A change in diesel tax

News AASHTO Journal December 17, 2002
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On Dec. 3, the Michigan House approved three bills to simplify the diesel-fuel tax. The bills are now on the Senate floor and are expected to be approved before the end of the year. The bills were first introduced in February and stayed in the Transportation Committee until June.

Currently in Michigan motor carriers pay 9 cents per gal on diesel fuel and an additional 12 cents per gal on quarterly tax returns. They may get 6 cents per gal rebated, putting the actual tax rate at 15 cents per gal. According to Michigan Department of Transportation figures, the 21-cent total would be lower than Wisconsin (30.3), Illinois (29.6), Indiana (27), Ohio (25) and Ontario (34.51).

Michigan's budget for the current fiscal year anticipates an additional $44 million in revenue from diesel-tax reforms to be dedicated to road and bridge repair. The diesel-tax bills originally included a 4-cent-per-gal increase that would have raised $35 million in additional revenue. That provision died in committee.

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