Treasury Dept: Michigan is not profit...

Treasury Dept: Michigan is not profiting from high gas prices

There are 23 comments on the WZZM Grand Rapids story from May 7, 2008, titled Treasury Dept: Michigan is not profiting from high gas prices. In it, WZZM Grand Rapids reports that:

Michigan is one of only seven states that charges a sales tax on gasoline. So, as gas prices reach record levels, is the state reaping a tax windfall? No, according to Treasury Department spokesman Terry ...

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whasever

Jenison, MI

#1 May 8, 2008
does the state really believe that we're that stupid? they add a tax which raises the price then tax the total price with a percentage (that's the important part here people) the total $$$'s increase with the price (which they help to inflate) then say well...we're not really getting any more money...C'mon if that were true why are three stooges that R running for prez fightin' over who's idea the federal gas tax was and how the people need a break from gas...but our state sez well we're really not getting anymore money REALLY C'MON REALLY

“Taz say Hi”

Since: Jan 08

Holland,MI

#2 May 8, 2008
This practice is one of Michigan's favorite tricks. Look at cigarette taxes, whether you agree with smoking or not,you can learn about taxes from looking at them. The tax is levied at the wholesale level which makes it part of the end retail price. Then they charge sales tax on that retail price. In fact, in the case of gasoline, you even pay Michigan sales tax on the federal gas tax!

“Police Assault! ”

Since: Mar 08

Edmond, OK

#4 May 8, 2008
(Note: this is sarcasm). I don’t know about the rest of you, but I just feel terrible about this. I am considering asking if you guys would like to start a bake sale to help these people take a Math class so they can better understand the 2.2% inflation versus the gasoline rate of inflation. Governor Granholm was smart enough to admit it a while back. Maybe she could teach them

Since: Oct 07

Big Rapids, MI

#5 May 8, 2008
Gentle Taz wrote:
This practice is one of Michigan's favorite tricks. Look at cigarette taxes, whether you agree with smoking or not,you can learn about taxes from looking at them. The tax is levied at the wholesale level which makes it part of the end retail price. Then they charge sales tax on that retail price. In fact, in the case of gasoline, you even pay Michigan sales tax on the federal gas tax!
WRONG! Michigan's Sales Tax is charged on the retail cost of gasoline (Less State Road Taxes)

See Line # 5H of the following form.

http://www.michigan.gov/documents/165_2006_14...

“Taz say Hi”

Since: Jan 08

Holland,MI

#6 May 8, 2008
BR Bean Counter wrote:
<quoted text>
WRONG! Michigan's Sales Tax is charged on the retail cost of gasoline (Less State Road Taxes)
See Line # 5H of the following form.
http://www.michigan.gov/documents/165_2006_14...
Thanks, Bean. Apparently that was just changed. A further complication for the gas station owner that he now has to compute this too. I'm surprised that they made that change as that has to have reduced the revenue somewhat.

“Police Assault! ”

Since: Mar 08

Edmond, OK

#7 May 8, 2008
BR Bean Counter wrote:
<quoted text>
WRONG! Michigan's Sales Tax is charged on the retail cost of gasoline (Less State Road Taxes)
See Line # 5H of the following form.
http://www.michigan.gov/documents/165_2006_14...
Good data source. Your response could probably use a bit of refinement. As you well know, line 5h is part of state deduction for fuel tax. I believe GT is speaking of “use tax”.

But, what would I know? I’m just a bass player in my church choir. I've always wanted to say that. Thanks Uncle Ted!
Batch 37 Pain is Good

United States

#8 May 8, 2008
Think about all the cars driving around the State and the amount of tax collected. We should not have any potholes anywhere. The money is not being spent wisely.
Mark

Lovington, NM

#9 May 8, 2008
Welllllll, based on the number of people that voted for Granholm and continue to re-elect worthless lawmakers of both parties, I'd say it's a pretty safe assumption to think we are that stupid.

Anyways, nice story with a bunch of double-speak. And a lot of typical crap from another beaurucrat.(sp?)
Local Man

Remus, MI

#10 May 8, 2008
"Yeah Right" the Gov profits from our downfall.
So lets raise taxes more so the people of MI can not afford to live. Try living in Montcalm County for once, where all you can find in a part time Minimum job that SUCKS. After losing your full time job a year a go, I can't even afford to buy gas to look for a better job.

Since: Oct 07

Big Rapids, MI

#11 May 8, 2008
Gentle Taz wrote:
<quoted text>
Thanks, Bean. Apparently that was just changed. A further complication for the gas station owner that he now has to compute this too. I'm surprised that they made that change as that has to have reduced the revenue somewhat.
This sales tax rule has been the same since I started doing these returns, which was over thirty years ago. Its not all that complicated as most station owners base their price on the competition, or in the case of consignment dealers, by company mandate.

