Sen. Zorn supports gas tax suspension package

LANSING, Mich. — Sen. Dale Zorn on Thursday voted to suspend the state’s excise, sales and use taxes on gasoline and diesel fuels for three months to provide relief to Michigan drivers.

“This plan would give important relief to Michigan families who are dealing with high inflation and gas prices that have skyrocketed to record levels — making it harder for many of them to make ends meet,” said Zorn, R-Onsted. “While many Michigan residents are struggling with everyday costs, our state is seeing a historic surplus — that was recently estimated to be $5 billion more than projected four months ago. This is affordable, responsible and the right thing to do.”

The state of Michigan currently imposes a 27.2 cents per gallon excise tax on gasoline and diesel fuel, and the price of both fuels are subject to Michigan’s 6% sales and use taxes.

Senate Bill 1029 would suspend the state’s excise tax on gasoline and diesel fuel from June 15 to Sept. 15. It would also provide $300 million for local governments to cover revenue lost during the gas tax pause.

SBs 972-974 would suspend the state’s 6% sales and use taxes on motor fuel for the same time period.

According to AAA, on May 19, the average price per gallon for regular gasoline in Michigan was $4.58 and the average diesel price was $5.27.

Both prices are the highest recorded average prices in state history.

Officials at the Consensus Revenue Estimating Conference on May 20 revised state revenue projections up nearly $3 billion for the current fiscal year and up over $2 billion for next year. That is $5 billion more than the previous surplus estimate.

The bills have been sent to the House of Representatives for consideration

###