A bill introduced last week would ask Michigan voters to raise the state sales tax to generate new money for transportation infrastructure funding.
The legislation is one of several measures expected to be considered by lawmakers as they tackle Gov. Rick Snyder’s effort to raise $1.2 billion of additional annual revenue for infrastructure.
The bill would raise the sales tax to 8% from 6%, with all new revenue going to fund transportation infrastructure projects.
A related bill would eliminate the state’s existing 19-cent-per-gallon gasoline tax.
State Sen. Roger Kahn, R-Saginaw, who is considered the point person for Snyder’s transportation efforts, was one of three Republican legislators to introduce the bills.
The sales tax increase would require a two-thirds vote in the Legislature and voter approval in the next general election, set for May. An alternative bill targets new money by raising registration fees by 80% and nearly doubling the gasoline tax.
Both measures would raise around $1.6 billion annually, according to local reports.