Senate plans vote on road plan that includes fee, tax hikes

LANSING, Mich. (AP) – The Michigan Senate is preparing to vote on legislation to increase vehicle registration fees and fuel taxes as part of a plan to boost road spending by $1.2 billion annually within five years.

Majority Republicans discussed the proposal behind closed doors, but there is resistance. House Republicans approved the bills last week over Democrats’ objections after legislative leaders and Gov. Rick Snyder hit an impasse.

The plan could see minor or major revisions in the Senate.

It boosts license plate fees by 40 percent. The 19-cents-a-gallon gasoline tax and 15-cent diesel tax rise to 22 cents and automatically go up with inflation.

Approximately $600 million comes from higher taxes and fees. Another $600 million eventually is redirected from existing tax revenue.

Tax breaks also are included.

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