SENATE BILL No. 488

May 17, 2001, Introduced by Senator BULLARD and referred to the Committee on Finance.

A bill to amend 1945 PA 327, entitled

"Aeronautics code of the state of Michigan,"

by amending section 203 (MCL 259.203), as amended by 2000 PA

404.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 Sec. 203. (1) There is hereby imposed a privilege tax of 3

2 cents per gallon on all fuel sold or used in producing or gener-

3 ating power for propelling aircraft using the aeronautical facil-

4 ities on the lands and waters of this state. The tax shall be

5 collected and remitted in the same manner and method and at the

6 same time as prescribed by law for the collection of the gasoline

7 tax imposed on all gasoline used in producing or generating power

8 for propelling motor vehicles used upon the public highways of

9 this state under the motor fuel tax act. A refund of 1 1/2 cents

10 per gallon shall be made to airline operators who show proof

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1 within 6 months after purchase that they are operating interstate

2 on scheduled operations AND TO AIR CARRIERS. AS USED IN THIS

3 SUBSECTION, "AIR CARRIERS" MEANS ENTITIES ENGAGED IN THE COMMER-

4 CIAL TRANSPORT FOR HIRE OF CARGO OR PASSENGERS OR A COMBINATION

5 OF CARGO AND PASSENGERS.

6 (2) If a person required to register with the department of

7 treasury under section 94 of the motor fuel tax act is not regis-

8 tered, the person shall not purchase fuel under this act at the

9 rate imposed by subsection (1), but shall pay the applicable rate

10 imposed on motor fuel by section 8 of the motor fuel tax act.

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