Michigan Passes Bill to Dedicate Portion of Fuel Tax to Roads

Michigan has passed a bill to dedicate part of its 4-cent sales tax on motor fuel to road improvements, reports The Detroit News.

Under the legislation, 18% of that gas sales tax will go to the State Trunkline Fund, county road commissions and cities and villages for highway, road, and street projects and related purposes. This will result in $101.5 million to $136.6 million in annual funding for roads, according to a Senate Fiscal Agency analysis.

The purpose of the bill is to help the state raise enough funding to qualify for its full allotment of matching federal road funds. Money from the 4% fuel sales tax currently goes to the state's general fund, where it can be used for any purpose.

The bill is supposed to be signed into law by Gov. Rick Snyder this week. Gov. Snyder has previously said the state needs to add approximantely $1.4 billion annually in road funding to maintain Michigan roads.