To replace the current 19-cent per gallon gas tax and 15-cent diesel tax with a 10.1 percent wholesale fuel tax (subject to various adjustments), which would initially be levied at an effective rate of 28.3 cents per gallon. This would extract an additional $541 million from motorists each year, or more if the price of fuel increases (up to 40-cents per gallon would be allowed, and a minimum of 28.3 cents per gallon). This would be phased in gradually at an annual rate of increase of 1-cent per gallon. This is part of Gov. Rick Snyder’s road and transit tax proposal.
Referred to the Committee on Appropriations