Fight for Small Business in the Road Funding Debate
In past sessions, several different funding ideas for roads have been proposed. While we recognize the need for good roads and adequate funding, this is a difficult time for tax and fee increases on Michigan small business job providers. NFIB small business owners have made it clear that they are not supportive of a motor fuels tax increase or a hike in vehicle registration fees. Lawmakers should consider dedicating a substantial portion of the projected budget surplus for the coming year to road construction and maintenance in order to avoid hikes in the gas tax and vehicle registration.
State funding for roads comes from a pump tax on motor fuels and registration fees. However, the total amount of money raised from motor fuel taxes has been declined in recent years due to reduced consumption of fuel from higher mileage vehicles and increased conservation as a reaction to higher prices.
A 2012 road funding survey of NFIB members, revealed the following small business reaction to various proposals:
Funding for Road Construction & Maintenance
Do you support increasing the pump tax on motor fuels to raise funds for road maintenance and improvements?
23% Yes 68% No 9% Undecided
Do you support eliminating the pump tax and taxing fuel at the wholesale level on a percentage basis with a rate equal to the current tax raised?
Do you support allowing local governments to raise funds for road maintenance and improvements by a vote of the residents in their jurisdiction?
49% Yes 44% No 7% Undecided
Do you support increasing driver license and registration fees to fund road maintenance and improvements?
21% Yes 75% No 4% Undecided
Do you support eliminating the current per-gallon motor fuel tax and replacing it with a one-penny increase on the state sales tax earmarked for road maintenance and improvements?
35% Yes 50% No 15% Undecided