HB-5477, As Passed House, December 19, 2014

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 5477

A bill to amend 2000 PA 403, entitled

"Motor fuel tax act,"

by amending sections 2, 3, 5, 6, 8, 22, 40, 45, 53, 63, 122, 143,

151, 152, 153, 154, and 155 (MCL 207.1002, 207.1003, 207.1005,

207.1006, 207.1008, 207.1022, 207.1040, 207.1045, 207.1053,

207.1063, 207.1122, 207.1143, 207.1151, 207.1152, 207.1153,

207.1154, and 207.1155), sections 2, 5, and 122 as amended by 2002

PA 668, section 3 as amended by 2006 PA 277, and section 8 as

amended by 2006 PA 268.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 2. As used in this act:

(a) "Alcohol" means fuel grade ethanol or a mixture of fuel

grade ethanol and another product.

(b) "Average wholesale diesel fuel price" means the statewide

average wholesale price of diesel fuel as determined by the

department based upon a 12-month rolling average of the wholesale

diesel fuel price. For the rate effective October 1, 2015 under

section 8(1)(b), the 12-month rolling average period begins on July

1, 2013 and ends on June 30, 2014. For the rate effective October

1, 2016 and the rate in effect each year thereafter, the 12-month

rolling average period ends on the last day of the month that is 3

months prior to the date on which the rate determined under section

8(1)(b) becomes effective.

average wholesale price of gasoline as determined by the department

based upon a 12-month rolling average of the wholesale gasoline

price. For the rate effective October 1, 2015 under section

8(1)(a), the 12-month rolling average period begins on July 1, 2013

and ends on June 30, 2014. For the rate effective October 1, 2016

and the rate in effect each year thereafter, the 12-month rolling

average period ends on the last day of the month that is 3 months

prior to the date on which the rate determined under section

8(1)(a) becomes effective.

(d) ~~(b)~~ "Blendstock" means and includes any petroleum product

component of motor fuel, such as naphtha, reformate, or toluene; or

any oxygenate that can be blended for use in a motor fuel.

(e) ~~(c)~~ "Blended motor fuel" means a mixture of motor fuel and

another liquid, other than a de minimis amount of a product

including, but not limited to, carburetor detergent or oxidation

inhibitor, that can be used as motor fuel in a motor vehicle.

(f) ~~(d)~~ "Blender" means and includes any person who produces

blended motor fuel outside of the bulk transfer/terminal system.

(g) ~~(e)~~ "Blends" or "blending" means the mixing of 1 or more

petroleum products, with or without another product, regardless of

the original character of the product blended, if the product

obtained by the blending is capable of use in the generation of

power for the propulsion of a motor vehicle, an airplane, or a

marine vessel. Blending does not include mixing that occurs in the

process of refining by the original refiner of crude petroleum or

the blending of products known as lubricating oil in the production

of lubricating oils and greases.

(h) ~~(f)~~ "Bulk end user" means a person who receives into the

person's own storage facilities by transport truck or tank wagon

motor fuel for the person's own consumption.

(i) ~~(g)~~ "Bulk plant" means a motor fuel storage and

distribution facility that is not a terminal and from which motor

fuel may be withdrawn by a tank wagon, a transport truck, or a

marine vessel.

(j) ~~(h)~~ "Bulk transfer" means a transfer of motor fuel from 1

location to another by pipeline tender or marine delivery within

the bulk transfer/terminal system, including, but not limited to,

all of the following transfers:

(i) A marine vessel movement of motor fuel from a refinery or

terminal to a terminal.

(ii) Pipeline movements of motor fuel from a refinery or

terminal to a terminal.

(iii) Book transfers of motor fuel within a terminal between

licensed suppliers before completion of removal across the terminal

rack.

(iv) Two-party exchanges between licensed suppliers.

(k) ~~(i)~~ "Bulk transfer/terminal system" means the motor fuel

distribution system consisting of refineries, pipelines, marine

vessels, and terminals. Motor fuel in a refinery, pipeline,

terminal, or a marine vessel transporting motor fuel to a refinery

or terminal is in the bulk transfer/terminal system. Motor fuel in

a fuel storage facility including, but not limited to, a bulk plant

that is not part of a refinery or terminal, in the fuel supply tank

of any engine or motor vehicle, in a marine vessel transporting

motor fuel to a fuel storage facility that is not in the bulk

transfer/terminal system, or in any tank car, rail car, trailer,

truck, or other equipment suitable for ground transportation is not

in the bulk transfer/terminal system.

(l) ~~(j)~~ "Carrier" means an operator of a pipeline or marine

vessel engaged in the business of transporting motor fuel above the

terminal rack.

(m) ~~(k)~~ "Commercial motor vehicle" means a motor vehicle

licensed as a qualified commercial motor vehicle under the motor

carrier fuel tax act, 1980 PA 119, MCL 207.211 to 207.234, or a

motor vehicle licensed under an international fuel tax agreement

under section 2a of the motor carrier fuel tax act, 1980 PA 119,

MCL 207.212a.

(n) (l) "Dead storage" is the amount of motor fuel that cannot

be pumped out of a motor fuel storage tank because the motor fuel

is below the mouth of the tank's draw pipe. The amount of motor

fuel in dead storage is 200 gallons for a tank with a capacity of

less than 10,000 gallons and 400 gallons for a tank with a capacity

of 10,000 gallons or more.

(o) ~~(m)~~ "Denaturants" means ~~and includes~~ gasoline, natural

gasoline, gasoline components, or toxic or noxious materials added

to fuel grade ethanol to make it unsuitable for beverage use but

not unsuitable for automotive use.

(p) ~~(n)~~ "Department" means the ~~bureau of revenue within the~~

department of treasury or its designee.

(q) ~~(o)~~ "Destination state" means ~~the~~ a state, Canadian

province or territory, or foreign country to which motor fuel is

directed for export.

