MICHIGAN — It's legislation aimed at generating money to fix our crumbling roads that essentially doubles the state's gas tax.
But is the promise of improved roads enough to stomach the bill?
Thursday, the Michigan Senate passed a version of the bill hiking taxes on gasoline but it's still far from a done deal.
The bill approved by the Senate would essentially change the tax formula on gas, instead levying a sales tax as opposed to taxing on a per-gallon basis.
The current 19 cent per gallon retail tax would be replaced by a wholesale tax starting at 9.5 percent before increasing to 15.5 percent by 2018.
Based on a the current wholesale average price for gas of $2.50, the breakdown would look something like this:
- 25 cents more in 2015
- 31 cents in 2016
- 36 cents in 2017
- 41 cents in 2018
The goal with this legislation is to generate the $1.4 billion annually Gov. Rick Snyder has said would be needed to fix roads and bridges.
The legislation now moves to the House, where its future is uncertain. Snyder, who made it known after his re-election win he'd be making road funding a top priority in his second term, would ultimately have to sign off on the proposal.
