Bill to tap into sales tax for road repairs passes Michigan Senate
Michigan’s crumbling roads would get an injection of cash for repairs from the state’s sales tax under a bill passed by the Senate Tuesday, MLive.com reports.
State senators overwhelmingly approved a plan to earmark a portion of the 6 percent sales tax for roads, with an eye toward landing more matching federal funds.
Two percentage points of the sales tax goes directly to the school aid fund and the rest is divided among other areas of the budget, including revenue sharing to municipalities. The road money would come from the part of the money that goes to the general fund.
Sen. John Proos, R-St. Joseph, said the change would claim about $135 million for the roads from the general fund.
Gov. Rick Snyder has said it will take about $1.4 billion to maintain roads, and more for new projects, and has called for lawmakers to look at a variety of ways to raise money.
The legislation now moves to the state House.