Michigan Gas Tax, Vehicle Registration Fees To Increase In January

DETROIT (WWJ) - It's going to cost more to drive a vehicle in Michigan -- starting this weekend.

The state gas tax is increasing by seven-cents per gallon on Sunday. Vehicle registration fees will also jump by 20-percent for cars and trucks.

It's the first increase in decades in Michigan's fuel taxes and vehicle registration fees in an attempt to address the deteriorating highways, roads and bridges across the state.

The hikes are part of a roads package passed by state lawmakers and signed by Gov. Rick Snyder last year. The extra taxes and fees are expected to generate $450 million to be used for construction and repairs to deteriorating highways, roads and bridges across the state.

"This is the largest investment in transportation in Michigan in the last 50 years," Snyder said as he signed the bills in November. "Let's remember that and let's be proud of that."

The Details

When Michigan's tax and fee increases take effect in January 1, 2017, it will be the state's first fuel tax hike in 20 years and the first major vehicle fee hike since 1983, when the state switched from basing registration taxes on vehicle weight to list price.

The gasoline tax of 19 cents a gallon will increase by 7.3 cents and the diesel tax of 15 cents a gallon will go up 11.3 cents, with automatic annual inflationary adjustments in 2022 and after. Vehicle registration fees will rise 20 percent.