November 25, 2008, Introduced by Rep. Donigan and referred to the Committee on Transportation.
A bill to amend 1980 PA 119, entitled
"Motor carrier fuel tax act,"
by amending sections 2 and 5 (MCL 207.212 and 207.215), section 2
as amended by 2006 PA 346 and section 5 as amended by 1996 PA 584.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2. (1) A motor carrier licensed under this act shall pay
a road tax calculated on the amount of motor fuel consumed in
qualified commercial motor vehicles on the public roads or highways
within
this state. Except as otherwise provided under subsection
(6),
the The tax shall be at the rate of 15 cents per gallon on
motor fuel consumed on the public roads or highways within this
state. In addition, qualified commercial motor vehicles licensed
under this act that travel in interstate commerce will be subject
to the definition of taxable motor fuels and rates as defined by
the respective international fuel tax agreement member
jurisdictions. A return shall be filed, and the tax due paid,
quarterly to the department on or before the last day of January,
April, July, and October of each year on a form prescribed and
furnished by the department. Each quarterly return and tax payment
shall cover the liability for the annual quarter ending on the last
day of the preceding month.
(2) The amount of motor fuel consumed in the operation of a
motor carrier on public roads or highways within this state shall
be determined by dividing the miles traveled within Michigan by the
average miles per gallon of motor fuel. The average miles per
gallon of motor fuel shall be determined by dividing the miles
traveled within and outside of Michigan by the total amount of
motor fuel consumed within and outside of Michigan.
(3) In the absence of records showing the average number of
miles operated per gallon of motor fuel, it shall be presumed that
1 gallon of motor fuel is consumed for every 4 miles traveled.
(4) The quarterly tax return shall be accompanied by a
remittance covering any tax due.
(5) The commissioner, when he or she considers it necessary to
ensure payment of the tax or to provide a more efficient
administration of the tax, may require the filing of returns and
payment of the tax for other than quarterly periods.
(6)
The road tax required under this section shall be at a
rate
of 12 cents per gallon for diesel fuel that contains at least
5%
biodiesel. As used in this subsection, "biodiesel" means a fuel
composed
of mono-alkyl esters of long chain fatty acids derived
from
vegetable oils or animal fats and, in accordance with
standards
specified by the American society for testing and
materials,
designated B100 and meeting the requirements of D-6751,
as
approved by the department of agriculture.
(7)
Beginning on September 1, 2006, the state treasurer shall
annually
determine, for the 12-month period ending May 1 and for
any
additional times that the treasurer may determine, the
difference
between the amount of motor fuel tax collected and the
amount
of motor fuel tax that would have been collected but for the
differential
rates on motor fuel in section 8 of the motor fuel tax
act,
2000 PA 403, MCL 207.1008, and on motor fuel in subsection
(6).
Subsection (6) is no longer effective the earlier of 10 years
after
September 1, 2006 or the first day of the first month that is
not
less than 90 days after the state treasurer certifies that the
total
cumulative rate differential due to the differential rates in
section
8 of the motor fuel tax act, 2000 PA 403, MCL 207.1008, and
subsection
(6) from September 1, 2006 is greater than
$2,500,000.00.
(8)
The legislature shall annually appropriate to the Michigan
transportation
fund created in 1951 PA 51, MCL 247.651 to 247.675,
the
amount determined as the rate differential certified by the
state
treasurer for the 12-month period ending on May 1 of the
calendar
year in which the fiscal year begins. Subsection (6) shall
not
be effective beginning January of any fiscal year for which the
appropriation
required under this subsection has not been made by
the
first day of the fiscal year.
Sec. 5. (1) A person required to be licensed by this act shall
not act as a motor carrier in this state unless the person is the
holder of an unrevoked license issued by the department or is the
holder of an unrevoked license issued under the international fuel
tax agreement by this state or another member jurisdiction of the
international fuel tax agreement. To procure a license, a motor
carrier shall file with the department a verified application upon
a form prescribed and to be furnished by the department. The
application shall contain the name and address of the motor carrier
and, if a partnership, limited liability company, or corporation,
the names and addresses of the persons constituting the firm,
partnership, association, joint stock company, limited liability
company, syndicate, or corporation, the name of its resident agent,
the location of its predominant place of business, both within and
outside of this state, and other pertinent information the
department may require.
(2) The department shall issue to each motor carrier 1 license
per person and 2 decals for each qualified commercial motor
vehicle. A decal shall be affixed respectively to the right-hand
side and left-hand side of the cab of every qualified commercial
motor vehicle while it is being operated in this state by each
person licensed under this act. A copy of the license shall be
carried in each cab while it is being operated.
(3) For cause, a motor carrier may be required to file with
the department a surety bond payable to the state, upon which the
applicant is the obligor, in the sum of 3 times the highest
estimated quarterly tax, or $1,000.00, whichever is greater. This
surety bond shall be conditioned upon the applicant complying with
this act and with the rules promulgated pursuant to this act,
promptly filing true reports, and paying the taxes, interest, and
penalties required by this act. Each surety bond shall be approved
as to amount and sureties by the department. The department may
accept cash or securities instead of a surety bond.
(4) The commissioner may waive the bond requirement for a
motor carrier exempt from the reporting requirements of section 2
when the collection of taxes would not be impaired by lack of
security of a bond required by this section.
(5) The license and decals shall not be assignable or
transferable to another person and shall be valid only for the
person in whose name they are issued. However, upon application to
the department, a motor carrier, upon the sale, conveyance,
disposal, or replacement of a qualified commercial motor vehicle,
may transfer the license and decals for that qualified commercial
motor vehicle to another qualified commercial motor vehicle of the
motor carrier which is required to be licensed under this act. The
department shall issue replacement decals for the newly licensed
qualified commercial motor vehicle that authorizes the holder of
the qualified commercial motor vehicle license to use and consume
motor fuel in the qualified commercial motor vehicle upon the
public roads or highways of this state until the original license
would have expired. The department may require the payment of a fee
to cover the administrative costs of issuing a replacement license
or decals.
(6) Upon filing of the application and upon posting of any
bond as required, the department shall issue to the applicant a
license and decals that authorize the holder to operate qualified
commercial motor vehicles using and consuming motor fuels upon the
public roads or highways of this state until January 1 of the year
following the date of issuance.
(7) If a licensee ceases to engage in business within this
state, the licensee shall notify the department in writing within
15
16 days after discontinuance.