Proposed legislation would "green light" local fuel taxes
Small business owners are against state legislation that would allow local governments to create their own gas tax and vehicle registration fees. According to an NFIB survey of members across Michigan, 86% of small business owners oppose the tax. View the survey HERE.
Republican Rep. Jack O’Malley and Democratic Rep. Tim Sneller introduced legislation that would allow counties to levy their own registration fees or fuel taxes for road projects. A county would have to get approval from a local vote of the people before they could adopt such measures.
“Small business owners fear that if local governments can create their own gas taxes and vehicle registration fees, it would lead to a patchwork of unbalanced taxes around the state,” said NFIB State Director in Michigan Charlie Owens. “That unbalance encourages drivers to go out of their way or move to avoid the new fees and taxes,” said NFIB State Director in Michigan Charlie Owens. “Michigan small business owners are also concerned that counties would purposely hold voting on election dates when turn out is low to increase the likelihood that the tax increase passes.”
Owens said that Governor Whitmer’s recent move to use bonding to finance road construction (excluding local roads) will put more pressure on the legislature to move a local funding option. NFIB has been critical of her proposal because it funds projects that have nothing to do with roads.
“Small business owners are suffering from road funding fatigue,” said Owens. “However, they would be receptive to common sense and transparent legislation that restricts the funding to state and local roads.”
