Aug 30, 2024 - News
Charted: Gas tax revenue
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Michigan pulls in a lot of money from its $0.30-per-gallon gas tax, but policymakers are concerned that will change with the transition to electric vehicles.
Why it matters: The gas tax helps pay for the state's road repairs.
State of play: Michigan Democratic lawmakers this year sought $5 million to study the replacement of the tax with a mileage-based road usage fee, Bridge Michigan reports.
- The appropriation was removed because MDOT applied for a federal grant for the study. The application is pending, an MDOT spokesperson told Axios yesterday.
By the numbers: Michigan drew $1.4 billion from the gas tax in 2019. It also drew:
- $1.28 billion in 2020
- $1.39 billion in 2021
- $1.45 billion in 2022
- $1.6 billion last year.
The bottom line: Studying a potential gas tax replacement could last until 2030, Crain's reports.