Michigan Senate Okays GAS TAX HIKE!!!! LANSING – The Michigan Senate voted Thursday to sharply increase gas taxes over the next four years to potentially raise more than $1 billion annually to fix the states crumbling roads and bridges. If you live in Michigan and think gas prices have finally settled or ever thought how low they are during election season only to see them shoot up after its over with, but found your self surprised this year that it did no happen, well buckle your seat belt, get your phone ready and call your congress man. A reporter named Jonathan Oosting recently tried to enlighten us with the following information: Michigan motorists already pay one of the nations highest effective tax rates on fuel and could be asked to pay even more at the pump under a road funding model proposed by Gov. Rick Snyder. The governor, in his fiscal-year 2014 executive budget released last week, called for $1.2 billion a year in new funding to keep old roads from going from bad to worse. By investing $12 billion over the next decade, he told lawmakers, the state can avoid a $25 billion bill. To reach that goal, Snyder proposed a wholesale tax on gasoline and diesel fuel at the equivalent rate of 33-cents per gallon over the next two years, followed by a floating rate designed to keep pace with market conditions. Additionally, he proposed increasing annual registration fees by 60 percent on light vehicles and 25 percent on heavy trucks and trailers. With that in mind, MLive took a closer look at Michigans current gas tax structure, as described by the House Fiscal Agency, exploring why our roads are getting worse even as motorists here pay more in at-pump taxes than in many other states. Part of the reason, according to Lance T. Binoniemi of the Michigan Infrastructure and Transportation Association, is that the state collects sales tax on fuel but does not earmark any of that revenue for roads. Its the biggest public policy problem we have, Binoniemi said today during a joint session of the Senate and House transportation committees. The general public does not understand that the 6 percent tax does not go to funding roads and bridges. When you include that sales tax, we probably do have one of the highest (gas tax rates) in the nation. Below, youll find the different costs that would result in $4 per gallon of gasoline, a nice round number that also happens to be a projected reality. Base retail price: $3.41 Notes: This is a hypothetical base price that a motorist would pay for a gallon of gasoline absent any state or federal taxes. Federal fuel tax: 18 cents Running cost: $3.59 Notes: The federal government imposes an 18.4-cent per gallon excise tax on gasoline and a 24.4-cent tax on each gallon of diesel. The U.S. Department of Treasury collects the taxes from fuel suppliers, not retailers. The revenue goes toward the Federal Highway Trust Fund, which is redistributed to states for highway and public transportation projects. State sales tax: 22 cents Running cost: $3.81 Notes: Michigan is amongst a handful of states that levies a sales tax on motor fuel sales, but it does not dedicate any of that revenue to road funding. Most Michigan sales tax is constitutionally earmarked for schools and revenue sharing, while a small amount collected from fuel and automotive products is statutorily earmarked for public transportation. State law currently requires retailers to pre-pay sales tax on gasoline based on a projected per-gallon cost set quarterly (and soon, monthly) by the state Treasury. Those rates are based on the price after the federal excise tax but before the state excise tax. So in this hypothetical case, the state would impose a 6 percent sales tax on $3.59. State gasoline tax: 19 cents Total cost: $4.00 Notes: On top of other costs, Michigan currently imposes a 19-cent per gallon excise tax on gasoline, last updated in 1997, and a 15-cent per gallon excise tax on the in-state use or purchase of diesel, established in 1980. MDOT says that state fuel tax revenue, which is dedicated exclusively to road and transportation funding, has been falling since 2004 as a result of inflation and increasingly-efficient vehicles. THINK YOUR PAYING ENOUGH AT THE PUMPS? WANT TO SEE AN INCREASE IN YOUR GROCERY BILL, YOUR HEATING COST, YOUR RETAILERS? THINK THE MERCHANTS ARE NOT GOING TO PASS THIS INCREASE ONTO YOU? THINK AGAIN MY FRIEND!!!! Below is a list of how your representatives voted . I urge call you to them and tell them how you feel about what they are trying to do. How they voted on the gas tax hike Yes Jim Ananich, D-Flint; Steve Bieda, D-Warren, Darwin Booher, R-Evart; Tom Casperson, R-Escanaba, Judy Emmons, R-Sheridan; Vince Gregory, D-Southfield; Goeff Hansen, R-Hart; Morris Hood, D-Detroit; Tupac Hunter, D-Detroit; Bert Johnson, D-Highland Park; Roger Kahn, R-Saginaw; Mike Kowall, R-White Lake; Jim Marleau, R-Lake Orion; Arlan Meekhof, R-West Olive; Mike Nofs, R-Battle Creek; John Pappageorge, R-Troy; Randy Richardville, R-Monroe; Tonya Schuitmaker, R-Lawton; Virgil Smith, D-Detroit; Howard Walker, R-Traverse City; Rebekah Warrren, D-Ann Arbor; Gretchen Whitmer, D-East Lansing; and Coleman Young, D-Detroit. No Glenn Anderson, D-Westland; Jack Brandenburg, R-Harrison Township; Bruce Caswell, R-Hillsdale; Pat Colbeck, R-Canton; Mike Green, R-Mayville; Dave Hildenbrand, R-Lowell; Hoon-Yung Hopgood, D-Taylor; Joe Hune, R-Hamburg; Mark Jansen, R-Grand Rapids; Rick Jones, R-Grand Ledge; Phil Pavlov, R-St. Clair; John Proos, R-St. Joseph; Dave Robertson, R-Grand Blanc; and Tory Rocca, R-Sterling Heights. The Senates action is only one step in a series of moves that could play out in the Legislatures lame duck session well into December. The House still needs to vote on the measure and its possible the Senate could still tinker with what it passed today. Then call your House of representative and tell them NO do not help the Senate pick our pockets further on GAS prices!! Here is a link to find your REP and tell them NO on the GAS TAX. house.michigan.gov/mhrpublic/ CONTACT THEM TODAY DONT WAIT!
Posted on: Fri, 14 Nov 2014 21:35:42 +0000
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