Michigan House Bill HB6258

Michigan 2023-2024 Regular Session

• Introduced: 12/5/24
• Refer: 12/5/24

Caption

Transportation: motor fuel tax; motor fuel tax; increase. Amends sec. 8 of 2000 PA 403 (MCL 207.1008).

Impact

The proposed amendments will directly impact state law by raising the existing gasoline and diesel tax rates. Revenue generated from these taxes is largely allocated to essential public services, particularly for the upkeep of highways and roads. By increasing these taxes, the bill is aimed at ensuring that funds are available to address deteriorating infrastructure, which has become increasingly critical as demands on state transportation systems continue to rise.

Summary

House Bill 6258 aims to amend the Motor Fuel Tax Act in Michigan, specifically targeting the rates imposed on motor fuel, including gasoline and diesel. The bill proposes to increase the tax rates on gasoline to 26.3 cents per gallon, effective from January 1, 2017, with an additional 19 cents to be imposed upon the effective date of the act. Similarly, for diesel, the same incremental rate structure applies. This adjustment intends to enhance the state’s revenue dedicated to the maintenance and improvement of transportation infrastructure.

Contention

While proponents argue that this bill is necessary for maintaining and upgrading Michigan's transportation infrastructure, critics raise concerns about the financial burden on consumers, especially amid rising fuel prices. There is a palpable tension between the need for robust funding for road and highway improvements and the potential impact on individual drivers and businesses that rely heavily on fuel. The debate centers on whether the increased taxation is justified by the anticipated improvements to public roads or if it disproportionately affects lower-income residents who may struggle with higher transportation costs.