See how much more the sales tax increase would cost you
LANSING, MI -- A major section of May 5's statewide ballot proposal to raise more money for road funding is increasing the sales tax from 6 to 7 percent.
But how much would the sales tax increase effect you?
The 1 percent sales tax increase will be on all non-food items. Fuel purchases would be exempt. Like the current sales tax, all non-prepared food purchases (e.g. food bought at the grocery store, not a restaurant), will be exempt, as well as pharmaceuticals. Read more about the current tax laws .
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Currently, the sales tax is 6 percent on every dollar of non-food good. The sales tax increase would bring it up to 7 percent, but exempt fuel.
In total, the sales tax increase would bring in $1.56 billion per year.
The reason for the increase is to balance the $829.3 million loss of funding that comes with exempting fuel from the sales tax. That is money typically goes to schools and local governments.
An increase in sales tax is required to pass a public
vote, as required by the state's constitution.
Supporters of Proposal 1 say Michigan motorists pay $357 million in "unnecessary repairs" because of poor road conditions. which could be decreased if roads are repaired. Opponents, however, say there is money in the budget to fix the roads without a sales tax increase.
All together, Prop 1 would generate $1.25 billion more in funding for roads and bridges, along with $200 million for schools, $111 million for cities, $116 million for mass transit and $173 million for the state general fund.
How to use the calculator:
- If you are using a mobile app, click here.
- Enter how much money on average you spend a week on non-food items.
- After hitting the submit button, you will see the taxes at the different rates as well as what the increases would be for a month and an entire year.
- If you are having trouble using the calculator, let us know in the comments section below.
We will have more calculators and databases this week as we explore Prop 1 and how it could effect voters.Source: www.mlive.com