Road Bill Package Signed
Governor Rick Snyder has signed legislation that's designed to go hand in hand with a ballot proposal that increases the state sales tax from six to seven per cent.
The package of bills calls for a one penny sales tax increase that would raise one-point-two (b) billion dollars in new funding for roads and an extra $300 million a year to spend on K-12 schools. The sales tax on gasoline would be phased out.
Snyder says there's alot of work ahead for all the supporters of the proposal, which will be on the May statewide ballot. If voters reject the tax hike, the whole road-funding plan lands in the ditch and lawmakers must start over.
Other revenue would come from a registration fee increase that would bring in 45 (m) million dollars and heavy-truck fees that would raise 50 (m) million dollars.
The plan also calls for full restoration of the Michigan Earned Income Tax Credit. The bill amends the Income Tax Act to raise the EITC from six-percent to 20-percent of the credit under the federal code. It will go into effect in the 2016 tax year.
The plan is linked with approval of the "Main Street Fairness Act" which would increase revenue from internet purchases by consumers.