NewsGetting Around Metro Detroit


Republican-led Michigan House proposes $800M road-funding plan that wouldn't raise gas tax

Posted at 5:07 AM, Mar 05, 2020
and last updated 2020-03-05 10:07:10-05

(WXYZ) — The Republican-controlled house has just proposed a new way to try and fix the roads.

Lawmakers hope Governor Gretchen Whitmer will consider an $800 million plan over her proposed road bonding plan.

Republicans are proposing replacing the six percent sales tax on gas with a per-gallon tax. The goal is try to gain the money without raising taxes on Michiganders.

This plan from Republicans includes eliminating the six percent sales tax on fuel over three years and replacing it with a per-gallon gas tax hike earmarked specifically for local roads. The plan is estimated to generate $800 million dollars.

That money would then be directed toward local and county-maintained roads.

Of the 120,000 miles of road in Michigan, 92 percent are owned and maintained by cities, villages and county road commissions. This money will be aimed at helping them.

It was in January that Governor Gretchen Whitmer announced a $3.5 billion dollar road bonging plan. The idea did not sit well with the Republican-led House.

On Wednesday, the House voted along party lines to give the legislature the ability to reject any attempts to issue more than $100 million in transportation bonds.

Whitmer has indicated the bill will be vetoed if it reaches her desk.

This new proposal comes in the form of five separate bills, which has all been forwarded to the House Appropriations Committee for review.