MI Senate Votes To Suspend Gas Tax

gaspump

The Michigan Senate this week voted to suspend the state’s gas tax to help drivers deal with the high costs they’re facing at the pump. Among those voting to eliminate the sales, excise, and use taxes on regular and diesel fuels were state Senators Kim LaSata and Aric Nesbitt. They say the state currently imposes a 27.2 cents per gallon excise tax on gasoline and diesel fuel, and the price of both fuels are also subject to Michigan’s 6% sales and use taxes. Senate Bill 1029 would suspend the state’s tax on fuel from June 15 to September 15. It would also provide $300 million for local governments to cover the revenue lost during the gas tax suspension. In addition, the sales tax would be dropped from fuel for the same period under a companion bill. LaSata says, “Responsible budgeting and use of taxpayer dollars have put us in a position to be able to afford this and help offset the sky-high costs at the pump.” Both bills have now been sent on to the Michigan House.