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gas taxes

Orange construction barrels
Steve Carmody / Michigan Radio

 


Gov. Rick Snyder signed a $1.2 billion road funding package in 2015 that called for increased vehicle registration fees and gas taxes, many of which went into effect this year.

In an interview with Stateside this week, Michigan Department of Transportation director Kirk Steudle said the state was “still trying to manage the deterioration,” but the overall quality of roads was yet to rise, despite the fresh tax revenue. But he noted the general fund component of the 2015 funding package has yet to kick in.

Michigan drivers are seeing changes in gas prices in 2017.
Steve Carmody / Michigan Radio

Gas prices have gone up in Michigan now that the state tax on gas jumped from 19 cents to 26.3 cents per gallon. Taxes on diesel have gone up too, going from 14 cents a gallon to 26.3 cents. These "motor fuel taxes" don't include the state’s 6% sales tax, or the federal tax of 18.4 cents per gallon.

That puts Michigan at one of the highest at-pump tax rates in the country, trailing Pennsylvania, Washington, Hawaii, New York and California, according to the Tax Foundation.

steve carmody / Michigan Radio

Michigan motorists will see state taxes on gasoline and diesel jump this weekend.

On New Year’s Day, the gas tax is rising 7.3 cents a gallon.  The diesel tax is increasing by 11 cents.  The increase will give Michigan the 5th highest gas tax in the nation.   

The tax increase, along with state auto fees, will help fund desperately needed road repair and improvements across the state.

Denise Donahue is the director of the County Road Association of Michigan.  She says it’s important for motorists to see the money being used to fix Michigan’s crumbling roads.

Michigan drivers have become all too familiar with the dreaded pothole.
flickr user Michael Gil / http://michrad.io/1LXrdJM

This Week in Michigan Politics, Michigan Radio’s senior news analyst Jack Lessenberry and Morning Edition host Christina Shockley discuss another road funding plan, proposed changes for medical marijuana cardholders, and body cameras.


Roads
Wikimedia Commons

The state Senate could vote as soon as Wednesday on a road funding proposal that includes a possible income tax rollback.

A state Senate panel approved a plan Tuesday afternoon that could generate about $1.5 billion annually for roads, in part by raising Michigan’s gas tax by 15 cents a gallon over three years. It would also shift about $700 million in existing state funds to roads.

Roads
Wikimedia Commons

State lawmakers return to Lansing this week after a two week break for deer hunting and Thanksgiving.

Every Republican and Democratic leader at the state Capitol says fixing Michigan’s roads will be the top priority between now and the end of the year.

“Certainly, the primary focus will be on discovering a solution for funding of transportation in Michigan, specifically roads and bridges that are in desperate need of repair,” said Ari Adler, a spokesperson for state House Speaker Jase Bolger, R-Marshall.

Adler says the speaker wants more taxes paid at the pump to go to roads.

Steve Carmody / Michigan Radio

LANSING (AP) - Michigan lawmakers have three weeks left in their lame-duck session to enact a potentially wide-ranging assortment of bills, topped by a measure to significantly boost road funding.

  The Republican-led Senate's recent approval of a bill to more than double state gasoline and diesel taxes over four years faces an "uphill climb" in the GOP-controlled House, says Speaker Jase Bolger. He's floating an alternative to gradually eliminate the state sales tax at the pump while raising per-gallon fuel taxes a corresponding amount.

Steve Carmody / Michigan Radio

LANSING  (AP) - A typical Michigan driver would initially pay roughly $4.60 more a month in state gasoline taxes under a gradual tax increase proposed to boost funding for road repairs.

  In 2018, a driver buying 60 gallons of gas a month could pay $14.70 per month more than today. That's an extra $177 a year, more than double the $137 in per-gallon state fuel taxes he or she currently pays annually.

Inside the Michigan Senate
Lester Graham / Michigan Radio

State lawmakers are considering multiple plans that would significantly increase state road funding. The state Senate on Thursday approved legislation that would raise the state’s gas tax to pay for road improvements.

But state Senate Majority Leader Randy Richardville, R-Monroe, says they could still try to pass a plan that would raise the state’s sales tax.

“We may look to change the sales tax. And that may be a better way to fix the structural problem that we know exists at the pump already,” Richardville told reporters on Thursday.

Gas prices from the past at the shuttered Logan's Gas and Deli near Battle Creek.
Mark Brush / Michigan Radio

Michigan’s roads are crumbling and some put the estimate to fix them at almost $2 billion a year.

State lawmakers are in the midst of considering raising revenue through higher taxes on gas, and that has raised a lot of debate around what we already pay at the pump.

Michigan Radio’s Mark Brush recently wrote about how gas prices in Michigan work, and he compiled a list of four things for us to consider when thinking about what we pay at the pump.

*You can listen to our interview with Brush above.

Here’s his list: