Vote Smart's Synopsis:

Vote to pass a bill that appropriates $3.1 billion for the Neighborhood Road Fund in Michigan.

Highlights:

• Appropriates $3.1 billion for the Neighborhood Road Fund in Michigan, including dedicating an estimated $2.2 billion in revenue from the 6% Corporate Income Tax to roads with about 86% of the total earmarked for township, city, and county roads (Sec. 13c).

• Repeals the 6% sales tax at the pump and replace it with a 20-cent increase in the fuel tax (Sec. 13c).

• Amends and diverts about $755 million from the general fund to go directly to schools, which would lose funding with the elimination of the sales tax at the pump. 

• Amends and redirects about $95 million from the general fund toward cities, townships, and counties, which also benefited from the sales tax at the pump (Sec. 13c).

• Increases the Michigan Business Tax rate from 4.95% to 30% (Sec. 13c).

• Specifies that the business tax rate hike likely would have the effect of pushing companies currently benefiting from the MBT's Michigan Economic Growth Authority (MEGA) tax credits to seek to pay the Corporate Income Tax, where they would pay a lower tax rate but forego their MEGA tax credits (Sec. 13c).

Full Bill Text