Michigan Gov. Proposes 18-Cent Diesel Tax Hike

Michigan Gov. Rick Snyder (R) has proposed increasing the state diesel tax by 18 cents to a total of 33 cents a gallon to fix roads and bridges, the Associated Press reported.

The governor’s proposed spending plan also includes increasing the gasoline tax by 14 cents to the 33-cent level, with both taxes fluctuating after a few years, depending on fuel consumption, AP reported.

Walt Heinritzi, executive director of the Michigan Trucking Association, told the Detroit News that his group understands the need to raise the diesel tax for the first time since 1984, and some increase is justified.

The proposal also calls for boosting truck and trailer registration fees by 25% and a 60% increase for automobiles, the News reported Saturday.

The tax increases are part of a plan to fund $1.2 billion in repairs to the state’s transportation system, AP said.