After the legislature rejected her proposed motor fuel tax increase, Governor Whitmer turned to bonding to provide a short-term revenue injection for road projects, but new ongoing revenues are still critical. Large state revenue surpluses would allow the state to eliminate the sales tax on motor fuel and replace it will a revenue-neutral increase in the motor fuel tax rate while drawing on the surpluses to mitigate budget holes inherent in the tax shift. We estimate such a shift could genera...
