Michigan Senate OKs roads plan with gas, vehicle fee hikes

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The Michigan Senate has approved a new plan to boost road spending that includes a 20 percent hike in vehicle registration fees and a 7.3-cent gasoline tax increase.

The Republican-controlled chamber voted 20-18 Tuesday for key pieces of the legislation. The House could vote later in the day to send the bills to Gov. Rick Snyder.

The bills would shift $600 million in general funds a year to the transportation budget in the 2020-21 fiscal year and beyond.

The legislation also would make more lower- and middle-class homeowners and renters eligible for what would be a more generous homestead property tax credit.

Supporters say the package is a good compromise to address Michigan's most pressing issue -- crumbling infrastructure. Opponents oppose tax hikes and worry about future budget implications.