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Non-Partisan Group Gives Final Analysis Of Proposal 1 Before Special Election

LANSING (WWJ) -- Voters will go to the polls to cast their ballots on Proposal 1 on Tuesday and decide whether or not a tax increase will be implemented to fix Michigan's roads.

With an extra one cent sales tax on every dollar, how much it will cost the average voter will depend on how much you buy.

Eric Lupher, the president of the non-partisan Citizens Research Council of Michigan, said that changes in the gas tax mean it would cost drivers more at the pump as well.

"Assuming the current price of fuel per gallon right now -- $2.40, or so -- we would be paying 10 cents per gallon more," Lupher said.

[MORE: Ballot Measure To Hike Taxes For Road Work: Everything You Need To Know About Prop 1]

The measure would also increase the fee for tabs on older cars and includes a surcharge for those who drive hybrids. Lupher says in all, it is estimated the measure will cost the average Michigan resident about $400 to $500 year.

"They have what they call a depreciation allowance that allows the amount of tax you pay to go down the first couple years you own the vehicle -- they won't do that any more," Lupher said.

THE FOLLOWING STATEWIDE BALLOT PROPOSAL WILL APPEAR ON THE MAY 5, 2015 SPECIAL ELECTION BALLOT PROPOSAL 15-1

A proposal to amend the State Constitution to increase the sales/use tax from 6% to 7% to replace and supplement reduced revenue to the School Aid Fund and local units of government caused by the elimination of the sales/use tax on gasoline and diesel fuel for vehicles operating on public roads, and to give effect to laws that provide additional money for roads and other transportation purposes by increasing the gas tax and vehicle registration fees.

The proposed constitutional amendment would:
• Eliminate sales / use taxes on gasoline / diesel fuel for vehicles on public roads.
• Increase portion of use tax dedicated to School Aid Fund (SAF).
• Expand use of SAF to community colleges and career / technical education, and
prohibit use for 4-year colleges / universities.
• Give effect to laws, including those that:

  • Increase sales / use tax to 7%, as authorized by constitutional
    amendment.
  • Increase gasoline / diesel fuel tax and adjust annually for inflation, increase vehicle registration fees, and dedicate revenue for roads and other transportation purposes.
  • Expand competitive bidding and warranties for road projects.
  • Increase earned income tax credit.
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