How Taxes Would Be Raised, Spent Under May 5 Ballot Measure

(AP) – How taxes would increase and be spent if Michigan voters approve Proposal 1, the road funding measure on the May 5 ballot:

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REVENUE CHANGES

— Increasing the sales tax from 6 percent to 7 percent: $1.56 billion

— Removing the sales tax from motor fuel: minus $829.3 million

— Replacing the 19-cent gasoline tax and 15-cent diesel tax with a tax on the wholesale price: $1.31 billion

— Increasing vehicle registration taxes by no longer allowing them to decline during the first few years after a car is bought, raising fees on commercial trucks and adding a special tax on electric/hybrid cars: $102.6 million

— Total: $2.15 billion

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NEW EXPENDITURES

— Road repair and maintenance: $1.26 billion, a 35 percent increase to Michigan’s 3.7 billion transportation budget

— Increasing the Earned Income Tax Credit for low- to moderate-income residents: $269.1 million

— School Aid Fund: $200 million

— General Fund: $173 million

— Public transportation: $116.1 million

— Revenue sharing to local governments: $111.1 million

— Recreation improvement: $20.9 million

— Total: $2.15 billion

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Source: League of Women Voters of Michigan, citing a House Fiscal Agency analysis

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