Tag Archives: Michigan Road Tax

Local Road Taxes Help Support Southeastern Michigan Roads

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The state of the roads in Michigan are well known to be largely in poor condition, and funding never seems to be at a point to allow for a total overhaul toward long-term improvement. Road funding in Michigan doesn’t come from one dedicated source. Rather, there is federal funding provided by the Federal Highway Administration Highway Trust Fund, state funding provided by state fuel taxes, vehicle registration fees, income taxes, additional appropriations decided on by the Legislature, and local funding provided by general tax revenue and additional road millages. This post shows the communities in Southeastern Michigan that have additional road millages to further improve the roads.

According to the data provided by the Michigan Department of Treasury, there are 73 communities in Southeastern Michigan that levy an additional tax to support road funding, along with two counties. These millages are intended to improve road funding. Of all the communities that levy a road millage, the City of Melvindale has the highest road levy at 6.7 mills, followed by the City of Grosse Pointe and the City of St. Clair which both levy 2.5 mills. The City of Sterling Heights levies the fourth highest amount in the region at 2.47.

Freedom Township and St. Clair County levy the lowest amounts at 0.25 mills each. The only other county in the region to levy a road tax is Washtenaw County which has a 0.49 millage.

Another item to note is that there are more townships levy road taxes than cities and villages. This is likely due to the fact that township roads are controlled by county road departments/commissions, meaning more competition for road dollars.

A mill is a $1 tax per $1,000 of assessed taxable value. For example, a homeowner with a house assessed at $200,000 (true value at $400,000) in a city that levies a 2.5 millage would pay an additional $250 in city taxes. Of course, how much money a community receives in total from a road millage will vary depending on the number of homes in a community along with the average home value of a community.

According to the Mackinac Center for Public Policy there is a strong correlation between improved road conditions and a road millage. According to the Center, 58 percent of roads in a city without a road millage are in poor condition. And, if a city has a road millage, each mill is correlated with a six-point reduction in the percentage of roads in poor condition. This is not necessarily true for villages, where 47 percent of roads in villages without a road millage are in poor condition. This differentiation could be due to the fact that villages typically have less taxable property value, meaning they would need a higher levy to get the dollars needed for more improvement.

Below is a map of communities in Southeastern Michigan that levy a road tax, along with lists to show what communities are making additional investments into their road infrastructure.

Southeastern Michigan County Roads Far Below Average

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In 2018 not one county in Southeastern Michigan had at least 25 percent of its road pavement deemed to be in “good” condition, according to the Southeastern Michigan Council of Government (SEMCOG). Rather, the pendulum swung the other way, with each county having at least 33 percent of its road pavement deemed to be in “poor” condition.

The ratings-“good,” “fair,” and “poor”-are determined according to the Pavement Surface Evaluation and Rating (PASER) system, which are linked to the Michigan Transportation Asset Management Council’s best practices. For roads to be deemed in “good” condition they must be new, or like new, and only require regular maintenance. Roads that are considered “fair” have some signs of aging and require preventative maintenance such as crack sealing and overlay, which will extend the life of the road. “Poor” condition roads require some type of rehabilitation or reconstruction and are near the end of their life.

Regionally, St. Clair County has the largest percentage of road pavement deemed to be in “poor” condition at 54 percent. Oakland County has the next largest percentage of road pavement in “poor” condition at 49 percent. Monroe County has the lowest percentage of roads deemed to be in “poor” condition at 33 percent.

With Monroe County having the lowest percentage of roads in “poor” condition it also has the highest percentage of roads in “good” condition at 36 percent. Wayne County has the lowest percentage of roads in “good” condition at 15 percent. In addition to Wayne, Oakland and St. Clair counties have less than 20 percent of its road pavement in “good” condition (16 and 17 percent, respectively).


In the “fair” condition category, Wayne County has the highest percentage of roads in that condition at 39 percent. Washtenaw County has the lowest percentage of “fair” condition roads at 28 percent.

By now, it is common knowledge that Michigan’s roads need attention, and the funding to ensure the reconstruction and general maintenance of the roads needs to change from its current structure. Gov. Gretchen Whitmer recently proposed a 45 cent fuel tax hike, which is said to increase state road funding by $2.5 billion by 2021. Under this plan, the distribution of road funds (which is determined by Public Act 51) would slightly differ. Each county would still receive its normal share of the state’s current 26.3 cent per-gallon gas tax, but the additional gas tax increase would be distributed based on the use of roadways.  Currently in Michigan, counties receive 56 percent of their funding from vehicle fees, 24 percent based on the miles of county roads and the remaining 20 percent is based on other factors.

Whether Whitmer’s plan will be adopted remains in the air, but there seems to be general agreement that more funding is needed to fix the roads.