In May voters will be asked for a hike in state sales tax’the first since 1994.
The sales tax ballot initiative needed two-thirds support by members of both the House and Senate in a Lame Duck session on Dec. 19.
Once fully implemented, the proposal will provide $1.3 billion in additional dollars to roads, $260 million in low-income tax relief, $300 million in additional funding for schools and $94 million increase for local governments, according to state officials. The measures will also eliminate the existing 19-cents-per-gallon tax on gasoline and the 15-cents-per-gallon tax on diesel fuel. It would convert both to a 14.9 percent tax on the average price of gasoline and the average price of diesel fuel.
Local lawmakers response to the sales tax vote was mixed.
State Rep. Joe Graves said his no vote was to protect Michigan residents from increased taxes, insisting that prioritized spending and budget cuts would be a better way to fund road and bridge repair and maintenance.
‘My top priority in finding a solution to fix Michigan’s roads was to prioritize existing resources and not raise taxes. While the compromise reached made some positive changes, I voted against raising taxes on hard-working Michiganders,? said Graves, (R-representing Atlas and Groveland townships). ‘We need to look for every spare coin in the cushions before any tax increase is even considered. We must perform our due diligence in seeking existing funding sources for roads before we put additional tax burdens on hard-working families.?
State Rep. Brad Jacobsen supported asking voters to decide.
‘The 1 cent increase is the most equitable we have had over the last three years,? said Jacobsen, (R-representing Brandon Township). ‘The sales tax increase will collect funds from smaller increments for a variety of activities. It’s a very complex package that features ten bills. There are a lot of moving part. The whole thing hinges on a vote May 5.?
Michelle Imbrunone, Goodrich School District Superintendent supports the hike.
‘If voters in Michigan say no to this plan, our lawmakers will be back to drawing board,? said Imbrunone.
‘It is my understanding that the 1 percent increase in the sales tax would be set aside for local governments and schools, which equates to at least $300 million in additional funding (or about $200 per student). Local government would get $94 million.?
‘An important provision in the package is that School Aid Fund money would only go to K-12 schools, not universities,? she added. ‘However, community colleges could still receive funding from the School Aid Fund.?
‘As superintendent, I am also encouraged by a commitment from the HFA (House Fiscal Agency) to conduct an adequacy study for education funding.?
State Senator David Robertson (R-26th District) could not be reached for comment as of press time Tuesday.