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Michigan fuel tax on hold, for nowMichigan fuel tax on hold, for now

The Michigan state legislature has adjourned for the year without coming to agreement on a proposal to raise aviation fuel taxes, effectively killing the measure for 2008. But pilots shouldn’t be too quick to celebrate; the issue is likely to re-emerge come January.

AOPA has asked Michigan lawmakers not to raise aviation fuel taxes by changing the way they are calculated—from three cents per gallon to 3 percent of the wholesale price of a gallon. At current fuel prices, the proposed calculation method could triple the amount of fuel tax pilots pay. That’s in addition to a 6-percent sales tax on aviation fuel, aircraft, and aircraft parts that goes into the state’s general fund for nonaviation uses.

“Michigan pilots are already paying plenty of taxes, but only a small amount of that is dedicated to aviation needs,” said Greg Pecoraro, AOPA vice president of regional affairs. “During these challenging economic times, it’s difficult to ask pilots to pay even more.”

AOPA has actively opposed the measure and asked members in Michigan to contact their representatives and express their opposition as well.

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