Road-funding deal: How it affects the average driver

LANSING, MI (WLNS) – Increases in fuel taxes and vehicle registration fees, those are just some of the things included in the road-funding package Governor Rick Snyder signed into law Tuesday. The billion dollar plan is the largest investment in our state’s roads and bridges in a half-century.

And now that this seven-bill package is signed into law, Michigan can expect to see a lot of changes starting in 2017, including a hike in fuel taxes and a tax-cut for some homeowners. This billion dollar investment will raise 20 percent more revenue when compared to the last road funding plan in 1997.

“This is a positive step forward for Michigan,” Governor Rick Snyder said. “We should be proud of it and I look forward to implementing this now that it’s signed into law.”

Starting in 2017, this road funding deal will do a number of things. The gas tax will go up by 7.3 cents and you’ll pay 20 percent more for vehicle registration fees.

The new law will also shift some money from Michigan’s General Fund to be used only for roads.

According to the Senate Fiscal Agency, here’s how it will affect you. Right now the average registration fee is $98 per person on an annual basis.

The increase we’ll see in 2017 raises that by $20.

When it comes to the state fuel tax, for the average person who drives 15,000 miles per year at 25 miles per gallon, it costs around $114. With the fuel tax increase in place, that will jump by $43.80. That means the average driver will be paying a total of $63.80 in road taxes per year.

But it’s not all about tax increases; the new law does have some tax breaks, including a tax cut for some homeowners and renters through an expanded property tax credit. It’s expected to start in 2018.

But even though the governor signed it, Democrats still say no deal.

“This road plan takes money from the middle class, senior citizens and others, doesn’t ask corporations to pay anything, or heavy trucks, worst of all, it doesn’t even fix the problem,” Michigan Democratic Party Chair Brandon Dillon said. “Oh and by the way…$600 to 800 million is going to come out of the General Fund to affects people’s schools, public safety, and public health.”

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