Governor signs Proos reform to fix Michigan roads without raising taxes

LANSING – Legislation sponsored by Sen. John Proos to help the state fix and maintain its roads and highways has been signed into law by the governor.

“This reform will enable Michigan to maintain and improve its roads and bridges – without raising taxes,” said Proos, R-St. Joseph. “Our state struggles every year to identify enough dollars to qualify for federal matching transportation funds. This reform fixes that problem by dedicating $100 million already paid by consumers at the pump and investing it in our roads. With a federal matching rate of roughly 4 to 1, it means about $400 million in road funding.”

Motor fuel in Michigan is currently taxed in three ways. The first two means are the federal and state per-gallon fuel taxes, with revenues restricted to transportation. The third method is applying the state’s 6 percent sales tax to the fuel wholesale price. More than 80 percent of this revenue is constitutionally earmarked. Proos’ bill directs $100 million of the additional funds to be used to generate federal matching funds for building and maintaining state roads and bridges.

“Southwest Michigan families and job providers are already paying enough at the gas pump,” Proos said. “My reform provides necessary funding to ensure our roads are safe and protect drivers from costly car repairs without increasing the price of gasoline.”

To further help travelers, Proos also encouraged residents to follow fuel saving tips, use tools to find the lowest gas prices and report price gouging to the Michigan Attorney General. For up-to-the-minute listings of the lowest gas prices in Michigan, visit www.michigangasprices.com.

“As families plan to head out on the road for that Pure Michigan summer trip, the cost of gas is a huge issue,” Proos said. “Thankfully there are great tools online to find the best price. It is also important to keep the price low by using fuel-saving tips and reporting gas price gouging. Taking advantage of consumers is never acceptable. If you see gouging, please report.”

Residents may report price-fixing or gas-gouging to the Attorney General’s Consumer Protection Division by calling 1-877-765-8388 or by visiting their website at www.michigan.gov/ag. Under the “Consumer Protection” tab on the attorney general website is a link to “Gas Prices,” which offers information on prices, fuel saving tips, travel tools and more.

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Editor’s Note – Audio comments by Sen. Proos are available on the senator’s webpage at www.SenatorJohnProos.com. Click on “Podcasts.”