Legislation will improve roads across the state without a tax increase

Rep. Julie Alexander, of Hanover, today announced her support for a common-sense reform to fix Michigan’s local roads – without increasing taxes on Michigan’s hard-working families.

The reform will allocate an additional $800 million to local roads without new taxes, which were neglected in the governor’s recent bonding plan.

The plan ensures all state taxes paid at the gas pump go toward fixing roads, with a priority on roads managed by local municipalities such as counties, cities and villages. The proposals would phase out the 6 percent sales tax drivers currently already pay on fuel purchases over a three-year period and replace it with an equivalent revenue-neutral fuel tax – generating approximately $800 million more per year for local roads.

“Listening to my Jackson community, I hear drivers asking for a comprehensive plan that will benefit them and improve the roads they travel daily,” Alexander said. “This reform will deliver that.”

The common-sense reform also fills in the large gap left from Gov. Gretchen Whitmer’s recent decision to bond for $3.5 billion for state-owned highways.

“The governor’s proposal would only benefit around 9,600 miles out of 120,000 total in the state, ignoring roads people use frequently for their everyday commutes,” Alexander said. “That is unacceptable. Additional funding is needed to fix our local roads. This measure is the common-sense answer that will benefit all of Michiganders.”

Alexander said it’s important to note Michigan schools and students will not be harmed by the new legislation as built-in safeguards ensure those important investments continue, as well as local municipalities.

“This legislation would ensure all sales tax revenue from fuel purchases currently dedicated to schools and local units of government would be fully replaced,” Alexander said. “As a former county commissioner and teacher, I know firsthand that every dollar matters. That’s why I am pleased with these changes that increase road conditions without causing harm to our schools and county budgets in anyway.”

The bills have now been referred to the House Appropriations Committee for further consideration.