DEARBORN, Mich. – Michigan Gov. Rick Snyder and other business and local leaders are on the campaign trail in support of Proposal 1, which would increase the state sales tax and raise $1.3 billion a year more to fix roads.
Snyder spoke at a press conference Thursday in Dearborn.
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"Is it easy to vote for a tax increase? Absolutely not. Your inclination is to say no. Common sense though says yes. Good judgment says yes. A brighter future for our kids say yes," Snyder said.
Voters will decide in the May 5 special election whether to approve the amendment to the Michigan Constitution.
The amendment would increase the sales tax from 6 percent to 7 percent to "replace and supplement" revenue to the school aid fund and local governments that was reduced by the elimination of the sales tax on gas and diesel fuel.
Here's how Proposal 1 will appear on the ballot. Voters will be asked to check "Yes" or "No."
A proposal to amend the State Constitution to increase the sales/use tax from 6% to 7% to replace and supplement reduced revenue to the School Aid Fund and local units of government caused by the elimination of the sales/use tax on gasoline and diesel fuel for vehicles operating on public roads, and to give effect to laws that provide additional money for roads and other transportation purposes by increasing the gas tax and vehicle registration fees.
The proposed constitutional amendment would:
• Eliminate sales / use taxes on gasoline / diesel fuel for vehicles on public roads.
• Increase portion of use tax dedicated to School Aid Fund (SAF).
• Expand use of SAF to community colleges and career / technical education, and prohibit use for 4-year colleges / universities.
•Give effect to laws, including those that:
o Increase sales / use tax to 7%, as authorized by constitutional amendment.
o Increase gasoline / diesel fuel tax and adjust annually for inflation, increase vehicle registration fees, and dedicate revenue for roads and other transportation purposes.
o Expand competitive bidding and warranties for road projects.
o Increase earned income tax credit
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