Michigan


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Michigan Report Recommends VMT Tax

A report, prepared for the Michigan Environmental Council by the Sustainable Mobility & Accessibility Research & Transformation (SMART) at the University of Michigan, states that fuel efficient vehicles are leading to a decline in funding available for road...

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Michigan 2016 Ballot Measure Results

cents-per-gallon**

%

Alternative
Fuel Taxes

Excise tax:

  • 12 cents-per-gallon for diesel fuel containing a minimum of 5 percent biodiesel or at least 70 percent ethanol.

Note: 2015 legislation will make future changes to the taxation of alternative fuels, hybrids, and electric vehicles. New annual registration fees (beginning Jan. 1, 2017):

Hybrid vehicles:

  • $30 for vehicles weighing 8,000 pounds or less.
  • $100 for vehicles weighing over 8,000 pounds.

Electric-only vehicles (nonhybrids):

  • $100 for vehicles weighing 8,000 pounds or less.
  • $200 for vehicles weighing over 8,000 pounds.

New alternative fuel dealer license (beginning Jan. 1, 2018): $500

Increased taxes on alternative fuels (beginning Jan. 1, 2017 for commercial drivers and Jan. 1, 2018 for noncommercial drivers): Convert alternative fuels to their MFGE, based off of the energy equivalent to motor fuels.

Use: Deposited into State Treasury to the credit of the state transportation fund.

Source: Michigan Compiled Laws 207.1143, Michigan Compiled Laws 207.1008

** Variable-Rate Formula: Flat excise tax of 19 cents-per-gallon, plus an additional 6 percent general sales tax on motor fuel
purchases. Additional 4.875 cents-per-gallon- Delivery and Distribution charges & Evaporation Credit & MUSTFA fee.

Beginning Jan. 1, 2017 legislation signed into law in 2015 will increase the state gasoline and diesel taxes to 26.3 cents-per-gallon (an increase of 11.3 cents-per-gallon for diesel and 7.3 cents-per-gallon for gasoline).

Starting Jan. 1 2022, the legislation will annually adjust the state motor fuel tax rates based off of changes in inflation as reported by the Consumer Price Index.

*Federal funding percentages are from an ARTBA analysis of FHWA Highway Statistics data, total ten year average 2004-2013 from tables SF-1 and SF-2. The percent is the ratio of federal aid reimbursements to the state and total state capital outlays and is indicative of the importance of the federal aid program to state capital spending for highways and bridges. Does not include local capital spending. Federal highway reimbursements are primarily used for capital outlays, including construction, right of way and engineering, but are also used for debt service for GARVEE bonds.