July 23, 2008, Introduced by Rep. Knollenberg and referred to the Committee on Transportation.
A bill to provide for a specific tax on motor fuel by certain
counties; to describe powers of certain counties and state
agencies; and to authorize direct local elections pertaining to
specific motor fuel taxes.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"county motor fuel tax act".
Sec. 2. No county shall impose a specific tax on motor fuels
except as provided under this act. Beginning January 1, 2009, a
county that has obtained direct voter approval under section 25 of
article IX of the state constitution of 1963 may impose a specific
tax on motor fuel sold or used in the county or counties. In
addition to any other requirements imposed by law, the ballot
question that proposes the authorization of the tax shall
specifically state how the proceeds of the tax are distributed. The
rate of tax imposed under this act shall be up to 3 cents per
gallon of motor fuel if a single county is imposing the tax. Two
adjacent counties may combine to impose a tax of up to 5 cents per
gallon, and 3 adjacent counties may combine to impose a tax of up
to 7 cents per gallon. If 2 or more adjacent counties combine to
impose taxes higher than 3 cents per gallon, they shall enter into
a contract that sets forth agreements on the use and distribution
of revenue and the procedure the counties will use to determine
projects that will be funded. The adjacent counties may provide for
additional agreements in a contract entered into under this
section.
Sec. 3. The governing body of a county or counties may provide
a means of collection of the tax. The tax collected shall be
deposited into the Michigan transportation fund for use in road
construction, preservation, and maintenance, public transportation
and related infrastructure, and nonmotorized transportation
infrastructure as approved by the voters in the county or counties
where the tax was collected.
Sec. 4. A county or counties that impose a tax on motor fuel
under this act may enter into an agreement with the department of
treasury, under which the department of treasury shall administer,
enforce, and collect the county income tax on behalf of the county.
Sec. 5. As used in this act, "motor fuel" means that term as
defined in section 4 of the motor fuel tax act, 2000 PA 403, MCL
207.1004.