On May 26, the Michigan State Senate passed a four-bill package, spearheaded by Republicans, to suspend the gas tax and 6 percent sales tax on motor fuel from June 15, 2022, until September 15, 2022.
Under the bill that would suspend the state’s gasoline tax, a substitute was adopted that would offset the revenue losses from this tax cut for local governments, providing a $300 million appropriation from the General Fund.
Senate Bills 972, 973, and 974, passed the chamber with strong bipartisan support by a vote of 36-1. The gasoline tax bill, which provided the $300 million appropriation, passed 30-7.
Previously, Governor Gretchen Whitmer vetoed a piece of gas tax suspension legislation, but with respect to this new package of bills, Whitmer was “encouraged” and her spokespeople have indicated the administration is working with the legislature to find common ground on the issue.