Michigan House passes roads plan without tax increase | Michigan Radio

Michigan House passes roads plan without tax increase

Dec 5, 2014

Funding to repair roads will be increased without tax raises.
Credit User _chrisUK / flickr.com

The state House has passed a $1.2 billion plan to boost road funding without raising taxes and instead using money that would otherwise go to schools and local governments.

A bill approved Thursday night by the Republican-led chamber would gradually eliminate the 6 percent sales tax at the pump and gradually increase per-gallon fuel taxes.

The plan ultimately would raise $1.2 billion a year more to spend on roads and bridges.

But in eliminating the sales tax on gas, schools and municipalities could be deprived of funding. Republicans say the bill ensures funding would stay intact.

Democrats call the GOP plan a "charade."

The Republican-led Senate recently voted to more than double Michigan's 19-cents-a-gallon gas tax to boost road funding.

Talks will continue on road funding in the lame-duck session.