Signed by Governor Rick Snyder

Vote Smart's Synopsis:

Vote to adopt a conference report that increases the gasoline and diesel tax, effective October 1, 2015.

Highlights:

• Establishes a wholesale fuel tax to replace the current per-gallon fuel tax, in which the wholesale fuel tax rate for gasoline and diesel is determined by multiplying the “average wholesale price” of gasoline by 14.9 percent (Sec. 8).

• Defines “average wholesale price” as the statewide average wholesale price of gasoline which is based upon a 12-month rolling average of the wholesale price, determined by the Department of Treasury (Sec. 2).

• Requires the Department of Treasury to publish notice of the wholesale fuel tax rate no later than 30 days before the effective date of the applicable percentage rate (Sec. 8).

• Appropriates funds generated by the fuel tax to the Transportation Fund, including the following funds (Sec. 143):
• $400 million from October 1, 2015 to September 30, 2016; and
• $800 million from October 1, 2016 to September 30, 2017.

• Specifies that the remainder of funds generated by the fuel tax is appropriated to debt incurred by certain transportation projects (Sec. 143).

• Amends the tax rate for alternative fuel including, but not limited to, natural gas, liquefied petroleum gas, and hydrogen to equal the diesel tax rate (Secs. 151 & 152).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that increases the tax on gasoline and diesel fuel, effective January 1, 2015.

Highlights:

• Establishes a wholesale fuel tax to replace the current per-gallon fuel tax, in which the wholesale fuel tax rate for gasoline and diesel is determined by multiplying the “average wholesale price” of gasoline by the applicable percentage and rounding the outcome up to the nearest one-tenth of $0.01 (Sec. 8).

• Establishes the following percentages to determine the wholesale fuel tax (Sec. 2):
• 9.5 percent beginning April 1, 2015;
• 11.5 percent beginning January 1, 2016;
• 13.5 percent beginning January 1, 2017; and
• 15.5 percent beginning January 1, 2018.

• Defines “average wholesale price” as the statewide average wholesale price of gasoline which is based upon a 12-month rolling average of the wholesale price, determined by the Department of Treasury (Sec. 2).

• Limits the fluctuation of the average wholesale price according to the following measures (Sec. 2):
• If the average wholesale price increases by more than 5 percent from the previous year, then the average wholesale price is the previous year’s price multiplied by 1.05; or
• If the average wholesale price decreases by more than 5 percent from the previous year, then the average wholesale price is the previous year’s price multiplied by 0.95. 

• Requires the Department of Treasury to publish notice of the wholesale fuel tax rate no later than 30 days before the effective date of the applicable percentage rate (Sec. 8).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that increases the tax on gasoline and diesel fuel, effective January 1, 2015.

Highlights:

• Increases the diesel tax to $0.19 per gallon to match the gasoline tax, beginning October 1, 2014 (Sec. 8).

• Requires the gasoline and diesel tax rates to increase annually by the lesser amount of either the inflation rate or 5 percent, beginning October 1, 2015 (Sec. 8).

• Prohibits the gasoline and diesel tax rates from exceeding $0.325 per gallon (Sec. 8). 

• Requires the Department of Treasury to publish notice of each tax rate no later than 30 days before the effective date (Sec. 8). 

Full Bill Text