HB 4601 Summary

• Increases Michigan motor fuel tax on gasoline from 19 cents per gallon (through 2015) to 34 cents per gallon (beginning 2018) in incremental phases: 24 cents (2016), 29 cents (2017), then 34 cents (2018 forward).

• Increases Michigan motor fuel tax on diesel fuel from 15 cents per gallon (through 2015) to 34 cents per gallon (beginning 2018) in incremental phases: 24 cents (2016), 29 cents (2017), then 34 cents (2018 forward).

• Establishes reduced tax rates of 12 cents per gallon for gasoline containing at least 70% ethanol and diesel fuel containing at least 5% biodiesel, with blenders required to obtain licenses and comply with reporting requirements.

• Requires blenders of biofuel products outside the bulk transfer terminal system to obtain blender licenses and allows persons who paid higher tax rates on biofuel products in storage before September 1, 2006 to claim refunds for the difference.

• Mandates annual appropriations to the Michigan Transportation Fund equal to the difference in revenue collected due to the reduced biofuel tax rates, with the reduced rates expiring either September 1, 2016 or when cumulative rate differential exceeds $2,500,000, whichever is earlier.