Detroit Free Press: Plan's gas tax, vehicle fees would help fix roads
Thursday, May 14, 2009
Plan's gas tax, vehicle fees would help fix roads
An influential coalition proposed today increasing the state gasoline tax and vehicle registration fees to generate an additional $1.8 billion for new and improved roads.
Under the plan, Michigan’s 19 cents per gallon gas tax would be replaced by a tax on fluctuating wholesale prices of gas starting Jan. 1. The tax would be passed on to motorists, and it would be capped at the equivalent of 34 cents per gallon.
Until Jan. 1, the current gas tax would drop to 18.5 cents per gallon.
Annual registrations for most light cars and trucks would almost double over five years. Registration fees would rise 10% in 2010, and then 20% for each of the next four years.
But owners of older, less expensive cars would get a 10% break on their registration fees, which would be smaller than fees for new cars. Fees for cars valued at $12,000 or less would rise very little or not at all.
The 13-bill plan also would allow counties to charge up to a $25 fee on all driver's licenses to raise money for local road projects. for a pdf of the entire story.
Click here for a pdf of the entire story.