Michigan drivers could soon pay more for gas and vehicle registration fees

Jan 26, 2012

Drivers in Michigan may soon pay nine cents more per gallon at the gas pump.

A package of bills that would change funding for the state’s aging bridges and roads has been rolled out at the state Capitol.

It would get rid of the fuel-tax at the pump in favor of a tax at the wholesale level. That would result in drivers paying a few cents more per gallon. 

Drivers might also have pay more to register their vehicles. The package of bills also includes a plan to increase vehicle registration fees by 67 percent.

That should generate about $500 million dollars for transportation.

State Representative Rick Olson (R-Saline) said generating money to maintain roads is similar to a driver changing the oil in a car.

"Why do you do that? Because you want to save your engine," said Olson. "Same thing with roads; unless we do some of this capital preventative maintenance on a timely basis, we’re going to have more and more roads fall into the ‘poor’ category when then it costs 6 to 8 times as much to repair."

There are no plans to turn any of the state’s major highways into toll roads. But Olson said the conversation could come up in the future.

"Oh, it’s a possibility, but I don’t hear anyone pushing that at this point. Toll roads, tolls are a relatively inefficient way to collect funds for roads," said Olson. "Does create jobs, but those are government jobs, so why not then create the net revenue the most efficient way we can."

The package of bills also includes a plan to create a regional transit authority in southeast Michigan. 

Governor Rick Snyder called on lawmakers to find about $1.5 billion in additional revenue to adequately fund transportation needs.