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Rep. Markkanen: New laws will allow U.P. logging industry to chop down burdensome red tape
RELEASE|March 11, 2022

Legislation from State Rep. Greg Markkanen benefitting both the state and its vital logging industry has been signed into law by the governor.

House Bills 4976-78, now Public Acts 24-26 of 2022, allow the Michigan Department of Treasury to enter into reciprocal agreements with other states to exempt raw forest products transported into another state within 30 miles of the border from the International Fuel Tax Agreement (IFTA).

“I have spoken with many business owners and industry leaders who laid out the inconveniences caused by how things were done and I set out to change it,” said Markkanen, of Hancock. “This will assist our forest and trucking industries – crucial parts of the U.P. economy – by removing additional requirements when only hauling short distances over state lines. It also will streamline this process for the state as the Department of Treasury is responsible for collecting motor fuel taxes.

“This is a win-win for our area and Michigan.”

Motor fuel taxes are charged and collected across every state and Canadian province in North America, with IFTA serving as the mechanism to streamline and equitably hash out taxes for interstate carriers. The Department of Treasury is responsible for operating the IFTA program in Michigan.

While IFTA provides for an easy collection and implementation of each state’s fuel tax, there are some cases where reciprocal agreements to forego the process make more sense and simplify things for both haulers and state agencies.

The new laws are now effective with the governor’s signature. The plans advanced overwhelmingly through the Michigan House last November and unanimously through the Senate in February before reaching the governor’s desk. 

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