LANSING, Mich. — Sen. Michael D. MacDonald 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.
“Since Congress and our representatives in Washington, D.C., won’t act, we’re once again passing legislation to help Michigan families, workers and small businesses facing out-of-control inflation and record high prices at the gas pump,” said MacDonald, R-Macomb Township. “We can provide this relief and still support our communities, educate our kids and improve our state. State officials last week estimated that our state budget surplus will be $5 billion more than we thought just four months ago. We should use at least some of these extra resources to reduce costs on Macomb County families struggling to make ends meet.”
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.