Tuesday, March 15, 2022

House Bill 5570 (2021): No Tax on Gas In Michigan?

“We aren’t addicted to oil, but our cars are.”
 — James Woolsey
The senate and house passed House Bill 5570 (2021) 24-14 Senate and 63-39 State House that would stop collecting 27 cents per gallon in state tax revenue. It would apply to gasoline, diesel, and alternative fuels. You can see the history HERE and the actual bill HERE. Read through the bill and get a grasp of what seems most important. I pulled the following information. 

-"beginning April 18 1, 2022 through September 30, 2022, the rate of tax on motor fuel 19 under this subsection shall be zero cents per gallon". 
-"If the tax on motor fuel is zero cents per gallon under 5 section 8(1)(d), then the tax on alternative fuel is zero cents per 6 gallon equivalent".

Now decide what you believe. Lower taxes is good for economy and/or tax revenue to fund projects (You will sort of see where there is room for debate on these issues.)? At this point I think it goes to the governors office to consider accepting or vetoing.  The essential issue is Russian fuel (at least as stated) but the approaches might be different on how to deal with rising consumer costs. 

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