Michigan bills would apply driver’s license fee to roads

| Monday, August 29, 2011

An effort nearing passage at the Michigan statehouse is intended to provide a boost for getting road work done.

State lawmakers are not pursuing a tax or fee increase to apply more money to pavement work. They are interested in diverting transportation-related funds.

A House bill would halt a $12 million deposit in road tax money to the state Transportation Economic Development Fund for two fiscal years. The fund pays for highway, road and street improvements related to a particular new plant or development.

Instead, the revenue generated from driver’s license fees would be used for road construction and maintenance.

The bill now moves back to the House to consider changes. As approved by the House in June, HB4748 called for the deposits into the development fund to simply end. Senate lawmakers changed it to be a two-time occurrence.

HB4748 is part of a two-bill package that is one vote away from advancing to Gov. Rick Snyder’s desk. The second bill – HB4747 – would authorize the redirection from the development fund to the state’s trunkline fund.

A legislative analysis of the bill package shows the proposed redirection would not affect total state revenue. The revenue would simply be shifted from one fund to another fund.

In addition, the redirection would allow the Michigan Department of Transportation to match all available federal aid highway funds.

To view other legislative activities of interest for Michigan, click here.

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