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Monday, October 21, 2019

EWING TOWNSHIP: House Proposal To Redirect The Gasoline Sales Tax

Local Government

By Press release submission | Jun 12, 2019


Ewing Township issued the following announcement on June 11.

A House proposal to redirect the gasoline sales tax to roads was introduced this week, but plans are in the works to hold local units harmless. The House Appropriations Transportation Subcommittee unveiled a plan to dedicate the estimated $542.5 million generated by the gas sales tax to improve roads and bridges. This plan is their proposal in response to Governor Gretchen Whitmer's proposed 45-cent gas tax increase, which Republicans have said is a non-starter. House Speaker Lee Chatfield (R-Levering) has made shifting all taxes at the gas pump to roads a priority. Currently, the sales tax on fuel generates about $81.3 million in constitutional revenue sharing for local units and $600 million for schools. While the proposed transportation budget does not include hold harmless funding for local units, the House plans to amend the General Government budget next week to add $81.3 million in General Fund dollars to replace the constitutional revenue sharing losses. This replacement revenue would now be subject to an annual appropriation and would not be from a dedicated funding source. Additionally, when the state has faced a downturn in revenue, historically local government funding has been one of the first areas affected. MTA strongly supports increasing funding for improving our crumbling roads and bridges but believes that funding should not come at the expense of local units. MTA will continue to advocate for local funding as the Legislature and the governor work to reach a politically viable solution that could include proposed funding from various proposals.

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Original source can be found here.

Source: Ewing Township

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