Michigan Senate GOP leadership is considering submitting a proposal to increase the state gas tax by 15 cents-per-gallon, implemented gradually over three years, and redirect revenue from the general fund to generate over $1 billion per year in transportation funding. The plan also could include an income tax reduction, increases in the diesel tax, and indexing the motor fuel tax rate to inflation.
Senate Republicans have scheduled a caucus for the afternoon of June 30 to gauge whether there is enough legislative support to propose this measure. If enough Senators vote in favor of the proposal, it could be brought to the full Senate as early as July 1.