2014 House Bill 5492 / Public Act 474

Earmark some state use tax to roads

Introduced in the House

April 29, 2014

Introduced by Rep. Earl Poleski (R-64)

To earmark 1.0 percent of the revenue from the 6.0 percent state use tax to road projects (meaning one-sixth of the revenue from this tax would go to roads). See also House Bill 5459. Reportedly this would generate around $250 million annually for roads.

Referred to the Committee on Tax Policy

May 7, 2014

Reported without amendment

With the recommendation that the substitute (H-2) be adopted and that the bill then pass.

May 8, 2014

Substitute offered

The substitute passed by voice vote

Amendment offered by Rep. Jim Townsend (D-26)

To earmark part of the diverted revenue to municipal bus and transit spending.

The amendment failed by voice vote

Amendment offered by Rep. Vicki Barnett (D-37)

To earmark part of the diverted revenue to spending on road preservation projects (as opposed to building new roads, lanes, etc.).

The amendment failed by voice vote

Amendment offered by Rep. Bob Genetski (R-80)

To sunset the proposed earmark as of Sept. 30 2021.

The amendment passed by voice vote

Passed in the House 91 to 18 (details)

To earmark 1.0 percent of the revenue from the 6.0 percent state use tax to road projects (meaning one-sixth of the revenue from this tax would go to roads). See also House Bill 5459. Reportedly this would generate around $250 million annually for roads. This is one of several bills in a House road funding package that together would increase road funding by around $500 million annually, with most of the money from repurposing current tax revenue, and a relatively small amount from increased taxes and fees.

Received in the Senate

May 13, 2014

Referred to the Committee on Infrastructure Modernization

Dec. 19, 2014

Passed in the Senate 24 to 14 (details)

To exempt fuel sales from the state "use tax," and revise revenue distributions to incorporate a proposed increase of the state use tax from 6 percent to 7 seven percent. This is part of a package that represents a net tax increase of $1.945 billion, of which $1.2 billion would go to road repairs and the rest to other spending, but which is contingent on voters approving an increase in the state use and sales taxes from 6 percent to 7 percent in a May 5 election. See also House Bill 5477.

Received in the House

Dec. 19, 2014

Passed in the House 88 to 22 (details)

Signed by Gov. Rick Snyder

Dec. 31, 2014