LANSING, Mich. — Sen. Mark Huizenga on Thursday voted to suspend the state’s excise, sales and use taxes on gasoline and diesel fuels for three months to provide relief to Michigan drivers.
“This package is about once again acting to use part of our state’s record surplus to help Michigan families and workers struggling with runaway inflation and record-high gas prices,” said Huizenga, R-Walker. “This summertime pause on the taxes people pay at the gas pump will provide much-needed relief to drivers at a critical time for Michigan’s economy — especially the millions of workers in our agriculture and tourism.
“We can do this and still meet our needs. State officials just recently increased our state’s budget surplus estimate by $5 billion, and the hardworking people of our state need some relief more than they need more government spending.”
The state of Michigan currently imposes a 27.2 cents per gallon excise tax on gasoline and diesel fuel, and the price of both fuels are subject to Michigan’s 6% sales and use taxes.
Senate Bill 1029 would suspend the state’s excise tax on gasoline and diesel fuel from June 15 to Sept. 15. It would also provide $300 million for local governments to cover revenue lost during the gas tax pause.
SBs 972-974 would suspend the state’s 6% sales and use taxes on motor fuel for the same time period.
According to AAA, on May 19, the average price per gallon for regular gasoline in Michigan was $4.58 and the average diesel price was $5.27.
Both prices are the highest recorded average prices in state history.
Officials at the Consensus Revenue Estimating Conference on May 20 revised state revenue projections up nearly $3 billion for the current fiscal year and up over $2 billion for next year. That is $5 billion more than the previous surplus estimate.
The bills have been sent to the House of Representatives for consideration.