May 4, 2006, Introduced by Reps. Green, Kooiman, Gosselin, Wenke and Hansen and referred to the Committee on Transportation.
A bill to amend 1980 PA 119, entitled
"Motor carrier fuel tax act,"
by amending section 8 (MCL 207.218), as amended by 2004 PA 472.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 8. (1) Every qualified commercial motor vehicle leased to
a motor carrier shall be subject to this act, to the same extent
and in the same manner as qualified commercial motor vehicles owned
by a motor carrier.
(2) A lessor of qualified commercial motor vehicles may be
considered a motor carrier with respect to qualified commercial
motor vehicles leased to others, if the lessor supplies or pays for
the motor fuel consumed by the vehicles or bills rental or other
charges calculated to include the cost of motor fuel. A lessee
motor carrier may exclude a qualified commercial motor vehicle
leased from others from the reports and liabilities required by
this act if that qualified commercial motor vehicle has been leased
from a lessor who is a motor carrier pursuant to this act and the
lease agreement provides for the lessor to pay the cost of motor
fuel and motor fuel taxes.
(3) Upon application by the licensed motor carrier, the
department may authorize a licensed motor carrier leasing qualified
commercial motor vehicles from 2 or more lessors to file
consolidated reports for these lessors.
(4)
This section shall govern the primary liability under this
act
of lessors and lessees of qualified commercial motor vehicles.
For
tax liabilities incurred before April 1, 2005 and tax
liabilities
incurred after April 1, 2007, 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 shall be jointly and severally responsible
and
liable for compliance with this act and for the payment of tax
due.
However, the aggregate of taxes collected from a lessor and
lessee
by this state under this act shall not exceed the total
amount
of taxes due and costs and penalties imposed.
(5)
For tax liabilities arising after April 1, 2005 and before
April
1, 2007, if a lease agreement identifies a party responsible
for
the payment of taxes, the nonresponsible party under the lease
shall
obtain a copy of the responsible party's valid international
fuel
tax agreement registration and keep the copy on file. If the
nonresponsible
party does not obtain a copy of the responsible
party's
valid international fuel tax agreement registration and the
responsible
party fails in whole or in part to discharge his or her
liability,
then the responsible and nonresponsible parties shall be
jointly
and severally responsible and liable for compliance with
this
act and payment of tax due. If the lease agreement does not
identify
the party responsible for payment of fuel taxes under this
act,
then both parties shall be jointly and severally responsible
and
liable for compliance with this act and payment of tax due.
However,
the aggregate of taxes collected from a lessor and lessee
by
this state under this act shall not exceed the total amount of
taxes
due and costs and penalties imposed.