HB-5582, As Passed Senate, March 4, 2008

SUBSTITUTE FOR

HOUSE BILL NO. 5582

     A bill to amend 1945 PA 327, entitled

"Aeronautics code of the state of Michigan,"

by amending section 203 (MCL 259.203), as amended by 2000 PA 404.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 203. (1) There is hereby imposed a privilege tax of 3

cents per gallon on all fuel sold or used in producing or

generating power for propelling aircraft using the aeronautical

facilities on the lands and waters of this state. The tax shall be

collected and remitted in the same manner and method and at the

same time as prescribed by law for the collection of the gasoline

tax imposed on all gasoline used in producing or generating power

for propelling motor vehicles used upon the public highways of this

state under the motor fuel tax act, 2000 PA 403, MCL 207.1001 to

207.1170. A refund of 1 1/2 1-1/2 cents per gallon shall be made to

airline operators who show proof within 6 months after purchase

that they are operating interstate on scheduled operations.

     (2) If a person required to register with the department of

treasury under section 94 of the motor fuel tax act, 2000 PA 403,

MCL 207.1094, is not registered, the person shall not purchase fuel

under this act at the rate imposed by subsection (1), but shall pay

the applicable rate imposed on motor fuel by section 8 of the motor

fuel tax act, 2000 PA 403, MCL 207.1008.

     (3) The tax imposed under subsection (1) is not imposed on

aviation fuel if the purchaser has certified in writing to the

seller that the aviation fuel is being purchased solely for the

purpose of formulating leaded racing fuel as that term is defined

in section 4 of the motor fuel tax act, 2000 PA 403, MCL 207.1004.

Aviation fuel qualifying under this subsection shall be identified

on shipping papers and invoices as "aviation fuel exempt for LRF".

     Enacting section 1. This amendatory act takes effect 60 days

after the date it is enacted into law.

     Enacting section 2. This amendatory act does not take effect

unless House Bill No. 5583 of the 94th Legislature is enacted into

law.