(r) ~~(p)~~ "Diesel fuel" means any liquid other than gasoline

that is capable of use as a fuel or a component of a fuel in a

motor vehicle that is propelled by a diesel-powered engine or in a

diesel-powered train. Diesel fuel includes number 1 and number 2

fuel oils, kerosene, dyed diesel fuel, and mineral spirits. Diesel

fuel also includes any blendstock or additive that is sold for

blending with diesel fuel, any liquid prepared, advertised, offered

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

the propulsion of a diesel-powered engine, airplane, or marine

vessel. 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 diesel

fuel. Diesel fuel does not include an excluded liquid.

(s) ~~(q)~~ "Dyed diesel fuel" means diesel fuel that is dyed in

accordance with internal revenue service rules or pursuant to any

other internal revenue service requirements, including any

invisible marker requirements.

(t) ~~(r)~~ "Eligible purchaser" means a person who has been

authorized by the department under section 75 to make ~~the~~ an

election under section 74.

(u) ~~(s)~~ "Excluded liquid" means that term as defined in 26

~~C.F.R.~~ CFR 48.4081-1.

(v) ~~(t)~~ "Export" means to obtain motor fuel in this state for

sale or other distribution outside of this state. Motor fuel

delivered outside of this state by or for the seller constitutes an

export by the seller and motor fuel delivered outside of this state

by or for the purchaser constitutes an export by the purchaser.

(w) ~~(u)~~ "Exporter" means a person who exports motor fuel.

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~~ April 1, 2001 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.~~

(h) ~~(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~~ or 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.

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

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

~~However, import~~ 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~~ outside of this state by or for the purchaser

constitutes an import by the purchaser.

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

this state.

(k) (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.

(l) ~~(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.

(m) "Index" means the Detroit consumer price index for all

urban consumers published by the United States bureau of labor

statistics or, if that index ceases to be published by the United

States bureau of labor statistics, the published index that most

closely reflects the measure of inflation previously reported by

the Detroit consumer price index for all urban consumers, as

determined by the department.

(n) "Inflation rate" means the percentage change between the

index for the period beginning on July 1, 2013 and ending on June

30, 2014 and the most recent index for the period beginning on July

1 and ending on June 30, converted to decimals and reduced by the

total percentage change between 41.7 cents and the rate floor in

effect on October 1 of the year immediately preceding the year in

which the current rate is in effect, converted to decimals. If that

number is negative, the inflation rate is 0.

(o) ~~(n)~~ "Invoiced gallons" means the number of gallons

actually billed on an invoice.

Sec. 5. (1) As used in this act:

(a) "Rack" means a mechanism for delivering motor fuel from a

refinery, a terminal, or a marine vessel into a railroad tank car,

a transport truck, a tank wagon, the fuel supply tank of a marine

vessel, or other means of transfer outside of the bulk

transfer/terminal system.

(b) "Rate ceiling" means a cents per gallon upper limit on the

tax rate determined by the department and imposed on gasoline or

diesel fuel under section 8(1)(a) and (b). Beginning with the rate

in effect on October 1, 2015, rate ceiling means, for each rate

determined under section 8(1), the sum of the rate floor for the

applicable period plus 5 cents per gallon.

tax rate determined by the department and imposed on gasoline or

diesel fuel under section 8(1)(a) and (b). Beginning with the rate

in effect on October 1, 2015, rate floor means 41.7 cents.

Beginning on October 1, 2016, the rate floor shall be the rate

floor in effect for the immediately preceding year multiplied by 1

plus the lesser of the following:

(i) 0.05.

(ii) The inflation rate.

(d) ~~(b)~~ "Refiner" means a person who owns, operates, or

otherwise controls a refinery within the United States.

(e) ~~(c)~~ "Refinery" means a facility used to produce motor fuel

from crude oil, unfinished oils, natural gas liquids, or other

hydrocarbons and from which motor fuel may be removed by pipeline,

by marine vessel, or at a rack.

(f) ~~(d)~~ "Removal" or "removed" means a physical transfer other

than by evaporation, loss, or destruction of motor fuel from a

terminal, manufacturing plant, customs custody, pipeline, marine

vessel, or refinery that stores motor fuel.

(g) ~~(e)~~ "Retail diesel dealer" means a person who sells or

distributes diesel fuel to an end user in this state.

(h) ~~(f)~~ "Retail marine diesel dealer" means a person who sells

or distributes diesel fuel to an end user in this state for use in

boats or other marine vessels.

(i) ~~(g)~~ "Source state" means the state, Canadian province or

territory, or foreign country from which motor fuel is imported.

(j) ~~(h)~~ "Stationary engine" means a temporary or permanently

affixed engine designed and used to supply power primarily for

agricultural or construction work. Stationary engine includes, but

is not limited to, an engine powering irrigation equipment,

generators, or earth-moving equipment.

(k) ~~(i)~~ "Supplier", in addition to subsection (2), means a

person who meets all of the following requirements:

(i) Is subject to the general taxing jurisdiction of this

state.

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

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

distribution system.

(iii) Is any 1 of the following:

(A) The position holder in a terminal or refinery in this

state.

(B) A person who imports fuel grade ethanol into this state.

refinery in this state from a position holder pursuant to a 2-party

exchange.

(D) The position holder in a terminal or refinery outside this

state with respect to motor fuel which that person imports into

this state on its account.

(2) Supplier also means a person who either produces alcohol

or alcohol derivative substances in this state or produces alcohol

or alcohol derivative substances for import into a terminal in this

state, or who acquires immediately upon import by transport truck,

tank wagon, rail car, or marine vessel into a terminal or refinery

or other storage facility that is not part of a terminal or

refinery, alcohol or alcohol derivative substances. A terminal

operator is not considered a supplier merely because the terminal

operator handles motor fuel consigned to it within a terminal.

Supplier includes a permissive supplier unless otherwise

specifically provided in this act.

Sec. 6. As used in this act:

(a) "Tank wagon" means a straight truck having 1 or more

compartments other than the fuel supply tank designed or used to

carry motor fuel.

