An act to amend 1967 PA 281, entitled “An act to meet deficiencies in state funds by providing for the imposition, levy, computation, collection, assessment, reporting, payment, and enforcement by lien and otherwise of taxes on or measured by net income and on certain commercial, business, and financial activities; to prescribe the manner and time of making reports and paying the taxes, and the functions of public officers and others as to the taxes; to permit the inspection of the records of taxpayers; to provide for interest and penalties on unpaid taxes; to provide exemptions, credits, rebates, and refunds of the taxes; to create certain funds; to provide for the expenditure of certain funds; to impose certain duties and requirements on certain officials, departments, and authorities of this state; to prescribe penalties for the violation of this act; to provide an appropriation; and to repeal acts and parts of acts,” by amending sections 51, 51g, and 696 (MCL 206.51, 206.51g, and 206.696), section 51 as amended and section 696 as added by 2023 PA 4 and section 51g as added by 2018 PA 588.
House Bills 4180-87 and House Bill 4230 replace the sales tax levied on fuel purchase with a 20 cent per-gallon tax on fuel. The bills eliminate the earmark from corporate income taxes to selective business subsidy programs and allocates the revenue from the tax to transportation funding. Overall, the package is a 73% increase in state spending on roads, allocating $3.2 billion more to this effort.
Co-sponsored by Reps.
Referred to the Committee on Transportation and Infrastructure
Reported with substitute H-1
Substitute H-1 concurred in by voice vote
1. Amend page 5, line 8, after “(b)” by striking out the balance of the line through “after” on line 9 and inserting “After”.
2. Amend page 5, line 27, after “part,” by striking out “up to $2,200,000,000.00” and inserting “$50,000,000.00”.
3. Amend page 5, line 28, after “deposited” by inserting “to the Michigan housing and community development fund created in section 58a of the state housing development authority act of 1966, 1966 PA 346, MCL 125.1458a,”.
4. Amend page 6, line 3, after “deposited” by inserting “and up to $2,200,000,000.00 of the revenue collected under this part must be deposited”.
5. Amend page 6, line 22, after “part,” by inserting “$50,000,000.00 of the revenue collected under this
part must be deposited to the Michigan housing and community development fund created in
section 58a of the state housing development authority act of 1966, 1966 PA 346, MCL 125.1458a, and”.
The amendment failed by voice vote
1. Amend page 6, following line 19, by inserting:
“(c) After the distributions under subdivisions (a) and (b), up to $5,000,000.00, if available, to the
department of transportation for distribution to entities that receive a distribution under subdivision (a)(ii) or (iii) and demonstrate that the entities have entered into a contract pursuant to section 18d of 1951 PA 51, MCL 247.668d, or otherwise collaborated on a road funding project, that resulted in reduced costs for environmental or permitting reviews and studies attributable to that
contract or project.”.
2. Amend page 7, following line 10, by inserting:
“(c) After the distributions under subdivisions (a) and (b), up to $5,000,000.00, if available, to the
department of transportation for distribution to entities that receive a distribution under subdivision (a)(ii) or (iii) and demonstrate that the entities have entered into a contract pursuant to section 18d of 1951 PA 51, MCL 247.668d, or otherwise collaborated on a road funding project, that resulted in reduced costs for environmental or permitting reviews and studies attributable to that
contract or project.”.
The amendment failed by voice vote
1. Amend page 6, line 18, after “(b)” by striking out “Ten” and inserting “Five”.
2. Amend page 6, following line 19, by inserting:
“(c) Five percent to the comprehensive transportation fund established in section 10b of 1951 PA 51, MCL 247.660b.”.
3. Amend page 7, line 9, after “(b)” by striking out “Ten” and inserting “Five”.
4. Amend page 7, following line 10, by inserting:
“(c) Five percent to the comprehensive transportation fund established in section 10b of 1951 PA 51, MCL 247.660b.”.
The amendment failed by voice vote
1. Amend page 5, line 8, after “(b)” by striking out the balance of the line through “after” on line 9 and inserting “After”.
2. Amend page 5, line 27, after “part,” by striking out “up to $2,200,000,000.00” and inserting “$50,000,000.00”.
3. Amend page 5, line 28, after “deposited” by inserting “to the Michigan housing and community development fund created in section 58a of the state housing development authority act of 1966, 1966 PA 346, MCL 125.1458a, and expended as provided under section 58c(1)(a), (b), (c), (d), (e), and (f) of the state housing development authority act of 1966, 1966 PA 346, MCL 125.1458c,”.
4. Amend page 6, line 3, after “deposited” by inserting “and up to $2,200,000,000.00 of the revenue collected under this part must be deposited”.
5. Amend page 6, line 22, after “part,” by inserting “$50,000,000.00 of the revenue collected under this
part must be deposited to the Michigan housing and community development fund created in section 58a of the state housing development authority act of 1966, 1966 PA 346, MCL 125.1458a, and expended as provided under section 58c(1)(a), (b), (c), (d), (e), and (f) of the state housing development
authority act of 1966, 1966 PA 346, MCL 125.1458c, and”.
The amendment passed by voice vote
Passed in the House 63 to 45 (details)
Motion to give immediate effect
by
The motion prevailed by voice vote
Referred to the Committee on Appropriations
Discharged from committee
Referred to the Committee of the Whole
Reported with substitute S-3
Substitute S-3 concurred in by voice vote
1. Amend page 10, following line 16, by inserting:
“Enacting section 1. This amendatory act does not take effect unless all of the following bills of the 103rd Legislature are enacted into law:
(a) House Bill No. 4007.
(b) House Bill No. 4283.”.
The amendment was withdrawn
1. Amend page 5, line 12, after “year” by striking out the balance of the subdivision and inserting a comma and “$52,000,000.00.
(b) For the 2027-2028 and 2028-2029 state fiscal years, $56,000,000.00.” and relettering the remaining subdivision.
The amendment passed by voice vote
Passed in the Senate 26 to 10 (details)
Motion to give immediate effect
by
The motion prevailed by voice vote
Substitute S-3 concurred in 107 to 0 (details)
