Introduced by Rep. Rob VerHeulen (R) on May 14, 2015
To increase the current 15 cents per gallon diesel fuel tax to 19 cents per gallon, and index future diesel and gasoline tax rates to inflation. Also, to tax natural gas and other “alternative fuels” burned by vehicles at an equivalent rate. This is part of a House package that by 2019 generates $1.163 billion more for road repairs by reprioritizing current spending, except for this bill's $78 million tax increase. Official Text and Analysis.
Referred to the House Roads and Economic Development Committee on May 14, 2015
Reported in the House on June 4, 2015
With the recommendation that the substitute (H-1) be adopted and that the bill then pass.
To increase the current gasoline and diesel fuel tax to 34 cents per gallon by Jan. 1, 2017, an increase of 15 cents and 19 cents, respectively. The increase would come in three steps, and the tax would then be indexed to inflation. When combined with the 6 percent sales this would give Michigan the second highest gas tax in the nation, and one 15 cents higher than nearby states. The bill would also tax natural gas and other “alternative fuels” burned by vehicles at an equivalent rate.
To concur with the Senate-passed version of the bill. The vote sends the measure to a House-Senate conference committee to work out the differences .
This committee of three members each from the House and Senate is charged with crafting a compromise between different road funding bills passed by each body. The Senate version increases the 19 cent gas tax and 15 cent diesel tax to 34 cents per gallon. The House version only increases the diesel tax, by 4 cents per gallon. Both bodies propose earmarking a portion of state income tax collections to road repairs. The House version compensate for the funding shift by spending less on corporate welfare and social welfare programs