2013 House Bill 4539 / 2014 Public Act 467

Exempt fuel sales from sales tax

Introduced in the House

April 11, 2013

Introduced by Rep. Wayne Schmidt (R-104)

To no longer impose the 6 percent sales tax on gas and diesel motor fuel sales. See also House Bills 4359, which would increase the motor fuel tax to a rate of 10 to 12 percent of the wholesale price.

Referred to the Committee on Transportation and Infrastructure

Dec. 4, 2014

Substitute offered by Rep. Nancy Jenkins (R-57)

To adopt the version of the bill that phases-in the proposed change over six years. See also the version of House Bill 5477 passed at the same time, which would phase-in a gas tax increase over the same period.

The substitute passed by voice vote

Passed in the House 56 to 53 (details)

To phase out charging the 6 percent sales tax on gas and diesel motor fuel sales over six years. House Bill 5477 would gradually increase the motor fuel tax by an equivalent amount. Sales tax revenue is mostly earmarked to schools, and to local governments revenue sharing. The bill requires the legislature to appropriate at least as much as the previous year to both those areas, using revenue from other taxes. If it did not, then the 6 percent sales tax would automatically be imposed on fuel sales again. Together, the bills would shift about $1 billion in current state revenue to roads, with no net tax increase.

Received in the Senate

Dec. 10, 2014

Referred to the Committee of the Whole

Dec. 11, 2014

Passed in the Senate 22 to 13 (details)

To adopt a empty "shell" version of the bill as a means of sending the measure to a House-Senate conference committee to work out the differences.

Received in the House

Dec. 11, 2014

Failed in the House 0 to 106 (details)

To concur with the Senate-passed version of the bill. The vote sends the measure to a House-Senate conference committee to work out the differences.

Received

Received in the Senate

Dec. 15, 2014

In the House

Dec. 19, 2014

Passed in the House 88 to 22 (details)

To exempt gasoline and diesel purchases from sales tax. This is part of a package that includes a large fuel tax increase (<a href="http://www.michiganvotes.org/2014-HB-5477">House Bill 5477</a>), a ballot measure increasing the state sales tax from 6 percent to 7 percent (<a href="http://www.michiganvotes.org/2014-HJR-UU">House Joint Resolution UU</a>), and several related measures. The package represents a net tax increase of around $2 billion, of which $1.2 billion would go to roads, but none of this will happen if voters do not approve the sales tax hike in a May 5, 2015 election.

In the Senate

Dec. 19, 2014

Passed in the Senate 23 to 15 (details)

Signed by Gov. Rick Snyder

Dec. 31, 2014