Proposed Legislation would allow local gas taxes and registration fees
Background: While road funding here in Michigan is confined to state taxes, recently, proposed legislation would allow local governments to raise revenue for their roads if their voters approve a local gas tax or registration fee.
Supporters of allowing local governments to create their own gas taxes and vehicle registration fees say that right now, the only way local governments can raise taxes for local roads is to bond out for road improvements or raise the property tax millage rate. They claim these options don’t generate enough revenue to support the local road improvements people want. Supporters point out that voters in the local jurisdiction would have to approve the tax and that the revenue would be spent on local road improvements.
Opponents of allowing local governments to create their own gas taxes and vehicle registration fees fear that the result would be a patchwork of local taxes around the state that would encourage motorists to drive somewhere without those fees and taxes to spend their gas money. Opponents are also concerned that local governments would hold the voting dates on off year election dates when turn out is low to increase the likelihood of passage.
What do you think? Should Michigan pass legislation to allow local governments to create local gas taxes and vehicle registration fees for local roads?
