June 6, 2017, Introduced by Rep. Wentworth and referred to the Committee on Tax Policy.
A bill to amend 2000 PA 403, entitled
"Motor fuel tax act,"
by amending section 2 (MCL 207.1002), as amended by 2015 PA 176.
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) "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.
(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.
(d) "Blender" means and includes any person who produces
blended motor fuel outside of the bulk transfer/terminal system.
(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.
(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.
(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withdrawn by a tank wagon, a transport truck, or a marine vessel.
(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.
(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.
(j) "Carrier" means an operator of a pipeline or marine vessel
engaged in the business of transporting motor fuel above the
terminal rack.
(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.
(l) "Consumer price index" means United States consumer price
index for all urban consumers as defined and reported by the United
States Department of Labor, Bureau of Labor Statistics.
(m) "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.
(n) "Denaturants" means 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.
(o) "Department" means the department of treasury or its
designee.
(p) "Destination state" means a state, Canadian province or
territory, or foreign country to which motor fuel is directed for
export.
(q) "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. Diesel fuel
does not include number 5 fuel oil, number 6 fuel oil, and fuel
oils commonly sold or referred to as bunker fuel, bunker C, or navy
special, as determined by the department.
(r) "Dyed diesel fuel" means diesel fuel that is dyed in
accordance
with internal revenue service Internal
Revenue Service
rules
or pursuant to any other internal revenue service Internal
Revenue Service requirements, including any invisible marker
requirements.
(s) "Eligible purchaser" means a person who has been
authorized by the department under section 75 to make an election
under section 74.
(t) "Excluded liquid" means that term as defined in 26 CFR
48.4081-1.
(u) "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.
(v) "Exporter" means a person who exports motor fuel.