Michigan lawmakers work on '1 penny more' gas tax

Michigan Senate to propose increasing gas tax by 1 cent; money would go solely to schools

By Mara MacDonald - Reporter

MADISON HEIGHTS, Mich. - Michigan Gov. Rick Snyder's big push in his latest State of the State address was to fix the state's crumbling infrastructure.

His proposal was to jack up the gas tax by 17 cents and increase vehicle registration fees.

Read more: Gas tax hike, education in Gov. Snyder's budget plan

That was shot down by legislators who were worried about a voter freakout when they saw what it would mean at the pump.

Read more: Michigan Senate shuts down Gov. Snyder's roads plan

Now, the Michigan Senate is working on its own fix, which looks like this:

Dedicate all current gas tax money for a road fix. Currently, some of that money goes to schools.

In order to make up the money for schools, the plan is to ask voters to approve a 1 cent sales tax hike which would be dedicated solely for schools and would give them more money than they are getting right now.

There was a big push to get the plan through the legislature this week in order to get it on the May ballot. That's not going to happen. However, the move is to make it go in November.

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