|
Michigan
to vote
on 7
percent
sales
tax for
roads
By DAVID
EGGERT
Associated
Press
LANSING,
MI -
Michigan
voters
would be
asked to
approve
a 1
percentage
point
hike in
the 6
percent
state
sales
tax as
part of
an
estimated
$1.6
billion
road and
school
funding
deal
announced
Thursday
by Gov.
Rick
Snyder
and
legislative
leaders.
The
Republican-led
Legislature
is
expected
to vote
on the
plan
later in
the day,
the last
of the
two-year
session.
A
statewide
vote
would
occur in
May if
two-thirds
of the
House
and
Senate
OK the
proposed
constitutional
amendment.
It would
ask
voters
to raise
the
state
sales
tax to 7
percent,
drop the
sales
tax on
fuel and
ensure
that
school
aid fund
revenue
could go
to K-12
districts
or
community
colleges
and not
universities.
Transportation
funding
would
rise by
$1.3
billion
a year,
giving a
big
boost to
the $2
billion
collected
through
fuel
taxes
and
license
plate
fees.
And
annual
school
funding
would
jump by
at least
$300
million.
"We have
a
solution
that
really
takes
into
account
key
concerns
in a
very
bipartisan,
bicameral
fashion.
We
listened
to
everyone,"
the
Republican
governor
said at
a
Capitol
news
conference,
where he
was
joined
by top
lawmakers
who had
been
meeting
behind
closed
doors
for
days.
He
acknowledged
that a
ballot-only
road
funding
fix is
"challenging"
because
voters
could
defeat
it, but
said:
"Isn't
it good
we asked
our
citizens
to
participate
in the
process
in a
constructive
way?"
Also
Thursday,
lawmakers
will
vote on
a number
of
related
bills,
many of
which
would
not take
effect
unless
the
ballot
measure
is
passed
by
voters.
They
include
converting
the flat
19-cents-a-gallon
gasoline
and
15-cents-per
gallon
diesel
tax to
taxes
that
could
rise
with
wholesale
fuel
prices,
to help
address
declining
revenue
as
people
drive
less and
with
more
fuel-efficient
vehicles.
The base
fuel tax
would be
significantly
increased
above
current
levels,
though
it would
not be a
major
net tax
hike
because
the
sales
tax on
fuel
would go
away.
Low-income
earners
who lost
a $260
million
tax
break in
a 2011
GOP
business
tax
overhaul
would
see it
restored.
That
would
mean
about a
$300
more per
family.
Other
bills -
not tied
directly
to the
ballot
proposal's
fate -
would
force
Amazon
and
other
online
retailers
to
collect
the
sales
tax on
Internet
purchases,
a bid to
level
the
playing
field
for
brick-and-mortar
businesses
that
must
assess
it. That
would
generate
at least
$50
million
more a
year.
There
also
would be
a $95
million
increase
in
vehicle
registration
fees and
overweight
truck
fines -
$45
million
through
license
plate
fee
changes,
if the
ballot
measure
is OK'd.
"Taken
as a
whole,
this is
an
excellent
package,"
said
House
Minority
Leader
Tim
Greimel,
an
Auburn
Hills
Democrat. |