Michigan Taxes on Fuel Are Fifth Highest in the Nation
Governor Gretchen Whitmer will propose in her Tuesday budget a 45 cent per gallon increase in the fuel tax, phased in over a one year period, to raise more than $2 billion to fix the state's crumbling roads.
According to the Detroit Free Press, when fully implemented, the proposed tax hike would increase the cost of a 15 gallon fill-up by about $6.75.
The Senate Fiscal Agency estimates each one cent increase in the fuel tax would raise about $46 million annually to fix roads. So a 45 cent hike would raise close to $2.1 billion for roads.
A spokeswoman for Governor Whitmer, said the first 15 cent increase would take effect Oct. 1, with another 15 cent hike on April 1, 2020, and the third increase on Oct. 1, 2020.