How do Michigan Gas taxes really compare?
Due to the way Michigan taxes gasoline they have one of the highest gas taxes in the nation.
There have been reports that Michigan does not tax gasoline as
much as many other states but these are NOT
telling the WHOLE truth. These reports are focusing
on the excise portion of the gas tax. However, Michigan not only
applies 26.3 cents per gallon excise tax but
MICHIGAN ALSO CHARGES 6% sales
tax on Gasoline. The 6% is applied
to the sell price of the gasoline after the federal 18.4 cent
excise tax is added on.
As of June 2017, Michigan has the 5th highest overall gas tax
in the nation! So why aren't our roads better.
Because much of the tax collected on gasoline does not go to the
roads but is diverted to fund other things. So next time
they say the money is all going to roads - don't believe
it. If we did put all the money collected into the roads
we would have some mighty nice roads.
Here is a link to the American Petroleum Institute Summary on
Ever wonder why OHIO gas is cheaper? Lets compare. All data
as of June 2017.
In Michigan the sales tax is applied to the actual sales cost + Federal Tax. So Michigan not only is taxing gasoline for non-road use (the sales tax revenue goes to the general fund - not roads) but also is taxing a tax.