Michigan Senate Passes 15.5% Gas Tax!

In a monumental vote late yesterday afternoon, the Michigan Senate passed HB 5477, a piece of legislation that would phase in a new percentage-based gasoline tax that would eventually bring the total fee to 15.5 percent of the wholesale price of fuel. This effort will raise more than $1 billion in new road investment funds.

Specifically, the bill would replace the current cents per gallon structure (19 cents per gallon on gasoline, 15 cents per gallon on diesel fuel). Under the bill, the percentage would start at 9.5 percent as of April 1, 2015; 11.5 percent on January 1, 2016; 13.5 percent on January 1, 2017; and 15.5 percent on January 1, 2018.
The bill, with substitute S-13, passed the Senate with a vote of 23-14 in favor.

This is an enormous milestone for MITA and every member of the industry. The last time legislation of this magnitude made its way through the legislative process was 1997. The events of yesterday have been 17 years in the making, and the hard work and strength of the industry was showcased as a result. All MITA members can be extremely proud of yesterday’s achievement.

The legislation is now up for consideration in the Michigan House. They can amend the proposal or potentially not even take the measure up. So the collective grassroots efforts must continue well into December. Please use this opportunity to call your representative in the Michigan House, to send them an email, or meet with them in person. Information is available at www.mi-ita.com in the Legislative section.

If you have any questions about yesterday’s vote, please do not hesitate to contact Mike Nystrom, Executive Vice President, at mikenystrom@mi-ita.com or Lance Binoniemi, VP of Government Affairs, at lancebinoniemi@mi-ita.com. Both can be reached by calling 517-347-8336.