One of the principal reasons that I think this package is important is the bills—specifically Senate Bill No. 972 that is the next bill in this package that I sponsored—create a pause on the sales tax on gasoline. Michigan is one of the only states in the union that charges a sales tax on gasoline. We actually tax the tax through the sales tax, so we have other taxes that are rolled up and then we tax some of those in the Michigan sales tax. And as the cost of a gallon of gasoline increases, the amount of money that government recoups increases as well. So as working class families, middle class families, and small businesses are paying more in fuel, the government is actually getting richer by that action because the cost goes up and they recoup more as a percentage of that. That to me is something that we absolutely have to put a stop to.
These bills before us today do that and they will immediately lower the cost of a gallon of gasoline about 50 cents per gallon by the removal of the taxes assessed on gasoline in Michigan. So, gas today would be well below or right around $4 per gallon by today’s price and hopefully a little bit lower than that as prices fluctuate day-to-day, and a gallon of diesel fuel would be well below $5 per gallon. Still very, very high and still things we need to work on but things that can actually provide meaningful relief for the residents of our state. I ask that my colleagues vote “yes” on these bills.
Senator Ananich’s statement is as follows:
One of my mentors who served in this body along with the House and as budget director, Bob Emerson, once told me, If you don’t mind not taking credit, you can accomplish a lot in this town. And to my colleague from the 26th District, it might have taken you guys a few attempts but you finally landed where I started.
To the people of Michigan who are worried about the costs and feeling the pinch: we hear you. Inflation is high, budgets are tight, and the state has a responsibility to step in and help. That’s what we are doing today. Once we pass these bills and if they’re signed into law, there will be no state taxes on gas at all for the rest of the summer, so any overcharge is a result of the gas companies CEOs overcharging you. And I want to restate that, we’re seeing record profits in companies all across this country and prices still rising. If we take this step today and we still see rising prices, it is the CEOs of the gas companies doing this. And we should all—together—want to investigate that.
Today, we are doing everything we can, with our power as state officials, to lower prices at the pump for Michigan families. I want to recognize that there are some concerns from groups and programs across this state that are funded by these revenue streams—we pledge to work across the aisle and with the Governor to make sure no program is financially harmed.
As we learned from our state economists last week, Michigan has plenty of funds to cover the costs for all the programs that we hold dear, that help so many people while also helping folks who are feeling the pain at the pump. This is the right step to take today and we must continue the work of helping Michigan families cover their bills and stay afloat.
The following bill was read a third time:
Senate Bill No. 972, entitled
A bill to amend 1933 PA 167, entitled “General sales tax act,” by amending section 6a (MCL 205.56a), as amended by 2015 PA 264, and by adding section 4ii.
The question being on the passage of the bill,
The bill was passed, a majority of the members serving voting therefor, as follows: