2017 Brings New Funding For Michigan Roads With Higher Gas Prices, Vehicle Registration Fees

LANSING (WWJ) - The coming of the New Year means more funding for road projects across Michigan -- at the expense of taxpayers.

This morning, the state gasoline tax increased by 7.3 cents and the diesel tax went up 11.3 cents -- both to 26.3 cents per gallon -- with automatic annual inflationary adjustments planned in 2022 and after. Vehicle registration fees also increased by 20 percent.

The hikes are part of a roads package passed by state lawmakers and signed by Gov. Rick Snyder last year. The extra taxes and fees must go into the Michigan Transportation Fund, and are expected to generate $460 million, per year, to be used for construction and repairs to deteriorating highways, roads and bridges across the state.

Denise Donohue, with the County Road Association of Michigan, says the new road revenues mark the first actual increase in state road funding in 20 years.

"We are finally taking our first step toward making significant improvements to Michigan roads," she said. "The true need to restore Michigan's roads was $2.2 to $2.5 billion. So this is a good first step."