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Mich. Lawmakers Propose 40% Diesel Tax Increase

Michigan lawmakers have proposed a 6-cent increase in the state’s diesel tax to help pay for road improvements, the Associated Press reported.

Under the bills introduced Tuesday, the state’s 15-cent per gallon diesel tax would rise to 21 cents this year, a 40% increase. It would rise to 27 cents in 2013, AP said.

The revenue would give the state more money for roads, and it would stop the state from losing federal matching funds.

The 19-cent per gallon gas tax would increase to 23 cents this year under the proposal, and then 27 cents in 2013, AP said. The taxes would raise an additional $480 million per year once fully implemented.

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