Motor Carrier Fuel Tax Act (ACT 119 of 1980)

The Motor Carrier Fuel Tax Act, PA 119 of 1980, was amended on September 1, 2006.

The amendment reduces the fuel tax rate for diesel fuel containing at least 5% biodiesel to 12 cents per gallon and is effective 9/1/06.

The IFTA tax rate table will be changed for the 3rd quarter of 2006. Biodiesel will be added as a new fuel type with a fuel tax rate of 12 cents per gallon plus the use tax rate of 16.2 cents per gallon. The combined tax rate for biodiesel for the 3rd quarter 2006 is 28.2 cents per gallon. The new rate for biodiesel applies only to fuel purchased and consumed between September 1st and September 30th on the 3rd quarter 2006 return. Carriers who purchased biodiesel in July and August 2006 will report it on the schedule for regular diesel.

Additional information will be sent out as soon as it is available. Please contact us at (517) 636-4580 if you have any questions.

Rate Change Notice for Biodiesel Fuel Consumption Effective September 1, 2006

Motor Carrier Act

Effective April 1, 2003 PA 119 of 1980 was also amended. Also see related Revenue Equalization Act. Intrastate motor carriers will no longer be required to obtain a Motor Carrier license, fuel decals or file quarterly reports. Licensing for IFTA carriers will not change however, the Supplemental Motor Carrier Tax Report (form 3240) has been eliminated for file periods after March 2003.