By Meg Peters
Review Co-Editor
On Tuesday, May 5, Michigan voters will decide the fate of Proposal 1, a plan that would raise roughly $2 billion in tax increases with $1.2 billion aimed at fixing Michigan’s roads.
Voters will attend all 14 regular precincts in Orion Township between 7 a.m. and 8 p.m. for the election. In addition, Township Hall will be open this Saturday from 10 a.m. until 2 p.m. for absent voter balloting only.
A total of 2,200 absentee ballots have been issued, according to Clerk Penny Shults, and so far just over 1,500 have been returned. The township must receive absentee ballots no later than the close of polls at 8 p.m. Tuesday.
Because the special election is state issued, Orion Township’s predicted cost of $20,000 to hold the election will be billed back to the state, Shults said.
She predicts a good turnout.
‘Remind your neighbors to get out and vote. It’s so important,? she said. ‘We want the majority to decide. This is an important issue.?
The Proposal
Of the $2.1 billion in tax increases, $1.2 billion would be poured into the Michigan Transportation Fund, divided as follows: $180 million to the State Trunkline, or the Michigan Department of Transportation (MDOT); $280 million to local road agencies; $25 million to the Comprehensive Transportation Fund (CTF); and $815 in debt service payment for fiscal year 2015/16.
The $2.1 billion would additionally be divided, with $112 million scheduled for mass transit, $300 million dotted for schools and $94 million slated for revenue sharing, which is distributed to local governments, according to the Michigan Farm Bureau.
If the proposal passes, the Village of Lake Orion would see its road funding from the state progressively increase by about $36,829 per year, capping at about $171,931 per year by 2018. Currently the village receives about $171,931 per year, according to data from the Southeast Michigan Council of Governments (SEMCOG).
The Village of Clarkston would see an increase from $54,822 to $91,010 by 2018, and the Village of Oxford would see their annual state funds increase from $225,235 to $373,908 by 2018.
Unlike the village, Orion Township is not responsible for the maintenance of its roads. Instead, the Road Commission for Oakland County receives state funding for the maintenance of all municipal townships? roads.
If Proposal 1 is passed, the RCOC would receive an increase of about $42.3 million by 2018, for a total of about $104.7 million, to be divided into 10 categories.
Currently the RCOC garners $62.4 million in state funding.
The road commission maintains about 2,700 miles of roads in Oakland County, and more than 230 miles of state highway.
The Process
If Proposal 1 passes, it would amend the state sales tax from 6 percent to 7 percent on all non-fuel items, not including foods purchased at the grocery store.
Voters last raised the state sales tax in 1994 from 4 percent to 6 percent, where the additional 2 percent mainly funded schools.
About $1.4 billion would be raised by the sales tax increase, and a new and higher wholesale tax on gasoline would produce about $463 million.
If the proposal passes, the state would not hitch the 7 percent sales tax onto gasoline and diesel, and would eliminate the 19-cent state tax on gasoline and 15-cent state tax on diesel. Instead, drivers would pay the 41.7 cents-per-gallon wholesale tax on gasoline and diesel, to be adjusted annually according to the wholesale price of fuel.
At a minimum, the yearly increase will be the rate of inflation, or 5 percent, whichever is less, not to exceed a maximum yearly increase of 5 cents per gallon.
Passing Proposal 1 would put eight legislative bills into effect on Oct. 1, 2015, and in addition to raising fuel taxes, would also increase some vehicle registration fees.
Registration fees will increase for commercial trucks weighing over 26,000 pounds and also increase for electric vehicles, while slowly decreasing the 10 percent depreciation discounts.
In addition to paying off holes created by lifting the sales tax off gasoline and diesel, Proposal 1 would also raise an additional $300 million for schools, and $95 to $100 million in local governments? revenue sharing.