An amendment to the Michigan Motor Fuel Tax Act to reduce the excise tax rate on diesel fuel containing at least 5% biodiesel and gasoline containing at least 70% ethanol was signed in to law on Friday, July 7th, 2006. The amendment takes effect September 1st, 2006 and can be viewed at the web site shown below.

http://www.legislature.mi.gov/documents/2005-2006/billenrolled/Senate/htm/2006-SNB-1074.htm

The tax rate for the qualifying products will be 12 cents per gallon. There are also additional licensing requirements. Anyone blending diesel and biodiesel, or gasoline and ethanol below the terminal rack will be required to obtain a Blender license.

We are in the process of revising the Motor Fuel Tax License Application and various returns to encompass the changes. New product codes will be used to report the new fuel blends. A list with the new product codes is attached.

If you use an outside vendor to file returns electronically, you will need to notify them of the changes.

Additional information will be sent out as soon as it is available. Please contact us at (517) 636-4600 if you have any questions.

Michigan Fuel Product Codes- Effective September 1, 2006