Although the bill is now being sent to Democratic Gov. Whitmer, she last week said it would veto a bill backed by the Republican Party. Even if she signs the bill, the plan will not take effect until March 2023 – almost a year after the proposed date of entry into force of the gas tax easing. This is because legislative rules require the support of two-thirds to take effect immediately.
“Those who voted against immediate action are those … who will not be able to provide any immediate assistance to our drivers.” Senate Majority Leader Mike Shirkey, R-Clarkelake, told reporters on Tuesday.
Now the fight in the election year to reduce gas is turning to Whitmer’s request to the Biden administration for a waiver of the federal gas tax of 18.4 cents per gallon – as well as talks to suspend a 6 percent tax on gasoline sales.
The debate comes amid a shock of labels and anger over soaring gas prices across the country – a jump exacerbated by continued inflation and the US ban on Russian oil after Russia’s war with Ukraine.
Gas prices have been rising across the country for 11 weeks in a row. In Michigan alone, a gallon of gas rose to $ 4.32 $ 3.10 at the beginning of the year.
Michigan Senate Republican plan to suspend state gas taxes for a year would cost state about $ 770 million in revenue, including $ 725 million from the Michigan Transportation Fund and $ 45 million for the repair of state and local roads and bridges, according to a financial analysis by the House of Representatives.
Republican lawmakers say with a surplus of more than $ 7 billion in revenue, the state is able to bear the costs. Democrats agree that help is needed, but say funding for road repairs is also a priority.
As the tax holiday is likely to be over, both Republicans and Democrats on Tuesday expressed readiness to suspend or completely repeal the 6 percent tax on gasoline sales.
Michigan is one of seven states where motor fuel is subject to some or all of the total sales tax, according to the State National Legislative Conference.
Senate minority leader Jim Ananich, D-Flint, said he was considering a law suspending the gas sales tax by the end of the year.
Tax dollars raised from gas sales go to the state’s school aid fund and general fund, and Ananich last week told Bridge Michigan that taxpayers deserve a share of the “unexpected” revenue Michigan has collected.
In early 2022 fiscal year, the state expected to receive $ 621 million at a price of $ 2.84 per gallon, said Senate Democrat spokeswoman Rosie Jones.
This estimate is likely to increase significantly as gas prices rise.