August 2, 2011

MEMO TO: Editorial Page Editors
FROM: Michigan Infrastructure & Transportation Association
IN RE: Myth: 6 Percent Sales Tax on Gas Goes to Roads

As transportation team leaders travel across the state this summer talking with citizens and businesses about the status of Michigan’s infrastructure system, one of the things that always results in dropping jaws is the truth about the sales tax on gasoline – it doesn’t go toward our roads!! At a price of $4, more than 20 cents in taxes is being sent to other purposes for every gallon pumped – those gallons quickly tally up. Michigan is one of only about a half dozen states that collect a sales tax on fuel purchases, making Michigan gas prices higher than other neighboring states.

This is just one of the major failing components of Michigan’s infrastructure funding formula. That’s why we will continue to urge lawmakers to look at solutions to this part of the equation. The bills would take that part of the sales tax on gasoline that is not constitutionally dedicated to any specific area and redirect it to roads. The bills are: HB 4521, which was approved by the House Committee on Transportation; and SB 351, which was approved by the Senate Committee on Transportation. Both are a step in the right direction — one piece of the pie — toward providing stable transportation funding. This is a positive signal that the legislature is ready to address the funding issue. This step is not going to be the end-all solution, but it’s a good start.

It’s time we change direction, and get with the program. There is no doubt that the 21st century economy calls for a quality transportation network. The state that put the world on wheels has never shied from overcoming obstacles in the past. It’s about jobs for Michigan workers. And whether it’s for motorcyclists, school buses, farmers or ambulance drivers – we must provide safe, reliable and sustainable transportation to the 10 million citizens that count on Michigan roads to help them live.

We’re encouraged that a growing number of Michigan lawmakers seem inclined to take the tough-but-crucial steps to begin to address a problem that has been disregarded for far too long. The governor’s infrastructure message in October could be the pillar for our long-term solution — we are moving toward it, we are looking forward to it. And we all recognize that will not be solved with magic and fairy dust. No more excuses…Fix Michigan Roads!

MITA represents a broad spectrum of highway construction companies and suppliers that help build a better Michigan infrastructure from the bottom up. It has been a leading voice in efforts to secure adequate transportation funding at the federal and state levels. For more information visit www.mi-ita.com  or www.drivemi.org.