The State of Michigan has an extensive and diverse transportation system, consisting of all modes of transportation, including aviation, bicycle, pedestrian, highways, marine, public transportation, and rail. The transportation system provides all users with the ability to access destinations and move goods, products, services, and information throughout the state.
Transportation is primarily funded from federal and state user fees, such as gas taxes and vehicle registration fees that are deposited in the Michigan Transportation Fund (MTF). Roughly one-third of transportation revenue comes from road-user fees applied to gasoline and diesel fuels, another one-third from Michigan vehicle registration, and another one-third from federal aid. Through the Comprehensive Transportation Fund (CTF), a very small amount of the sales tax on transportation-related fees also helps support passenger transportation and rail. Local road and transit agencies also provide local support for their transportation systems, through property taxes and local general funds, in addition to their distributions from the MTF or CTF.
- Transportation Funding Revenue from Gas Tax
- Economic Impact of Transportation Investment in Michigan
- Average Cost of Maintenance
Although the state transportation funding package that took effect in 2017 has helped address Michigan’s historical road and bridge funding shortfall, the state still trails its neighboring states significantly on investment on state-owned roads.
For more information, see the SFA Report.