2014 House Bill 5477 / Public Act 468

Increase gas tax

Introduced in the House

April 23, 2014

Introduced by Rep. Rob VerHeulen (R-74)

To replace the current 19-cent per gallon gas tax and 15-cent diesel tax with a 6 percent wholesale fuel tax. The tax could only rise by 5 percent per year even if the price of fuel rose faster, but if the price of fuel fell the rate could be increased to prevent any reduction in tax revenue compared to the 2014 level.

Referred to the Committee on Transportation and Infrastructure

May 7, 2014

Reported without amendment

With the recommendation that the substitute (H-1) be adopted and that the bill then pass.

May 8, 2014

Substitute offered

The substitute failed by voice vote

Substitute offered by Rep. Rob VerHeulen (R-74)

To replace the previous version of the bill with one that revises details but does not change the substance as previously described.

The substitute passed by voice vote

Amendment offered by Rep. Tom McMillin (R-45)

To cap the total revenue from the proposed tax at the amount of revenue that would have been generated under the current per-gallon gas and diesel taxes.

The amendment failed by voice vote

Passed in the House 85 to 24 (details)

To replace the current 19-cent per gallon gas tax and 15-cent diesel tax with a 6 percent wholesale fuel tax. The tax could only rise by 5 percent per year even if the price of fuel rose faster, but if the price of fuel fell the rate could be increased to prevent any reduction in tax revenue compared to the 2014 level. This is part of a House road funding package.

Received in the Senate

May 13, 2014

Referred to the Committee on Infrastructure Modernization

May 21, 2014

Reported without amendment

With the recommendation that the substitute (S-1) be adopted and that the bill then pass.

Substitute offered

To adopt a version of the bill that would replace the current 19-cent per gallon gas tax and 15-cent diesel tax with a 9.5 percent wholesale fuel tax, gradually increasing to 15.5 percent in 2018. This would represent a tax hike of $1.2 billion at current fuel prices.

The substitute passed by voice vote

June 11, 2014

Amendment offered by Sen. Vincent Gregory (D-14)

To tie-bar the bill to House Bill 4391, meaning this bill cannot become law unless that one does also. HB 4391 would increase the state earned income tax credit from an amount equal to 6 percent of the federal EITC, to 25 percent.

Consideration postponed

Substitute offered by Sen. Randy Richardville (R-17)

To adopt a version of the bill that would replace the current 19-cent per gallon gas tax and 15-cent diesel tax with a 7.0 percent wholesale fuel tax, gradually increasing to 15 percent over five years.

The substitute failed 17 to 21 (details)

Amendment offered by Sen. Bruce Caswell (R-16)

To link the bill to Senate Joint Resolution A, which proposes a Constitutional amendment to impose a 1 percent sales tax increase that would go to roads, replacing the state motor fuel and diesel taxes. If it were adopted then this bill would not go into effect.

The amendment failed by voice vote

Amendment offered by Sen. Bert Johnson (D-2)

To increase the corporate income tax to 7 percent if the bill is enacted.

The amendment failed by voice vote

Substitute offered by Sen. Randy Richardville (R-17)

To adopt a version of the bill that would replace the current 19-cent per gallon gas tax and 15-cent diesel tax with a 7.0 percent wholesale fuel tax.

The substitute failed 14 to 24 (details)

Motion to reconsider by Sen. Arlan Meekhof (R-30)

The vote by which the substitute was defeated.

The motion passed by voice vote

Substitute offered by Sen. Randy Richardville (R-17)

To adopt a version of the bill that would replace the current 19-cent per gallon gas tax and 15-cent diesel tax with a 7.0 percent wholesale fuel tax.

The substitute failed 19 to 16 (details)

Motion to reconsider by Sen. Arlan Meekhof (R-30)

Vote by which the substitute was not adopted.

The motion failed 26 to 12 (details)

June 12, 2014

Substitute offered by Sen. David Robertson (R-26)

To adopt a version of the bill that would peg the current 19 cent per gallon gas tax to inflation, allowing it to rise at the same rate as the consumer price index.

The substitute passed by voice vote

Failed in the Senate 17 to 20 (details)

Motion to reconsider by Sen. Arlan Meekhof (R-30)

To reconsider the vote by which the bill was defeated.

Consideration postponed

Nov. 13, 2014

Motion to reconsider

The motion passed by voice vote

Received

Substitute offered by Sen. Randy Richardville (R-17)

To accept the substitute version of the bill that was finally adopted by the Senate on Nov. 13.

The substitute passed 18 to 14 (details)

Passed in the Senate 23 to 14 (details)

To replace the current 19-cent per gallon gas tax and 15-cent diesel tax with a 9.5 percent wholesale fuel tax, gradually increasing to 15.5 percent in 2018. When fully phased-in this would represent a tax hike of around $1.2 billion at current wholesale fuel prices, more than doubling current fuel taxes to 41 cents per gallon.

Received in the House

Nov. 13, 2014

Dec. 4, 2014

Substitute offered by Rep. Anthony Forlini (R-24)

To adopt a version of the bill that would convert the gas tax a 19 cent per gallon levy to a 13.5 percent imposition on the wholesale price of fuel, which would be an increase of around 20 cents per gallon at current prices. However, this is linked to House Bill 4539, which exempts fuel from the 6 percent state sales tax, making the package revenue neutral, with no net tax increase.

The substitute passed by voice vote

Amendment offered by Rep. Rob VerHeulen (R-74)

To revise timing details of the bill.

The amendment passed by voice vote

Amendment offered by Rep. Tom McMillin (R-45)

To tie-bar the bill to House Bill 4539 and 5460, meaning this bill cannot become law unless those ones do also. HB 4539 would no longer impose the 6 percent sales tax on gas and diesel motor fuel sales, HB 5460 would require local road agencies to get warranties from contractors for road construction and preservation projects.

The amendment passed by voice vote

Passed in the House 58 to 51 (details)

To replace the current 19-cent per gallon gas tax and 15-cent diesel tax with a 7.5 percent wholesale fuel tax, gradually increasing to 13.5 percent over six years. When fully phased-in this would represent a tax hike of around 20 cents per gallon current wholesale fuel prices. See also House Bill 4539, which would phase out the state sales tax on fuel sales over the same period, resulting in no net tax increase. This bill is not "tie barred" to that one however, meaning it does not have to go into effect for this one to.

Received in the Senate

Dec. 9, 2014

Dec. 11, 2014

Failed in the Senate 7 to 30 (details)

To concur with the House-passed version of the bill. The vote sends the measure to a House-Senate conference committee to work out the differences.

Received

Received in the House

Dec. 11, 2014

In the Senate

Dec. 19, 2014

Passed in the Senate 23 to 15 (details)

To increase the current 19-cent per gallon gas tax to 41.7 cents, and the 15-cent diesel tax to 46.4 cents, and index these taxes to inflation. This would be partially offset by exempting fuel sales from the state sales tax (House Bill 4539). However, neither bill will go into law unless voters approve House Joint Resolution UU in a May 5, 2015 vote, which would increase the state sales tax from 6 percent to 7 percent. When combined with other tax hike bills in the package it represents a net tax increase of around $2 billion.

In the House

Dec. 19, 2014

Passed in the House 93 to 17 (details)

Signed by Gov. Rick Snyder

Dec. 31, 2014