Would You Vote To Raise Mich. Sales Tax If State Axes Gas Tax?

LANSING (WWJ) – Lawmakers in Lansing are tossing around the idea of eliminating the gas tax in Michigan in favor of raising the state’s sales tax.

“I was at a panel last [Wed.] night with Randy Richardville, the Senate Republican Leader, and they are thinking, please underscore thinking, they are thinking about putting on the ballot in August a sales tax proposal. It is a tax shift that would eliminate the 19 cent per gallon gas tax,” said WWJ Lansing Bureau Chief Tim Skubick.

It’s not as simple as it seems, however.

“They would increase the sales tax from six to seven percent, and then take that additional revenue and plunk that into the roads rather than the gas tax,” said Skubick.

Does that mean that gas in Michigan would go down 19 cents a gallon?

“Yes, but don’t get excited. The gas tax comes off the pump, but your going to pay more in the sales tax and that money will be going to the roads,” said Skubick.

The idea is conflicting lawmakers who know the roads are bad, but don’t want to force another tax hike in an election year.

“So, they can go home and say ‘You know what we did folks? We put this on the ballot in August for you guys to decide. Now, I may not vote for it, but what’s wrong with putting it on the ballot and then letting you decide whether you want to raise you own taxes to fix the roads,'” said Skubick.

It’s all part of reaching the $1.4 billion goal Gov. Rick Snyder set to fix the state’s transportation funding issues.

“So far, he’s got no votes to get there, and maybe if they put this on the ballot in August, he might be able to get a piece of that,” said Skubick.

MORE: Gov. Snyder Lays Out Transportation Plan

More from Tim Skubick
  • eva flowers

    Questions: currently with the gas tax, those moneys must go for the roads and cannot in any way be used elsewhere, is that correct? If, they shift the tax to sales tax, then the politicians and governement decide how much out of the sales tax proceeds they will use for roads? If that is the case, I am a bit wary of the shift. Too easy for the funds to be “diverted” to other uses based on the whims of politicians and their wealthy supporters.

  • johnboy6528


  • johnboy6528

    What difference does it make? we are getting the shaft either way , we have a governor who wants to tax people who are on a fixed income , gas is going through the roof , the idiot is in Germany , a trip we paid for , The roads are bad because we use cheap materials to fix or build them , i am surprised we don’t have a toll road or turnpike like Ohio. I say we RECALL SNYDER NOW!!

  • sandy

    First they must cut the weight limits on Michigan roads; we are twice the national weight limits of all states.
    Than go to the drawing board for raising road money.

    • Soumia

      If you both were buying the new home, you would qiluafy for the $6500 credit. Neither can qiluafy for the First-Time Homebuyer’s Credit since you have owned a home and you are married to each other.

  • Robi

    $15K tax creditfavorable lninedg termsthen, you could ask for favors from the seller that do not bear a direct monetary value Just find the right seller and it could be fun.Re: I do not call anyone dumb.Say that you make $100K/yr. You are a first time buyer. You will only get taxed on $85K. Put another way, your tax rate goes down by 15%.Granted, this program is associated more with anyone who buys a house now.

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