Road Funding Package signed by the Governor The House passed amended versions of the roads package, and the package were signed by Governor Snyder. In a statement, Governor Snyder praised the legislature on this $1.2 billion plan and is prepared to sign the bills.
The package includes HB 4614, HB 4616, HB 4370, HB 4736, HB 4737, HB 4738, and SB 414. This 600/600 proposal generates $600 million in new revenue and $600 million in existing revenue, mostly from the General Fund, by 2021. With some critics showing concern for the heavy reliance on the General Fund, Governor Snyder insists the fund will grow to accommodate the roads, preventing future program cuts.
HB 4616, dealing with diesel fuels, cleared the Senate 20-18 and the House 56-51. A Senate adopted substitute generates $200 million from a 20 percent increase in registration fees in HB 4736. This bill passed the Senate 20-18, and cleared the House 55-54. HB 4738 changes the gas tax from 19 cents per gallon to 26.3 cents per gallon beginning January 1, 2017. The bill passed the Senate with a vote of 20-18, and the House 55-52. The gas tax and diesel tax increases will begin January 1, 2022. Inflationary increases are indexed to the national Consumer Price Index.
HB 4614 applies sales tax to alternative fuels based on per-gallon equivalent to motor fuels, had no changes and passed the Senate 21-17 and the House 55-52. The amended version of SB 414 has the rollback tax occurring when General Fund growth exceeding the rate of inflation times 1.425. The legislators also compromised to hold off implementation until January 1, 2023. HB 4370 also did not see many changes, except for the income multiplier changing from 3.4 percent in tax year 2017 to 3.2 percent in tax year 2018. The measure passed the Senate 28-10 and the House 62-45. HB 4737, dealing with the Michigan Transportation Fund and MDOT, passed the Senate 27-11 and the House 73-34.