Barry County Road Commission

Transcription

1 Barry County Road Commission

2 What are the current taxes on fuel? State Sales Tax of 6% Federal Fuel Tax of 18.4 cents/gallon State Fuel Tax of 19 cents/gallon Source: MLIVE.COM, Gas taxes in Michigan: Where does $4 a gallon go? And why are our roads still so bad? By Jonathan Oosting February 14, 2013 at 4:22 PM, updated February 18, 2013 at 9:20 AM

3 Where do the current taxes go? State Sales Tax of 6% The Michigan Constitution controls the distribution of all state sales tax. Source: MLIVE.COM, Michigan sales tax: Where does the revenue go? And what could an increase mean for road funding? By Jonathan Oosting on February 18, 2013 at 10:01 AM, updated February 18, 2013 at 10:06 AM

4 Where do the current taxes go? Federal Fuel Tax of 18.4 cents/gallon The federal government distributes this back to the states. The MDOT gets 75% 600 Cities & Villages, numerous transit agencies and 83 county road agencies share the remaining 25% Red tape required by the Feds heavily restricts the use of this money It does not go far for local agencies

5 Where do the current taxes go? State Fuel Tax of 19 cents/gallon Distributed through State Law known as Act % to MDOT 39.1% to County Road Agencies 21.8% to Cities & Villages

6 How does the State Fund MI Roads? Federal Fuel Tax of 18.4 cents/gallon State Fuel Tax of 19 cents/gallon State Vehicle registration fees, based on value of vehicle (currently averages very close to $100 / vehicle in MI) Also distributed through ACT 51 just like the State Fuel Tax

7 How much do YOU pay in State road taxes & fees? MI State Fuel Tax = $0.19/gallon At 19 miles/gallon => $0.01/mile driven Vehicle Registration Fee => $100* At 20,000 miles/year => $0.005 That s 1.5 Cents per mile driven * Note: Federal Gas Tax is also paid but only to fund major roads, it is not included in the calculation.

8 ACT 51 A Closer Look

9 Snow Fund 39.1% = Road Commissions 10% Urban Factor $10,000 each county for highway engineer Urban Primary 4% Local Factor Urban Local 75% Primary Roads 25% Local Roads 75% Wgt. Tax 15% Equal Share 10% Primary Mileage 35% Township Population 65% Local Mileage Primary Road Fund Local Road Fund

10 Michigan Road Condition Trends Ratings of Federal Aid roads: Local roads that are not eligible for Federal Aid are much worse.

11 Michigan Fuel Tax Revenue Fuel tax revenues are down over the last 17 years due to less driving and more fuel efficient vehicles.

12 Michigan ranks last in per capita funding for roads. Source: US Census Bureau

13 Cost Trends % Diesel Fuel $ 0.50/gal $ 2.77/gal ^ 454% Emulsion $ 0.51/gal $ 1.79/gal ^ 251% Asphalt $ 15.70/ton $ 51.50/ton ^ 228% Plow Trucks $ 112,590/ea $ 233,299/ea ^ 107% Road Salt $ 34.70/yd $ 75.70/yd ^ 118% Milk $ 2.63/gal $ 3.08/gal ^17% Sources: 1. BCRC payment records

14 Proposal 1: What is it? Raising the current 6% MI sales tax to 7%.

15 Proposal 1: Cost of Sales Tax Increase Median family income in Michigan in 2013 was $ 48,273. After Non-taxable items (rent, groceries, drugs, & fuel) under $15,000 would be spent on taxable items. This works out to about $150 per year increase. Annual spending on taxable items Proposal #1 would cost this much annually $ 1,000 $ 10 $ 5,000 $ 50 $ 10,000 $ 100 $ 25,000 $ 250 $ 50,000 $ 500 $100,000 $1,000 $ 500,000 $ 5,000 $ 1,000,000 $ 10,000

16 Proposal 1: Where Does It Go? Since it is a sales tax, it goes where it is constitutionally mandated to go, just like the existing 6% sales tax.

17 Proposal 1: So how does this impact our roads? If Proposal 1 passes several other laws are enacted. None of these laws will be enacted if the May 5 th, 2015 ballot proposal fails. Sales Tax on fuel is eliminated Existing Fuel Tax of 19 cents/gallon is eliminated New 14.9% Wholesale Fuel Tax enacted Net effect is that all taxes on fuel are now fuel taxes and thus are constitutionally protected for transportation purposes

18 What does this do at the pump? Net

19 Proposal 1: Additional Impacts If Proposal 1 passes several other laws are enacted. None of these laws will be enacted if the May 5 th, 2015 ballot proposal fails. Road Work Warranties required on certain large projects Competitive bidding requirements. Earned income tax credit restored to 20% Vehicle Registrations Fees change New vehicles are not discounted 10% for the 1 st three years Hybrid vehicle registration fees increase $25/year Full Electric vehicle registration fees increase $75/year $ 50 Million increase on trucks over 26k pounds

20 Proposal 1 What does it generate? Funding Increases if Prop 1 passes: Road Funding $ 1,200,000,000 Mass Transit $ 130,000,000 School Funding $ 300,000,000 Local Govt. Funding $ 95,000,000 Earned Income Tax Credit $ 260,000,000 Source: MLIVE.com, Michigan lawmakers approve road funding deal, send tax proposal to statewide ballot, By Jonathan Oosting on December 19, 2014 at 5:46 AM, updated December 19, 2014 at 8:27 AM

21 Prop 1 - Where would the new road funds go? If the ballot initiative passes, the $1.2 Billion would be split. Year #1: MDOT - $ 800 Million (debt service) Act 51 formula - $ 400 Million Year #2: MDOT - $400 Million (debt service) Act 51 formula - $ 800 Million The third year all funds would go through the Act 51 formula Revised taxes would go into effect in October 2015, money would more than likely be received after the first of the year.

22 Barry County s Cut $ 3,190,000 in Constitutionally-protected county road funding. $ 638,000 in Constitutionally-protected city and village road funding. Barry County school s share of $300,000,000 in Constitutionally-protected school funding. $570,000 Local revenue sharing Sources: Michigan.gov/MDOT School district websites

23 BCRC Direct Funding Increase... If the ballot initiative passes in May, BCRC would receive approximately: Year #1 $ 1,060,000 Year #2 $ 2,130,000 Year #3 and beyond $ 3,190,000 Source:

24 Proposal 1 Ballot Language

25 Questions & Comments

26 Thank you for coming Please Drive Safely Barry County Road Commission P.O. Box 158 Hastings, MI (269)