Republican Gas Tax Bills Proposes Over a $1.6 Billion Net Tax Hike
Is it me or does anybody else wonder what these guy’s are “smoking” under that dome in Lansing! Just take a look at the Senate Resolution along with the five other Bills that all have to do with raising our taxes! Rising fuel costs are “strangling the economy” already!
2013 Senate Joint Resolution J: Replace gas tax with higher sales tax
Introduced by Sen. Randy Richardville (R) on January 30, 2013 to impose a 2 percent sales tax increase. At the proposed new 8 percent rate, Michigan would have the nation’s highest state sales tax.
Senate Bill 84
Introduced by Sen. Tom Casperson (R) on January 30, 2013, to earmark a small amount (0.7 percent) of the new sales tax revenue that would be generated if Senate Joint Resolution J becomes law to a state fund that pays for recreation trails and cleanups. Under current law, this fund gets a small portion of the revenue generated by sales taxes levied on motor fuel.
Senate Bill 85
Introduced by Sen. John Pappageorge (R) on January 30, 2013, to repeal the state motor fuel carrier tax (diesel tax), and replace it with a 2 percent sales tax increase that (mostly) would be earmarked to roads. This bill is the repealer, and cannot become law unless Senate Joint Resolution J also does, which contains the sales tax hike, and would require a vote of the people.
Senate Bill 86
Introduced by Sen. John Pappageorge (R) on January 30, 2013, to revise various vehicle registration tax details. Among other things, the bill would change the basis on which the car and pickup tax is assessed. Instead of the basis gradually dropping to 72.9 percent of the list price and staying there from the fourth year on, the basis would become 100 percent of the value when new until the car is 10 years old, when it would drop to 50 percent, a change that would extract approximately $64 million annually from owners. The bill would also end the current one-time $75 trailer registration tax, returning to an annual tax on trailers; those who had already paid the one-time tax would be “grandfathered”.
Senate Bill 87
Introduced by Sen. Roger Kahn (R) on January 30, 2013, to replace the current 19-cent per gallon gas tax and 15-cent diesel tax with a new tax based on the wholesale price of fuel, initially levied at a rate of 37 cents per gallon. This would also become the minimum gas tax rate even if wholesale prices fell. If wholesale prices rose the maximum tax would be 50 cents per gallon, but the rate could not rise more than a penny in any single year.
When added to current federal fuel taxes and the 6 percent state sales tax also imposed on fuel (revenue from which does not go to roads), this would give Michigan the nation’s highest total gasoline tax levy at nearly 74 cents per gallon, assuming current wholesale and after-tax pump price levels of around $2.74 and $3.50, respectively. (New York is currently number 1 at 67.4 cents per gallon.) Reportedly this would represent a $1.6 billion net tax hike. See also Senate Joint Resolution J, a “Plan A” alternative that would instead hike the state sales tax to 8 percent and use the extra revenue to replace current fuel taxes.
Senate Bill 88
Introduced by Sen. Roger Kahn (R) on January 30, 2013, to increase the annual vehicle registration (license plate) tax by approximately 80 percent, with comparable increases for trucks and trailers. As an example, the annual tax on a car with a $20,000 list price would increase from $98 to $176 (in the first year, falling to 72.9 percent of this in the fourth and subsequent years). Under Senate Bill 86, the tax would remain at this level until the vehicle is 10 years old (when it would drop to 50 percent). See also Senate Bills 84 to 87 and Senate Joint Resolution J.