Rep. Bronna Kahle is reviewing a proposal to help fix local roads in Lenawee County and across Michigan without relying on tax increases.
The measure calls for ensuring all state taxes paid at the gas pump go to fixing roads, with a priority on roads managed by local municipalities such as counties, cities and villages. The legislation would eliminate the 6 percent sales tax drivers already pay on fuel purchases over a three-year period, and replace it with an equivalent revenue-neutral fuel tax – generating roughly $800 million more per year for local roads once fully phased in.
Kahle – who has consistently supported record funding for Michigan’s schools and students — noted the legislation includes protections to ensure school funding is not harmed.
“This is a common sense change ensuring taxes paid at the pump go to help fix the roads our friends, families and neighbors drive on every day — roads that were basically ignored by our governor with her recent bonding plan. We can’t forget that our roads from the driveway to the highway need to be fixed, too,” Kahle said. “This legislation doesn’t rely on asking taxpayers for more money. It doesn’t rely on adding debt our children and grandchildren will be forced to pay off later. It’s a proposal that works for all of Michigan – including Lenawee County.”
Kahle noted that safeguards are built into the legislation to ensure record investments in schools continue. Sales tax revenue currently dedicated to schools from fuel purchases would be fully replaced.
The legislation will be formally introduced into the House record today.
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