By David Eggert
Associated Press
LANSING, Mich. (AP) - Supporters of a Michigan sales tax increase raised $3.2 million initially, mostly from the road-building industry, for a campaign persuading voters to approve a May ballot measure that would raise an extra $1.2 billion a year for road and bridge improvements.
The amount reported at Tuesday's campaign finance deadline dwarfed a combined $1,000 collected by four ballot committees opposing Proposal 1. One of those groups, however, said it launched a "six-figure" ad campaign Tuesday with donations collected in the week since the close of the reporting period Feb. 10.
The Safe Roads Yes! committee took in nearly $2.3 million from the Michigan Infrastructure & Transportation Association, a construction trade group. Other big donations included $250,000 from Michigan Energy First - an apparent new entity - $200,000 from the Asphalt Pavement Association of Michigan, $125,000 from Consumers Energy and $100,000 apiece from Angelo Iafrate Construction Co. in Warren and Hoffman Bros. Inc. in Battle Creek.
"Coalition members are putting their resources behind their voices so voters will understand that a 'yes' vote on Proposal 1 will make our roads safe again, put in place new guarantees on the work done and constitutional guarantees that gas taxes go only to transportation," Safe Roads Yes! spokesman Roger Martin said in a statement.
If the constitutional amendment passes on May 5, Michigan's 6 percent sales tax would increase to 7 percent and would no longer be applied to fuel.
Passage also would trigger already-signed laws significantly increasing and converting per-gallon gasoline and diesel taxes to ones fluctuating with price each year, no longer letting vehicle registration fees depreciate, creating a new surcharge for electric cars and restoring a larger tax credit for low-wage earners.
Backers of the measure have said it could require at least $15 million in spending, more if the opposition is well funded.
Paul Mitchell, a retired Saginaw-area businessman who spent $3.5 million of his own money last year on an unsuccessful run for U.S. House and another $153,000 on a super PAC criticizing then-Democratic U.S. Senate candidate Gary Peters, recently formed the Coalition Against Higher Taxes and Special Interest Deals. It began running a TV ad Tuesday saying nearly 40 percent of the $2 billion in new taxes raised by Proposal 1 would go to "special interests" and not roads.
The school aid fund would receive $292 million more in the fiscal year starting in October and local governments would get $90 million in additional constitutionally required revenue sharing payments from the state, according to a House Fiscal Agency analysis of the measure released Monday.
Another anti-Proposal 1 group, Citizens Against Middle Class Tax Increases, which is being led by Republican political consultant John Yob, reported raising no money. It was formed five days before the initial Jan. 1-Feb. 10 reporting period ended.
Two other ballot committees, Protect MI Taxpayers and Concerned Taxpayers of Michigan, also raised no money to oppose the tax hike as of a week ago.
Published: Thu, Feb 19, 2015
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