Notice: Treasury Rescinds Letter Ruling 2013-2

NOTICE: TREASURY RESCINDS LETTER RULING 2013-2

(Motor Fuel Tax Act)

Issued: August 10, 2020

Revenue Administrative Bulletin 2016-20 explains that the Department may revoke a letter ruling when the legal basis, upon which the letter ruling was issued, is no longer correct.  This may result from a legislative amendment, or an appellate court decision having precedential effect, that repeals or substantively changes the underlying statutory authority for the letter ruling.   

With the enactment of 2015 PA 176, effective January 1, 2017, compressed natural gas (CNG) and liquefied natural gas (LNG) were added to the list of taxable fuels subject to the excise tax levied under the Motor Fuel Tax Act, 2000 PA 403, MCL 207.1001 et seq. (MFTA). 

Under MCL 207.1151(a), CNG and LNG constitute types of “alternative fuel” subject to the MFTA tax levied under MCL 207.1152, 207.1154 and/or 207.1155.  Accordingly, the conclusion under Letter Ruling 2013-2 that “neither CNG nor LNG is subject to the taxes imposed under the [MFTA]” is no longer correct.

For the reasons described above, the Department rescinds Letter Ruling 2013-2.  Notwithstanding the date of this Notice, with the enactment of 2015 PA 176, Letter Ruling 2013-2 was no longer in effect (and could not be relied upon by taxpayers) after December 31, 2016.