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Highway Taxes and Fees: How They Are Collected and Distributed - 2001

Back to Table MF-106 State List

PROVISIONS GOVERNING THE DISPOSITION OF STATE MOTOR-FUEL TAX RECEIPTS

BASED ON INFORMATION OBTAINED FROM STATE
AUTHORITIES AND ON THE LAWS OF THE STATE
TABLE MF-106
STATUS AS OF JANUARY 1, 2001

MICHIGAN

NAME OF FUND
OR AGENCY
AMOUNT OF PROPORTION OBJECTS OF EXPENDITURE REMARKS STATE CODE
SECTION
Gasoline: 19 Cents - - Rate may be adjusted by Commissioner of Revenue. 207.102
Diesel: 15 Cents - - - 207.102
LPG: 15 Cents - - - 207.152
Gasohol: 19 Cents - - - 207.102
Michigan Transportation
Fund.....
All Distributed as follows: Includes motor-fuel tax revenue, motor-vehicle and motor-carrier taxes. (See Table MV-106.) 247.660
Department of
Treasury.....
Appropriation Collection, administration and refunds of motor-fuel tax.   207.118b
Department of State..... Appropriation Collection and administration of motor-vehicle taxes.   247.660
Miscellaneous
Administration Grants.....
Appropriation Cost of administration.   247.660
State Aeronautics Fund..... Tax on aviation fuel Development of aviation; improvement of aviation facilities.   259.34

Recreation Improvement Funds.....

