Appropriations panel debates using motor vehicle excise tax to fund township roads and bridges

A legislator leading the Appropriations - Government Operations Division laid out a plan to shift part of the motor vehicle excise tax into a dedicated fund to provide more predictable maintenance money for township roads and bridges, and asked the Department of Transportation how that money could be distributed and managed.

The proposal described using roughly 25% of the motor vehicle excise tax — the legislator estimated that would generate about $80 million to $100 million for township programs — rather than taking one-time legacy earnings fund dollars. The legislator said the motor vehicle excise tax would be appropriated to the Department of Transportation and could be split with half for roads and half for bridges, or otherwise allocated based on a distribution method the committee chooses.

Why it matters: committee members and DOT officials said predictable, ongoing funds would help townships shift from one-time project grants to sustainable maintenance, a significant issue for rural areas that struggle with graveling, culverts and water-related damage.

Ron Henke, director at the Department of Transportation, told the committee the DOT can implement whatever distribution formula the Legislature directs. “We just need to know how this body wants to distribute the dollars. If they tell us, 25%…