(b) "Tank wagon operator-importer" means a person who operates

a tank wagon and imports motor fuel into this state from another

state.

act.

(d) "Terminal" means a motor fuel storage and distribution

facility that meets all of the following requirements:

(i) Is registered as a qualified terminal by the internal

revenue service.

(ii) Is supplied by pipeline or marine vessel.

(iii) Has a rack from which motor fuel may be removed.

(e) "Terminal operator" means a person who owns, operates, or

otherwise controls a terminal.

(f) "Transmix" means the mixed product that results from the

buffer or interface of 2 different products in a pipeline shipment,

or a mixture of 2 different products within a refinery or terminal

that results in an off-grade mixture.

(g) "Transport truck" means a semitrailer combination rig

designed or used for the purpose of transporting motor fuel over

the public roads or highways.

(h) "Transporter" means an operator of a railroad or rail car,

tank wagon, transport truck, or other fuel transportation vehicle

engaged in the business of transporting motor fuel below the

terminal rack.

(i) "Two-party exchange" means a transaction in which motor

fuel is transferred from 1 licensed supplier or licensed permissive

supplier to another licensed supplier or licensed permissive

supplier where all of the following occur:

(i) The transaction includes a transfer from the person who

holds the original inventory position for motor fuel in the

terminal as reflected in the records of the terminal operator.

(ii) The exchange transaction is completed before removal

across the rack from the terminal by the receiving licensed

supplier or licensed permissive supplier.

(iii) The terminal operator in its books and records treats the

receiving exchange party as the supplier that removes the product

across a terminal rack for purposes of reporting the transaction to

the department.

(j) "Ultimate vendor" means the person who sells motor fuel to

the end user of the fuel.

(k) "Wholesale diesel fuel price" means the price per gallon

of self-serve undyed no. 2 ultra-low sulfur diesel fuel charged by

a licensed supplier to a purchaser at the time of removal from a

terminal across the rack, as determined by the department, based on

available pricing data that best reflect or approximate Michigan

rack prices as reported by the United States energy information

administration, the oil price information service, or a similar

nationally recognized source for such pricing data, whether

publicly available or available only by subscription. Wholesale

diesel fuel price does not include the tax imposed by this act,

prepaid sales tax under section 6a of the general sales tax act,

1933 PA 167, MCL 205.56a, federal excise tax under section 4081 of

the internal revenue code, 26 USC 4081, any other federal tax upon

motor fuel, or an environmental protection regulatory fee imposed

under section 21508 of the natural resources and environmental

protection act, 1994 PA 451, MCL 324.21508.

(l) "Wholesale gasoline price" means the price per gallon of

self-serve unleaded regular gasoline charged by a licensed supplier

to a purchaser at the time of removal from a terminal across the

rack, as determined by the department, based on available pricing

data that best reflect or approximate Michigan rack prices as

reported by the United States energy information administration,

the oil price information service, or a similar nationally

recognized source for such pricing data, whether publicly available

or available only by subscription. Wholesale gasoline price does

not include the tax imposed by this act, prepaid sales tax under

section 6a of the general sales tax act, 1933 PA 167, MCL 205.56a,

federal excise tax under section 4081 of the internal revenue code,

26 USC 4081, any other federal tax upon motor fuel, or an

environmental protection regulatory fee imposed under section 21508

of the natural resources and environmental protection act, 1994 PA

451, MCL 324.21508.

(m) ~~(k)~~ "Wholesaler" means a person who acquires motor fuel

from a supplier or from another wholesaler for subsequent sale and

distribution at wholesale by a fuel transportation vehicle, rail

car, or other motor vehicle.

Sec. 8. (1) ~~Subject~~ Except as otherwise provided in this act

and subject to the exemptions provided ~~for~~ in this act, tax is

imposed on motor fuel imported into or sold, delivered, or used in

this state at the following rates:

(a) ~~Except as otherwise provided in subdivision (c),~~ Through

September 30, 2015, 19 cents per gallon on gasoline. Subject to

subsection (2), beginning with the rate effective October 1, 2015

and October 1 of each year thereafter, the department shall

determine a cents per gallon rate on gasoline that shall be derived

by multiplying the average wholesale gasoline price by 14.9%,

rounded up to the nearest 1/10 of 1 cent.

(b) ~~Except as otherwise provided in subdivision (d),~~ Through

September 30, 2015, 15 cents per gallon on diesel fuel. Subject to

subsection (2), beginning with the rate effective October 1, 2015

and October 1 of each year thereafter, the department shall

determine a cents per gallon rate on diesel fuel that shall be

derived by multiplying the average wholesale diesel fuel price by

14.9%, rounded up to the nearest 1/10 of 1 cent.

~~(c) Subject to subsections (10) and (11), 12 cents per gallon~~

~~on gasoline that is at least 70% ethanol. Under this subdivision,~~

~~blenders of ethanol and gasoline outside of the bulk transfer~~

~~terminal system shall obtain a blender's license and are subject to~~

~~the blender reporting requirements under this act. A licensed~~

~~supplier who blends ethanol and gasoline shall also obtain a~~

~~blender's license.~~

~~(d) Subject to subsections (10) and (11), 12 cents per gallon~~

~~on diesel fuel that contains at least 5% biodiesel. Under this~~

~~subdivision, blenders of biodiesel and diesel fuel outside of the~~

~~bulk transfer terminal system are required to obtain a blender's~~

~~license and are subject to the blender reporting requirements under~~

~~this act. A licensed supplier who blends biodiesel and diesel fuel~~

~~shall also obtain a blender's license.~~

(2) Beginning October 1, 2015, the rate determined under

subsection (1)(a) or (b) shall not exceed the rate ceiling or be

below the rate floor for any year for which the rate is in effect.

If the rate determined under subsection (1)(a) or (b) exceeds the

rate ceiling for any year for which the rate is in effect, the rate

shall be equal to the rate ceiling. If the rate determined under

subsection (1)(a) or (b) is below the rate floor for any year for

which the rate is in effect, the rate shall be equal to the rate

floor.

