Michigan Lawmakers Eye Sales Tax Boost for New Road Funding

CHICAGO -- Michigan lawmakers are taking a fresh look at a long-stalled plan to raise $1.2 billion in new money for the state’s transportation infrastructure. 

Gov. Rick Snyder has made the increase in road funding one of his top priorities, calling it one of the toughest problems facing the state. He has pushed for a plan since 2012 that raises taxes and fees, but Republican lawmakers have so far failed to pass a bill.

A new proposal on the table would raise the state’s sales tax from 6% to generate the revenue. Voters would need to approve the tax hike as a constitutional amendment.

The tentative plan would hike the tax to 7% and shift the revenue that currently goes to K-12 funding and local governments to road funding. 

It’s unlikely that lawmakers would pass a plan in time to get it on the November ballot as they only have two session days left before a Sept. 6 deadline to get the measure on the ballot. A proposal would more likely go before voters in May or August of 2014.

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Transportation industry Michigan
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