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House road plan has no tax hike; Senate wants to curb debt

David Eggert | Hagadone News Network | UPDATED 5 years, 9 months AGO
by David Eggert
| March 4, 2020 4:07 PM

LANSING, Mich. (AP) — Republicans who control the Michigan House proposed a new transportation-funding plan Wednesday that would not raise fuel taxes, directing the revenue to local roads.

The core facet of the proposal is similar to one that was not embraced last year by Democratic Gov. Gretchen Whitmer: eliminating the 6 percent sales tax on fuel over three years and replacing it with an equivalent per-gallon gasoline tax hike.

The school aid fund, which receives much of the sales tax collected at the pump, would be held harmless. In a change, all of the roughly $800 million from the replacement tax would go to local roads — which GOP lawmakers said is appropriate since Whitmer recently announced $3.5 billion in borrowing to fix state-owned I-, U.S. and M-numbered routes.

Also Wednesday, the Republican-led Senate voted on party lines to give the Legislature the ability to reject any state attempt to issue more than $100 million in transportation bonds — a bill Whitmer would veto if it reaches her desk.

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