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Senate Approves Gas Tax Suspension

May 27, 2022

Michigan’s tax on gasoline and diesel fuel would be suspended for three months under legislation passed by the Senate this week. Currently, Michigan imposes a 27.2 cents per gallon excise tax on gasoline and diesel fuel, and the price of both fuels are subject to the state’s 6% sales and use taxes. The bill introduced by Senator Roger Victory (R-Georgetown Twp) creates a tax holiday from June 15 to September 15 and provides $300 million for local governments to cover revenue lost during the gas tax holiday. Additional bills would suspend the state’s 6% sales and use taxes on motor fuel for the same time period. The bills will be sent to the House for consideration.

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