ANN ARBOR (WWJ) – According to new report from an Ann Arbor-based industry research group, more than $135 billion in federal and state revenue is generated by the auto industry and from drivers and car owners nationwide.
In a nationwide study released this week, the Center for Automotive Research found that autos generated revenue from income taxes, sales taxes, corporate income taxes, licensing and registration fees and fuel taxes.READ MORE: Fourth Stimulus Check: Is Another Relief Payment Coming Soon?
Mitch Bainwol, President and CEO of the Alliance of Automobile Manufacturers, said in 18 states, autos generate 15-23 percent of state tax revenues. In Michigan, the automotive sector was responsible for 13 percent of all taxes paid to the state government in 2010, at approximately $2.8 billion.
The study found that in 2010, the auto industry generated at least $43 billion in federal tax revenue, including $14 billion in income taxes and $29 billion from federal motor fuel taxes.
The auto industry also generated more than $91.5 billion in state government revenue in 2010, or 13 percent of total state tax revenue on average. Of the total state tax revenue, $60 billion is produced from use taxes and fees (fuel taxes, license and registration fees).READ MORE: Woman Wins $1 Million Playing Michigan Lottery
According to the report, $30 billion of state tax revenue is generated from sales and service of vehicles, $860 million comes from state income taxes on direct employment by automakers, suppliers and dealers, and $750 million is generated by state business taxes (corporate income taxes, licensing fees).
Revenues from car sales alone totaled over $564 billion in 2010, an increase of 17 percent from the previous year. The manufacture and sales of parts, along with repairs and service, account for another $173 billion in economic activity. So, automobiles drive more than $735 billion into the economy each year.
Here’s how the numbers break down in Michigan for 2010:MORE NEWS: Whitmer Announces 90 New Manufacturing, Professional Services Jobs In Southwest Michigan
- $390 million in sales tax revenue came from new vehicle purchases
- $245 million in sales tax revenue came from used vehicle purchases
- $103 million in sales tax revenue came from parts/service
- $968 million in use tax revenue came from fuel purchases
- $878 million in use tax revenue came from registration fees
- $52 million in use tax revenue came from license fees
- $52 million in business tax revenue came from manufactures
- $11 million in business tax revenue came from dealerships
- $50 million in employee personal income tax revenue came from automakers
- $45 million in employee personal income tax revenue came from suppliers
- $9 million in employee personal income tax revenue came from dealerships
To view federal and state information on taxes and fees generated by autos, visit www.autoalliance.org.