MI HB5477

Establishes a variable motor fuel tax effective October 1, 2015, calculated at 14.9% of average wholesale gasoline and diesel prices, with a rate floor of 41.7 cents per gallon and a ceiling of rate floor plus 5 cents per gallon.

Taxes motor fuel imported into or sold in Michigan at rates determined annually based on 12-month rolling average wholesale prices, with rates capped and floored to prevent excessive fluctuations.

Imposes tax on alternative fuels (compressed natural gas, liquefied natural gas, hydrogen, liquefied petroleum gas) at diesel base rate equivalents, effective January 1, 2016 for commercial users and July 1, 2016 for other users.

Requires alternative fuel dealers to be licensed ($500 fee) and alternative fuel commercial users to be licensed ($50 fee), with monthly reporting and tax remittance obligations.

Directs fuel tax revenue to the Michigan Transportation Fund, with $400 million allocated for the 2015-2016 period and $800 million for 2016-2017, with excess revenue dedicated to transportation infrastructure debt repayment.