Michigan To Vote On 7 Percent Sales Tax For Roads

LANSING, Mich. (AP) – Gov. Rick Snyder and legislative leaders have struck a road funding deal to put a proposed 1 percentage point hike in the 6 percent sales tax to a statewide vote in May.

The Republican-led Legislature is expected to vote on the plan later Thursday.

It would ask voters to raise the state sales tax to 7 percent, drop the sales tax on fuel and ensure school aid fund revenue goes to K-12 districts or community colleges and not universities.

Lawmakers also will vote separately to convert the 19-cents-a-gallon gasoline tax to one based on wholesale fuel prices and increase it. Another bill would force Amazon and other online retailers to collect the sales tax on Internet purchases. Low-income earners who lost a tax break in a 2011 tax overhaul would see it restored.

There also would be vehicle registration fee changes. Many but not all of the changes would be contingent on the ballot measure being approved.

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