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
Voters in over a dozen Michigan counties and towns approved measures to renew or increase local property taxes to support transportation investment by an average rate of 66 percent. The specific measures and results include: Suburban Mobility Authority for Regional...read more
Today many Michigan residents will decide on funding for local transit agencies throughout the state. Several cities and counties throughout the state have measures on the August 5 ballot to renew or increase property taxes to support regional bus agencies. Suburban...read more
Last week Michigan lawmakers failed to pass a significant transportation funding bill that would have generated an estimated $450 million towards maintaining and modernizing the state’s transportation infrastructure. House Bill 5477 was introduced in April 2014 as...read more
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...read more
A package of bills that would provide more than $400 million for infrastructure funding advanced through two committees in the Michigan House yesterday. The House Tax Policy Committee approved legislation that would shift an estimated $370 million in sales and use tax...read more
Michigan 2016 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.