Top legislators agree to plan to fix the roads
Governor Rick Snyder and legislative leaders have struck a road funding deal. It would be paid for by asking voters to approve a sales tax increase from the current 6 percent to 7 percent. That would be on the statewide ballot in May.
The Republican-led Legislature is expected to vote on the plan later today.
In addition to raising the sales tax, it would ask voters to drop the sales tax on fuel and ensure school aid fund revenue goes to K-12 districts or community colleges and not universities.
Lawmakers also will vote separately to convert the 19-cents-a-gallon gasoline tax to one based on wholesale fuel prices and increase it. Another bill would force Amazon and other online retailers to collect the sales tax on Internet purchases. Low-income earners who lost a tax break in a 2011 tax overhaul would see it restored.
There also would be vehicle registration fee changes. Many but not all of the changes would be contingent on the ballot measure being approved.
Legislators believe the plan would raise $1.2 billion dollars for road repairs in three years.