Michigan Sends Transportation Funding Proposal to Voters

Michigan passed new transportation funding mechanisms that will require voter approval. The proposal includes:

Convert existing 19-cent per gallon gasoline and 15-cent per gallon diesel taxes to a wholesale version. Gas taxes could top 41 cents by October 2015, but there would be no additional sales tax, and all resulting revenue would go to transportation.
Eliminate some annual vehicle registration fee discounts, increase fees for heavy trucks and create new surcharges for electric and hybrid vehicles whose owners pay fewer fuel taxes.
Strengthen warranty requirements for construction projects and require more competitive bidding.
Fully restore the state’s Earned Income Tax Credit to 20% of the federal level. It was scaled back to 6% in 2011.

Transportation