Gas Tax Bill Passes House

The Michigan legislature has moved one step closer in gathering funds to fix the roads. The Michigan House has passed a road funding plan that phases out the sales tax on gasoline and replaces it with a wholesale tax on gas. The Republican backed plan, that cleared the lower-chamber last night, repeals the 6 percent sales tax on gasoline while phasing in an increase in a tax on the wholesale price of fuel that would reach 13.5 percent over six years. It would effectively translate to a one cent per year increase over the next six years, eventually providing one billion dollars more for roads, annually. Democrats opposed the plan saying schools would be deprived of important revenue if the sales tax on gas is eliminated, but House Speaker Jase Bolger says growth in the economy will provide replacement revenue. The legislation now heads to the state Senate.