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Michigan lawmakers consider replacing state gas tax

Michigan lawmakers consider replacing state gas tax

(CBS DETROIT) – Michigan has a gas tax and that funding is used for road improvements, but as cars use less gas or go electric, lawmakers are considering other ways to fund Michigan’s rough roads. the state.

“This creates a declining revenue stream for how we finance and repair our roads. This challenge exists in every state across the country,” said Rob Coppersmith, executive vice president of the Michigan Infrastructure and Transportation Association (MITA ).

MITA represents the companies that work on our state’s roads, bridges and utilities. Coppersmith said MITA supports a user-based tax to fund road improvements.

“Revenues are declining at the pump due to vehicle efficiency,” he said. “(But) every year we lose a lot of money.”

Lawmakers are considering funding a pilot program that would examine changing the gas tax to a different use tax, such as a mileage tax, a toll road or even vehicle tracking.

“If Michiganders don’t like road user fees, then we’re going to have to find another way to raise the necessary revenue, maintain our system and grow it,” Copperfield said.

But Republican Rep. Donni Steele said she doesn’t want to see taxes rise.

“Yes, there is a deficit. However, I think if we were more efficient in our overall budget, there would be room in other areas that we could use without having to raise taxes overall to fund our roads ” Steele said.

She said she would prefer that lawmakers ensure there are no duplicate government programs that eat up funds.

“Eliminate the overlap and make sure that they are accountable and that they are actually doing what they were designed to do, and that they are actually providing the help that they are supposed to be helping with,” Steele said. .

The Michigan Department of Transportation said in a statement that it was “too early to say what form this would take, but MDOT officials are working collaboratively with lawmakers on workable language for their request.”