Whitmer calls for suspension of Michigan sales tax on gas

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Posted at 3:41 PM, Mar 18, 2022
and last updated 2022-03-18 15:41:38-04

(WXYZ) — Michigan Governor Gretchen Whitmer is calling for a temporary pause on the state sales tax on gas.

She released the following statement Friday:

These are tough times, and Michiganders need relief. I’m ready to work across the aisle with the legislature to negotiate a bipartisan solution that cuts taxes and lowers costs for drivers, seniors, and working families.

We can start by pausing the sales tax on fuel. A short-term pause is a fiscally-responsible action we can take that will provide drivers relief at the pump right now – not next year – while also protecting funding for road repairs and saving tens of thousands of good-paying construction jobs. While I am open to negotiating on alternative proposals, I will not support legislation that jeopardizes road repairs, construction jobs, or funding for local schools.

Lowering prices at the pump is an important short-term action to put money in people’s pockets, but there is more we must do. My administration is already working to deliver $400 refund checks to every insured Michigan driver, calling on Congress to suspend the federal gas tax, and working to pass a budget that would repeal the retirement tax and triple a tax credit for 730,000 working families. Cutting taxes for seniors and working families will uplift over 1.2 million Michigan families in the long run, putting thousands back in their pockets so they are not as heavily impacted by price increases.

I look forward to meeting with Republican and Democratic leaders next week to negotiate on our shared priorities. I’ll work with anyone to help Michiganders get more for their money. Let’s get this done.

Governor Gretchen Whitmer

Whitmer does not go into detail on how long she would propose the eliminate the sales tax on gasoline.

Whitmer's statement comes amid a larger political battle ongoing in Lansing over eliminating the state's gas tax. The state legislature recently passed a bill that would eliminate the gas tax for 6 months.

Whitmer has said she would look at the bill, but she has also warned that eliminating the gas tax would affect funding for road repair projects.