The Michigan Association of Timbermen
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Posted on 05.19.2014 Under Legislative

Legislative Report for MAT – Judy Augenstein, pilule Legislative Consultant – May 2014

The House Transportation & Infrastructure Committee heard testimony from the Speaker of the House, information pills Jase Bolger (R-Marshall) regarding his plan to provide $450 million for road repair. The plan includes taking the portion of the sales tax that currently goes to the general fund from fuel sales as well as part of the use tax monies as part of an overall plan to generate road funds.

In order to reach the $1.2 billion projected road repair the plan includes ending the 19 cents per gallon tax on gas and 15 cents per gallon on diesel fuel and replacing them with a 6% tax on the price of fuel at the wholesale level. The plan dedicates one-sixth of the revenue generated by the 6% use tax to roads. Speaker Bolger views this part of the plan as “the parity” piece.

Other provisions of the proposal include:
1) Dedicating late payment fees to road funding

2) Simplifying vehicle registration code “by ending special deals.” Some committee members have referred to the farm plate and log plate as “special deals.” The concern is more over the farm plate for road vehicles not used for farming and log plates for road vehicles rather than for actual logging activities.

3) Applying newly purchased vehicle value immediately upon transferring plate.

4) Increasing overweight and over-sized permit fees.

The House Transportation Committee will consider, debate and “tweak” the road plan over the next few weeks. Speaker Jase Bolger would like to see a package of road repair bills pass the House before the summer recess. It will be interesting to monitor the debate as many interest groups line up to comment and make suggestions for the committee to consider. It is reasonable to assume the plan will see many changes as the primary election grows closer.

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