Gov. Whitmer ‘seriously looking’ at gas tax holiday

(The Center Square) – Gov. Gretchen Whitmer says she’s taking a “serious look” at the three-month gas tax holiday passed by the GOP-dominated state Senate.

Average gas prices statewide eclipsed $4.70 per gallon this week.

Whitmer told reporters at the Mackinac Policy Conference that she supports suspending the 6% sales tax but has rejected pausing the state’s 27.2-cents-a-gallon gasoline and diesel tax because the loss of income could hinder her plans to “fix the damn roads.”

If signed into law by 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.

Partisan politics have blocked road funding. For example, in 2019, Whitmer vetoed $375 million in road funding because it flowed from general fund money instead of a tax hike.

Only in March did Whitmer and the GOP agree to spend $316 million on road and bridge repair – or 6.6% of the $4.8 billion spending plan.

Whitmer failed in her push for a 45-cent-per-gallon gas tax increase, which the governor claimed would raise an estimated $2.5 billion. Whitmer is bonding for over $3.5 billion to finance fixing trunkline roads, which have been destroyed by Michigan weather, heavy traffic, and salt.

A recent study found that in 2020, Michigan collected $3.17 billion in fuel taxes and vehicle registration fees, but only $2.92 billion was distributed to fund state, county, city, or village roads. The report found that Michigan diverts 8% of its gas tax and vehicle registration revenue for purposes other than publicly accessible roads, and suggested lawmakers replace the gas tax with a mileage-based user fee program to compensate for improving vehicle fuel economy.

Two recent polls show that fixing the roads is still a top voter priority, as well as inflation, the economy, and infrastructure.

In November, voters will decide whether they want new lawmakers in the Legislature and in the positions of governor, attorney general, and secretary of state.

Meanwhile, Michigan is sitting on a $6 billion surplus.

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