SENATE BILL No. 1159

 

 

February 28, 2008, Introduced by Senators JELINEK, PAPPAGEORGE, BROWN, BIRKHOLZ and WHITMER and referred to the Committee on Transportation.

 

 

 

     A bill to amend 1980 PA 119, entitled

 

"Motor carrier fuel tax act,"

 

by amending section 2 (MCL 207.212), as amended by 2006 PA 346.

 

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 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 Beginning on April 1, 2008, 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 April 1, 2009, the state

 

treasurer shall annually determine, for the 12-month period ending

 

May 1 March 31, 2009 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). The treasurer shall notify the

 

chairs of the appropriations committees of the senate and the house

 

of representatives, the chairs of the appropriations subcommittees

 

on transportation of the senate and the house of representatives,

 

the director of the department of agriculture, and the senate and

 

house fiscal agencies of the rate differential no later than 7 days

 

after the treasurer has determined the rate differential. The

 

treasurer shall determine the rate differential for each 12-month

 

period no later than 30 days after the close of the 12-month

 

period. 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 April 1, 2008

 

is greater than $2,500,000.00 $6,000,000.00.

 


     (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.