How are roads funded?
Michigan charges a 19-cents-per-gallon tax on gasoline and a 21-cents-per gallon tax on diesel fuel (however, diesel fuel users receive a refund of 6 percent, equivalent to the 6 percent sales tax, so they pay the equivalent of 15 cents-per-gallon in fuel tax). Motorists also pay license and registration fees to the state. Revenues from these sources, as other fees make up the Michigan Transportation Fund. According to state law, trust funds are divided between the three levels of government in Michigan with jurisdiction over roads: The Michigan Department of Transportation, the 83 county road agencies, and the 500-plus cities and villages (city and villages streets). Here’s how the funds are divided: • 39.1% is distributed to the Michigan Department of Transportation (MDOT roads represent 8% of all roads, 9,715). State highways fall under the jurisdiction of the Michigan Department of Transportation. Included under this heading are all highways with letters in their names, such as “M”
