification is obtained for federal purposes that the substance

is for a use other than blending for gasoline.

(g) "Gross gallons" means the total measured product,

exclusive of any temperature or pressure adjustments,

considerations, or deductions, in gallons.

(h) "Heating oil" means a motor fuel including dyed diesel

fuel that is burned in a boiler, furnace, or stove for heating,

agricultural, or industrial processing purposes.

(i) "Implement of husbandry" means and includes a farm

tractor, a vehicle designed to be drawn or pulled by a farm tractor

or animal, a vehicle that directly harvests farm products, and a

vehicle that directly applies fertilizer, spray, or seeds to a farm

field. Implement of husbandry does not include a motor vehicle

licensed for use on the public roads or highways of this state.

(j) "Import" means to bring motor fuel into this state by

motor vehicle, marine vessel, pipeline, or any other means.

However, import does not include bringing motor fuel into this

state in the fuel supply tank of a motor vehicle if the motor fuel

is used to power that motor vehicle. Motor fuel delivered into this

state from outside of this state by or for the seller constitutes

an import by the seller, and motor fuel delivered into this state

from out of this state by or for the purchaser constitutes an

import by the purchaser.

(k) "Importer" means a person who imports motor fuel into this

state.

(l) "Import verification number" means the number assigned by

the department to an individual delivery of motor fuel by a

transport truck, tank wagon, marine vessel, or rail car in response

to a request for a number from an importer or transporter carrying

motor fuel into this state for the account of an importer.

(m) "In this state" means the area within the borders of this

state, including all territories within the borders owned by, held

in trust by, or added to the United States of America.

(n) "Invoiced gallons" means the number of gallons actually

billed on an invoice.

Sec. 4. As used in this act:

(a) "Kerosene" means all grades of kerosene, including, but

not limited to, the 2 grades of kerosene, No. 1-K and No. 2-K,

commonly known as K-1 kerosene and K-2 kerosene respectively,

described in American society for testing and materials

specifications D-3699, in effect on January 1, 1999, and kerosene-

type jet fuel described in American society for testing and

materials specification D-1655 and military specifications MIL-T-

5624r and MIL-T-83133d (grades jp-5 and jp-8), and any successor

internal revenue service rules or regulations, as the specification

for kerosene and kerosene-type jet fuel. Kerosene does not include

an excluded liquid.

(b) "Leaded racing fuel" is a fuel other than diesel fuel that

is leaded and at least 100 octane and is used in vehicles on a

racetrack.

excess of 60 degrees Fahrenheit and a pressure of 14.7 pounds per

square inch absolute.

(d) ~~(c)~~ "Motor fuel" means gasoline, diesel fuel, kerosene,

a mixture of gasoline, diesel fuel, or kerosene, or a mixture of

gasoline, diesel fuel, or kerosene and any other substance. Motor

fuel does not include leaded racing fuel.

(e) ~~(d)~~ "Motor vehicle" means a vehicle that is propelled by

an internal combustion engine or motor and is designed to permit

the vehicle's mobile use on the public roads or highways of this

state. Motor vehicle does not include any of the following:

(i) An implement of husbandry.

(ii) A train or other vehicle operated exclusively on rails.

(iii) Machinery designed principally for off-road use and not

licensed for on-road use.

(iv) A stationary engine.

(f) ~~(e)~~ "Net gallons" means the remaining product, after all

considerations and deductions have been made, measured in gallons,

corrected to a temperature of 60 degrees Fahrenheit, 13 degrees

Celsius, and a pressure of 14.7 pounds per square inch, the

ultimate end amount.

(g) ~~(f)~~ "Oxygenate" means an oxygen-containing, ashless,

organic compound, such as an alcohol or ether, which may be used as

a fuel or fuel supplement.

(h) ~~(g)~~ "Permissive supplier" means a person who may not be

subject to the taxing jurisdiction of this state but who does meet

both of the following requirements:

(i) Is a position holder in a federally registered terminal

located outside of this state, or a person who acquires from a

position holder motor fuel in an out-of-state terminal in a

transaction that otherwise qualifies as a 2-party exchange under

this act.

(ii) Is registered under section 4101 of the internal revenue

code for transactions in motor fuel in the bulk transfer/terminal

system.

(i) ~~(h)~~ "Person" means and includes an individual,

cooperative, partnership, firm, association, limited liability

company, limited liability partnership, joint stock company,

syndicate, and corporation, both private and municipal, and any

receiver, trustee, conservator, or any other officer having

jurisdiction and control of property by law or by appointment of a

court other than units of government.

(j) ~~(i)~~ "Position holder" means a person who has a contract

with a terminal operator for the use of storage facilities and

other terminal services for motor fuel at the terminal, as

reflected in the records of the terminal operator. Position holder

includes a terminal operator who owns motor fuel in the terminal.

(k) ~~(j)~~ "Public roads or highways" means a road, street, or

place maintained by this state or a political subdivision of this

state and generally open to use by the public as a matter of right