Snyder Working on Alternative Gas Tax Plan

Filed under: U.P. News Updates |

Great Lakes Radio News UpdateMARQUETTE, MI – (Great Lakes Radio News)Governor Rick Snyder and two Republican legislative leaders are “crunching the numbers” on a plan that would eliminate the 6 percent sales tax on gasoline and possibly expand the sales tax on services.

That would make up the lost dollars for schools and revenue sharing if the sales tax at the pump is removed. The alternative plan is being given “serious consideration” and it could turn out to be the deal that breaks the stalemate on the governor’s $1.2 billion infrastructure funding package.

In his 2014 budget, Snyder proposed effectively hiking the gas tax 14 cents and raising vehicle registration fees 60 percent to get enough revenue. Under the alternative proposal, the 19 cent a gallon gas tax would be removed and taxpayers would be given a sales tax exemption on gasoline, just as they now receive on food and drugs.

The lost revenue from that would be recouped from a new wholesale gas tax that would include automatic new revenue for the roads as the price of gas goes up.

Private meetings between the key players continue with more details expected in the next couple of weeks.

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