Are all of our taxes going to fixing the roads?
A: We are all sensitive to the amount of taxes we pay, and some are downright upset. Statements similar to the following are frequently heard: I pay all these taxes; why cant I get my roads fixed?
Lets first look at which taxes go to maintain roads. The principal source of funding for the Road Commission for Oakland County (RCOC) and Michigan Department of Transportation (MDOT), is the Michigan Transportation Fund (MTF), which is made up primarily of the state fuel tax and license plate fees. These are also the main sources of road funds for Michigans cities and villages.
The state fuel tax is 19 cents per gallon and, thus, represents a fixed income to those entities. In fact, if you have purchased a new car in the last few years that gets better gas mileage than your previous one, odds are youre driving as much or more than before, but actually paying less in fuel tax to maintain the roads.
Some federal fuel tax revenues are available, but the bulk of these go only to MDOT for projects on state highways (freeways and roads with a M, I, or US in their name such as M-59, I-75, or US-24).
Many cities and villages supplement their MTF revenues with additional funds from their general fund or from some other source. They discovered long ago that the MTF revenues were not sufficient to maintain their street systems.