ROADS/BRIDGES: Michigan Senate passes gas-tax increase

Measure, which would generate additional $1 billion annually, now moves to House

News November 14, 2014
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The Great Lakes state is far from being called a great roads state. Legislators know this, and on Nov. 13 the Senate passed a bill that could generate $1 billion a year for road and bridge work.
 
The measure, which passed by 23-14 count without debate, sets the wholesale tax on gasoline at 9% on April 1, 2015, and increases it to 15.5% on Jan. 1, 2018. Based on the current price of $2.50 a gallon, the tax would raise 17 cents a gallon. However, if the increase at the pump spikes the gas tax would be capped.
 
The House is now expected to consider the bill, which also bumps up the gas tax on diesel to what motorists pay for regular gasoline and increases fines for overweight trucks, and the Senate could make minor revisions to get it to Gov. Rick Snyder’s desk.
 
“These are steps to make Michigan better and stronger,” Snyder said in a statement after the Senate victory.
 
If the gas-tax bill fails to gain ground in the House, lawmakers could ask voters to approve an increase in the state sales tax.
 
Snyder wants an additional $1.2 billion to $1.4 billion a year to address crumbling roads and bridges in the state, and some experts are saying more is needed.
 
 
 

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