12/14/09-As approved by the Senate Transportation Committee, the proposed diesel tax increase would primarily apply to interstate trucking operations while intrastate truckers would not be affected.
Sponsored by Sen. Jud Gilbert, R-Algonac, SB862 would increase the motor carrier fuel tax by 4 cents per gallon to 19 cents – the same as the gas tax. The motor fuel tax would stay at 15 cents per gallon.
The motor carrier fuel tax is applied to truck drivers licensed under the International Fuel Tax Agreement. Only interstate motor carriers are subject to the motor carrier fuel tax.
Since the committee vote to forward the bill to the full Senate truck drivers have questioned why the state would leave anyone out of the proposed increase. They also want to know how the state would decipher who does and doesn’t owe the higher tax. In addition, there is a question about the bill’s constitutionality.
Gabe Basso, Gilbert’s legislative director, said lawmakers are working to eliminate the concerns and make sure everyone putting diesel into their tanks is paying 4 cents more to help fund bridge repairs.
“Gilbert’s bill cannot be enacted on its own. There’s a constitutional issue. If we were to apply this tax only to interstate carriers, and not intrastate carriers, we’d have a commerce clause violation,” Basso told Land Line.
Basso said that Gilbert’s bill amounts to one piece of the puzzle in increasing the diesel tax. A House version, which would cover intrastate operations, is in the works, he said.
“If in fact a 4-cent increase is enacted it will be across the board,” Basso said.
For Senate bill status, call 517-373-2400.

12/9/09-The Senate Transportation Committee voted Tuesday, Dec. 8, to approve legislation that would increase the diesel tax by 4 cents per gallon.
Sponsored by Sen. Jud Gilbert, R-Algonac, SB862 would increase the diesel tax from 15 cents per gallon to 19 cents – the same as the gas tax.
Truckers who save a few cents per gallon because they use biodiesel would also be affected. Currently, diesel fuel that contains at least 5 percent biodiesel is taxed at 12 cents per gallon. Gilbert’s bill would apply the 19-cent-per-gallon rate to those trucks.
The bill now moves to the Senate floor. For Senate bill status, call 517-373-2400.