REVISE MOTOR CARRIER FUEL TAX CREDIT
House Bill 4882
Sponsor: Rep. Keith Stallworth
Committee: Transportation
Complete to 9-10-01
A SUMMARY OF HOUSE BILL 4882 AS INTRODUCED 6-5-01
House Bill 4882 would amend the Motor Carrier Fuel Tax Act to revise the motor carrier fuel tax credit for commercial motor vehicles, and to allow for the reimbursement to local units of government for lost transportation revenue to be paid over a 25-year period.
Currently a motor carrier may credit against the tax imposed by the tax act on each quarterly return that is filed an amount equal to six cents per gallon of the sales tax paid on diesel fuel that was purchased in Michigan during the preceding calendar quarter. House Bill 4882 would provide for the amount of these credits to be transferred from the general fund to the Michigan Transportation Fund (MTF). Further, the bill appropriates an amount equal to the sum of the credits granted for each quarter from the general fund to the MTF not less than 30 days after the preceding calendar quarter.
Further, in order to reimburse local units of government (county road commissions or the designated county road agency in a county that does not have a road commission, cities, and villages) for revenue lost to the MFT because of the fuel credit before the effective date of the bill, the sum of $5 million would be appropriated each fiscal year from the general fund, beginning with the fiscal year ending September 30, 2002 and ending the with fiscal year ending September 30, 2027. From that annual appropriation, the Department of Treasury would be required to distribute 64.2 percent to the county road commissions of the state (or the designated county road agency in the county that does not have a road commission), to be used as provided in section 12 of Public Act 51 of 1951 (the Michigan Transportation Act), and also to distribute 35.8 percent to the cities and villages of the state to be used as provided in section 13 of the Michigan Transportation Act
MCL 207.214
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This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.