Michigan’s Transportation Road Funding Ballot Initiative:
In 2014, the Legislature approved a methodical package projected to infuse $1.2 billion of additional revenue annually to repair Michigan’s roads and bridges, while funding our schools and local governments too. In the legislation, a ballot initiative must first be passed by Michigan voters on May 5, 2015, in order to increase the sales tax from 6% to 7%.
Currently, almost 75% of the sales tax collected is distributed to the School Aid Fund, which is used to fund K-12 education, and roughly 16% goes to the general fund, which finances most major departments of state government. Approximately 10% of the sales tax is currently distributed to local government units through revenue sharing, and roughly 1% of the sales tax is distributed to the Comprehensive Transportation Fund.
Roughly $1.34 billion would be created by increasing the sales tax, with roughly $807 million of that going to the School Aid Fund. Currently, roughly $530 million is earmarked for the School Aid Fund, so with a 1% increase in the sales tax, the School Aid Fund would actually receive roughly $30 million more in funding.
In addition to increasing the sales tax, this initiative would also exempt gas and diesel fuel from sales and use taxes, and convert the current 19 cent per gallon gas tax and the 15 cent per gallon diesel tax to a 14.9% tax on the wholesale price of gas and diesel fuel. Additionally, $1.2 billion collected over the next two years would go toward paying down old MDOT debt.
Along with increased School Aid Funding, revenue sharing, and more funds for transportation. This road funding proposal would also increase the Earned Income Tax Credit (EITC) from 6% of the federal EITC to 20%. Additional changes in the initiative include increasing truck registration fees; freezing registration fees for cars and trucks purchased after 1984; requiring competitive bidding, performance contracts, and warranties for certain road projects; require the collection of sales tax on internet purchases; earmark $40 million in FY 2014-15 for at-risk pupils; and establish a statewide study of educational resources.
To summarize, the plan would annually dedicate $300 million in additional funding to schools, $94 million to local governments through revenue sharing and would provide $260 million in tax relief for low-income individuals. Increasing the sales tax requires voter approval and will be on the ballot for consideration on May 5. All of the changes are contingent upon voter approval of the sales tax question except for Main Street Fairness and the statewide education study.
MPSC: Home Heating Credits Now Being Processed
The Michigan Public Service Commission has announced that the Michigan Department of Treasury is now processing Michigan Home Heating Credits for the 2014 tax year. The credit assists low-income customers with winter energy bills. The average credit in 2014 was $130.
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Non-resident fishing license discounted for 2015
The Department of Natural Resources announced that a discount of just over 10% has been approved for non-resident annual fishing licenses for 2015. The cost of the non-resident annual fishing license will go from $76 to $68 starting on March 1, 2015.
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Providing better opportunities for hunters with disabilities
We all know that all of Michigan DNR employees and volunteers have a passion for the outdoors, but many of them have a strong desire to serve people with disabilities too. Providing better opportunities for hunters and anglers with disabilities has been accomplished by impromptu volunteer efforts combined with a number of programs aimed specifically at people with disabilities, including programs such as Michigan Operation Freedom Outdoors, which serves many veterans.
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