News, Culture and NPR for Central & Northern Michigan

Michigan Senate passes gas tax holiday bill

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A gas pump nozzle is seen at a Miami gas station in 2018. Some activist shareholders are pushing companies to tie executive compensation to meeting climate targets.
Joe Raedle

A split Michigan Senate approved a bill today suspending the state’s motor fuel tax for six months.

But critics say the move would irresponsibly take money away from Michigan’s road funds.

"It doesn’t affect services. It’s actually is more relief for families. And if we get the federal pause, which I hope we do and I hope we continue to push for it together as both Democrats and Republicans, we could have between $0.40-0.50 at the pump and I think that’s a much better way of going without having to put our road funding in jeopardy." said Senate Minority Leader, Jim Ananich.

Supporters of the bill say they’re reacting to the governor’s call to pause the federal gas tax in response to rising prices. She has strongly hinted she will veto the bill.

The state Senate failed to grant the bill immediate effect—meaning it wouldn’t go into place until next year.

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