House panel OKs redirecting $370 million to roads

By: Associated Press Email
By: Associated Press Email

Michigan lawmakers have taken an initial step toward redirecting $370 million a year in tax dollars to address deteriorating roads.

The House Tax Policy Committee on Wednesday voted to permanently allocate money in Michigan's general fund to roads and bridges. Michigan's taxes on gasoline are among the country's highest while its per-capita road spending is among the lowest because much of the sales tax on fuel goes to non-transportation funding.

Legislators want to dedicate more of it to roads without hurting funding for education and local governments.

The bills approved 11-0 and 10-0 are part of a House Republican road funding fund. Another committee may vote Wednesday to raise Michigan's tax on diesel fuel and shift from a flat per-gallon fuel taxes to those based on the wholesale price.

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