MI HB6398

Counties may impose a specific tax on motor fuel beginning January 1, 2010, only with direct voter approval under Michigan Constitution Article IX, Section 25.

Tax rate limits are 3 cents per gallon for a single county, 5 cents per gallon for two adjacent counties, and 7 cents per gallon for three or more adjacent counties combining to impose the tax.

Ballot questions proposing the tax must specifically state how proceeds will be distributed and used for road construction, preservation, maintenance, public transportation infrastructure, and nonmotorized transportation infrastructure.

Counties may contract with the Department of Treasury to administer, enforce, and collect the tax, with the actual marginal collection cost deductible from amounts distributed to each county.

Counties that combine to impose taxes higher than 3 cents per gallon must enter into a contract setting forth agreements on revenue distribution and use, and may include additional agreements as needed.