HB-5572, As Passed Senate, October 20, 2016

SUBSTITUTE FOR

HOUSE BILL NO. 5572

A bill to amend 2000 PA 403, entitled

"Motor fuel tax act,"

by amending section 154 (MCL 207.1154), as amended by 2015 PA 176.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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

payable to the department, an alternative fuel dealer shall, on or

before the twentieth day of each month, file with the department on

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

includes the number of gallons or gallon equivalents, if

applicable, of alternative fuel used by the alternative fuel dealer

during the preceding calendar month, together with any other

information the department may require. An alternative fuel dealer

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

full amount of the tax owed.

(2) Beginning on January 1, 2017, 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(j) 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. Notwithstanding anything to the contrary in this act, an

alternative fuel commercial user may report and pay the tax imposed

under section 152 on compressed natural gas based on a gallon

equivalent equal to 6.384 pounds or 142.78 cubic feet at 60 degrees

Fahrenheit and 1 atmosphere of pressure if all of the following

conditions are met:

(a) The compressed natural gas was placed into the fuel supply

tank of a motor vehicle owned by the alternative fuel commercial

user through the use of an alternative fuel filling station.

(b) That the alternative fuel filling station described in (a)

is owned or leased by the alternative fuel commercial user, is

located at the place of business of the alternative fuel commercial

user, and is unavailable for public use.

following:

(i) Subject to the international fuel tax agreement described

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

207.212a.

(ii) Required to have a decal affixed to the cab under section

5 of the motor carrier fuel tax act, 1980 PA 119, MCL 207.215.

(iii) Operated under a trip permit issued by the department

under section 7 of the motor carrier fuel tax act, 1980 PA 119, MCL

207.217.

(3) Beginning on January 1, 2018, 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 placed into a motor vehicle fuel supply tank from an

alternative fuel filling station 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