Proposed Gas Tax Would Benefit Roads

It’s been a possibility for a while, and now it’s coming to pass.

Some Michigan lawmakers are proposing higher taxes on gasoline and diesel fuel to raise more money for the state’s roads.

The bills call for a 19-to-23-cent-per-gallon tax on the wholesale price of gas which would then rise to 27 cents in 2013.

The diesel tax would increase to 21 cents per gallon, and it would then go up to 27 by 2013.

This could lead to an additional $480 million a year in state revenue.

The bills are another attempt to raise enough money to keep Michigan from losing out on federal matching funds for road construction.

The Associated Press says state Republicans remain skeptical, while those backing the bill claim residents are willing to pay more if it means better roads.

In Mike Hoey’s “A Bump in the Road” series back in November, he found that a tax on wholesale gas and diesel was one of the 2 main ideas lawmakers were considering to raise more road money.

Increased vehicle registration fees was the other.

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