In May, Michigan voters may be asked to vote on whether to increase the Michigan sales tax from 6 percent to 7 percent in order to fix Michigan roads and bridges.

The deal, approved by lawmakers and Governor Rick Snyder, would need approval from two-thirds of the Legislature to make it on the ballot.

Should Michigan increase the sales tax to 7% to pay for road repairs?

Legislative leaders and Snyder met at the Capitol this morning to work towards an agreement that would raise at least $1.2 billion a year to fund Michigan road repairs.

The deal would:

  • Raise $1.3 billion: $1.2 billion for roads and $112 million for transit.
  • Remove sales tax from fuel sales.
  • Protect funding for schools and local governments which previously received money from the sales tax on fuel sales.
  • Raise $45 million from increasing vehicle registration fees and $50 million in fees for heavy trucks.
  • Restore the Earned Income Tax Credit to 20%.

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