LANSING – After months of work behind the scenes, a pair of House lawmakers announced Tuesday they are introducing an eight-cent per gallon gasoline tax increase, coupled with a 12-cent increase for diesel, in order to fill the expected hole in state transportation matching dollars.
The proposal, which has not been formally introduced, would raise the gas tax on March 1 by four cents and the diesel tax by six cents. The diesel tax currently is four cents cheaper than the 19-cent gasoline tax, but the proposal would make both taxes equal to 27 cents by phasing in another proportional rate increase on January 1, 2013.
While the proposal has been months in the making, it faces an uphill battle in both chambers.
Although the Senate Transportation Committee voted out a bill creating parity between the diesel and gas taxes in 2009, it has languished on the Republican-controlled chamber’s floor. And every lawmaker will be thinking twice on raising the gas tax during an election year.
The first phase of the tax increases would raise $240 million for road and bridge projects, filling the hole in expected state revenue that goes toward matching federal funding. By the time the proposal would be fully implemented, it would raise $480 million.
Proponents of the plan say the money would reconstruct 2,275 freeway lane miles, 2,800 bridges and 4,900 intersections across the state.
“These increases will allow our state, counties and cities to make the critical repairs our roads and bridges need, while also ensuring we can put forth the matching funds necessary for federal dollars,” said sponsor Rep. Dick Ball (R-Laingsburg).
Rep. Pam Byrnes (D-Chelsea), another sponsor and the Transportation Committee chair, is expected to move swiftly on the legislation.
“The poor quality of Michigan roads and bridges has already passed the crisis stage. This is neither a Republican nor Democrat issue. This is a Michigan issue – an issue of doing what’s right for Michigan drivers, businesses and taxpayers,” she said.
Mike Nystrom, vice president of government and public relations for the Michigan Infrastructure and Transportation Association and co-chair of the Michigan Transportation Team said, “This is a matter of doing what’s right for Michigan drivers, businesses and taxpayers. Providing safe transportation is a core service of government, and one that our state can no longer afford to ignore. It’s time for our elected officials to follow the lead of Rep. Ball and Rep. Byrnes. There are no more excuses.”
The proposal also calls for a stop to the diversion of transportation dollars for other state government spending purposes with 10 percent of the increased revenue dedicated to the Comprehensive Transportation Fund. The remaining dollars attributed to the tax increase would be distributed as follows: 39.1 percent each to the State Trunkline Fund and county road commissions and 21.8 percent to cities and villages.
The legislation would also create a Fuel Tax Restructuring Commission that would study long-term replacements for the motor fuel tax structure.
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