Michigan gas tax, vehicle registration fees to increase on January 1

It's about to be more expensive to drive your own car in Michigan as gas taxes and vehicle registration fees will increase in the state, to help pay for Michigan's crumbling roads.

The state gas tax will go up 7.3 cents per gallon starting on Sunday while registration fees jump 20 percent for all cars and trucks.

The hikes were approved by state lawmakers in 2015 to help pay for a roads package. Gov. Rick Snyder signed it in to law later that year and said at the time that Michigan is making the largest investment in roads and bridges in more than a half-century.

The increases are expected to generate $450 million for construction and repairs to the state's crumbling highways, roads, and bridges.

The Republican-backed plan was opposed by many Democrats in Lansing who said it delays necessary spending, shifts too much existing revenue to roads, and includes tax cuts that will bring future budget ramifications.

The gas tax currently sits at 19 cents per gallon while diesel is 15 cents per gallon. Starting January 1, 2017, gas taxes will increase 7.3 cents and diesel will go up 11.3 cents. This is the first increase in fuel tax in 20 years.

Your vehicle registration will increase for the first time since 1983. That's when the state started basing registration taxes on list price instead of vehicle weight.


  • Popular

  • Recent

Stories you may be interested in - includes Advertiser Stories