Paul Egan and Kathleen Gray, Detroit Free Press

LANSING – Michigan voters will be asked in May to approve increasing the sales tax from 6% to 7% to raise more than $1 billion a year to fix Michigan's crumbling roads and bridges, under a deal announced today by Gov. Rick Snyder and legislative leaders from both parties.

As reported this morning by the Free Press, the deal announced today will require a two-thirds vote in each chamber of the Legislature, expected later today on the last day of the lame duck session, in order to get the question on the May ballot.

That vote could still be a challenge in the Republican-controlled Legislature.

"Nobody likes our roads," Snyder said at a news conference today. ""We're seeing significant damage to people's vehicles ... and we needed to come up with a solution."

The deal calls for:

Raising $1.3 billion, with $1.2 billion a year going to roads and about $112 million going to transit.

Removal of the sales tax from fuel sales.

Increases in fuel taxes that Snyder said will result in about a 3-cent a gallon increase from the average fuel price in 2013.

Increases of $45 million in vehicle registration fees and $50 million in fees for heavy trucks.

Restoration of the Earned Income Tax Credit, which was slashed in 2011, to its full 20% of the federal EITC level.

Protection of funding for schools and local governments, which receive much of the money that was formerly raised from the sales tax on fuel sales. Officials said the plan would actually increase school funding by $300 million a year.

Each chamber of the Legislature will be asked to take an up or down vote on the package, with no amendments permitted.

The last-minute deal was announced after legislative leaders and Snyder went back behind closed doors at the Capitol this morning. Several days of talks -- capping an effort that has been under way in earnest since spring -- wrapped up late Wednesday night and resumed at 8 a.m. this morning in Snyder's Capitol office.

Negotiators met for about 45 minutes this morning before taking a break until 11 a.m.

Meeting with Snyder were Senate Majority Leader Randy Richardville; Senate Minority Leader Gretchen Whitmer; House Speaker Jase Bolger, and House Minority Leader Tim Greimel, D-Auburn Hills.

The Senate had earlier passed a plan that would raise $1.2 billion by roughly doubling state fuel taxes. The House then passed a plan that would raise the same amount by gradually removing the 6% sales tax from fuel sales while at the same time increasing the fuel tax to keep pump prices constant.

Contact Paul Egan: 517-372-8660 or pegan@freepress.com. Follow him on Twitter @paulegan4.