Lawmakers Send Gas Tax Cut to Whitmer’s Desk
The cut was passed in legislation with bipartisan support
A cut to gas taxes that would give Michiganders a much-needed financial break has passed state legislature with bipartisan support and now heads to Gov. Whitmer’s desk.
The legislation passed by 24-14 with Democratic senators supporting the GOP-led initiative. The bill would cut Michigan’s state gas tax of 27 cents per gallon through the end of the fiscal year in September. The nonpartisan Senate Fiscal Agency told lawmakers this would save Michiganders approximately $750 million in taxes.
As of January 1, Michiganders were taxed 64.1 cents per gallon – the sixth-highest gas tax in the country. That included an increase from 26.3 to 27.7 cents per gallon in accordance with legislation passed in 2015 concerning inflation-adjusted tax rates on gasoline. The legislation is written in such a way that gas taxes will rise every year – either by 5% or the state’s rate of inflation, whichever is less. Michiganders are also subject to a 6% state sales tax on gasoline as well as the federal gas tax at 18.4 cents per gallon.