Michigan House Passes Road Tax Increase And Removes Road Work Guarantees

A new plan to improve Michigan roads with higher fuel taxes

and vehicle registration fees was approved by the state

House.

The Republican-controlled House voted late Wednesday night along party lines after road-funding talks among legislative leaders and Gov. Rick Snyder broke down last week. The governor says he has "some concerns" with the new legislation.

The House bills would raise $1.2 billion a year to bring roads up to par, but not until the 2020-21 fiscal year.

The 19-cents-a-gallon state gasoline tax would be increased by 3.3 cents in 2018. The 15-cent diesel tax would rise by 7.3 cents in 2017.

License plate fees would increase by 40 percent starting in October 2016.  The increase will cost drivers an average of $100 more per vehicle.

And according to State Senator Patrick Colbeck he states

Patrick Colbeck

“Last night, the House voted on a series of bills to fix our roads. The bills feature a net $400M tax increase and reprioritization of $800M in existing revenue for a total increment of $1.2B for our roads. Gas taxes are increased by 3.3 cents/gallon. Diesel taxes are increased by 7.3 cents/gallon. Registration fees are increased for passenger vehicles and trucks. The bills remove provisions of SB 111 embedded within HB 4613 which would have enabled us to enforce warranty provisions. The suite of bills also featured enhanced Homestead Property Tax Credits to help citizens adversely impacted by the decrease in these credits back in 2011