Voters to decide on state sales tax increase in May
LANSING — The decision to increase Michigan’s sales tax to help fund road and bridge improvements is being sent to the voters.
The Michigan Legislative Website indicates that House Joint Resolution UU passed early Friday morning, with the House voting 94 to 16 in favor and the Senate voting 26 to 12 in favor. Having passed, the resolution will hit the ballots on May 5th for voters across the state to decide if it should be adopted.
The resolution proposes an amendment to the state constitution to increase the minimum sales and use tax rates permitted under law, remove the sales tax on fuel, and ensure that money from the School Aid Fund is used for K-12 districts and community colleges, not universities.
Bills related to the $1.2 billion agreement between Governor Rick Snyder and legislative leaders for new funding of Michigan roads and bridges passed overnight as well. These include House Bill 4539, which calls for the increase in the sales tax from 6% to 7%. Those bills will only take effect if the ballot measure passes.