Gas Tax for Roads Could Increase

The Michigan Senate voted to sharply increase gas taxes over the next four years to potentially raise more than $1 billion annually to fix the state's crumbling roads and bridges.

Governor Rick Snyder said "these steps are to make Michigan better and stronger."

Based on a wholesale gas price of $2.50 a gallon, the bill the Senate passed Thursday would result in a gas tax hike of 17 cents a gallon when fully implemented on Jan. 1, 2018.

Gas prices are unusually low right now and the increase would be greater if prices rise.  There are measures in the bill to limit further price increase if the wholesale  price of gas spikes.

Currently, motorists pay a 19 cent per gallon tax on regular fuel while truckers pay 15 cents per gallon on diesel fuel.