AN ACT RELATING TO EDUCATION -- UNIVERSITY OF RHODE ISLAND

2025 Regular Session Introduced by Justine Caldwell and 9 co-sponsors

Expands IFTA thresholds to 11,797 kg and allows fuel tax reciprocity agreements up to 50 air miles for cross-border logging transport, reducing certain reporting.

05/01/2025 Committee recommended measure be held for further study

Summary — HB 5747 (Enrolled as Public Act 219 of 2024)

Status / Effective date
- Enrolled as Act No. 219, Public Acts of 2024. Approved by the Governor and filed with the Secretary of State January 17, 2025. Effective April 2, 2025.
- Tie‑barred to HB 5379 (enacted as PA 218 of 2024); HB 5747’s enactment is contingent on HB 5379 being enacted (both were enacted).

Purpose
- To amend the Motor Carrier Fuel Tax Act (1980 PA 119; MCL 207.211) to (1) align metric weight thresholds with the International Fuel Tax Agreement (IFTA) and (2) permit fuel tax reciprocity agreements that cover a larger cross‑border distance for certain commercial carriers hauling raw forest products.

Key provisions
- Expands the definition of “qualified commercial motor vehicle” by changing the metric equivalent of the 26,000‑pound threshold from 12,000 kilograms to 11,797 kilograms. This aligns Michigan’s statutory metric threshold with IFTA parameters (26,000 lb ≈ 11,797 kg).
- Authorizes (via tie‑barred HB 5379 amending 1960 PA 124) the Department of Treasury to negotiate “qualified fuel tax reciprocity agreements” that allow commercial motor vehicles transporting raw forest products to a sawmill or factory to operate without certain IFTA/Motor Carrier Fuel Tax Act reporting, credential, and tax‑payment obligations within a larger border zone:
- The allowable range is increased from “within 30 air miles” of the state border to “within not more than 50 air miles” of the border.
- Under such agreements, participating out‑of‑state carriers may be exempted from carrying/displaying IFTA credentials or filing/paying taxes under IFTA, the Motor Carrier Fuel Tax Act, or section 5 of the Streamlined Sales and Use Tax Revenue Equalization Act, provided reciprocity is in place and applicable taxes/fees are paid to one of the participating jurisdictions.

Who is affected
- Primary: interstate and cross‑border motor carriers hauling raw forest products (e.g., logs, pulpwood, Christmas trees) to sawmills or factories located near a shared state border.
- Secondary: Department of Treasury (authority to negotiate and administer reciprocity agreements), participating other states or provinces, and local mills/factories that may be brought inside a reciprocity zone.
- Exclusions: the Act retains existing exclusions for certain vehicle types (recreational vehicles, school buses, specified transit buses, certain farm vehicles, etc.) as in current law.

Fiscal impact / Implementation
- Nonpartisan legislative analysis concluded HB 5747 has no fiscal impact on state or local government.
- HB 5379 (the companion act increasing the air‑mile range) was judged unlikely to create significant fiscal burdens on the Department of Treasury; negotiation activity would be discretionary and existing staff levels are expected to suffice unless agreements proliferate.

Background / context
- Michigan already participates in IFTA; in 2022 Michigan executed a qualified reciprocity agreement with Wisconsin limited to 30 air miles. Stakeholders cited that the 30‑air‑mile limit excluded certain facilities (e.g., a lumber mill in Escanaba), prompting the extension to up to 50 air miles. Note: an air mile (nautical mile) ≈ 6,076 feet; 30 air miles ≈ 34.5 statute miles, 50 air miles ≈ 57.5 statute miles.