OOIDA Call To Action - Michigan Members
December 12, 2002

Michigan truckers: Call your state senators immediately and tell them to pass the fuel tax legislation package before adjourning this week.

Lawmakers in Lansing, MI, are debating today a trio of bills (HB5734, 5735 and 5736) that could simplify and reduce taxes on diesel fuel. The new system would collect the entire tax on diesel at the pump and reduce the fuel tax from 21 cents to 15 cents.

"Truckstop operators are doing their best to defeat this bill package," OOIDA Executive Vice President Todd Spencer said. Michigan truckstops and the Michigan Petroleum Association say truckers won't buy their fuel in Michigan if the entire tax is listed on the pump price, making the price of diesel seem higher.

"They are just squawking because the current system gives the illusion that fuel prices in Michigan are lower than they actually are," Spencer said. "In reality, excluding state taxes, fuel prices in Michigan are the fourth highest in the nation."

Currently, truckers pay a fuel tax and a sales tax at the pump, then file a quarterly tax return to pay additional fuel taxes, then file another quarterly tax return to apply for a sales tax rebate. Truckers pay the same amount but with three steps, which makes Michigan's system the most complicated fuel tax collection system in the nation.

"The state, the taxpayer and everyone else is a winner with tax simplification," Spencer said. "Likewise, having all taxes assessed reflected in the pump price of fuel is the simplest, the most honest and most efficient way to assess and collect these fees."

Although the reduction in fuel tax revenue could result in a $1.7 million net loss for the state, the Office of Revenue and Tax Analysis says this reduction would be more than offset by reducing the collection points for the motor carrier fuel tax. Additionally, the use tax revenue would see an increase of $4.5 million for a full fiscal year.

The amended bill package passed the House Dec. 3 and is being discussed by the Senate now. Today is the last regularly scheduled session day this year, with Friday scheduled as a tentative session day. To find your senator's name and contact information, visit http://www.senate.state.mi.us/SenatorInfo/find-your-senator.htm.