Maryland HB 627: Motor Fuel Tax Refund - Demand Response Trips

Bill Text

LAWRENCE J. HOGAN, JR., Governor Ch. 522

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Chapter 522
(House Bill 627)

AN ACT concerning

Motor Fuel Tax Refund – Demand Response Trips

FOR the purpose of adding certain vehicles used to provide certain services to those vehicles
that qualify for a certain motor fuel tax refund; limiting the amount of a motor fuel
tax refund for certain vehicles used to provide certain services to a certain percentage
of motor fuel tax paid; defining a certain term; and generally relating to claims for
motor fuel tax refunds.

BY repealing and reenacting, with amendments,
Article – Tax – General
Section 13–101 and 13–901(f)
Annotated Code of Maryland
(2016 Replacement Volume)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:

Article – Tax – General

13–101.

(a) In this title the following words have the meanings indicated.

(b) (1) “DEMAND RESPONSE TRIP” MEANS THE CARRIAGE OF A
PASSENGER WHO IS UNABLE TO USE REGULAR SCHEDULE, FIXED TERMINI
SERVICES.

(2) “DEMAND RESPONSE TRIP” INCLUDES A TRIP THAT IS REQUIRED
UNDER THE FEDERAL AMERICANS WITH DISABILITIES ACT.

(C) “Governmental unit” means:

(1) this State or a political subdivision, unit, or instrumentality of this
State;

(2) another state or a political subdivision, unit, or instrumentality of that
state; and

(3) a unit or instrumentality of a political subdivision of this State or of
another state.

Ch. 522 2017 LAWS OF MARYLAND

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[(c)] (D) (1) “Tax collector” means the person or governmental unit
responsible for collecting a tax.

(2) “Tax collector” includes:

(i) the Comptroller;

(ii) the Department, with respect to:

1. the financial institution franchise tax; and

2. the public service company franchise tax; and

(iii) the registers of wills, with respect to the inheritance tax.

13–901.

(f) (1) Except as provided in paragraph (3) of this subsection, a claim for
refund of motor fuel tax may be filed by a claimant who pays the tax on:

(i) aviation fuel, as defined in § 9–101 of this article, that is:

1. dispensed to aircraft by an aircraft manufacturing
company located in the State; or

2. used:

A. by a person who engages in agricultural activities; and

B. in an aircraft that is used for agricultural purposes at least
70% of the time that the aircraft is used; or

(ii) motor fuel, as defined in § 9–101 of this article, that:

1. is used to operate:

A. a bus that is used only in the operation of a transportation
system of a political subdivision of the State to transport the public on regular schedules
between fixed termini, as defined in Title 11 of the Transportation Article;

B. farm equipment that is used for an agricultural purpose
and is not registered to operate on a public highway;

C. fire or rescue apparatus or vehicles by a volunteer fire
company or nonprofit volunteer rescue company incorporated in the State;

LAWRENCE J. HOGAN, JR., Governor Ch. 522

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D. an internal combustion engine that is installed
permanently at a fixed location; [or]

E. a vehicle that is owned and used by a Maryland chapter of
the American Red Cross or a bona fide unit of a national veterans’ organization; OR

F. A VEHICLE THAT IS USED ONLY IN THE OPERATION OF
A TRANSPORTATION SYSTEM OF A POLITICAL SUBDIVISION OF THE STATE TO
TRANSPORT THE PUBLIC ON DEMAND RESPONSE TRIPS;

2. is bought by:

A. the United States or a unit of the United States
government;

B. the Department of General Services for use by State
agencies;

C. a county board of education for use in a school bus owned
by a county board of education;

D. a school bus operator under contract with a county board
of education for use in a school bus used to transport the county’s public school students; or

E. a person who is required to pay a tax on the same fuel to
another state;

3. except for any operation of a motor vehicle on a public
highway in the State, is used for a commercial purpose, including:

A. the operation of a vessel used only for commercial
purposes;

B. commercial cleaning; or

C. commercial dyeing;

4. is used in any of the following vehicles that have pumping
or other equipment mechanically or hydraulically driven by the engine that propels the
vehicle:

A. a concrete mixing motor vehicle or concrete pump truck;

B. a motor fuel delivery vehicle;

Ch. 522 2017 LAWS OF MARYLAND

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C. a solid waste compacting vehicle;

D. a well–drilling vehicle; or

E. farm equipment registered as a vehicle for highway use
that is designed or adapted solely and used exclusively for bulk farm spreading of
agriculture liming materials, chemicals, or fertilizer;

5. is used by a system of transportation based in the State,
in a vehicle that is used to provide transportation to elderly or low income individuals, or
individuals with disabilities, if the system is operated by a nonprofit organization for
purposes relating to the charge for which the nonprofit organization was established and
the nonprofit organization:

A. is exempt for