Michigan Laws 207.1084 – Tax liability of terminal operator
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(1) The terminal operator of a terminal in this state is jointly and severally liable with the supplier for the tax imposed under section 8 and shall remit payment to this state within 30 days after discovering either of the following conditions:
(a) The owner of the motor fuel is a person other than the terminal operator and is not a licensed supplier.
Terms Used In Michigan Laws 207.1084
- 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. See Michigan Laws 207.1002
- Dyed diesel fuel: means diesel fuel that is dyed in accordance with internal revenue service rules or pursuant to any other internal revenue service requirements, including any invisible marker requirements. See Michigan Laws 207.1002
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- In this state: means the area within the borders of this state, including all territories within the borders owned by, held in trust by, or added to the United States of America. See Michigan Laws 207.1003
- Motor fuel: means gasoline, diesel fuel, kerosene, a mixture of gasoline, diesel fuel, or kerosene, or a mixture of gasoline, diesel fuel, or kerosene and any other substance. See Michigan Laws 207.1004
- Person: means and includes an individual, cooperative, partnership, firm, association, limited liability company, limited liability partnership, joint stock company, syndicate, and corporation, both private and municipal, and any receiver, trustee, conservator, or any other officer having jurisdiction and control of property by law or by appointment of a court other than units of government. See Michigan Laws 207.1004
- Rack: means a mechanism for delivering motor fuel from a refinery, a terminal, or a marine vessel into a railroad tank car, a transport truck, a tank wagon, the fuel supply tank of a marine vessel, or other means of transfer outside of the bulk transfer/terminal system. See Michigan Laws 207.1005
- removed: means a physical transfer other than by evaporation, loss, or destruction of motor fuel from a terminal, manufacturing plant, customs custody, pipeline, marine vessel, or refinery that stores motor fuel. See Michigan Laws 207.1005
- state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories belonging to the United States; and the words "United States" shall be construed to include the district and territories. See Michigan Laws 8.3o
- Tax: means a tax, interest, or penalty levied under this act. See Michigan Laws 207.1006
- Terminal: means a motor fuel storage and distribution facility that meets all of the following requirements:
(i) Is registered as a qualified terminal by the internal revenue service. See Michigan Laws 207.1006Terminal operator: means a person who owns, operates, or otherwise controls a terminal. See Michigan Laws 207.1006
(b) In connection with the removal of diesel fuel that is not dyed diesel fuel, the terminal operator provides any person with a bill of lading, shipping paper, or similar document indicating that the diesel fuel is dyed diesel fuel.
(2) A terminal operator shall be relieved of liability under subsection (1)(a) if it establishes all of the following:
(a) The terminal operator has a valid terminal operator’s license.
(b) The terminal operator has a copy of the Michigan supplier license from the supplier as required by this act.
(c) The terminal operator has no reason to believe that any information on the Michigan supplier license is false.
(3) A terminal operator is liable for the tax imposed by this act which is not allocable to any licensed supplier, including, but not limited to, motor fuel that is lost or unaccounted for. However, the terminal operator is not liable for the tax if it can establish by substantial evidence that the motor fuel lost was dyed diesel fuel that was dyed before receipt by the terminal operator.
(4) A collection allowance or a deduction shall not be allowed with respect to payment of the tax under this section.
(5) If the number of gallons of motor fuel lost or unaccounted for exceeds 5% of the total gallons removed from that terminal across the rack, the terminal operator shall, in addition to paying the tax that is due, pay a penalty of 100% of the tax otherwise due with the annual report under section 83.
(6) The terminal operator shall remit the tax and any penalties or interest that is due with the annual report required under section 83.
(7) A terminal operator who fails to meet the shipping paper requirements set forth in this act is subject to a civil penalty of $1,000.00 for the first occurrence. For each subsequent violation, the terminal operator is subject to a civil penalty of $5,000.00.