EASTPOINTE, Mich. (WXYZ) — Michigan drivers will see changes at the gas pump starting January 1st when the state eliminates its 6% sales tax on gasoline and diesel fuel, replacing it with a higher per-gallon fuel tax to fund road and bridge projects.
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The state fuel tax rate will increase from 31 cents per gallon to 52 cents per gallon — a 21-cent increase. However, drivers should only see an increase of just over a penny per gallon at the pump due to the elimination of the sales tax.
"It's helping the overall consumer because the roads will be better and you're going to be paying about the same at the pump," said Jay Young, a gas and oil industry expert.
The tax revenue will go directly to future road and bridge projects across the state.
EXTENDED INTERVIEW: Gas and oil industry expert Jay Young on Michigan tax changes
Drivers had mixed reactions to the news of potential price increases at the pump.
"So they're taxing the taxpayer a little more? Of course they are," said Marquise Lee.
"Raising the prices wouldn't be good right now," said Maurice Knowles.
Gene Mansfield said his opinion depends on how the tax money is used.
"I mean, it just depends on what they would do with the taxes," Mansfield said.
Marie Wood supports the change as long as it actually improves Michigan's road conditions.
"It would be all right if they improved the road conditions here in Michigan," Wood said. "I've done had to replace my muffler two times because of the potholes, because they keep damaging it, and then flat tires and rims messed up, yeah. It would be alright as long as they fix the roads."
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