Whitmer: Proposes a Temporary Freeze on the 6% Gasoline Sales Tax | Latest Update!

LANSING, Mich. (AP) — Gov. Gretchen Whitmer recommended temporarily freezing Michigan’s 6% sales tax on gasoline and diesel fuel on Friday to reduce high pump prices while maintaining road and bridge financing.

The Democratic governor announced as she told legislators that she will veto Republicans’ proposal to suspend a different tax at the pump — the 27.2-cents-per-gallon gas and diesel charge — for six months.

“A short-term pause is a fiscally responsible action we can take that will provide drivers with 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,” said Whitmer, who has also urged Congress to freeze the federal 18.4-cents-per-gallon gas tax and the 24.4-cent diesel tax.

“While I am open to talking on alternate options,” the statement stated, “I will not support legislation that jeopardizes road repairs, construction employment, or financing for local schools.”

The governor made no mention of how long the fuel sales tax should be suspended.

Leaders from both parties in the Republican-controlled Senate are open to repealing or suspending the fuel tax. Republican House Speaker Jason Wentworth, however, is not on board, claiming that motorists would save more if the per-gallon tax were repealed, especially as gas prices decline.

_Michigan & Lansing & Whitmer Proposes a Temporary Freeze on the 6% Gasoline Sales Tax (1) (1)

Whitmer: Proposes a Temporary Freeze on the 6% Gasoline Sales Tax | Latest Update!

The majority of the sales taxes collected at the pump go to schools and municipalities. If a settlement is reached, Whitmer has hinted that school money may be protected.

According to AAA Michigan, the statewide average price of a gallon of normal unleaded gas was around $4.18, down from a record high of $4.26 just over a week ago. It had risen from $3.37 a month before.

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Legislation to freeze the per-gallon tax from April through September received final approval earlier this week but has yet to be transmitted to the governor. Senate Democrats voted against making the law effective immediately. That means it won’t become law until 2023, at which point it may be irrelevant.

“On this topic, the governor isn’t just a day late and a dollar short. “She’s weeks late and millions of dollars short,” Republican Senate Majority Leader Mike Shirkey said in a statement, accusing her of being “absent” on the topic of gas prices other than mailing a letter to congressional leaders. “Now she’s proposing a half-measure that won’t save as many drivers like the one we already enacted.”

Read More:- Governor Gretchen Whitmer of Michigan Supports a Pause on the Gas Sales Tax | Latest Update!

According to the nonpartisan Senate Fiscal Agency, Michigan drivers buy 557 gallons of gas each year on average. They pay $151 in state per-gallon taxes and $125 in sales taxes at the pump, based on current prices.

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