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 GASOLINE

LEGAL CITATION:
M.C.L. 207.1001 et seq.; 2000 PA 403; Sec. 9, Art. IX, state Constitution.
YEAR ADOPTED: 1925 The Gasoline Tax (1925 PA 150), the Diesel Fuel Tax (1951 PA 54), and the Liquefied Petroleum Gas Tax (1953 PA 147) were recodified by the Motor Fuel Tax Act, 2000 PA 403.
BASIS OF TAX: Privilege of using highways.
MEASURE OF TAX (BASE):

Gasoline sold or used in operating vehicles on public highways.

Exemption for gasoline used in

  1. vehicles owned by state or federal government;
  2. vehicles owned or leased and operated by units of local government.
  3. school buses owned and operated by private nonprofit parochial, or denominational schools, college, or universities.

Refund of tax on gasoline purchased for

  1. a purpose other than operation of a vehicle on public highways;
  2. five or more person capacity vehicles operated under a municipal franchise;
  3. passenger vehicles used to transport school children;
  4. community action agencies.
RATE: 19 cents per gallon, except 12 cents per gallon on diesel that contains at least 5% biodiesel. The reduced rate is effective until September 1, 2016, or until the cumulative tax revenue difference for gasoline containing at least 70% ethanol and diesel fuel containing at least 5% biodiesel taxed at 12 cents per gallon compared to what would have been collected at the 19 and 15 cents per gallon rates is greater than $2.5 million, whichever is sooner.
ADMINISTRATION: Department of Treasury.
REPORT AND PAYMENT: Due by 20th of each month.
DISPOSITION: Michigan Transportation Fund:
    2% to Recreation Improvement Fund;
    $5 million to Critical Bridge Fund;
    Sufficient sums for administrative and collection costs;
    $3 million to Rail Grade Crossing Account;
    $3 million to Local Bridge Fund;
    Revenue from three cents of tax to State Trunkline Fund and local road agencies;
    Revenue from one cent of tax to state and local bridges;
    $43 million for state debt reduction;
    10% earmarked to Comprehensive Transportation Fund;
    $5 million to Local Bridge Fund;
    $40.3 million to Transportation Economic Development Fund;
    $33 million to Local Program Fund
    of remainder,
        39.1% to State Trunkline Fund;
        39.1% to county road commissions;
        21.8% to cities and villages.
2004-05 COLLECTIONS: $929,889,000
2004-05 COLLECTIONS/UNIT: $48.9 million per 1 cent.
Gasoline Tax Law Changes
Historic Michigan Motor Fuel Tax Revenue

 

 

 

 

 

 

Last Updated January 10, 2007