Michigan bills would provide reciprocity for lumber loads

A Michigan House bill package introduced this month revisits reciprocity for timber haulers in the Upper Peninsula.

The bipartisan pursuit is touted to make it easier for logging companies to transport materials between Michigan and Wisconsin.

Legislation introduced by Rep. Jenn Hill, D-Marquette, and Rep. Dave Prestin, R-Cedar River, would allow logging companies more flexibility to transport their products between Michigan and neighboring states without the needed paperwork that is normally required under the International Fuel Tax Agreement.

“Our proposed bills make sure we’re not making things harder for loggers transporting cargo in the U.P.,” the lawmakers said in a joint statement. “In the state’s bureaucratic maze, things unfortunately go overlooked that make some people’s jobs unnecessarily challenging.”

The lawmakers also said logging companies based in the Upper Peninsula frequently need to transport wood to mills located in Michigan and Wisconsin. They added that the routes between these facilities are relatively short and do not change, making the paperwork requirements under IFTA for long-haul trucking “redundant and burdensome.”

One point made by the pair is that IFTA was intended for trucks that deliver products and refuel in various states and locations on a regular basis.

2022 Michigan laws on topic

One year ago, Gov. Gretchen Whitmer signed into law multiple reciprocity rules for affected loads. One change exempted timber haulers who must cross the state’s borders from IFTA.

A second change permitted the Michigan Department of Treasury to set fuel tax reciprocity agreements with other states. Specifically, the agency can permit the transport of raw forest products within 30 air miles of the border.

Affected loads include logs, posts, poles, wood chips, sawdust and Christmas trees not altered by a manufacturing process off the land.

Another rule change exempted affected interstate carriers from the collection of streamlined sales and use tax under fuel tax reciprocity agreements.

What’s ahead?

Hill and Prestin said the 2022 laws allow, but do not require, the Treasury Department to enter into reciprocal fuel tax agreements with other states for affected loads.

However, due to an interpretation of the air mile limit discovered after execution of the Michigan-Wisconsin reciprocity agreement, a mill in Escanaba, Mich., was inadvertently excluded.

The new bills, HB5378 and HB5379, would increase the allowable number of air miles traveled under these agreements from 30 to 50. The revision would allow both states to make a change to the allowed number of air miles, as long as both states agree.

The bills have been sent to the House Transportation, Mobility and Infrastructure Committee.

The Michigan Legislature has adjourned for the year, but 2024 will be the second year of the two-year legislative session. As a result, the legislation does not need to be reintroduced for consideration. LL

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