Skip to content

Senate approves Victory’s gas tax suspension bill

LANSING, Mich. — The Michigan Senate on Thursday approved Sen. Roger Victory’s legislation to suspend the state’s tax on gasoline and diesel fuels for three months to provide relief to Michigan drivers.

“While state government is seeing historic budget surpluses, Michigan family budgets are being stretched thin as the good people of our state struggle with increased costs due to high inflation and record-high gas and diesel prices,” said Victory, R-Hudsonville. “This gas tax relief package would provide over $800 million in critical relief to virtually everyone in Michigan — including families and workers trying to make ends meet, businesses facing higher transportation costs, farmers growing the food we need to feed our families, and tourists and vacationing families who support Michigan’s tourism industry.

“We can responsibly afford to cover the state’s expenses using the surplus while helping Michiganders who are suffering under the increased cost of living. I hope our governor will join with us this time to provide the hardworking folks of Michigan this important and immediate relief.”

The state of Michigan currently imposes a 27.2 cents per gallon excise tax on gasoline and diesel fuel, and the price of both fuels are subject to Michigan’s 6% sales and use taxes.

Senate Bill 1029 would suspend the state’s excise tax on gasoline and diesel fuel from June 15 to Sept. 15. It would also provide $300 million for local governments to cover revenue lost during the gas tax pause.

SBs 972-974 would suspend the state’s 6% sales and use taxes on motor fuel for the same time period.

According to AAA, on May 19, the average price per gallon for regular gasoline in Michigan was $4.58 and the average diesel price was $5.27.

Both prices are the highest recorded average prices in state history.

Victory said officials at the May Consensus Revenue Estimating Conference on Friday revised state revenue projections up nearly $3 billion for the current fiscal year and up over $2 billion for next year. That is $5 billion more than the previous surplus estimate.

The bills have been sent to the House of Representatives for consideration.

###

Editor’s note: Video of Victory’s Senate floor statement on the gas tax relief package will be available at https://www.SenatorRogerVictory.com/video/.