If high fuel prices, less freight and continuing layoffs didn’t take enough out of truckers’ pockets, a Michigan fuel tax increase proposal intends to reach a little further. Michigan needs bridges repaired, and some of the state’s senators expect truckers to shell out another $36 million each year to reach that goal.
Senators in the transportation committee approved SB862, a bill that would hike taxes for bridge repairs Tuesday by a 4-to-1 vote, said Land Line Magazine online. The tax would raise diesel prices by 4 cents on every gallon, and make the diesel fuel tax the same as the state’s gasoline tax of 19 cents.
Interstate truckers would be affected by the increase. If the bill passes as written, it would not apply to intrastate truckers, who would still pay the 15 cent tax rate. How lawmakers proposed to tell the difference at the pump wasn’t explained.
Additionally, truckers using bio-diesel blends, currently taxed at 12 cents per gallon, would lose that eco-friendly break. Bio-blends would also hold a 19 cent tax on each gallon.
A separate but related SB863 directing the $36 million the hike is projected to raise yearly to be spent only on bridge repairs. Both bills would still need to gain approval of the full senate.
Source: Land Line Magazine online: Michigan Senate panel approves diesel tax hike to pay for bridges. Keith Goble.
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