(1) If an exporter diverts motor fuel removed from a terminal in this state from an intended destination outside this state as shown on the terminal-issued shipping papers to a destination within this state, the exporter shall obtain a fuel diversion number and pay to the department the tax imposed on that motor fuel by section 8.
  (2) An exporter required to pay tax under this section shall provide notice and pay the tax upon the same terms and conditions as if the exporter were an occasional importer licensed under section 76 without deduction for the allowances provided by section 14.

Terms Used In Michigan Laws 207.1087

  • Bulk plant: means a motor fuel storage and distribution facility that is not a terminal and from which motor fuel may be withdrawn by a tank wagon, a transport truck, or a marine vessel. See Michigan Laws 207.1002
  • Department: means the department of treasury or its designee. See Michigan Laws 207.1002
  • Export: means to obtain motor fuel in this state for sale or other distribution outside of this state. See Michigan Laws 207.1002
  • Exporter: means a person who exports motor fuel. See Michigan Laws 207.1002
  • Importer: means a person who imports motor fuel into this state. See Michigan Laws 207.1003
  • 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
  • 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 207.1006
  (3) For purposes of this section, an exporter who has purchased motor fuel from a licensed supplier may enter into an agreement with the supplier to permit the supplier to assume the exporter’s liability and adjust the exporter’s taxes that are payable to the supplier. The supplier shall provide a copy of the agreement to the department at the time the supplier files its monthly report. The agreement shall include at a minimum the following information:
  (a) The names of the parties to the agreement.
  (b) The date the agreement was entered into.
  (c) The type of motor fuel involved.
  (d) The number of gallons of motor fuel involved.
  (4) If an exporter withdraws and exports from a bulk plant in this state motor fuel as to which the tax imposed by this act has previously been paid or accrued, the exporter may apply for and the state shall issue a refund of the tax upon a showing of proof of export and payment of the tax satisfactory to the department.
  (5) If a diversion from a destination in this state to another state does not violate state or federal law, the diversion relief provisions set forth in section 108 shall apply and an unlicensed exporter diverting the product may apply for a refund from the department as provided in this act. The allowance provided for in section 14 shall be deducted from the refund allowed under this subsection.
  (6) A licensee required to file a report under this act may take a credit for diversions directed by that licensee for its own account.
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