Michigan Road Tax Investigation: Snyder, State Legislators Ignoring State Law and Continue to “Gouge” Michigan Motorists on Gas Taxes

Bill McMaster Road Tax

Why are Gov. Rick Snyder and State Legislators ignoring State Law and continuing to gouge Michigan motorists 15 cents more per gallon of gasoline at the pump than justified?

MACKINAC ISLAND, MI., SEPTEMBER 21, 2013 – “Michigan’s elected officials in the State Capitol are intentionally causing Michigan motorists to pay 15 cents more per gallon of gasoline at the pump than justified by Michigan Law”, charged Bill McMaster, State Chairman (Volunteer) of Taxpayers United Michigan Foundation on Mackinac Island during the Republican Leadership Conference.

For ten years, Taxpayers United has been reporting the reason gas prices at the pump go up each June 1 is because big Michigan government has a vested interest in enforcing the little known Public Act 44 of 1984, the “Motor Fuels Quality Act” as amended with applicable regulations. Politicians in our State Capitol use the obsolete law to anonymously confiscate more money from already overburdened family budgets for state government to spend. Text of that law is found in Michigan Compiled Laws, Section 290.643.

Gov. Rick Snyder (R) and his administration are charged with enforcing ozone protection measures included in Summer Formula Fuel Standards from June 1 through September 15 of every year for what is varyingly called “Michigan Reformulated Summer Gasoline” or “Michigan Summer Formula Gas” or “Michigan Summer Time Gasoline”.

Last June, McMaster and Taxpayers United notified Gov. Snyder, Jamie Clover Adams, the Director of the Michigan Department of Agriculture & Rural Development (MDARD), and Attorney General Bill Schuette that grassroots families statewide were not going to tolerate the State of Michigan continuing to collect “Michigan Summer Formula Gas” prices at the pump year around even though “Michigan Summer Formula Gas” is always stopped on September 15.

On September 14, 2013, AAA Michigan reported the statewide average price for gasoline at the pump was $3.55. On September 16, 2013, the statewide average price at the pump was $3.52.

“We expected Gov. Snyder to STOP HORSING AROUND WITH HIGHER GAS TAXES ON MOTORISTS by complying with the September 15, 2013 deadline for removing the cost of the 14 cents per gallon charge for “Michigan Summer Formula Gas” and the resulting one cent State sales tax”, said McMaster.

The cost to produce and deliver gasoline to consumers includes the cost of crude oil to refiners (Marathon’s refinery in southwest Detroit is the last refinery in Michigan), refinery processing costs, marketing and distribution costs, and finally the retail costs andtaxes. According to Michigan Attorney General Bill Schuette, the prices paid by consumers at the pump properly reflect these costs, as well as the profits of refiners, marketers, distributors and retail gas station owners.

Michigan’s Road Tax is 19 cents a gallon.

The Federal Motor Gasoline Tax is 18.4 cents a gallon.

Michigan Sales Tax is 6%.

Lawmakers are using Michigan’s Motor Fuels Quality Act to collect another 14 cents a gallon and add on more windfall 6% Michigan Sales Tax.

If State politicians were abiding by State Law, the price of regular gasoline at the pump on September 16, 2013 should have honestly been $3.37.

While Michigan Reformulated Summer Gasoline imposed by politicians on motorists starting June 1 every year is currently 14 cents a gallon, the PRICE OF GAS AT THE PUMP IS NOT REGULATED UNDER MICHIGAN’S MOTOR FUELS QUALITY ACT, NOT BY THE MICHIGAN DEPARTMENT OF AGRICULTURE NOR ANY OTHER UNIT OR AUTHORITY OF STATE GOVERNMENT.

Taxpayers United is again leading the consumer fight against Gov. Snyder’s sneaky way of raising some of the $1.2 billion in new revenue he wants for Michigan roads.

“We in Taxpayers United urge legislators to start coming clean and vote NO on phony excuses to continue to raise Total State Revenue from $47 billion during this current Fiscal Year 2013, to the $50 billion record high tax burden on grassroot taxpayers you’re planning to impose during FY 2014”, McMaster said.

Michigan’s unemployment rate is 23% higher than the National average and getting worse every month. Michigan has the 4th highest unemployment rate in the United States; it was ranked 9th in May. Gov. Snyder’s gouging of Michigan motorists is a further burden for Michigan families.

Taxpayers United Michigan Foundation was founded in 1976 by Dick Headlee (deceased 2004) and Bill McMaster to successfully win statewide voter approval of the 1978 Headlee Tax Limitation Amendment. It has evolved into a tax deductible 501(c)(3) under the IRS code as a nonpartisan, nonprofit educational foundation helping educate grassroots taxpayers how to defend and control their Constitutional Rights despite exploitation by unethical public officials and units of government.

Bill McMaster is still President of national award winning McMaster Marketing & PR he founded in 1968.

Bill McMaster

NEWS RELEASE CONTACT: Bill McMaster, State Chairman (Volunteer), Taxpayers United Cell Phone (248) 798-8501

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