Legislation Could Raise Sales Tax From Six to Eight Percent - Northern Michigan's News Leader

Legislation Could Raise Sales Tax From Six to Eight Percent

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By Erica Long, Web Producer - email

A new piece of Legislation in Lansing could increase the State's Sales Tax by two cents, for every dollar you spend.

The money generated from that increase would go into fixing State roads, bridges, and other infrastructures.

Governor Snyder is looking for ways to increase the State's Transportation Fund by $1 Billion a year and increasing the sales tax from 6% to 8%, could be the answer.

Right now, the money generated from the fuel tax is what pays for the State's roadwork.

If this news legislation is approved that gas tax would go away.

"It creates an easier mechanism to do the funding and have automatic increases put into place year after year, as opposed to the gas tax, which is a set rate per gallon," says Ron Harris, the Owner of Harris Group CPA's.

There's another plan being considered in Lansing that wouldn't raise the sales tax, but would raise the wholesale gas tax and auto registration fees.

Both plans will be debated over the coming months.