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1. How much money does a penny of gas tax generate in Michigan, and for Oakland County?

 One Penny (Gas & Diesel) = $54.5 Million statewide (Gas tax only = $47 Million).

For MDOT, one penny of gas tax generates $17 million.

In Oakland County, one penny of gas tax generates approximately $1.8 million for RCOC and $1.3 million for Oakland’s 40 Cities and Villages.

Gas Tax Graphic

Roads in Oakland County brochure.

2. Are all of our taxes going to fixing the roads?

 We are all sensitive to the amount of taxes we pay, and some are downright upset. Statements similar to the following are frequently heard: “I pay all these taxes; why can’t I get my roads fixed?” Read more about where the money goes. 

3. Doesn’t all the development taking place in Oakland County mean lots of new money for roads?

 No. New development generates new tax revenue in three ways: New property taxes from the increased property value; new sales tax from increased commerce; and new income tax from new jobs. None of those taxes are used to fund roads in Michigan. The primary sources of road funds in Michigan are the gas tax and vehicle registration fees. 

4. How are federal funds distributed in Oakland County?

All the federal road funds are allocated to the Oakland County Federal Aid Funding Committee. The Road Commission and all cities and villages in the county submit projects to the Funding Committee. The Committee objectively evaluates all the projects and determines which one should receive funding.  

5. Statistics indicate that we’ve all been driving more. Doesn’t that mean more gas tax revenue?

 No. Because cars are continuously becoming more fuel-efficient, we're able to drive further on less gas. That means we're putting more wear and tear on Michigan roads and paying less to maintain them. The Motor and Equipment Manufacturers Association estimates gasoline consumption is up 5% since 1978, while we're driving 56% more miles! 

6. How are road funds divided between the state and local road agencies?

 State fuel tax and vehicle registration fee revenues are collected in a single "pot" known as the Michigan Transportation Fund. After money is taken off the top for a number of items including the Bridge Fund and Mass Transit, the remaining money is divided between the Michigan Department of Transportation, county road commissions and cities and villages according to a formula established by the state Legislature.

The formula calls for 39.1% of the money to go to MDOT (which has jurisdiction over 8% of Michigan's roads), 39.1% to go to county road commissions (which have jurisdiction over 75% of Michigan's roads) and 21.8% to go to cities and villages (which have jurisdiction over 17% of Michigan's roads).