Voters in Michigan will be lining up to make a decision to pass the Michigan Sales Tax Increase for Transportation Amendment, also known as, Proposal 1, on Tuesday, May 5, 2015. This article aims to provide Michigan voters with all of the necessary information needed to make an informed choice regarding Michigan roads on the ballot.
First, Michigan voters need to be made aware of the changes that could occur if this proposal is passed. Proposal 1 intends to create one constitutional amendment, to raise Michigan sales tax, and ten statutes in the Michigan legislature. The idea behind these changes is to raise enough money to fix the poor state of Michigan roads by raising taxes and creating more Michigan laws.
The official language of Proposal One, approved by the Board of State Canvassers is as follows:
PROPOSAL 15-1
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:
Increase sales / use tax to 7%, as authorized by constitutional amendment.
Increase gasoline / diesel fuel tax and adjust annually for inflation,
Increase vehicle registration fees, and dedicate revenue for roads and other transportation purposesExpand competitive bidding and warranties for road projects
Increase earned income tax credit.
Should this proposal be adopted?
YES [ ]
NO [ ]
In other words, Proposal 1 would increase Michigan state sales tax, increase fuel tax and allow for fuel tax to be increased every year for inflation, and increase motor vehicle registration fees. These fees would not only be used to expand the transportation fund but would also be used to bolster the School Aid Fund.
The increases in taxes by Proposal 1 are estimated to cost an additional $477 to $545 per Michigan household. According to the Michigan House Fiscal Agency, once Proposal 1 is fully implemented in the fiscal year 2017-2018, Michigan’s state revenue will be increased to $1.9 billion dollars. This significant increase would be divided to create $116.1 million for public transportation, $200 million for the School Aid Fund, $111.1 million for cities, and $173 million for Michigan’s General Fund.
A poll conducted by Lansing’s EPIC-MRA on January 29, 2015 discovered that 46% of the people they surveyed would vote “yes” on Proposal 1 and 41% would vote “no”. Though after hearing more details on the Proposal, 47% said “yes” and only 38% said “no”. This change may be attributed to the fact that Michiganders are big proponents of road improvement. The current state of Michigan roads is miserable. Numerous potholes, crumbling asphalt, and broken bridges cause thousands of auto accidents in Michigan every year. Many of these motor vehicle crashes result in serious, life-changing injuries or even death. Some of these car accidents may be prevented by simply repairing Michigan's dangerous roads.
If you have been injured in an car or motorcycle accident, call The Michigan Law Firm, PLLC. Our experienced auto accident attorneys are ready to help victims of car crashes deal with insurance companies, pay for medical bills, and easing your road to recovery. Call us today at 844.4MI.FIRM or click here for a free consultation.