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Old 02-12-2013, 12:41 AM
104 posts, read 230,873 times
Reputation: 116


Hi guys. I think there have been some discussions on this subject recently in other threads, but I lurk the forum from time to time and I don't think I've seen a specific thread dedicated to this subject. With the governor recently opening up a dialogue about repairing our sad road infrastructure, I wanted to talk about it on here with the rest of you.

The plan proposed by the governor as quoted from Freep is as follows:

• Replacing the 19-cent-per-gallon state tax on unleaded fuel and 15-cent-per-gallon tax on diesel fuel with a single 33-cent-per-gallon state tax on both to raise an additional $728 million.
• Although Snyder’s budget documents convert the new tax to what it equates to as a cent-per-gallon tax at the retail level (33 cents), Snyder said it will actually be a percentage tax at the wholesale level.
• Beginning in 2016, the gas tax would be pegged to changes in construction costs and fuel consumption, with increases capped at 5% per year.
• Hiking vehicle registration fees by 25% for large trucks and trailers, and 60% for cars and light trucks to raise an extra $508 million. Today’s $123 vehicle registration fee on a new $25,000 car would increase by about $80.
I'd also heard it was a possibility that the state sales tax would be raised as quoted from an Mlive article:

A constitutional amendment to raise the state sales tax from 6 percent to 8 percent.
As a trade-off for the increased sales tax, a related bill would eliminate the state's 19-cent-a-gallon gasoline tax.
The joint resolution, if approved by a 2/3 majority in the state Senate and House, would require voter approval at the next general election.
Based on fairness alone, I have an idea but I'm afraid that it might be too ideological for all the politics that revolve around road construction in Michigan. IMO the most practical way to fund roads would be to put vehicle registration fees at something like five-hundred dollars per vehicle and institute a policy of pay by distance driven in relation to vehicle weight and number of axles. Mileage could be checked annually during roadworthyness analysis exams. Michigan doesn't currently do that but there are nineteen states where it is common practice. The registration fee would serve to partly take place of the now eliminated state gas tax and help people avoid situations where they'd be surprised by a bill that they can't afford to pay. Low mileage vehicles could sign up to pay a reduced registration fee or would be eligible for a refund at the end of their fiscal mileage year. Mileage fees would be based off specialized algorithms taking into account vehicle type and weight.

If anyone has any other ideas on how, if, and when to fix the roads around here I'd like to hear what you have to say about this whole situation. Snyder is looking to spend around 10-15 billion now in order to save money in the future, so this discussion is more relevant than ever.
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