Search
Close this search box.

Chamber in the News

Find value in these articles?

Join the Michigan Chamber and get them sent directly to you.

The Governor’s Veto Pen Is Getting a Workout, but Is Gas Tax Relief Still Alive?

Advocacy News – March 22, 2022

Late last week, Governor Whitmer vetoed a measure that would have provided a $2.5 billion tax cut for Michigan families and seniors and hinted that another bill, which would suspend the state’s gas tax to provide Michiganders relief at the pump, would also be vetoed in the coming days.

Senate Bill 768 would have provided an individual income tax rate rollback from 4.25 percent to 3.9 percent and a $500 tax credit for qualified dependents. The bill also included a taxable income exemption for Michigan seniors for up to $20,000 if filing individually and $40,000 if filing jointly. The Governor’s veto letter indicated she was sending proposal back to the legislature because it would “blow a recurring, multi-billion dollar hole in basic state government functions.”

Whitmer’s veto letter for SB 768 warned Michigan legislators that their recently passed gas tax elimination (House Bill 5570) would endure the same fate. The bill would eliminate the state’s 27 cent gas tax until October 1, 2022.  It was passed on the heels of Governor Whitmer’s calls to the U.S. House of Representatives to pass federal legislation to eliminate the 18-cent federal gas tax for the remainder of 2022.  The federal proposal comes with a $20 billion price tag.

Given the state’s revenue surplus, all hope is not lost for tax relief at the pump and possibly more general tax relief. In a separate statement last week, the Governor encouraged the elimination of the six percent sales tax on gas to curb the current effects of high gas prices. The Governor’s announcement comes a day after Senators Aric Nesbitt and Tom Barrett introduced Senate Bills 972 and 973 doing just that. Those bills, currently sitting in the Senate Committee on Transportation and Infrastructure, are likely to be heard for testimony in the coming weeks. It would appear this solution could be bipartisan as it was first floated by Democratic Minority Floor Leader, Jim Ananich.

To read the Governor’s veto letter of SB 768, click here.

For more information or questions, please contact Leah Robinson at lrobinson@michamber.com.