Higher fuel, vehicle taxes ring in new year in Michigan

Posted at 2:29 PM, Dec 31, 2016
and last updated 2016-12-31 14:30:26-05

LANSING, Mich. (AP) — Michigan drivers will pay higher taxes at the pump and shell out more to renew their license plate.

The increased taxes, which Gov. Rick Snyder and lawmakers approved nearly 14 months ago to improve aging roads and bridges, take effect beginning Sunday. It is the state's first fuel tax hike in 20 years and the first major vehicle fee increase since 1983.

The gasoline tax of 19 cents a gallon will increase by 7.3 cents and the diesel tax of 15 cents a gallon will go up 11.3 cents. Vehicle registration fees will rise 20 percent.

Michigan will have the sixth-highest gas taxes in the country, up from 18th, according to the American Petroleum Institute.