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New roads could mean increased cost at pump

January 23, 2013
	<p>Gov. Rick Snyder smiles at the crowd before he begins his State of the State address on Wednesday, Jan. 16, 2013, at the Capitol Building.  Snyder informed the state of Michigan on all of the improvements that have been made in the past year, and his plans for the new year.  Katie Stiefel/ The State News</p>

Gov. Rick Snyder smiles at the crowd before he begins his State of the State address on Wednesday, Jan. 16, 2013, at the Capitol Building. Snyder informed the state of Michigan on all of the improvements that have been made in the past year, and his plans for the new year. Katie Stiefel/ The State News

Photo by Katie Stiefel | The State News

Driving over potholes and broken concrete on the way to class could become a thing of the past, but it might mean increasing fuel taxes or raising the state sales tax to 8 percent.

During his State of the State- address last week, Gov. Rick Snyder announced his goal for 2013: reconstructing Michigan’s roads.

In East Lansing, the Michigan Department of Transportation has plans to makeover Grand River Avenue and Michigan Avenue in March. The roads are slated to be resurfaced and upgraded with 8-foot-wide sidewalks, new traffic signals and intersection improvements.

But Snyder admitted fixing roads, as well as bridges and harbors, will come at a cost.

In his address, Snyder said Michiganians pay at least $81 more in vehicle repairs than surrounding states from unkept roads. To fund construction, he presented a “user tax”­ ­— that is, Michigan residents should be willing to fund the $1.2 billion project because they use roads throughout the state daily.

This week, lawmakers put together two tax proposals to fund construction. One would increase statewide sales tax. The other would tax drivers at the pump.

The first plan would hike the state’s sales tax from 6 percent to 8 percent. The extra money raised from the 2 percent increase would be dedicated to fund road construction.

Michigan already has a higher sales tax compared to the” nation’s 5.1 percent average”:http://www.salestaxinstitute.com/resources/rates.

Five states have no sales tax, and six have the highest tax rate at about 7 percent, according to the Sales Tax Institute.

Sen. Roger Kahn, R-Saginaw, created plan B, which includes taxing gasoline at the wholesale level and increasing vehicle registration fees, but the plan still is in the works.

“Over the next couple of months, I will continue to work toward a sustainable, long-term solution to our transportation funding needs and the best plan for Michigan,” Kahn said in a statement.
It still is uncertain what will happen as lawmakers continue to amend and create plans to fund road construction.

Director of MSU’s Institute for Public Policy and Social Research Douglas Roberts said Michigan residents have varying feelings on the state’s roads, but funding construction means tangible benefits.

“Citizens will look at the roads and think this is something they can actually see from tax (money),” he said.

Roberts said although figuring out which plan will work best will be difficult, he believes a plan ultimately will pass.

Studio art senior David Brown agreed with Snyder’s user tax sales pitch.

“It should be a necessity that we pay for our own roads because we’re the ones using them,” he said.

Brown said he would prefer a fuel tax because gas prices have been low the last few weeks and better roads might mean better gas mileage.

“Either way, nobody’s going to be happy about (taxes),” special education sophomore Jessica Osos said. “Everyone’s going to complain.”

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