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Senate Diesel Tax Amendment Avoids Parity Issue, Says AAA Michigan

25 February 1998

Senate Diesel Tax Amendment Avoids Parity Issue, Says AAA Michigan

    DEARBORN, Mich., Feb. 25 -- The following was released by AAA
Michigan:

    Pressure has been mounting for months to increase the state's diesel tax
and bring it in line with the existing gas tax.  The majority of Michigan
voters, AAA Michigan members and respected media sources statewide have
clearly declared they favor diesel tax parity.  They've done so because they
believe that operators of heavy trucks should participate fairly in a fuel tax
used to repair state roads.  After all, they contribute considerably to the
damage.
    Now, in the Senate along comes HB 4841, which would exempt school buses
from paying diesel fuel tax.  This makes sense.  However, some would amend the
bill to include a mandated 4-cent increase in the diesel fuel tax to bring it
in line with the gas tax which was raised last August.  That is reasonable on
the surface.
    Problem is, to raise the diesel tax so that truck operators pay as they
should, the Motor Carrier Fuel Tax must also be increased.  As it stands, if
HB 4841 were to pass with the proposed amendment, only owners of a small
number of luxury cars and small trucks would be impacted.  In other words, the
statewide effort to bring equity to the fuel tax would remain on hold while
the issue was watered down once again.
    Clearly, the public desires an equitable fuel tax -- one where heavy
trucks do their part to pay for the condition of our state's roadways.
    Let's get it done and get it done right.  Amending HB 4841 without
including a diesel tax on heavy trucks in Michigan is not what voters had in
mind.

SOURCE  AAA Michigan