(3) ~~(2)~~ Tax shall not be imposed under this section on motor

fuel that is in the bulk transfer/terminal system.

(4) ~~(3)~~ The collection, payment, and remittance of the tax

imposed by this section shall be accomplished in the manner and at

the time provided for in this act.

(5) ~~(4)~~ Tax is also imposed at the rate described in

subsection (1) on net gallons of motor fuel, including transmix,

lost or unaccounted for, at each terminal in this state. The tax

shall be measured annually and shall apply to the net gallons of

motor fuel lost or unaccounted for that are in excess of 1/2 of 1%

of all net gallons of fuel removed from the terminal across the

rack or in bulk.

(6) ~~(5)~~ It is the intent of this act:

(a) To require persons who operate a motor vehicle on the

public roads or highways of this state to pay for the privilege of

using those roads or highways.

(b) To impose on suppliers a requirement to collect and remit

the tax imposed by this act at the time of removal of motor fuel

unless otherwise specifically provided in this act.

who use the fuel for a nontaxable purpose to seek a refund or claim

a deduction as provided in this act.

(d) That the tax imposed by this act be collected and paid at

those times, in the manner, and by those persons specified in this

act.

(7) ~~(6)~~ Bills of lading and invoices shall identify the

blended product and the correct fuel product code. The motor fuel

tax rate for each product shall be listed separately on each

invoice. Licensees shall report the correct fuel product code for

the blended product as required by the department. When fuel is

blended below the terminal rack, new bills of lading and invoices

shall be generated and submitted to the department upon request.

All bills of lading and invoices shall meet the requirements

~~provided~~ under this act.

(8) ~~(7)~~ Notwithstanding any other provision of this act, ~~all~~

~~facilities~~ a facility in this state that ~~produce~~ produces motor

fuel and ~~distribute~~ distributes the fuel from a rack for purposes

of this act ~~are~~ is a terminal, ~~and~~ shall obtain a terminal operator

license, and shall comply with all terminal operator reporting

requirements under this act. ~~All~~ A position ~~holders~~ holder in ~~these~~

~~facilities~~ a facility shall be licensed as a supplier and shall

comply with all supplier requirements under this act.

~~(8) If the tax on gasoline that contains at least 70% ethanol~~

~~or diesel fuel that contains at least 5% biodiesel held in storage~~

~~outside of the bulk transfer/terminal system on the effective date~~

~~of the amendatory act that added this subsection has previously~~

~~been paid at the rates imposed by subsection (1)(a) and (b), the~~

~~person who paid the tax may claim a refund for the difference~~

~~between the rates imposed by subsection (1)(a) and (b) and the~~

~~rates imposed by subsection (1)(c) and (d). All of the following~~

~~shall apply to a refund claimed under this subsection:~~

~~(a) The refund shall be claimed on a form prescribed by the~~

~~department.~~

~~(b) The refund shall apply only to:~~

(i~~) Previously taxed gasoline containing at least 70% ethanol~~

~~or diesel fuel containing at least 5% biodiesel in excess of 3,000~~

~~gallons held in storage by an end user.~~

(ii~~) Previously taxed gasoline containing at least 70% ethanol~~

~~or diesel fuel containing at least 5% biodiesel held for sale that~~

~~is in excess of dead storage.~~

~~(9) A refund request shall be filed within 60 days after the~~

~~last day of the month in which the amendatory act that added this~~

~~subsection took effect. A taxpayer shall provide documentation that~~

~~the department requires in order to verify the request for refund.~~

~~A person who may claim a refund under subsection (8) shall do all~~

~~of the following to claim the refund:~~

~~(a) Not later than 12 a.m. on the effective date of the~~

~~amendatory act that added this subsection, take an inventory of~~

~~gasoline containing at least 70% ethanol or undyed diesel fuel~~

~~containing at least 5% biodiesel.~~

~~(b) Deduct 3,000 gallons if the person claiming the refund is~~

~~an end user.~~

~~(c) Deduct the number of gallons in dead storage if the~~

~~gasoline containing at least 70% ethanol or the undyed diesel fuel~~

~~containing at least 5% biodiesel is held for subsequent sale.~~

~~(10) Beginning on the effective date of the amendatory act~~

~~that added this subsection, 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 gasoline pursuant to subsection (1)(c) and~~

~~biodiesel pursuant to subsection (1)(d). Subsection (1)(c) and (d)~~

~~is no longer effective the earlier of 10 years after the effective~~

~~date of the amendatory act that added this subsection 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 from the effective date of this amendatory act is~~

~~greater than $2,500,000.00.~~

~~(11) 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~~

~~(1)(c) and (d) 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.~~

~~(12) As used in this section:~~

~~(a) "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.~~

~~(b) "Ethanol" means denatured fuel ethanol that is suitable~~

~~for use in a spark-ignition engine when mixed with gasoline so long~~

~~as the mixture meets the American society for testing and materials~~

~~D-5798 specifications.~~

(9) Beginning with the rates in effect on October 1, 2015 and

October 1 of each year thereafter, the department shall publish

notice of the tax rates under this section not later than 30 days

before the effective date of the rates.

(10) A determination by the department of the average

wholesale diesel fuel price, the average wholesale gasoline price,

inflation rate, rate ceiling, rate floor, the wholesale diesel fuel

price, the wholesale gasoline price, or the tax rates under this

section is presumed to be correct and shall not be set aside unless

an administrative tribunal or a court of competent jurisdiction

finds the department's determination to be clearly erroneous.

Sec. 22. (1) The tax imposed on gasoline shall be in lieu of

all other taxes imposed or to be imposed upon the sale or use of

gasoline by ~~the~~ this state or any political subdivision of this

state except for the taxes imposed by the general sales tax act,

1933 PA 167, MCL 205.51 to 205.78, and the use tax act, 1937 PA 94,

MCL 205.91 to 205.111.

