HOUSE BILL No. 6398

 

August 24, 2010, Introduced by Reps. Leland, Byrnes, Donigan and Miller and referred to the Committee on Transportation.

 

     A bill to provide for a specific tax on motor fuel by certain

 

counties; to describe powers of certain counties and state

 

agencies; and to authorize direct local elections pertaining to

 

specific motor fuel taxes.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 1. This act shall be known and may be cited as the

 

"county motor fuel tax act".

 

     Sec. 2. No county shall impose a specific tax on motor fuels

 

except as provided under this act. Beginning January 1, 2010, a

 

county that has obtained direct voter approval under section 25 of

 

article IX of the state constitution of 1963 may impose a specific

 

tax on motor fuel sold in the county. In addition to any other

 

requirements imposed by law, the ballot question that proposes the

 


authorization of the tax shall specifically state how the proceeds

 

of the tax are to be distributed and used. The tax collected shall

 

be used for road construction, preservation, and maintenance,

 

public transportation and related infrastructure, and nonmotorized

 

transportation infrastructure as approved by the voters in the

 

county or counties where the tax was collected. The rate of tax

 

imposed under this act shall be up to 3 cents per gallon of motor

 

fuel if a single county is imposing the tax. Two adjacent counties

 

may combine to impose a tax of up to 5 cents per gallon, and 3 or

 

more adjacent counties may combine to impose a tax of up to 7 cents

 

per gallon. If 2 or more adjacent counties combine to impose taxes

 

higher than 3 cents per gallon, they shall enter into a contract

 

that sets forth agreements on the distribution and use of revenue.

 

Adjacent counties may provide for additional agreements in a

 

contract entered into under this section.

 

     Sec. 3. The governing body of a county or counties may provide

 

a means of collecting the tax.

 

     Sec. 4. A county or counties that impose a tax on motor fuel

 

under this act may enter into an agreement with the department of

 

treasury, under which the department of treasury shall administer,

 

enforce, and collect the county motor fuel tax on behalf of the

 

county or counties. The actual, marginal cost of collecting the tax

 

in each county may be deducted from the amount distributed to each

 

county.

 

     Sec. 5. As used in this act, "motor fuel" means any 1 or all

 

of the fuels listed in section 4(d) of the motor fuel tax act, 2000

 

PA 403, MCL 207.1004(d), or electricity used for vehicle

 


propulsion, as may be specified in the ballot question that

 

proposes the authorization of the tax under this act. Nothing in

 

this act shall give a county authority to tax motor fuel consumed

 

in qualified commercial motor vehicles under the motor carrier fuel

 

tax act, 1980 PA 119, MCL 207.211 to 207.234.