Michigan Senators Take Steps Toward Gas-Tax Vacation

As residents of the Great Lakes State and out-of-state tourists prepare to inaugurate the 2022 outdoor vacation season, they’re being stymied by gasoline prices rising steadily toward the $5 per gallon range.

The Michigan Senate has passed a slate of bills designed to alleviate drivers’ pain at the pump. If signed into law by Gov. Gretchen Whitmer, the bills would save Michigan drivers between 40 cents to 50 cents a gallon by temporarily eliminating the state’s 6% sales tax and 27-cent-per-gallon excise tax.

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‘Gasoline Misery Index’ Details Direct Impact of Record-High Gas Prices

The “Gasoline Misery Index” from the Metro Business Daily Network details the direct impact record-high gas prices have had on consumers across the United States.

Since President Joe Biden took office, prices of gas and other goods and services have continued to increase, as many peaked after Russia’s invasion of Ukraine.

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Democrat Senators in Georgia, Michigan, Arizona Introduce Bill to Suspend Gas Tax

Mark Kelly, Debbie Stabenow and Raphael Warnock

In an effort led by Senator and Rev. Raphael Warnock (D-GA), several Democrat Senators in battleground states have signed on to a bill that would suspend the gas tax until 2023. 

The Gas Prices Relief Act would lower prices at the pump as gas prices rise to nearly a decade high in a crucial election season. 

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Michigan Diverts a Third of All Gas Tax Revenues Away from Road Repairs

Every U.S. state taxes fuel sales to fund road repairs.  

Fully half of them, however, divert a portion of those taxes for other purposes. And Michigan, with a gas-tax diversion rate (GTDR) of 33.9 percent, is ranked with New Jersey as the third highest GTDR in the nation. Only New York (37.5 percent) and Rhode Island (37.1 percent) have higher GTDRs.

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