Following
a decision after a meeting of the Legislative Quadrant and Governor Snyder,
House and Senate leaders have decided to form a conference committee in order
to come to a compromise concerning additional road funding. Three road funding
bills were sent to conference committees on Thursday.
HB 5477 would convert the state’s gasoline
tax to a percentage-based tax of the wholesale price. The other bills include HB 4539, which would eliminate the sales tax
on gasoline, and HB 4630, which deals with registration fees. Sending the bills to conference committee
allows for the legislature to show signs of progress, while at the same time ensuring
the bill that leaves the committee cannot be amended after they reach the
floor.
The
Senate plan would gradually increase the gasoline tax to 15.5 percent on the
wholesale price, which would lead to more than double the revenue generated by
the current 19 cents per gallon tax on gasoline and 15 cents per gallon tax on
diesel. The House plan would phase in an increase to 13.5 percent over six
years, but would phase out the 6 percent sales tax on gasoline over the same
period, a revenue neutral change. The House plan is viewed as contentious due
to the fact that it reapportions revenue that would normally go to K-12 schools
and local governments.
Senate
Majority Leader Randy Richardville (R-Monroe) named Senate Majority Floor
Leader Arlan Meekhof (R-West Olive) the Senate chair of the conference
committee on HB 5477, with Senator Mike Kowall (R-White
Lake Township) and Senator Jim Ananich (D-Flint) joining him. Senator
Richardville did not officially name the three to committees on the other two
bills, but expected it would be the same people serving on each conference
committee. Each of the three Senators named to the conference committee will
assume leadership positions next Senate term. House Speaker Jase Bolger
(R-Marshall) named House Majority Floor Leader Jim Stamas (R-Midland) as chair,
with Representative Rob VerHeulen (R-Walker) and Representative Marilyn Lane
(D-Frasier) joining him.