by Carolyn Kramer, Transportation Investment Advocacy Center Manager A new analysis of eight states that passed legislation to increase their state motor fuel taxes in 2015 to pay for important new transportation improvements shows that 98 percent of Republican and...read more
Four states express transportation funding concerns, while one organization proposes a solution to their state's transportation funding shortfall. Facing concerns that the state legislature will not reach a long-term transportation funding agreement this session, the...read more
Preliminary election results show that voters approved $7 million in transportation funding on local ballots in two states March 8. Two additional ballots failed to pass voter consideration. In Michigan, three townships voted on transportation funding increases....read more
Forty-four bills to increase transportation funding have been considered in 23 states so far in the 2016 legislative session, according to an updated report from the Transportation Investment Advocacy Center. Of those considering methods to increase transportation...read more
The TIAC staff researches and prepares detailed case studies of recent successful—and unsuccessful—state and local legislative and ballot initiative campaigns aimed at increasing transportation infrastructure investment. For each case, the studies dig into the...read more
After a measure to increase transportation revenue failed to be approved by voters, Michigan lawmakers passed legislation in November 2015 to increase the state gasoline and diesel fuel taxes to 26.3 cents-per-gallon; tax alternative fuels at the state motor fuel tax...read more
Michigan Gov. Rick Snyder (R) signed into law Nov. 10 an increase in the state’s motor fuel taxes and vehicle registration fees as part of a comprehensive $1.2 billion plan to fund the state’s transportation infrastructure. Beginning in 2017, the plan will: Increase...read more
Preliminary Nov. 3 election results show voters in eight states approved 26 of 37 (70 percent) state or local referendums to increase transportation funding, according to an analysis by the American Road & Transportation Builders Association’s “Transportation...read more
The Michigan House of Representatives passed a transportation funding plan on Oct. 21 that could generate an estimated $1.2 billion per year. If approved by the Senate and Gov. Rick Snyder (R), the proposal would gradually increase the state diesel tax by 7.3...read more
The Michigan Senate approved a plan July 1 to increase the state gas tax by 15 cents-per-gallon—implemented gradually over three years—and redirect revenue from the general fund to generate $1.5 billion per year in transportation funding. The proposal also includes a...read more
Michigan Senate GOP leadership is considering submitting a proposal to increase the state gas tax by 15 cents-per-gallon, implemented gradually over three years, and redirect revenue from the general fund to generate over $1 billion per year in transportation funding....read more
Michigan residents on May 5 failed to approve a ballot measure that would have resulted in an annual increase of $1.2 billion for highway and bridge investment and $130 million for transit and rail improvements. Transportation Investment Advocacy Center staff also...read more
The Transportation Investment Advocacy Center’s second 2015 report on state transportation legislation is now available. 21 states are currently considering transportation funding legislation, with more expected as the year progresses. TIAC staff have tracked 48...read more
The Michigan legislature December 19 approved a ballot measure for May 2015 that would result in an annual increase of $1.2 billion for highway and bridge investment and $112 million for transit and rail improvements. The ballot measure would eliminate the current...read more
The Michigan Senate November 13 voted to replace the state’s 19 cents-per-gallon motor fuels tax with a 9.5 percent sales tax on the wholesale price of gasoline, gradually increasing to 15.5 percent by January 2018. House Bill 5477 could generate an additional $765.3...read more
Michigan Ballot Measure Results
- 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):
- $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.