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2004 House Bill 5920: Revise motor fuel tax liability

Public Act 472 of 2004

  1. Introduced by Rep. Jerry Kooiman (R) on May 18, 2004, to eliminate the joint and several liability between lessors and lessees of commercial trucks for the payment of the motor fuel tax. This relates to the fact that interstate trucks using Michigan highways pay a motor fuel tax and a diesel fuel tax, with a complicated system of credits and reporting intended to remove the disincentive for buying fuel in Michigan. “Joint and several liability” means that if two parties are partially liable for payment, and one does not pay his share, the other must pay the entire amount.
    • Referred to the House Transportation Committee on May 18, 2004.
      • Reported in the House on June 17, 2004.
      • Reported in the House on June 24, 2004, without amendment and with the recommendation that the bill pass.
  2. Passed 57 to 46 in the House on September 29, 2004, to eliminate the joint and several liability between lessors and lessees of commercial trucks for the payment of the motor fuel tax. This relates to the fact that interstate trucks using Michigan highways pay a motor fuel tax and a diesel fuel tax, with a complicated system of credits and reporting intended to remove the disincentive for buying fuel in Michigan. “Joint and several liability” means that if two parties are partially liable for payment, and one does not pay his share, the other must pay the entire amount.
    Who Voted "Yes" and Who Voted "No"

  3. Received in the Senate on September 30, 2004.
    • Referred to the Senate Transportation Committee on September 30, 2004.
      • Reported in the Senate on December 1, 2004, with the recommendation that the bill pass.
    • Substitute offered by Sen. Jud Gilbert (R) on December 8, 2004, to replace the previous version of the bill with one that would eliminate the joint and several liability only if the parties have a contract specifying which party is responsible. This provision would sunset on April 1, 2007. The substitute passed by voice vote in the Senate on December 8, 2004.
  4. Passed 37 to 0 in the Senate on December 8, 2004, to eliminate the joint and several liability between lessors and lessees of commercial trucks for the payment of the motor fuel tax if the parties have a contract regarding the liability specifying which party is responsible. This provision would sunset on April 1, 2007, unless the legislature acts to extend it. This relates to the fact that interstate trucks using Michigan highways pay a motor fuel tax and a diesel fuel tax, with a complicated system of credits and reporting intended to remove the disincentive for buying fuel in Michigan. “Joint and several liability” means that if two parties are partially liable for payment, and one does not pay his share, the other must pay the entire amount.
    Who Voted "Yes" and Who Voted "No"

  5. Received in the House on December 8, 2004. Passed 98 to 1 in the House on December 8, 2004.
    Who Voted "Yes" and Who Voted "No"

  6. Signed by Gov. Jennifer Granholm on December 22, 2004.

Comments

Rep. Tobocman's "no vote explanation"  by Admin003 on October 1, 2004 
Rep. Tobocman, having reserved the right to explain his protest against the passage of the bill, made the following statement:

"Mr. Speaker and members of the House:

I am voting no on this bill because the joint and severally liability for Motor Carrier Fuel Taxes makes economic sense. Motor carrier lessors are in a unique position to collect the tax with a minimal administrative cost. They can write the tax collection into their lease agreements. The State, however, is not in such a position. Considerable testimony was given at Committee that many lessees were hard to track down and find for tax collection purposes."


2004 House Bill 5920 (Revise motor fuel tax liability )  by admin on January 1, 2001 
Introduced in the House on May 18, 2004, to eliminate the joint and several liability between lessors and lessees of commercial trucks for the payment of the motor fuel tax. This relates to the fact that interstate trucks using Michigan highways pay a motor fuel tax and a diesel fuel tax, with a complicated system of credits and reporting intended to remove the disincentive for buying fuel in Michigan. “Joint and several liability” means that if two parties are partially liable for payment, and one does not pay his share, the other must pay the entire amount

The vote was 57 in favor, 46 opposed and 6 not voting

(House Roll Call 871 at House Journal 83)

Click here to view bill details.