MI Lawmakers Approve Freezing Gas Tax, Whitmer Likely To Veto

Detroit MI

15 March, 2022

2:15 PM

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MICHIGAN — Michigan's lawmakers voted Tuesday in favor to suspend the state's 27 cents per gallon gas tax for six months. But Gov. Gretchen Whitmer is expected to veto that measure. Although Whitmer supports suspending the federal measure, she indicated during a Friday news conference she will veto the package, saying legislation should focus on helping people who "are struggling to keep their head above water." Instead, Whitmer called on state lawmakers to start negotiations on permanent, targeted state income tax deductions and credits for retirees and lower-wage earners. Gas taxes also largely fund repairs for state roads, something Whitmer promised to do as governor. While the federal measure has a plan to supplement the lost tax revenue by using general funds, Democrats argued the Republican-sponsored bill to freeze the gas tax does not make up for the lost revenue, which was estimated to cost about $725 million. Republicans said the bill would use federal dollars to replenish the lost revenue, referring to the state's budget, but Democrats said the bill doesn't promise that provision. The Republican-led Senate approved the measure 24-14 on mostly party lines. The measure previously passed the House on Wednesday. The average price of a gallon of gas in Michigan on Tuesday was $4.23. Metro Detroit still remains among the most expensive areas in the state for gas, with an average price per-gallon of $4.24. The Associated Press contributed to this report.