LANSING, Mich. — Sen. Ruth Johnson 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.
“The Biden administration’s policies are causing 40-year high inflation that is causing prices to soar at the grocery store and at the gas pump,” said Johnson, R-Holly. “This package will give Michigan motorists much-needed relief as they travel this summer and will help to ease the pain at the pump for struggling families.”
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.
The bills have been sent to the House of Representatives for consideration.