Uh-oh. A major red flag for consumers should be indifference to us facing what could be the second highest sales tax in the nation on May 6.
As part of Proposal 1, the May 5 ballot issue that would raise the state’s sales tax [16.7%] from 6 percent to 7 percent, commercial truck registration fees would rise between $100 and $1,000 per vehicle, depending on gross weight. The plan also would end a gradual reduction in registration fees — averaging $40 a year — granted on new passenger vehicles during the first three years of ownership [and loss of federal itemized tax deduction].
The higher fees for commercial trucks would immediately raise $50 million a year, while the fee change for new passenger vehicles eventually would raise an additional $125 million a year.
The extra fees on commercial carriers would be on top of a stiff diesel fuel tax hike also connected to the plan. Despite that, Michigan’s leading trucking association supports the governor’s roads proposal.
“We’re comfortable with the package, but we’re not out there waving the flag,” said Walter Heniritzi, executive director of the Michigan Trucking Association, which has represented motor carriers in the state since 1934.
Truth be told, Mr. Heniritzi is a small lobby player in this matter so, his go with the flow mentality should be no surprise. He knows whatever is levied onto the trucking industry is passed along to the consumer. The big players will survive, and the smaller operations will go away or, be consumed by the big corporations as they have historically.
Think not? Well, let’s talk for a moment about Prop 1’s “stiff diesel fuel tax hike” for a moment, shall we?