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Michigan Republican Lawmakers Suggest Road Repair Tax Change

 
Michigan Republican Lawmakers Suggest Road Repair Tax Change
Posted Friday, April 4th 2014 @ 4am  by Michigan Radio Network

Michigan House Republicans late Thursday unveiled their proposal to spend about a half a billion dollars more on roads and bridges.

The proposal would replace Michigan's 19-cent gas tax and 15-cent diesel tax with a 6-percent tax on the wholesale price of gas. But that doesn't mean more savings for consumers, who would pay more tax as the price of gas increases.

If approved by lawmakers, the change is estimated to generate an extra $450 million in road funding next year and about $500 million by 2018. That is short of the of the $1.2 billion in annual additional funding requested by Governor Rick Snyder last year.

House Speaker Jase Bolger acknowledged that the plan is not a full solution, but says it does incorporate things constituents have requested.

The proposal includes efficiency measures such as more competitive bidding for local road agencies and the Department of Transportation and requiring all projects more than $5 million to have a minimum five-year warranty.

It also would increase fees on permits for overweight and oversize trucks, a move that would raise $4.5 million. Bolger hopes to pass the package by late June.

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