2 percent (gasoline) Development of harbors and channels; regulation and
control of boating; snowmobile trails and recreation
projects.
Minimum of 80 percent paid to waterways fund; 14 percent to Recreation Snowmobile Trail
Improvement Fund, remainder to recreational projects. Not less than 25 percent of off-road
vehicle projects will be for repairing damages resulting from the use of off-road vehicles.
324.71106
324.71108
Remainder Distributed as follows:
Rail Grade Crossing.....    $3,000,000 Improvement, installation, and retirement of new or existing
safety devices at rail grade crossings.
Not more than $3,000,000 is appropriated annually. 247.660
Critical Bridge Fund.....    $3,000,000 Debt service on State Transportation Commission bonds. Not less than $3,000,000 is appropriated annually. 247.660
Critical Bridge Fund.....    $5,250,000 Improve or reconstruct existing bridges or for construction of
bridges to replace existing bridges in whole or in part.
  247.661b
Transportation Economic
Development Fund.....
   $45,254,000 Road projects relating to the following categories.
(a) Industries: agriculture, food processing, tourism,
forestry, high technology research, manufacturing, or office
centers.
(b) Addition of county roads, city or village streets to the
State trunk line system.
(c) Reduction of congestion on county primary and city
major streets within urban counties.
(d) Development within rural counties on county rural
primary roads; major streets within villages and cities with a
population of less than 5,000.
Receives additional revenues from an increase in driver's license fees. 247.660
Local Program Fund.....    $33,000,000 See purposes and distributions below. Not less than $20,000,000 is appropriated annually. 247.660
Comprehensive
Transportation Fund.....
   10 percent For public transportation in order of priority as follows:
(a) For payment of principal and interest on notes or bonds
issued for comprehensive transportation.
(b) Costs of administration of the Comprehensive
Transportation Fund.
(c) The balance for formula operating assistance, new
small bus and specialized services, intercity passenger and
freight transportation, and specific line item appropriations.
Fund distributed as follows:
70 percent for formula operating assistance - per formula percentage of eligible operating
expenses less Federal operating grant.
20 percent for public transportation purposes.
10 percent for intercity passenger and intercity freight transportation purposes.
247.660
   Remainder Distributed as follows: Not less than 1 percent for non-motorized transportation facilities.  
Local Program Fund.....       60.9 percent See purposes and distributions below. The 60.9 percent is comprised of distributions of 39.1 percent to county road commissions, and
21.8 percent to cities and villages. (This is equivalent to the 64.2 percent and 35.8 percent
distributions shown below from the Local Program Fund.)
247.660
State Trunkline Fund.....       Remainder For purposes in order of priority as follows: For debt service
of highway dedicated tax bonds. For the total operating
expenses of the State Trunkline Fund for each fiscal year as
appropriated by the legislature. For the maintenance of the
State Trunkline System. For the opening, widening,
improving, construction and reconstruction of State
trunkline highways and bridges.
After deducting expenditures for debt service, amounts expended: to match Interstate
Federal funding, for construction of transportation facilities to a manufacturing or industrial
facility, for capital outlay for buildings and facilities, and for operating expenses of the
department except for those of the Bureau of Highways, 90 percent of the State Trunkline
Fund allocation shall be spent on maintenance (as defined by law) of highways, roads, streets
and bridges. See Act 51, Sect. 11 (2) and (6).
247.660
Local Program Fund..... From above distributions Distributed as follows:   247.661e
County Road Commission.....    64.2 percent Distributed as follows:   247.661e
      Allocation Engineering on county highways. Up to $10,000 per annum for the sum paid to a registered professional engineer. 247.662
      Allocation Snow removal and purchase of equipment used therefore. 1 percent of prior calendar year county share of Michigan Transportation Fund divided on
basis of average percentage distribution from 1973 to 1986, when the allocation was divided
among counties which had in excess of 80 inches of measured snowfall during the prior fiscal
year.
247.662
      10 percent Debt service on bonds or notes issued under Act 205, P.S.
1941; Act 143, P.A. 1943; Act 51, P.A. 1951. Maintenance,
improvement construction, reconstruction, acquisition and
extension of the county road system, roadside parks and
motor parkways appurtenant thereto.
Distributed on the basis of the county road mileage contained within the urban area
boundaries.
247.662
      4 percent Maintenance, improvement, construction, reconstruction,
acquisition and extension of county local road systems.
Distributed on County Local Road System basis. (See below) 247.662
      Remainder Distributed as follows:   247.662
County Primary Road
System.....
         75 percent Debt service on bonds or notes issued under Act 205, P.S.
1941; Act 143, P.A. 1943; Act 51, P.A. 1951. Maintenance,
improvement, construction, reconstruction, acquisition and
extension of the county primary road system, roadside parks
and motor parkways appurtenant thereto.
Divided among 83 counties as follows: 75 percent on basis of registration fees collected within
each county; 10 percent on basis of mileage of county; 15 percent divided equally among
the counties. 30 percent of funds transferable between systems, 15 percent by resolution
and additional 15 percent with approval of the State Transportation Commission. Not less
than 20 percent to be used on County Primary Road System. Surplus funds may be used for
development, construction or repair of an off- street parking facility. Not more than 5 percent
may be used for roadside parks and motor parkways.
247.662
County Local Road System...          25 percent Debt service on bonds or notes issued under: Act 143, 1943;
Act 51, 1951, as amended. Maintenance, improvement,
construction, acquisition and extensions of county local
road system and roadside parks and motor parkways
appurtenant thereto.
Divided among the 83 counties as follows: 65 percent on basis of mileage on county local
road system; 35 percent on basis of the total population outside of incorporated
municipalities. 30 percent of funds are transferable between systems, 15 percent by resolution
and an additional 15 percent with approval of the State Transportation Commission. Not less
than 20 percent to be used on County Urban System. Surplus funds may be used for
development, construction or repair of an off-street parking facility. Not more than 5 percent
may be used for roadside parks and motor parkways. Michigan Transportation Funds for local
roads construction not to exceed 50 percent of the construction costs. Michigan
Transportation Funds for local bridge construction not to exceed 75 percent of the
construction costs. After payment of principal and interest on bonds, administrative costs of
the county road commission, amounts expended for capital outlay projects for equipment
and buildings, at least 90 percent of the State revenue returned annually to the county road
commission from the Michigan Transportation Fund shall be expended annually by the county
road commission for the maintenance of highways, roads, streets, and bridges. Maintenance
is defined in Sect. 12(18) of Public Act No. 51.
247.662
Incorporated Cities and
Villages.....
   35.8 percent Distributed as follows:   247.661e
      Allocation Winter maintenance of streets and highways. The remainder
for maintenance, improvement, construction,
reconstruction, acquisition and extension of the major street
system, and roadside parks and parkways.
An allocation of 0.05 percent of prior calendar year local unit share of Michigan
Transportation Fund is divided among local units attaining 80 inches or more of snowfall.
247.663
      Remainder Distributed as follows: Not more than 10 percent per annum for administrative expenses. Permissive transfers:
40 percent of funds transferable from major to local, 25 percent by resolution, additional
15 percent with approval of State Transportation Commission. Permissive transfers from major
to local based on locally raised revenues used on major streets or State trunkline. Any portion
of Michigan Transportation Fund may be transferred from local to major.
247.663
Major Street Fund.....          75 percent For city and village streets. For purposes in order of priority as
follows: For debt service on bonds issued under Act 205, P.A.
1941, and Act 175, P.A. 1952 as amended; for obligations
incurred with the Department of Transportation under Act
131, P.A. 1931 as amended, Act 51, P.A. 1951 as amended.
Maintenance, improvement, construction, acquisition, and
extension of major street systems.
Divided among incorporated cities and villages as follows: 60 percent on basis of population;
40 percent on basis of equivalent major street mileage. Not more than 5 percent may be
used for roadside parks.
247.663
Local Street Fund.....          25 percent Debt service on bonds issued under Act 175, 1952 as
amended. Maintenance, improvement, construction,
acquisition, and extension of local street system.
Divided among incorporated cities and villages as follows: 60 percent on basis of population,
40 percent on basis of mileage of local street system. Local Street Fund used for construction
must be matched from local revenues or other monies.
247.663

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