The main and largest revenue source for the OCRC comes from the State of Michigan through Public Act 51 of 1951.
Michigan PA 51 guides the State in the collection and disbursement of the fuel tax, vehicle registration, and vehicle weight taxes that are deposited in the Michigan Transportation Fund (MTF). The funds the OCRC receives from the MTF are primarily utilized to maintain the county’s state-certified road system.
PA 51 further defines how funds are distributed to and spent by road agencies, and classifies them as either Primary Roads — higher traffic volume roadways that balance mobility and land access — or Local Roads, lower traffic volume roads that provide limited mobility, and provide access to residential areas, businesses, and farms.Other sources of road funding include Countywide Millage, Township Contributions, and Federal Grants.
Understanding the State’s Gas Tax
Each time you purchase gasoline in Michigan, you’re paying a couple of road-user fees as well: the 28.6-cent-per-gallon state gas tax, and the 18.4-cent-per-gallon federal fuel tax. Whether gas costs $2 per gallon or $4 per gallon, the amount collected for those two taxes remains the same.
You also pay the Michigan 6 percent sales tax. If gas were to cost $3.50 per gallon, that would amount to another 21 cents per gallon in taxes.
The Michigan Transportation Fund (MTF) receives the gas tax, vehicle registration and various other fees and distributes the revenue through a formula in ACT 51 of 1951 to MDOT, Cities and Villages, and County Road Agencies.