The bill amends the Motor Carrier Fuel Tax Act to establish a new tax structure for motor carriers operating on Michigan's public roads and highways. It introduces a privilege tax on motor fuel, alternative fuel, and electric fuel, setting the tax rate at 15 cents per gallon for motor fuel, with similar provisions for alternative and electric fuels. Key changes include the insertion of definitions for "electric fuel" and "alternative fuel," and a requirement for motor carriers to calculate their tax obligations based on the type of fuel consumed. The bill also allows for reciprocal agreements with other jurisdictions regarding fuel taxes and mandates the department to create rules for implementing these agreements. Additionally, it clarifies licensing requirements for motor carriers, including the need for a surety bond and the issuance of decals for qualified commercial motor vehicles.

Furthermore, the bill modifies existing laws concerning the tax liabilities of lessors and lessees of qualified commercial motor vehicles. It permits licensed motor carriers to file consolidated reports when leasing vehicles from multiple lessors and clarifies joint responsibility for tax obligations incurred before April 1, 2005. For tax liabilities arising after this date, the bill stipulates that if a lease agreement designates a responsible party for tax payments, the nonresponsible party must retain documentation of the responsible party's valid international fuel tax agreement registration. Failure to obtain this documentation will result in joint liability if the responsible party defaults. The bill also mandates that motor carriers maintain records of all fuel transactions for a minimum of four years, ensuring compliance and efficient administration of fuel taxes.

Statutes affected:
House Introduced Bill: 207.211