(2) The tax imposed on diesel fuel and alternative fuel shall

be imposed in lieu of all other taxes imposed or to be imposed upon

the sale or use of diesel fuel or alternative fuel by ~~the~~ this

state or a political subdivision of ~~the~~ this state, except the

taxes imposed by the general sales tax act, 1933 PA 167, MCL 205.51

to 205.78, the use tax act, 1937 PA 94, MCL 205.91 to 205.111, and

the motor carrier fuel tax act, 1980 PA 119, MCL 207.211 to

207.234. The exception for taxes imposed by the general sales tax

act, 1933 PA 167, MCL 205.51 to 205.78, and the use tax act, 1937

PA 94, ~~shall~~ MCL 205.91 to 205.111, does not apply to diesel fuel

used in passenger vehicles of a capacity of 10 or more operated for

hire under a certificate issued by the state transportation

department. As used in this subsection, "alternative fuel" means

that term as defined in section 151.

Sec. 40. (1) A person may seek a refund for tax paid under

this act on motor fuel or alternative fuel that is 1 or more of the

following:

(a) Accidentally contaminated by dye or another contaminant,

including but not limited to gasoline that is mixed with diesel

fuel, if the resulting product cannot be used to operate a motor

vehicle on the public roads or highways without violating this act

or other state or federal law.

(b) Accidentally lost or destroyed as a direct result of a

sudden and unexpected casualty loss.

(2) ~~This~~ The refund described in subsection (1) does not apply

if the person seeking the refund has been reimbursed for the cost

of the tax by any person, including, but not limited to, an

insurance company, for the loss or contamination. If a person

seeking a refund under this section is reimbursed for any amount,

that person shall demonstrate to the department that the amount

reimbursed does not include tax paid under this act on the motor

fuel or alternative fuel in order to be eligible for the refund.

Sec. 45. (1) An end user operating a motor vehicle with a

common fuel supply tank from which motor fuel or alternative fuel

is used both to propel the vehicle and to operate attached

equipment may seek a refund for tax paid under this act on ~~diesel~~

motor fuel or alternative fuel consumed from that fuel supply tank

in the amount of 15% of the tax paid.

(2) Notwithstanding subsection (1), an end user operating a

motor vehicle with a common fuel supply tank from which ~~diesel~~

motor fuel or alternative fuel is used both to propel the vehicle

and to operate attached equipment may seek a refund for tax paid

under this act on ~~diesel~~ motor fuel or alternative fuel consumed

from that fuel supply tank in an amount that is more than 15% of

the tax paid if the operator provides evidence to the department

that a refund or deduction of more than 15% is justified. The

department shall determine the evidence that is necessary under

this section to justify a refund of more than 15% of the tax paid.

(3) A refund provided under this section only applies to a

motor vehicle that is used by the end user exclusively for business

or other commercial purposes and does not apply to an automobile

whether or not it is used by the end user for business or other

commercial purposes.

(4) If the department determined before ~~the effective date of~~

~~this section~~ April 1, 2001 that a class of motor vehicles with

attached equipment was eligible for a motor fuel refund in an

amount different than 15% of the tax paid, that percentage ~~shall~~

~~apply~~ applies to those motor vehicles on and after ~~the effective~~

~~date of this section~~ April 1, 2001 unless, following notice and

hearing, a later determination under subsection (2) is made.

(5) As used in this section: ~~, "attached equipment"~~

(a) "Alternative fuel" means that term as defined in section

151.

(b) "Attached equipment" means equipment used by the end user

in the regular course of his or her business that is powered by

~~diesel~~ motor fuel or alternative fuel from the common fuel supply

tank. Attached equipment includes, but is not limited to, certain

pumping, spraying, seeding, spreading, shredding, lifting,

winching, dumping, cleaning, mixing, processing, and refrigeration

equipment. Attached equipment does not include a heater, air

conditioner, radio, or any other equipment that is used in the cab

of the motor vehicle and does not include any other equipment that

the department reasonably determines does not meet this definition.

Sec. 53. (1) A person shall not engage in a business activity

in this state where a license is required by this act unless the

person is licensed under this act.

(2) A person required to be licensed under this act shall

apply for a license on a form or in a format prescribed by the

department.

(3) An application for a license under this act may contain

any information the department may reasonably require to administer

this act including the applicant's federal identification number.

(4) The following persons currently licensed on ~~the effective~~

~~date of this act~~ April 1, 2001 are not required to obtain a new

license under this act and shall be considered licensed under this

act:

(a) A person licensed in this state as a supplier on ~~the~~

~~effective date of this act~~ April 1, 2001 shall be considered

licensed as a supplier under this act but only if the person is a

terminal operator or a position holder in a terminal on ~~the~~

~~effective date of this act.~~April 1, 2001.

(b) A wholesale distributor who on ~~the effective date of this~~

~~act~~ April 1, 2001 possesses a valid exemption certificate issued

under former section 12 of 1927 PA 150 shall be considered licensed

as a fuel vendor under this act.

~~effective date of this act~~ April 1, 2001 shall be considered

licensed as an exporter under this act.

(d) A person licensed in this state as a liquid fuel hauler on

~~the effective date of this act~~ April 1, 2001 shall be considered

licensed as a transporter under this act.

(e) A person licensed in this state as a retail dealer of

diesel motor fuel on ~~the effective date of this act~~ April 1, 2001

shall be considered licensed as a retail diesel dealer under this

act.

(5) A person considered licensed under subsection (4) is

subject to all of the provisions of this act except those requiring

an application for a new license.

(6) Except as otherwise provided in this act, a person who is

engaged in more than 1 business activity for which a license is

required under this act shall be licensed for each business

activity.

(7) A person who is licensed as a supplier is not required to

obtain a separate license for any other business activity for which

a license is required under this act except as a retail diesel

dealer or as an ~~LPG~~ alternative fuel dealer or alternative fuel

commercial user under sections 151 to 155.

~~(8) A person licensed in this state as an LPG dealer on the~~

~~effective date of this act shall be considered licensed as an LPG~~

~~dealer under this act.~~

(8) ~~(9)~~ A person who negligently violates this section is

subject to a civil penalty of $1,000.00.

