Plan to Swap Sales Tax for Fuel Tax Headed to House Floor
MLive reports that House Republicans continue to push a budget plan that would replace the state’s 6-percent sales tax on gasoline with a fuel tax to be allocated to infrastructure. The House plan calls for all the funds currently collected as sales tax to be shifted to roads, generating an estimated $830 million.
Currently, the tax collected at the pump largely goes to schools and local governments.
In an effort to maintain existing funding for schools, the overall House plan shifts school aid fund dollars out of the university budget and into the K-12 budget.
The plan lacks Democratic support with one representative saying it doesn’t do enough to bring Michigan’s roads up to snuff.