Gov. Gretchen Whitmer’s proposed budget will have a 45-cent-per-gallon fuel tax increase.
She will outline her proposal to lawmakers in Lansing.
The 45-cent gas tax increase would be phased in over three separate intervals, beginning in October. The tax would rise again in April 2020 and be fully phased in by October of 2020.
The fuel tax plan would generate more than $2 billion a year.
It would also give Michigan one of the highest fuel tax rates in the country. Motorists pay a 26.3-cent-per-gallon state gas tax. Michigan also applies its 6 percent sales tax to fuel purchases but that money doesn’t go to roads.
It’s not clear if Whitmer will attempt to exempt fuel from the state sales tax.
Republicans are talking about tying reform of auto insurance to any gas tax increase.