Michigan Voters to Decide on Transportation Sales Tax

The Michigan legislature compromised on a plan to raise money for state transportation funding. Instead of increasing the fuel tax, voters will consider an increased sales tax that exempts the fuel tax.

1 minute read

December 22, 2014, 7:00 AM PST

By James Brasuell @CasualBrasuell


"Michigan lawmakers, working through the night, have approved plans for a statewide ballot proposal that could yield $1.2 billion a year in new funding for roads and bridges," reports Jonathan Oosting.

"The cornerstone of the package, a proposed constitutional amendment to increase the state sales tax from 6 percent to 7 percent, passed the House in a 94-16 vote. It initially stalled in the Senate but was successful in a second vote, 26-12."

The example of Michigan was recently the focus of recent coverage by NPR of Republican governors exploring new taxes to fund transportation to fill the void left by the federal government. The vote by the Michigan legislature culminated a political process once thought to be a long shot.

The approved legislation includes one key change from earlier discussions of the tax, when Governor Rick Snyder was pushing for the state to increate the fuel tax. However, according to Oosting's coverage, "[the] ballot proposal would also exempt motor fuel from the sales tax…"

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