LANSING – Gov. Gretchen Whitmer will propose in her Tuesday budget a 45-cent-per-gallon increase in the fuel tax — phased in over a one-year period — to raise more than $2 billion to fix the state’s crumbling roads, a spokeswoman said Monday.
Tiffany Brown, a spokeswoman for Whitmer, said the first 15-cent increase would take effect Oct. 1, with another 15-cent hike on April 1, 2020, and the third increase on Oct. 1, 2020.
When fully implemented, the proposed tax hike would increase the cost of a 15-gallon fillup by about $6.75.
Michigan’s fuel tax is currently 26.3 cents per gallon for both regular and diesel fuel.
The Senate Fiscal Agency estimates each one cent increase in the fuel tax would raise about $46 million annually to fix roads, so a 45-cent hike would raise close to $2.1 billion for roads.