(9) ~~(10)~~ A person who knowingly violates or knowingly aids and

abets another to violate this section is guilty of a felony.

Sec. 63. (1) If an application and the accompanying bond or

cash deposit, if any, are approved, the department shall issue a

license to the applicant.

(2) A licensee shall retain a copy of its license at each of

its business locations unless the department waives this

requirement.

(3) A licensee is not required to renew a license and a

license is valid unless and until it is suspended, canceled, or

revoked for cause by the department, or discontinued by the

licensee. However, the department may require a licensee to update

the information required under section 53 or 153.

(4) The department shall maintain a list containing the name

and address of each person licensed under this act. The department

may post the list on the department's website. The department shall

regularly update the list in order to reflect the current status of

a licensee.

Sec. 122. (1) A person shall not operate or maintain a motor

vehicle on the public roads or highways of this state with dyed

diesel fuel in the vehicle's fuel supply tank.

(2) This section does not apply to dyed diesel fuel used in

any of the following:

(a) A motor vehicle owned and operated or leased and operated

by the federal or state government or a political subdivision of

this state.

(b) A motor vehicle used exclusively by the American red

cross.

(d) A passenger vehicle that has a capacity of 10 or more and

that operates over regularly traveled routes expressly provided for

in 1 or more of the following that applies to the passenger

vehicle:

(i) A certificate of authority issued by the state

transportation department.

(ii) A municipal franchise.

(iii) A municipal license.

(iv) A municipal permit.

(v) A municipal agreement.

(vi) A municipal grant.

(3) An owner, operator, or driver of a vehicle who uses dyed

diesel fuel on the public roads or highways of this state is

subject to a civil penalty of ~~$200.00~~ $1,000.00 for ~~each of~~ the

first ~~2 violations within a 12-month period. For a third violation~~

~~within a 12-month period, and~~ violation, and a civil penalty of

$5,000.00 for each subsequent violation. ~~thereafter, the person is~~

~~subject to a civil penalty of $5,000.00.~~ An owner, operator, or

driver of a motor vehicle who knowingly violates the prohibition

against the sale or use of dyed diesel fuel upon the public roads

or highways of this state is subject to a civil penalty equal to

that imposed by section 6714 of the internal revenue code.

Sec. 143. (1) Except as otherwise provided in subsections (2)

and (3) and section 142, all sums of money received and collected

under this act, except for license fees, and after the payment of

the necessary expenses incurred in the enforcement of this act, are

appropriated to and shall be deposited in the state treasury to the

credit of the Michigan transportation fund.

(2) For the period beginning on October 1, 2015 and ending on

September 30, 2016, the first $400,000,000.00 received and

collected under this act is appropriated to and shall be deposited

in the state treasury to the credit of the Michigan transportation

fund and allocated as provided in section 10(1) of 1951 PA 51, MCL

247.660, and the remainder shall be allocated to indebtedness

incurred for projects described in section 11 of 1951 PA 51, MCL

247.661.

(3) For the period beginning on October 1, 2016 and ending on

September 30, 2017, the first $800,000,000.00 received and

collected under this act is appropriated to and shall be deposited

in the state treasury to the credit of the Michigan transportation

fund and allocated as provided in section 10(1) of 1951 PA 51, MCL

247.660, and the remainder shall be allocated to indebtedness

incurred for projects described in section 11 of 1951 PA 51, MCL

247.661.

(4) The money required to be allocated to indebtedness

incurred for projects described in section 11 of 1951 PA 51, MCL

247.661, under subsections (2) and (3) shall be expended on that

indebtedness no later than September 30, 2017.

Sec. 151. As used in this section and sections 152 to 155:

(a) "Alternative fuel" means a gas, liquid, or other fuel

that, with or without adjustment or manipulation such as adjustment

or manipulation of pressure or temperature, is capable of being

used for the generation of power to propel a motor vehicle,

including, but not limited to, natural gas, compressed natural gas,

liquefied natural gas, liquefied petroleum gas, hydrogen, hydrogen

compressed natural gas, or hythane. Alternative fuel does not

include motor fuel, electricity, leaded racing fuel, or an excluded

liquid.

(b) "Alternative fuel commercial user" means a commercial or

other business enterprise or entity that is a consumer or end user

of alternative fuel to propel a motor vehicle on the public roads

and highways of this state. Alternative fuel commercial user does

not include a person licensed as an alternative fuel dealer under

section 153.

or required to be licensed under section 153, that is in the

business of selling at retail alternative fuel, and that uses

alternative fuel as described in subdivision (k).

(d) "Alternative fuel filling station" means a machine or

other device located within this state that is supplied with

alternative fuel and that is designed or used for placing or

delivering alternative fuel into the fuel supply tank of a motor

vehicle. As used in this subdivision, "located within this state"

includes, but is not limited to, all of the following locations:

(i) An alternative fuel dealer's place of business.

(ii) A commercial or industrial establishment or facility.

(iii) A residence or residential property.

(iv) A landfill licensed or required to be licensed under part

115 of the natural resources and environmental protection act, 1994

PA 451, MCL 324.11501 to 324.11554.

(e) "British thermal unit" or "BTU" means the amount of heat

required to raise the temperature of 1 pound of water 1 degree

Fahrenheit.

(f) "Compressed natural gas" means a mixture of hydrocarbon

gases and vapors that consists primarily of methane in gaseous form

that has been compressed for use as a fuel to propel a motor

vehicle.

(g) "Diesel base rate" means the rate per gallon on diesel

fuel in effect for the applicable period under section 8(1).

(h) "Diesel gallon equivalent" means 1 of the following or its

metric equivalent:

(i) For compressed natural gas, 6.380 pounds.

(ii) For hydrogen, the volume or weight that is equal to

128,450 BTUs. For purposes of this subdivision, there are 27,000

BTUs per 100 standard cubic feet, and 480.11 standard cubic feet

per diesel gallon equivalent.

(iii) For hydrogen compressed natural gas, the volume or weight

that is equal to 128,450 BTUs. For purposes of this subdivision,

there are 79,800 BTUs per 100 standard cubic feet, and 162.44

standard cubic feet per diesel gallon equivalent.

(iv) For liquefied natural gas, 6.060 pounds.

(i) "Liquefied natural gas" means methane or natural gas in

the form of a cryogenic or refrigerated liquid that is suitable for

use or used as fuel to propel a motor vehicle.

(j) ~~(a)~~ "Liquefied petroleum gas" means gases derived from

petroleum or natural gases ~~which~~ that are in the gaseous state at

normal atmospheric temperature and pressure, but ~~which~~ that may be

maintained in the liquid state at normal atmospheric temperature by

suitable pressure. Liquefied petroleum gas includes ~~those~~ products

predominately composed of propane, propylene, butylene, butane, and

similar products. Liquefied petroleum gas does not include

compressed natural gas, liquefied natural gas, hydrogen, or

hythane.

~~(b) "LPG dealer" means a person who is licensed under this~~

~~chapter to use liquefied petroleum gas.~~

(k) ~~(c)~~ "Use", "used", or "uses" means any of the following:

(i) Selling or delivering ~~liquefied petroleum gas~~ alternative

fuel not otherwise subject to tax under this act, either by placing

it into a permanently attached fuel supply tank of a motor vehicle,

or exchanging or replacing of the fuel supply tank of a motor

vehicle.

(ii) Delivery of ~~liquefied petroleum gas~~ alternative fuel into

storage, devoted exclusively to the storage of ~~liquefied petroleum~~

~~gas~~ alternative fuel to be consumed in motor vehicles on the public

roads or highways of this state.

(iii) Withdrawing ~~liquefied petroleum gas~~ alternative fuel from

the cargo tank of a truck, trailer or semi-trailer for the

operation of a motor vehicle upon the public roads and highways of

this state, whether used in vapor or liquid form.

(iv) Placing or delivering alternative fuel into the fuel

supply tank of a motor vehicle by or through the operation of an

alternative fuel filling station or by any other means not

involving the delivery, receipt, or purchase of alternative fuel

from an alternative fuel dealer or any other means not otherwise

described in subparagraphs (i) to (iii).

Sec. 152. (1) A Except as otherwise provided in this section

and sections 154 and 155, a tax at a the rate ~~of 15 cents~~ per

gallon equal to the diesel base rate is imposed upon all ~~liquefied~~

~~petroleum gas~~ alternative fuel used in this state. ~~The~~ Except as

provided in section 154 or 155, the tax shall be paid at the times

and in the manner specified in this section. The tax on ~~liquefied~~

~~petroleum gas~~ alternative fuel sold or delivered either by placing

it into a permanently attached fuel supply tank on a motor vehicle,

or by exchanging or replacing the fuel supply tank of a motor

vehicle, shall be collected by the ~~LPG~~ alternative fuel dealer from

the purchaser, consumer, or end user and paid over ~~quarterly~~

monthly to the department as provided in this act. ~~Liquefied~~

~~petroleum gas~~ Alternative fuel delivered in this state into the

storage facility of any person when the exclusive purpose of the

storage facility is for resale or use in a motor vehicle on the

public roads or highways of this state, shall, upon delivery to

storage facility, be subject to tax. An ~~LPG~~ alternative fuel dealer

shall, upon delivery of the ~~liquefied petroleum gas,~~ alternative

fuel, collect and remit the tax to the department as provided in

this act. A person shall not operate a motor vehicle on the public

roads or highways of this state from the cargo containers of a

truck, trailer, or semitrailer with ~~liquefied petroleum gas~~

alternative fuel in vapor or liquid form, as applicable, except

when the alternative fuel in the liquid or vapor phase is withdrawn

from the cargo container for use in motor vehicles through a

permanently installed and approved metering device. The tax on

~~liquefied petroleum gas~~ alternative fuel withdrawn from a cargo

container through a permanently installed and approved metering

device shall apply in accordance with measured gallons or gallon

equivalents, if applicable, as reflected by meter reading, and

shall be paid ~~quarterly~~ monthly by the ~~LPG~~ alternative fuel dealer

to the department as provided in this act.

(2) The rate of tax on the following alternative fuels shall

be the diesel base rate per diesel gallon equivalent or fractional

part thereof rounded to the nearest 1/10 of 1 gallon:

(a) Compressed natural gas.

(b) Hydrogen.

(d) Liquefied natural gas.

(3) The tax imposed under this section does not apply to an

alternative fuel commercial user described in section 154(2) until

January 1, 2016.

(4) The tax imposed under this section does not apply to a

person described in section 154(3) until July 1, 2016.

Sec. 153. (1) A person shall not act as an ~~LPG~~ alternative

fuel dealer or an alternative fuel commercial user unless the

person is licensed under this act.

(2) To obtain a license as an alternative fuel dealer or an

alternative fuel commercial user, an applicant shall file with the

department an application upon a form or in a format prescribed by

the department. The application shall include the name and address

of the applicant and of each place of business to be operated by

the applicant at which ~~liquefied petroleum gas~~ alternative fuel

will be used and other information the department may reasonably

require.

(3) At the time of applying for the license, an applicant for

an alternative fuel dealer license shall pay to the department a

license fee of ~~$50.00.~~$500.00.

(4) At the time of applying for the license, an applicant for

an alternative fuel commercial user license shall pay to the

department a license fee of $50.00.

(5) ~~(4)~~ An applicant for ~~an LPG dealer~~ a license or a licensee

under this section is subject to the general licensing and bonding

requirements of this act.

~~(5) A person licensed in this state as an LPG dealer on the~~

~~effective date of this act shall be considered licensed as an LPG~~

~~dealer under this act.~~

Sec. 154. (1) For the purpose of determining the amount of tax

payable to the department, an ~~LPG~~ alternative fuel dealer shall, on

or before the twentieth day of each ~~calendar~~ month, ~~following the~~

~~close of the reporting calendar quarter,~~ file with the department

on a form or in a format prescribed by the department a report

~~which shall include~~ that includes the number of gallons or gallon

equivalents, if applicable, of ~~liquefied petroleum gas~~ alternative

fuel used by the ~~LPG~~ alternative fuel dealer during the preceding

calendar ~~quarter,~~ month, together with any other information the

department may require. An ~~LPG~~ alternative fuel dealer ~~at the time~~

~~of filing the report~~ shall pay to the department at the time of

filing the report the full amount of the tax owed.

(2) Beginning on January 1, 2016, for the purpose of

determining the amount of tax owed to the department, an

alternative fuel commercial user that uses alternative fuel as

described in section 151(k) upon which the tax imposed under

section 152 has not been collected by or paid to an alternative

fuel dealer shall, on or before the twentieth day of each month,

file with the department a report that includes the number of

gallons or gallon equivalents, if applicable, of the alternative

fuel described in this subsection that was used or consumed by the

alternative fuel commercial user during the preceding calendar

month, together with any other information the department requires.

An alternative fuel commercial user shall pay the full amount of

the tax due to the department at the time of filing the required

report.

(3) Beginning on July 1, 2016, for the purpose of determining

the amount of tax owed to the department, a person that is not an

alternative fuel dealer or an alternative fuel commercial user

shall pay the tax imposed under section 152 on alternative fuel for

which the tax has not been collected by or paid to an alternative

fuel dealer, and shall file with the department on or before the

twentieth day following the end of each quarter a form that

indicates the number of gallons or gallon equivalents, if

applicable, used or consumed by that person during the preceding

calendar quarter. A person described in this subsection shall pay

to the department the full amount of the tax due at the time of

filing the required form.

(4) Except as otherwise provided in this section, a person

that uses alternative fuel for a taxable purpose and does not pay

the tax imposed under this section shall pay to the department the

tax imposed under section 152, along with any applicable penalties

or interest, at the time and in the manner prescribed by the

department.

Sec. 155. ~~(1) Each of the following persons is entitled to a~~

~~refund of the tax on liquefied petroleum gas imposed by this act:~~

(1) ~~(a)~~ A person consuming ~~liquefied petroleum gas~~ alternative

fuel for any purpose other than ~~the operation of~~ to operate a motor

vehicle on the public roads or highways of this state may seek a

refund of the tax on alternative fuel imposed by this act,

including a refund as provided in section 45, if that person has

already paid the tax imposed under section 152 on that alternative

fuel.

~~(b) The federal government, state government, or a political~~

~~subdivision of this state consuming liquefied petroleum gas in a~~

~~motor vehicle owned and operated or leased and operated by the~~

~~federal government, state government, or political subdivision of~~

~~this state.~~

~~(c) A person consuming liquefied petroleum gas in the~~

~~operation of a passenger vehicle of a capacity of 5 or more under a~~

~~municipal franchise, license, permit, agreement, or grant, upon~~

~~which gas the tax imposed by this section has been paid.~~

(2) To obtain a refund under this section, a person shall file

a claim with the department within 18 months after the date of

purchase, as shown on the invoice and shall comply with the

requirements set forth in section 48.

(3) A claim for refund under this section shall be on a form

or in a format prescribed by the department and shall have attached

the original invoice that was provided to the purchaser.

(4) An alternative fuel is exempt from the tax imposed by this

act and the tax imposed by this act shall not be collected by an

alternative fuel dealer if any of the following apply:

(a) The alternative fuel is sold directly by an alternative

fuel dealer to the federal government, the state government, or a

political subdivision of this state for use in a motor vehicle

owned and operated or leased and operated by the federal

government, state government, or political subdivision of this

state.

(b) The alternative fuel is sold directly by an alternative

fuel dealer to a nonprofit, private, parochial, or denominational

school, college, or university and is used in a school bus owned

and operated or leased and operated by the educational institution

that is used in the transportation of students to and from the

institution or to and from school functions authorized by the

administration of the institution.

fuel supply tank of a motor vehicle used solely for noncommercial

purposes, if the aggregate capacity of the motor vehicle's fuel

supply tank does not exceed 30 gallons or the equivalent of 30

gallons.

(5) Both of the following are exempt from the tax on

alternative fuel imposed by this act:

(a) The federal government, state government, or a political

subdivision of this state consuming alternative fuel in a motor

vehicle owned and operated or leased and operated by the federal

government, state government, or a political subdivision of this

state.

(b) A nonprofit, private, parochial, or denominational school,

college, or university consuming alternative fuel in a school bus

owned and operated or leased and operated by the nonprofit,

private, parochial, or denominational school, college, or

university.

(6) ~~(4)~~ A person ~~who~~ that sells ~~liquefied petroleum gas~~

alternative fuel shall provide the purchaser with an invoice or

receipt showing the amount expressed in gallons or gallon

equivalents, as applicable, of ~~gas~~ alternative fuel purchased, the

date of purchase, and the amount of tax paid.

(7) An alternative fuel dealer that sells alternative fuel at

retail shall clearly list in plain view of the customer the price

of the alternative fuel in diesel gallon equivalents, as

applicable, on the alternative fuel filling station and any other

markings or information required by law.

(8) Except as otherwise provided in this section, a person

that uses or consumes alternative fuel for a taxable purpose and

does not pay the tax imposed under section 154 is liable for the

payment of that tax and shall pay to the department the tax imposed

under section 152 and any applicable penalties or interest, at the

time and in the manner prescribed by the department.

Enacting section 1. This amendatory act takes effect October

1, 2015.

Enacting section 2. This amendatory act does not take effect

unless Senate Joint Resolution____ or House Joint Resolution UU__

of the 97th Legislature becomes a part of

the state constitution of 1963 as provided in section 1 of article

XII of the state constitution of 1963.

Enacting section 3. This amendatory act does not take effect

unless House Bill No. 4539 of the 97th Legislature is enacted into

law.