Michigan’s Lawmakers File Bill to Cut Gas Tax
Current taxes rank among the highest in the nation
On March 9, the Michigan House of Representatives passed a bill which would suspend state gas taxes for six months with bipartisan support. The moratorium is estimated to save Michigan drivers $750 million.
The bill was sponsored by Representative Ken Borton, R-Gaylord. “As Northern Michigan drivers fill their gas tanks, the outrageous prices drain their bank accounts,” He said. “We’re putting the brakes on speeding prices by stopping the gas tax for six months. Families will have to pump out less money under our cost-cutting plan.”
Gov. Whitmer has joined a coalition with Democrat governors from five other states asking Congress to suspend that federal gas tax. When paired with excessive gas taxes in the state, Michiganders are currently paying 83 cents more per gallon than they were this time last year. A cut to state taxes would provide even more relief to record-high inflation.
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.
Gov. Whitmer, who proposed tripling the state gas tax in 2019, shows no sign of halting or reducing gas taxes anytime soon. She is expected to veto this legislation.