The House
Transportation and Infrastructure Committee passed two bills this week that
could ultimately be included in a package that addresses Gov. Snyder’s request
for nearly $1.2 billion in new transportation funding. The bills passed along
party-line votes, with all of the Republicans supporting the legislation.
House
Bills 4571 and 4572
would impose a new 4 percent wholesale tax on aviation fuel and exempt aviation
fuel from state sales tax. The committee also deliberated on House
Bill 4677 which would allocate a portion of the aviation sales tax revenue
to the Comprehensive Transportation Fund (CTF). Additionally, the bill would redirect
a portion of the CTF revenue to the School Aid Fund in an effort to address the
funding shortfall caused by passage of House Bill 4572. In the end, the
committee did not take action on 4677. House Bills 4571 and 4572 now head to the
full House for consideration.
Meanwhile,
the Senate Infrastructure and
Modernization Committee met to discuss the current road funding formula and options
to revamp how the state will fund infrastructure projects in the future. The Senate committee did not advance any
proposals during the meeting.