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Michigan Senators Looking to Increase Gas Tax even more

Getty Images By: Kevork Djansezian

Michigan Senators are saying that they are under pressure to fix our roads and bridges and because of that they are considering to significantly increase Michigan’s gasoline taxes even faster than the legislation the House just passed.

The House just passed a bill that would gradually increase our state gas tax from 19 cents a gallon to as high as 32 1/2 cents a gallon.  Because the House tax increase could rise by no more than approximately a penny a year the Senate is concerned it would not raise enough taxes fast enough to repair Michigan’s infrastructure.

The House bill would tax gasoline at 6% of the wholesale price while keeping the current 19 cents a gallon tax in place.  If gasoline prices rise each year the new tax could rise by whatever is less, 1 cent, 5% or the annual change in highway construction cost.

People are concerned that it could take decades before Michigan reaches the 32 1/2 cent ceiling.

How much can the taxpayers of Michigan take?  Roads do need to be fixed though.

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