Bill Summary – FastDemocracy

HOUSE BILL NO. 6258
     December 05, 2024, Introduced by Reps. Farhat and Martus and referred to the Committee on
       Transportation, Mobility and Infrastructure.
          A bill to amend 2000 PA 403, entitled
    "Motor fuel tax act,"
    by amending section 8 (MCL 207.1008), as amended by 2015 PA 176.
                     THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
       Sec. 8. (1) 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), as
 follows:
       (i) Through December 31, 2016, 19 cents per gallon on gasoline.
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         (ii) Beginning January 1, 2017, 26.3 cents per gallon on
 gasoline.
         (iii) Beginning on the effective date of the amendatory act that
 added this subdivision, in addition to the tax levied in
 subparagraph (ii) as adjusted under subdivision (c), an additional
 19 cents per gallon on gasoline.
         (b) Except as otherwise provided in subdivision (c), as
 follows:
         (i) Through December 31, 2016, 15 cents per gallon on diesel
 fuel.
         (ii) Beginning January 1, 2017, 26.3 cents per gallon on diesel
 fuel.
         (iii) Beginning on the effective date of the amendatory act that
 added this subdivision, in addition to the tax levied in
 subparagraph (ii) as adjusted under subdivision (c), an additional
 19 cents per gallon on diesel fuel.
         (c) Beginning with the rate effective on January 1, 2022 and
 January 1 of each year thereafter, the department shall determine a
 cents-per-gallon rate on motor fuel that shall be is derived by
 multiplying the cents-per-gallon rate in effect during the
 immediately preceding calendar year by 1 plus the lesser of 0.05 or
 the inflation rate and rounding up the product to the nearest 1/10
 of a cent. For purposes of determinations under this subdivision
 after the effective date of the amendatory act that added
 subsection (1)(a)(iii), the cents-per-gallon rate in effect during
 the immediately preceding calendar year is the sum of the
 following:
         (i) The rate provided in subdivision (a)(ii) or (b)(ii), as
 applicable, as previously adjusted under this subdivision.
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        (ii) The rate provided in subdivision (a)(iii) or (b)(iii), as
 applicable, as previously adjusted under this subdivision.
        (2) Tax shall is not be imposed under this section on motor
 fuel that is in the bulk transfer/terminal system.
        (3) The collection, payment, and remittance of the tax imposed
 by this section shall must be accomplished in the manner and at the
 time provided for in this act.
        (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 must
 be measured annually and shall apply applies 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.
        (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.
        (c) To allow persons who pay the tax imposed by this act and
 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.
        (6) Bills of lading and invoices shall must identify the
 blended product and the correct fuel product code. The motor fuel
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 tax rate for each product shall must be listed separately on each
 invoice. Licensees shall report the correct fuel product code for
 the blended product as required by the department. When If fuel is
 blended below the terminal rack, new bills of lading and invoices
 shall must be generated and submitted to the department upon on
 request. All bills of lading and invoices shall must meet the
 requirements provided under of this act.
         (7) Notwithstanding any other provision of this act, a
 facility in this state that produces motor fuel and distributes the
 fuel from a rack for purposes of this act is a terminal, shall
 obtain a terminal operator license, and shall comply with all
 terminal operator reporting requirements under this act. A position
 holder in a facility shall be licensed as a supplier and shall
 comply with all supplier requirements under this act.
         (8) Beginning with the rate in effect on January 1, 2022 and
 January 1 of each year thereafter, the department shall publish
 notice of the tax rate determined under this section subsection
 (1)(c) not later than 30 days before the effective date of the
 rate.
         (9) A determination by the department of the consumer price
 index, Consumer Price Index, the inflation rate, or the tax rate
 under this section is presumed correct and shall must not be set
 aside unless an administrative tribunal or a court of competent
 jurisdiction finds the department's determination to be clearly
 erroneous.
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Statutes affected: 
House Introduced Bill: 207.1008