Michigan Republicans announce plan to suspend state gas tax for next 6 months

Michigan GOP pressures Whitmer to suspend state's gas tax

Lansing lawmakers are proposing a plan to suspend the state's gas tax-- which is among the highest in the country -- for the next six months.

LANSING, Mich. (FOX 2) - As the nation grips with steadily rising gas prices, and one day after Governor Gretchen Whitmer called to suspend the federal gas tax, Michigan Republicans are planning to pass legislation to suspend the state gas tax for six months.

House Speaker Jason Wentworth and Senate Majority Leader Mike Shirkey said they'd be sending legislation to Whitmer that would suspend the gas tax of 27 cents per gallon.

When you buy a gallon of gasoline, here's how the cost breaks down. There are three taxes: state gas tax, state sales tax, and federal gas tax.

The state gas tax is 27 cents, the state sales tax is 22 cents, and the federal gas tax is 18 cents.

So, for one gallon of gasoline at $4.17 per gallon (Tuesday's average in Michigan), you're paying $0.67 is taxes alone.

If the Michigan Republicans get their way, it would suspend the 27 cents per gallon tax for at least six months.

The gas tax of 27.2 cents (rounded down to 27) went into effect on January 1 and is ten cents more than it was a year ago.

Back in 2015, then-Gov. Rick Snyder signed a law into place that's supposed to help fix the state's roads by boosting funding. Included in the deal was a gas tax increase of 7.3 centers per gallon and a hike in the annual vehicle registration tax.

The annual increase in 2022 is determined based on inflation but can only be increased by 5%, regardless of inflation. As 2021 wound to a close, the United States Department of Labor released data and the state was able to determine that the new rate would increase 3.3%.

Understanding the gas tax and how dropping the federal tax could help ease the pain

The price of gas is higher than we've ever experienced but how do our taxes factor into it? We broke down the math to better understand it - and learn how dropping the federal tax could really make a difference.

The call for a suspension comes just one day after Whitmer called on the federal government to suspend the gas tax as well.

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On Tuesday, she joined other governors from Wisconsin, Pennsylvania, Colorado, Minnesota, and New Mexico in a letter addressed to Congressional leadership about temporarily lifting the federal tax.

The moves follow rising pressure on gas prices that have pushed costs for fuel to their highest ever levels in the U.S. They surpassed $4 in Michigan on Tuesday.

"This is a serious situation that requires more than letter writing and the magnanimous gesture of asking someone else to foot the bill," said Shirkey (R-Clarklake) in a statement. "Six in 10 Michiganders are living paycheck-to-paycheck, struggling to feed their families, heat their homes and put enough gas in their cars to get to work. Republicans in the Legislature will again vote to help residents keep more of what they earn, but we need the governor to lead instead of abdicating her responsibilities to Washington."

Republicans plan to vote on bills in the state House on Wednesday. The Senate would vote on the bill next week, a release from GOP leadership said.

What state has the highest gas tax?

In 2021, at a total of just over 45 cents combined per gallon, Michigan's gas tax was among the highest in the country at number 9, according to kiplinger.

New Yorkers pay 48 cents per gallon, Washington pays 49 cents, Indiana pays 49 cents, Nevada is at 50 cents, Hawaii is 51 cents, Pennsylvania pays 58 cents, Illinois is at 59 cents, and California is still the highest at 68 cents per gallon.

Even with this year's tax increase in Michigan, we'd still be in the top 10 but far from the highest in the country.

Michigan Consumer Gas Prices