Michigan gas taxes increase

By RALPH ANSAMI

[email protected]

At the same time gas prices are on the rise, an increase in Michigan gas taxes went into effect on Sunday.

Michigan rang in the new year with hikes at the gas pumps as drivers are paying 7.3 cents more per gallon in gasoline taxes because of a package of transportation-related tax hikes signed into law in 2015 by Gov. Rick Snyder. Truckers pay an additional 11.3 cents per gallon for diesel fuel tax.

Most of the increases are slated for road repairs.

Michigan motorists previously paid a gasoline tax of 49.98 cents per gallon, counting state and federal taxes, above the national average of 48.08 cents per gallon.

The previous state tax on gasoline was 19 cents per gallon, but it increased to 26.3 cents per gallon on Jan. 1. The diesel tax was 15 cents per gallon before the 11.3-cent increase.

Vehicle registration taxes paid to renew license plates go up 20 percent on most vehicles, payable when current tabs expire on the owner's birthday.

A new surcharge on electric vehicle registrations also began Sunday. The rate is $30 per year for hybrid vehicles and $100 per year on pure electric cars like Teslas and Chevy Volts, whose owners pay no gas tax.

Meanwhile, the price of gas continued to rise on the Gogebic Range over the weekend. On Saturday and Sunday, a gallon costs $2.39 in Hurley, up from around $2 earlier this month. Gas was selling for $2.44 in Ironwood on Saturday and that price held through to New Year's Day morning.

Gas prices in Houghton were comparable to the Gogebic Range, spanning from $2.37 to $2.44.

The average cost of a gallon of gas in Wisconsin Saturday was $2.35, compared to Michigan's $2.36.

The national average was $2.33, compared to under $2 a gallon a year ago.

In an analysis for gasbuddy.com, Patrick DeHaan said it's unlikely there will be low gas prices for the rest of the winter, but they will go down in many areas of the country by mid-January.