Michigan fuel taxes would fall if gasoline reaches $5

Motor fuel taxes would fall to zero for three months if the statewide average gasoline price reaches $5 per gallon before December 31, 2026. The zero rate would cover motor fuel and alternative fuel, including the alternative fuels taxed by gallon equivalent. The tax could be reduced only once. If reduced, the state would replace the lost transportation money from its budget stabilization fund. Sellers and others must pass the reduction on to end users. The bill would take effect only if House Bill 6146 is enacted into law. The three-month reduction would start on the date gasoline reaches $5 per gallon, if that happens before December 31, 2026.