Michigan road spending bill with tax, fee hikes signed into law by Gov. Rick Snyder


By: David Eggert/Associated Press

ALAIEDON TOWNSHIP, Mich. (AP) — Michigan Gov. Rick Snyder has signed a road-spending package into law that includes the state’s first fuel tax and vehicle registration fee increases in decades.

The legislation enacted Tuesday raises the gasoline tax hike by 7.3 cents and vehicle registration fees by 20 percent in 2017. It also permanently shifts existing state funds toward road work starting in three years.

Michigan’s net annual transportation spending increase could total $825 million within five years, a near-19 percent boost.

The Republican governor signed the bills at the Michigan Infrastructure & Transportation Association, a construction trade group headquartered in Alaiedon Township near Lansing.

The package also makes more homeowners and renters eligible for an expanded property tax credit starting in 2018. Income tax cuts could be triggered later.