Back on subject. Is the State seeing more sales tax revenue from gas sales? Yup sure are. And they're collecting less on other taxable items.

Most residents only have just so much money to spend every month. Once you've bought gas, and ever more expensive groceries, there's less money left for all those taxable items.

Maybe we should help Lansing out by raising the income tax rate up to what businesses are paying on the new MBT. Nobody should mind a 6 1/5% tax rate.

“Lost my mind”

Since: Apr 07

be back later

#12 May 8, 2008
"The Commission's Managing Director, Jon Rice, said revenues have steadily declined since 2002 as people have consumed less gas and/or driven more fuel efficient vehicles. However, coupled with higher costs, it's meant the Road Commission can no longer patch the number of potholes and plow the number of snow covered roads that citizens have come to expect."

Don't you just LOVE how they pin it on us?

Yes, it's our fault that we have the highest unemployment rate in the nation and we can't AFFORD to drive as much as we use to. It's our fault that companies are handing out raises like the legislature gives themselves one every year (and then can't balance the budget), so we can't afford to do much more than drive back and forth to work.

Yeah.. ok..

“God Save The Queen”

Since: Jan 08

Grand Haven

#13 May 8, 2008
Excuse me..
The state is complaining about making a profit?
Lets keep repeating this over and over in your head till it finally dawns on you...
The state making a profit.
The state making a profit.
The state, a governmental agency, making a profit at the expense of its citizens.
When did the state go into business to make a profit?

“Taz say Hi”

Since: Jan 08

Holland,MI

#14 May 8, 2008
There has been quite an effort made for quite a few years to mandate that auto makers produce vehicles that get better gas mileage. So far, I have seen no concern about the effect that higher MPG has on the state's revenues for roads. The legislature and congress would rather just continue with their partisan interests and petty laws like those governing smoking.

“Police Assault! ”

Since: Mar 08

Edmond, OK

#15 May 8, 2008
Pipingdude wrote:
Excuse me..
The state is complaining about making a profit?
Lets keep repeating this over and over in your head till it finally dawns on you...
The state making a profit.
The state making a profit.
The state, a governmental agency, making a profit at the expense of its citizens.
When did the state go into business to make a profit?
And wouldn’t it make sense to replace lost gasoline tax revenue, from people driving less, with increased sales tax? Oh no, I’m sure that logic wouldn’t work in Lansing.
Mark

Lovington, NM

#16 May 9, 2008
MustangDan2112 wrote:
<quoted text>
And wouldn’t it make sense to replace lost gasoline tax revenue, from people driving less, with increased sales tax? Oh no, I’m sure that logic wouldn’t work in Lansing.
Or they could just do as businesses that do need to make a profit do, figure out how to do more with less. Why is it only in private industry that this happens? Why do public institutions always need to replace revenue that is 'lost' which is a misnomer, revenue isn't lost, the citizens are keeping more of their hard-earned money that they deserve to keep.

You are buying into the whole line of BS that gov't always has to have the same or more revenue every year. They don't and they shouldn't. Unless you're a socialist, communist or marxist.

So drop the stinking replace lost revenue crap.
snomad

Hudsonville, MI

#17 May 9, 2008
Tomorrows news:

Michigan states: The sky is green and grass is blue.

Only if you're standing on your head... and don't know up from down.

“10k yr old politician”

Since: Apr 08

Grand Rapids MI

#18 May 9, 2008
Terry Stanton is on some pretty good drugs, and he thinks we are too.

“Police Assault! ”

Since: Mar 08

Edmond, OK

#19 May 9, 2008
Mark wrote:
<quoted text>
Or they could just do as businesses that do need to make a profit do, figure out how to do more with less. Why is it only in private industry that this happens? Why do public institutions always need to replace revenue that is 'lost' which is a misnomer, revenue isn't lost, the citizens are keeping more of their hard-earned money that they deserve to keep.
You are buying into the whole line of BS that gov't always has to have the same or more revenue every year. They don't and they shouldn't. Unless you're a socialist, communist or marxist.
So drop the stinking replace lost revenue crap.
That’s okay too. But the fact is they have additional revenues in Use tax. It’s not likely they would reduce that. But Governor Granholm did suggest it, I think 2 years ago this Summer.
Mark

Lovington, NM

#20 May 12, 2008
Or they could do away with the stupidly asinine prevailing wage laws. My street is getting rebuilt--it's only needed it for about 5 years now--and talking with the job foreman, he says he's making just about twice as much money in half the time. No OT, it rains they go home right away, no rush to get the job done.

So how many more roads could they fix if they just let the excavators\paving companies just pay the going wage?
Alfred

United States

#21 May 13, 2008
I told you people. DEMOCRATS LIE !

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